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11 June 2020
Milo Woman Sentenced for SNAP Fraud, Meth TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Milo, Missouri, woman has been sentenced in federal court for her role in a conspiracy to sell methamphetamine in exchange for Supplemental Nutrition Assistance Program (SNAP) benefits (commonly known as “food stamps”).
Melanie A. Person, 54, was sentenced by M. Douglas Harpool on Wednesday, June 10, to six years in federal prison without parole.
On Oct. 1, 2019, Person pleaded guilty to one count of conspiracy to commit wire fraud, one count of possessing methamphetamine with the intent to distribute, and one count of possessing a firearm in furtherance of a drug-trafficking crime.
Person admitted she and co-defendant Bobby G. Johnson, Jr., 54, of El Dorado Springs, Missouri, conspired to accept SNAP benefits in the form of electronic benefit transfer (EBT) cards and personal identification numbers (PIN) in exchange for methamphetamine. Johnson was sentenced on March 10, 2020, to 12 years in federal prison without parole after pleading guilty to the same charges.
Vernon County sheriff’s deputies executed a search warrant at Person’s residence on Aug. 7, 2018. In one bedroom, deputies found a Hi Point 9mm pistol in the top drawer of a dresser, 17 bags of methamphetamine in the bottom drawer of a dresser, a Wards Westernfield .22-caliber rifle in bedroom closet, and a clear bag that contained methamphetamine in the top drawer of another dresser. In another bedroom, deputies found a Savage Arms .220-caliber rifle and a box that contained approximately 750 rounds of ammunition. Deputies seized a total of 16.65 grams of methamphetamine from the residence.
Deputies also seized four SNAP EBT cards that were found in Person’s purse, which were issued to Johnson and three other persons. There were also receipts in Person’s purse from transactions completed using two additional SNAP EBT cards. Many of the transactions conducted with those SNAP EBT cards were at Walmart stores in Missouri, including the Walmart stores in Nevada and Raymore. Three of the individuals to whom those EBT cards were issued admitted that they exchanged their EBT cards and PINs for methamphetamine from Person.
This case was prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert and Assistant U.S. Attorney Byron H. Black. It was investigated by the U.S. Department of Agriculture, Office of Inspector General; the Vernon County, Mo., Sheriff’s Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Mexican Citizen Pleads Guilty to Re-Entry Charge, Sentenced to 20 Months in PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Pablo Vargas-Arriga, 41, a citizen of Mexico, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to re-entry of a previously removed alien and was sentenced to serve 20 months in prison.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that on June 16, 2019, Brockport Police Officers encountered the defendant while responding to a domestic call. U.S. Border Patrol Agents were then called to the residence. Vargas-Arriaga stated he was a citizen of Mexico and did not have documents that would allow him to be or remain in the United States legally. The defendant was subsequently charged by the Brockport Police Department with various offenses related to the domestic incident. In November 2019, further investigation determined that Vargas-Arriaga has no valid immigration status, has five previous criminal convictions, and was removed from the United States on five previous occasions.
The plea and sentencing are the result of an investigation by U.S. Border Patrol, under the direction of Patrol Agent-in-Charge Eduardo Payan, and the Brockport Police Department, under the direction of Chief Mark Cuzzupoli.
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Memphis Man Sentenced to over 10 Years for Possession of a Firearm in Furtherance of Drug TraffickingRead the Press Release
MEMPHIS, TN –Marcus Christian, 33, has been sentenced to 130 months imprisonment for possession of a firearm in furtherance of a drug trafficking crime. U.S. Attorney D. Michael Dunavant announced the sentencing today.
According to information presented in court, law enforcement received and developed information about a subject who works for a local Pizza Hut and sells marijuana and Percocet in Cordova. On December 3, 2018, law enforcement arranged an undercover buy at which time they observed Christian selling drugs to both the undercover law enforcement and several other individuals.
On December 5, 2018, Shelby County Sheriff’s deputies executed and served a search warrant at Christian’s residence and found a loaded stolen Sig Sauer .40 caliber pistol along with 9mm cartridges, marijuana, Suboxone strips and 98 Percocet pills. A small amount of marijuana was found in a satchel in the bedroom, for a total of 41 grams of marijuana and $6,672 in U.S. currency seized. The defendant gave a recorded statement to law enforcement admitting to being a drug dealer and owning the evidence collected from the house, including the firearm, ammunition, and controlled substances.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted an interstate nexus search on the .40 caliber Sig Sauer pistol and verified that the firearm was manufactured outside of the State of Tennessee, and therefore traveled in and affected interstate commerce. Prior to the December 5, 2018 arrest, the defendant had been convicted of multiple felony offenses and was therefore prohibited by federal law from possession of a firearm or ammunition.
On June 11, 2020, U.S. District Court Judge Sheryl H. Lipman sentenced Christian to 130 months imprisonment followed by 3 years supervised release.
U.S. Attorney D, Michael Dunavant said, "This defendant has a long criminal history of felony drug convictions, and was on felony probation when he was found in possession of a firearm in furtherance of drug trafficking. Mr. Christian has devoted his adult life to a career of repeated criminal conduct, and that prior history has finally caught up with him. This sentence removing him from the community for more than 10 years is well-deserved, and will make Memphis and West Tennessee a safer place."
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Shelby County Sheriff’s Office, and the Project Safe Neighborhoods (PSN) Task Force. The Project Safe Neighborhoods (PSN) initiative is 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. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Assistant U.S. Attorney Neal Oldham prosecuted this case on behalf of the government.
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Man from Santa Fe charged with stealing guns, vehicle and other government property in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Derek Padilla, 29, of Santa Fe, New Mexico appeared in federal court on June 10 on a criminal complaint charging him with theft of government property in Indian Country. A U.S. magistrate judge conducted a detention hearing and ordered him to remain in custody pending trial.
According to the criminal complaint, Padilla allegedly committed the offense in Santa Fe County on Nambe Pueblo. Sometime in May 2020, Padilla allegedly entered a Bureau of Indian Affairs storage compound and stole government property, including a government vehicle and firearms.
The Bureau of Indian Affairs arrested Padilla on June 4, 2020. He faces up to ten years in prison if convicted. Complaints are only allegations. A defendant is presumed innocent unless and until proven guilty.
The Bureau of Indian Affairs is investigating this case with assistance from New Mexico State Police, Santa Fe County Sheriff’s Office, Pojoaque Police Department, and Federal Protective Service. Assistant U.S. Attorney Allison C. Jaros is prosecuting the case.
Man from Porcupine Sentenced to Two Years in Prison for Abusive Sexual ContactRead the Press Release
United States Attorney Ron Parsons announced that a Porcupine, South Dakota, man convicted of Abusive Sexual Contact was sentenced by Jeffrey L. Viken, U.S. District Judge.
Julian Tail, age 22, was sentenced on June 5, 2020, to 2 years in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Tail was indicted by a federal grand jury in January 2019. The charge related to Tail engaging in sexual intercourse with a juvenile female over the course of a weekend in September 2018.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. Assistant U.S. Attorney Heather Sazama prosecuted the case.
Tail was immediately turned over to the custody of the U.S. Marshals Service.
Man Sentenced to Federal Prison for Attempting to Smuggle over $879,000 in U.S. Currency to MexicoRead the Press Release
In San Antonio today, a federal judge sentenced 22-year-old Juan Pablo Hoyos Avila, a Mexican national residing in San Antonio, to five years in federal prison for attempting to smuggle more than $879,000 in alleged drug proceeds to Mexico, announced U.S. Attorney John F. Bash and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.
In addition to the prison term, U.S. District Judge Fred Biery also ordered that Hoyos Avila be placed on supervised release for a period of three years after completing his prison term. Judge Biery previously ordered the forfeiture of seized funds to the government.
On March 17, 2020, Hoyos Avila pleaded guilty to one count of conspiracy to commit money laundering. According to court records, on July 16, 2018, Hoyos Avila and Rafael Gabriel Martinez Leal, a 22-year-old citizen of Mexico, were on a private plane at San Antonio International Airport bound for Mexico with $879,695 in undeclared U.S. Currency. Inside the plane, authorities located the money inside a suitcase and inside cardboard packaging for an 18” box fan. Authorities arrested Hoyos Avila and Martinez Leal. Both defendants have remained in federal custody since their arrest.
On May 7, 2020, Judge Biery sentenced Martinez Leal to 70 months in federal prison. Martinez Leal pleaded guilty on August 24, 2019, to one count of conspiracy to commit money laundering. By pleading guilty, Martinez Leal admitted that beginning in 2017, he coordinated the movement of money throughout the U.S. to San Antonio. On several occasions in 2018, Martinez Leal collected cash from Hoyos Avila before flying it back to Mexico using private aircraft.
“This sentence represents the seriousness of these crimes and serves as an appropriate punishment for Juan Pablo Hoyos Avila. The smuggling of bulk cash often contributes to the cartel violence that damages communities on both sides of the border. HSI will continue to utilize its broad investigative authorities to dismantle transnational criminal organizations who blatantly ignore the laws of this nation,” stated HSI Special Agent in Charge Folden.
Agents from HSI and the U.S. Customs and Border Protection investigated this case. Assistant U.S. Attorneys Adrian Rosales, Antonio Franco, Jr. and Mary Nelda Valadez prosecuted this case on behalf of the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Man Receives Maximum Sentence for DDoS Attack on Legal News AggregatorRead the Press Release
An Iranian-born, U.S. naturalized 40-year-old man who launched multiple international cyber-attacks on media, bloggers, and legal news aggregation websites was sentenced on Monday to five years in federal prison and ordered to pay more than $520,000 in restitution, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
The defendant, born Kamyar Jahanrakhshan, changed his name to Andrew Rakhshan when naturalized as a US citizen. Mr. Rakhshan pleaded guilty in February 2020 to conspiracy to commit computer fraud. The sentencing judge, U.S. District Judge David C. Godbey, accepted the plea agreement which statutorily limited the defendant’s maximum sentence to 60 month incarceration.
According to plea papers, Mr. Rakhshan admitted to conspiring with others to launch a DDoS (distributed denial of service) attack in January 2015 on Leagle.com, a legal aggregation site that had posted publicly available information about his prior criminal conviction in Canada. Leagle.com’s website was hosted by a provider located in Dallas, Texas.
Upon his arrest in July 2017, at his residence in a suburb of Seattle, Washington, Mr. Rakhshan was detained pending the outcome of the case.
At his original trial in March 2018, a federal jury voted to convict Mr. Rakhshan of knowingly causing the transmission of a command to a protected computer, an offense that carried a 10 year maximum prison term. However, in July 2018, Judge Godbey granted a defense motion for a new trial based on the defense attorneys’ sworn admissions that they were ineffective in representing their client at trial. In April 2019, the government superseded the original indictment, adding the conspiracy charge. Mr. Rakhshan elected to plead guilty to the conspiracy charge on the morning his re-trial was to begin. He received the statutory maximum sentence for his guilty plea, although the Judge implied that the sentence would have been higher had there not been a statutory maximum.
Testimony and evidence from the trial established that when attacking each victim, Mr. Rakhshan followed the same pattern. First he would contact the targeted site and request that the site remove any publically available information about his 2013 criminal conviction in Canada. Mr. Rakhshan initially claimed that the similarity of his name to the convicted person’s name was ruining his life. When the websites refused to remove the data, Mr. Rakhshan first offered bribes to compel their compliance, then escalated his conduct through emails and faxes, by threatening to attack the site or associated sites. In some instances, Mr. Rakhshan threatened to call in bomb threats. Often, after initiating a successful DDoS attack, Mr. Rakhshan would contact the victim, admit to being the convicted person, brag about the successful attack, and threaten additional attacks.
Mr. Rakhshan purchased services from various booter services, such as ItsFluffy and RageBooter, to deploy the DDoS attack. The services offered by Rakhshan’s coconspirators allowed Mr. Rakhshan to flood the websites with traffic, overwhelming the servers and disabling the sites. Mr. Rakhshan initiated multiple DDoS attacks against each victim, and most victims removed the data to stop the attacks.
At the sentencing hearing, the Judge also found that Mr. Rakhshan had obstructed justice by perjuring himself during a hearing in 2017. Mr. Rakhshan lied about possessing 10 email addresses he used to facilitate the offense. Mr. Rakhshan also lied about illegally returning to Canada after having been deported. Mr. Rakhshan committed offense from at least December 2014 through at least August 2015 while residing in various states in the United States and in Vancouver, Canada.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the assistance of the Toronto Police Service and the Australian Federal Police.
Luzerne County Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Adam Holcomb, age 36, of Shickshinny, Pennsylvania, pleaded guilty on June 9, 2020, before U.S. District Court Judge Robert D. Mariani, to conspiracy to distribute more than 500 grams of methamphetamine.
According to United States Attorney David J. Freed, Holcomb admitted to participating in a conspiracy to distribute between 500 grams and 1.5 kilograms of crystal methamphetamine in the Luzerne County area between January 2017 and December 2018. Holcomb was one of five individuals indicted by a grand jury in December 2018 for methamphetamine trafficking in Luzerne, Lackawanna and Schuylkill Counties.
Judge Mariani ordered that a presentence report be completed. Sentencing will be scheduled at a later date.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Pennsylvania State Police, the Kingston Police Department, the Luzerne County Drug Task Force, and the Pennsylvania Office of Attorney General. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The charge carries a mandatory minimum penalty of ten years in prison under federal law. The maximum penalty for the charge is up to life in prison, a term of supervised release following imprisonment, and a $10,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Local pastor pleads guilty to coercion and enticement involving a minor parishionerRead the Press Release
CINCINNATI – The pastor of a Sharonville church pleaded guilty via video conference in U.S. District Court today to coercion and enticement for sexually coercing a minor female member of the church.
Cesar Agusto Guerrero, Jr., 42, of Liberty Township, admitted to engaging in sexual acts with a 17-year-old victim on July 20, 2019 and August 5, 2019 at his office at the Mision Cristiana el Calvario Church.
Court documents detail that Guerrero told the victim God was speaking to him and the only way to get out of the dark place was for the victim to have sexual relations with Guerrero. The pastor referred to this as a “cleansing process.”
According to the plea agreement, Guerrero communicated with the victim via text messages, audio and video calls on Facebook Messenger. He coerced the victim into sending him sexually explicit photos and engaging in a sexually explicit video call. Guerrero cited several biblical verses while making the requests.
The parties involved in his case have recommended a sentence of 10 years in prison.
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; and Sharonville Police Chief Steve Vanover announced the plea entered into today before U.S. District Judge Douglas R. Cole. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
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Lexington Woman Sentenced to 12 Months for Making Fake Bomb Threats to 911 Emergency Response CenterRead the Press Release
LEXINGTON, Ky. – A Lexington woman, Crystal Brotherton, 32, was sentenced on Thursday, to 12 months and 1 day in federal prison, by U.S. District Judge Karen Caldwell, after previously admitting to intimidating individuals by making threats involving explosives and the destruction of buildings.
Brotherton admitted to calling Lexington’s 911 system and telling the operator there were bombs at multiple business at an intersection off of New Circle Road. She admitted to demanding the businesses be evacuated in 15 minutes or “everyone will die.” According to her plea agreement, Brotherton made three calls to 911, on June 20 and 21, 2019, all involving similar threats of death and destruction.
Under federal law, Brotherton must serve 85 percent of her prison sentence and will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the sentencing.
The investigation was conducted by the FBI and the Lexington Police Department. The United States was represented by Assistant U.S. Attorney William Moynahan.
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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Leader of Coffee County Drug Trafficking Organization SentencedRead the Press Release
Montgomery, Alabama – On June 9, 2020, Bryant Dewayne Pouncy, a 47 year old resident of Enterprise, Alabama, was sentenced to serve 360 months in prison for conspiracy to distribute methamphetamine, distribution of methamphetamine, conspiracy to maintain a drug-involved premises, maintaining a drug “stash house,” and being a felon in possession of a firearm, announced United States Attorney Louis V. Franklin, Sr. and FBI Special Agent in Charge James Jewell. Following his 30-year prison sentence, Pouncy will be on supervised release for ten years.
The investigation began in July 2016 after the FBI shifted its focus from another drug organization operating in Houston County. Through the authorized interception of telephone calls and text messages, controlled purchases of methamphetamine, the use of confidential sources of information, and other investigative means, law enforcement learned that Bryant Pouncy was in a leadership role in the conspiracy, using his co-defendants—some of them family members—to assist in carrying out his drug trafficking business. Evidence gathered during the investigation indicates the organization was responsible for obtaining wholesale amounts of methamphetamine for distribution in South Alabama and the Florida Panhandle.
According to the superseding indictment, the drug conspiracy continued until sometime in January 2018. It is difficult to know precisely how much methamphetamine the organization was responsible for distributing during its operation. However, during the sentencing hearing, law enforcement testified that at least 12 kilograms could be linked to it from March to October of 2017, with Pouncy being directly responsible for acquiring five kilos.
The federal guidelines called for a significant sentence in this case due to a number of factors, including the offense level of the drug charges, Pouncy’s prior criminal history, and his leadership role in the drug trafficking organization. The sentencing judge determined that Pouncy was responsible for directing the business affairs of the organization, giving orders to co-conspirators, and recruiting members to assist with operations, including his sister. In addition, his sentence was enhanced because of the purity of the methamphetamine that he and his co-defendants were distributing. Lab reports indicate that much of the methamphetamine tested was 97 to 98 per cent pure. This more potent form of methamphetamine is often called “ice” and resulted in a substantial enhancement being applied to his sentence.
The following eight other members of the organization were previously sentenced:
- Antonio Tyrell Pouncey— 41 year old from Enterprise, Alabama. On January 14, 2020, he was sentenced to 210 months’ imprisonment, to be followed by ten years of supervised release for conspiracy to distribute methamphetamine;
- Ervin Gene Bradham— 56 year old from Enterprise, Alabama. On July 24, 2019, he was sentenced to 151 months’ imprisonment, to be followed by three years of supervised release for conspiracy to maintain a drug-involved premises and for his active role in running a “stash house” used to sell methamphetamine and marijuana;
- Santos Rivera-Fernandez— 39 year old from Atlanta, Georgia. On July 16, 2019, he was sentenced to 116 months’ imprisonment, to be followed by five years of supervised release for conspiracy to distribute methamphetamine;
- Lynn Renfroe Donaldson— 53 year old from Enterprise, Alabama. On July 11, 2019, she was sentenced to 27 months’ imprisonment, to be followed by three years of supervised release for conspiracy to distribute methamphetamine;
- Rogelio Israel Pimentel — 23 year old residing in Rex, Georgia at the time of his arrest. On July 10, 2019, he was sentenced to 110 months’ imprisonment for conspiracy to distribute methamphetamine. Upon completion of his prison term, he will be remanded to the custody of the Bureau of Immigration and Customs Enforcement for deportation proceedings in accordance with the Immigration and Nationality Act;
- Kimberly Christina Pouncy— 30 year old from Enterprise, Alabama. On July 10, 2019, she was sentenced to 30 months’ imprisonment, to be followed by three years of supervised release for conspiracy to distribute methamphetamine;
- Dennis Reinaldo Peralta— 39 year old from Lawrenceville, Georgia. On June 26, 2019, he was sentenced to 151 months’ imprisonment, to be followed by five years of supervised release for conspiracy to distribute methamphetamine.
- Charles Earl Pouncy— 73 year old from Enterprise, Alabama. On May 29, 2019, he was sentenced to three years of probation for being a felon in possession of a firearm.
All defendants except Dennis Peralta pleaded guilty to the charges. Peralta was convicted after a trial that concluded on March 28, 2019. An additional member of the organization was initially charged as well. However, his whereabouts are unknown.
“Methamphetamine continues to be the number one drug threat in Alabama and is often linked to numerous property crimes, violent crimes, and deaths each year,” stated U.S. Attorney Franklin. “Due to its purity, the meth, or “ice,” that was being imported in this case, was even more dangerous and addictive. Make no mistake, this organization was bringing in a deadly drug and spreading it through our communities. The significant sentences handed down by the court illustrate the serious threat that the drugs represent, and they also show what can be accomplished when federal, state and local law enforcement work together.”
“This case, and its successful result, is a prime example of how the FBI continues to work with its state, local, and federal partners to stop this poison from reaching our streets,” stated FBI Special Agent in Charge James Jewell. “This is proof that all investigative methods will be used to keep our communities safe.”
These cases were investigated by the Federal Bureau of Investigation (FBI), the Enterprise Police Department, the Dothan Police Department, the Ozark Police Department, the Houston County Sheriff’s Office, the Coffee County Sheriff’s Office, and the Alabama Law Enforcement Agency (ALEA), with assistance from the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Homeland Security Investigations (HSI), the United States Marshals Service, the Georgia State Police, the Clayton County, Georgia Sheriff’s Office, and the Washington County, Florida Sheriff’s Office. Assistant United States Attorneys Curtis Ivy, Bradley Bodiford, Brett Talley, and Randolph Neeley prosecuted the cases.
Lawrence Man Sentenced to 60 Months for Fentanyl TraffickingRead the Press Release
CONCORD - Nathanael Peguero, 27, of Lawrence, Massachusetts was sentenced to 60 months in federal prison for participating in a conspiracy to distribute fentanyl, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, between November and December of 2016, an undercover DEA Task Force Officer from New Hampshire made arrangements with Peguero to purchase fentanyl. The undercover officer made a series of five undercover purchases of fentanyl from Peguero or members of Peguero’s drug trafficking organization.
Peguero previously pleaded guilty on September 20, 2019.
“Interstate fentanyl traffickers have been a serious affliction for the people of New Hampshire,” said U.S. Attorney Murray. “This sentence sends yet another message that traffickers face serious personal consequences in federal court. It also reaffirms our commitment to work closely with the DEA and all of our law enforcement partners to identify, prosecute, and incarcerate the drug dealers who endanger Granite Staters.”
“Fentanyl is causing grave damage to New Hampshire,” said DEA Special Agent in Charge Brian D. Boyle. “Let this sentence be a warning to traffickers like Mr. Peguero who are coming from out of state to distribute this poison. DEA’s top priority is combatting the opioid epidemic by working with our local, state and federal law enforcement partners.”
This matter was investigated by the Drug Enforcement Administration and the Hampton Police Department. The case was prosecuted by Assistant U.S. Attorney John S. Davis.
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Kickapoo Woman Sentenced to 210 Months in Federal Prison for Felony Murder for Grandson’s Death after Being Left in Car in Casino Parking Lot in JulyRead the Press Release
OKLAHOMA CITY – ALANNA JEAN ORR, 50, of Oklahoma City, was sentenced today by U.S. District Judge Scott Palk to serve 210 month in federal prison for causing the death of her five-year-old grandson by leaving him in a hot car in a casino parking lot on a hot summer afternoon with no air conditioning, announced U.S. Attorney Timothy J. Downing. In addition, Orr was ordered to serve three years of supervised release upon release from prison and pay $3,877.31 in restitution for funeral expenses to the Oklahoma Crime Victims Compensation Board.
According to an affidavit in support of a search warrant signed in Oklahoma County District Court on July 17, 2018, Orr was caring for her five-year-old grandson on June 21, 2018, when she went to the Kickapoo Casino in Harrah, Oklahoma. Orr arrived at the casino at approximately 1:23 p.m., and she left the casino at approximately 7:28 p.m. During this time Orr’s grandson remained in the car and the high temperature in Harrah that day approached ninety degrees.
Approximately fifteen minutes after Orr left the casino, according to the affidavit, she called 911 and reported her grandson had choked and was not breathing. Harrah police officers met Orr at the Harrah Police Department and attempted to resuscitate the child, but noted that that rigor mortis had already begun.
On April 17, 2019, a federal grand jury returned an indictment that charged Orr with second degree felony murder by child neglect in Indian Country. In particular, it alleged Orr, who is a member of the Kickapoo Tribe, caused the death of a child by willfully failing to provide adequate shelter and supervision while she was responsible for the child’s health, safety, and welfare. This crime is subject to federal jurisdiction because the defendant and victim are Indians and the offense took place on tribal trust land.
On July 30, 2019, Orr pleaded guilty to the indictment. During the plea hearing before Judge Palk, she admitted she caused her grandson’s death by leaving him unattended on a hot summer afternoon in the back seat of her car with no air conditioning.
Judge Palk immediately remanded Orr into custody at the hearing today to begin serving her sentence.
This case is a result of an investigation by the Harrah Police Department, the Kickapoo Tribal Police Department, the Oklahoma District 23 Drug Task Force, the District Attorney’s Offices for Cleveland, Lincoln, and Pottawatomie Counties, and the FBI Oklahoma City Division. Assistant U.S. Attorneys Mark R. Stoneman and Mary E. Walters prosecuted this case, with assistance from the Cleveland County Assistant District Attorney’s Office.
Reference is made to public filings for more information. To download a photo of U.S. Attorney Downing, click here.
June 15, 2020 Update: The complaint against Michael Rodriguez was dismissed at the government’s request on June 14, 2020 and he has been released from custody. the investigation into the June 2, 2020 arson of the NYPD vehicle is ongoing.Read the Press Release
PRESS RELEASE
INDIVIDUAL CHARGED WITH SETTING NYPD VEHICLE ON FIRE IN BROOKLYN
A criminal complaint was filed Thursday in federal court in Brooklyn charging Michael Rodriguez with setting an unoccupied New York City Police Department vehicle on fire on June 2, 2020 in Williamsburg. Rodriguez was arrested Thursday morning and was ordered detained pending trial this afternoon by United States Magistrate Judge Roanne L. Mann.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Daniel Nigro, Commissioner, Fire Department of New York (FDNY), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the arrest and charges.
“Under the cover of pre-dawn darkness, Rodriguez allegedly set fire to a vehicle bearing an NYPD placard on a residential block in Brooklyn, endangering innocent residents of the area and first responders to the blaze and damaging a second vehicle,” stated United States Attorney Donoghue. “The defendant’s actions have no place in civil society, and this Office will vigorously prosecute him and others who commit such acts of violence in our community.”
“As charged, Rodriguez’s deliberate actions put not only the lives of New York City Police officers at risk, but also those of the FDNY first responders and civilians. Thanks to the dedicated work of the ATF/FDNY/NYPD Arson and Explosives Task Force, this suspect was quickly apprehended. I would like to thank to the United States Attorney’s Office for their work in prosecuting this case,” stated ATF Special Agent-in-Charge DeVito.
“Beyond the dangerous torching of an NYPD vehicle, these allegations represent an attack on the peace and good order that all New Yorkers deserve. I commend our detectives, and law enforcement partners, for their swift and diligent work in this case,” stated NYPD Commissioner Shea.
“Using fire as a weapon to hurt others or destroy property puts innocent lives in danger and will never be tolerated in our city,” stated FDNY Commissioner Nigro. “I’m grateful for the outstanding collaboration of our Fire Marshals with the NYPD and ATF to apprehend this dangerous individual.”
As alleged in the complaint, at approximately 4:30 a.m., Rodriguez approached a vehicle parked on Devoe Street bearing an NYPD placard on the dashboard. The vehicle, assigned to an NYPD captain, was parked at the location for the night. Rodriguez was captured on video surveillance footage pouring liquid on the vehicle’s windshield, placing cardboard on the windshield, and then setting the cardboard on fire. With the vehicle ablaze, Rodriguez pointed a cellular phone toward the vehicle and appeared to either record or take photographs of the fire. The defendant then fled the scene on foot. Another vehicle parked near the NYPD vehicle was also damaged by fire.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Michael J. Bushwack is in charge of the prosecution.
The Defendant:
MICHAEL RODRIGUEZ
Age: 32
UndomiciledE.D.N.Y. Docket No. 20-MJ-431
Jacksonville Man Sentenced to 20 Years After Soliciting Minor for Sex and Child PornographyRead the Press Release
RALEIGH, N.C. – Morgan Jeffrey Shepard, 33, of Jacksonville was sentenced today to 240 months in prison for production of child pornography.
According to information provided to the court, in late 2016, the Wilmington Police Department received a report that a 14-year-old female was having a sexual relationship with an adult male from Jacksonville, NC. The minor victim told investigators that in September 2016, a man, later identified as the defendant Morgan Shepard, who was 29 years old at the time, had contacted her through social media and asked her to engage in sexual acts for money. On two occasions, he provided the victim with money and transportation to Wilmington in exchange for sex with him. In total, the victim had three or four sexual encounters with Shepard. He would not say his name, but she learned his name from mail in his house and was also able to identify him to law enforcement by his photo. In addition to the in-person encounters, Shepard paid the minor victim to send him nude photos on Snapchat.
Law enforcement searched the victim’s phone and found over a thousand text messages between her and Shepard. In one early exchange, Shepard mentioned that the victim was then 13 years old. In another, Shepard requested nude photos and offered “200 and smokes” if she would have sex with him in his car
In July of 2017, Onslow County executed a search warrant at Shepard’s Jacksonville residence. The layout and décor matched what the victim had drawn during a forensic interview. Law enforcement seized Shepard’s phone and a memory card within it. On the memory card, which also contained Shepard’s resume, they found a collection of 25 subfolders labeled with girls’ names. One folder was labeled with the victim’s name and contained multiple images and videos of her that constitute child pornography. Law enforcement identified multiple other girls whose nude photos were contained on the memory card, at least three of which also constituted child pornography.
In April 2018, while on bond for state charges related to the offense, Shepard (now 30 years old) used Instagram to contact a 13-year-old Craven County girl and offer her money for sex. The girl reported the conversation to her School Resource Officer, who referred it to the Craven County Sheriff’s Office. A detective then assumed the girl’s Instagram identity and continued the conversation. Shepard acknowledged the girl’s age, but still made plans to pick her up from a fast food restaurant and then go to a hotel for sex. He arrived as planned, but was met by officers. He attempted to flee and struck a police vehicle before being arrested.
Law enforcement obtained records of Shepard’s Instagram activity, which revealed that he had attempted to solicit no less than 78 young girls in the previous four months. Law enforcement successfully identified 13 of these girls and confirmed that all 13 were between 11 and 15 years of age. When girls had responded to an initial message about making money, Shepard would offer between $300 and $1,000 for sex or nude photos.
Mr. Higdon commented: “The facts of this case have become part of a frightening pattern: predator uses the internet to lure a young, vulnerable victim and sexually abuses them and exploits them through manufacturing pornography. Through aggressive prosecutions, we are working to stop this abuse and to prevent others from becoming victims. Parents, teachers, faith leaders – anyone with access to children – must join us in educating our children, monitoring their interaction with those who would prey upon them and oversee their online relationships. It is critical that we work together to protect our children.”
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by Chief U.S. District Judge Terrence W. Boyle.
The Department of Homeland Security, the Onslow County Sheriff’s Office, the Craven County Sheriff’s Office, and the Wilmington Police Department investigated the case. Assistant U.S. Attorney Jake D. Pugh prosecuted the case.
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national initiative, go to www.projectsafechildhood.gov. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-cr-0121-BO.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Indicted Laredoan charged with firearms violationsRead the Press Release
LAREDO, Texas – A 19-year-old man has been taken into custody for illegally possessing a firearm while under an active domestic violence protection order and possessing a firearm while under indictment, announced U.S. Attorney Ryan K. Patrick.
Mario Salazar is expected to make a virtual initial appearance before U.S. Magistrate Sam Sheldon at 9 a.m. today.
The criminal complaint, filed under seal June 4 and unsealed yesterday upon his arrest, alleges that Salazar had a domestic violence order on file which prohibited him from possessing a firearm. However, he allegedly assaulted a woman March 31 – striking her in the left arm and hip with the firearm. The charges also allege he pointed a firearm at her feet while threatening to shoot her.
According to the criminal complaint, the firearm also matches a shooting incident in Laredo April 23. On that date, Salazar allegedly discharged a firearm at a vehicle as it was driving through an intersection. He was still subject to the domestic violence order at that time, according to the complaint.
Salazar is also currently under indictment in Webb County for engaging in organized criminal activity and unlawful restraint, according to the charges, and is prohibited from possessing a firearm.
If convicted of either charge, Salazar faces up to 10 years in federal prison and a possible $250,000 maximum fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Laredo Police Department. Assistant U.S. Attorney April Ayers-Perez is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Hudson Man Sentenced for Theft of Government FundsRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington has sentenced Glenn Hoyt Harrison (71, Hudson) to three years and five months in federal prison for theft of government funds. As part of his sentence, the court also entered a money judgment of $363,344.10, the proceeds from the offense, and ordered Harrison to pay restitution.
Harrison had pleaded guilty on August 29, 2019.
According to court documents, Harrison’s mother, L.S., was receiving Social Security Retirement Insurance Benefits. L.S. passed away in November 1994, and her death was never reported to the Social Security Administration (SSA). Consequently, the SSA continued to make the benefit payments. From November 1994, through December 2017, Harrison accessed the funds meant for L.S. and used them for his own personal expenses. In total, Harrison knowingly and willfully stole approximately $363,344.10 in benefits to which he was not entitled.
This case was investigated by the Social Security Administration – Office of Inspector General. It was prosecuted by Special Assistant United States Attorney Suzanne Huyler.
Honduran National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Honduran national was sentenced yesterday in federal court in Boston for illegal reentry.
Oscar Elvir Carcamo was sentenced by U.S. District Court Judge Patti B. Saris to eight months in prison and one year of supervised release. Upon completion of his sentence, Carcamo will be placed into removal proceedings and deported to Honduras. Carcamo was indicted in September 2019 and pleaded guilty in March 2020.
Carcamo was first encountered by immigration officials in 2004 at the Texas border and determined to be illegally present in the United States. Carcamo was placed into removal proceedings and deported on Oct. 29, 2004. Carcamo illegally reentered the United States on two occasions in 2008, was prosecuted in the Southern District of Texas and then deported.
Sometime after his 2008 removal, Carcamo illegally reentered the United States and was arrested on Jan. 1, 2015 in Framingham and charged with assault and battery on a pregnant woman. Carcamo appeared in the Framingham District Court, posted bail and was released. At that time, ICE was not notified and the case went into default.
On Jan. 31, 2019, Carcamo was arrested in Framingham and charged with domestic assault and battery. Carcamo appeared in Framingham District Court, posted bail and was released. ICE, who had lodged a detainer, was not notified.
On July 15, 2019, Carcamo was arrested in Framingham and charged with breaking and entering. Carcamo appeared in Framingham District Court and was ordered held on bail. While in custody, ICE interviewed Carcamo and determined that he was illegally present in the United States. In November 2019, Carcamo was convicted of assault and battery on a pregnant person and sentenced to one year in state prison. Upon completion of his sentence, Carcamo was transferred into federal custody to await resolution of the federal charges of illegal reentry. Carcamo has been in federal custody since March 2020.
United States Attorney Andrew E. Lelling and Todd Lyons, Acting Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Helena woman sentenced in robbery of heroin traffickersRead the Press Release
HELENA—A Helena woman convicted by a jury of participating in an armed home invasion to rob a couple involved in trafficking heroin was sentenced today to one year and one day in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
After a three-day trial in February, a jury found Arielle Rose Cowser, 27, guilty of conspiracy to commit robbery affecting commerce and robbery affecting commerce.
U.S. District Judge Donald W. Molloy presided.
In evidence presented at trial, the prosecution said the FBI learned of a home invasion robbery in Helena in which the victims, a couple, were involved in trafficking heroin. Co-defendant Kielan Brett Franklin, who pleaded guilty and is pending sentencing, provided the couple money to travel to Washington to buy an ounce of heroin. The couple returned to Montana with less than an ounce. When the couple did not immediately turn over the heroin, Franklin sent them threatening text messages.
On March 8, 2019, Cowser went to the victims’ residence and asked to enter, saying she had broken up with Franklin. The female victim let Cowser inside and a few minutes later, Cowser let in Franklin and two other co-defendants, Gerald Allen Hiler and Morgan Victor Pitsch. Hiler and Pitsch, who also pleaded guilty, wore masks. Hiler was sentenced to 11 years and seven months in prison, while Pitsch was sentenced to six years and six months in prison.
Hiler brandished a handgun and Pitsch possessed one during the robbery. The defendants fled when they realized the female victim had called 911. The robbers took a small amount of heroin, the female victim’s wedding ring, her cell phone and a purse.
Assistant U.S. Attorneys Tom Bartleson and Tim Racicot prosecuted the case, which was investigated by FBI, Montana Regional Violent Crime Task Force, Lewis and Clark County Sheriff’s Office and Missouri River Drug Task Force.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Harrison County man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Frank Horner, III, of Clarksburg, West Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Horner, age 27, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine.” Horner admitted to having methamphetamine in October 2019 in Harrison County.
Horner faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Probation Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Goshen Man Charged in Investment Fraud SchemeRead the Press Release
SOUTH BEND – Earl D. Miller, 40, of Goshen, Indiana was charged by way of an Indictment with 6 counts of wire fraud, 1 count of securities fraud, and 1 count of bankruptcy fraud, announced U.S. Attorney Kirsch.
According to documents in this case, it is alleged that Miller, a former real estate investor, began raising money for a new private investment firm named “5 Star Capital” in 2012. He began recruiting predominately novice investors, including members of the Amish community, for “investment opportunities” with 5 Star Capital, 5 Star Commercial and other real estate entities. Miller allegedly solicited funds to invest in “green energy saving product that save the American consumer hundreds of dollars each year.” It is alleged that from June 2014 to August 2015, Mr. Miller raised at least $4.3 million from at least 70 investors through lies. He falsely told investors that he would not get paid anything for managing their funds when, in truth, he misappropriated over $1 million dollars from 5 Star Commercial investors for his personal use including to pay off a former business partner. Mr. Miller also did not own “green product” patents and performed virtually no due diligence into the purported “green” companies before placing his investors’ assets. In addition, to the wire fraud, Mr. Miller is charged securities fraud and bankruptcy fraud for omissions made during bankruptcy proceedings.
“Investment fraud schemes, like the one charged today, ensnare hundreds of victims each year across the United States,” said United States Attorney Thomas L. Kirsch II. “This case is an excellent example of our law enforcement partners working together to seek justice on behalf of the defendant’s alleged victims. We will continue to aggressively investigate and prosecute cases involving all types of investment frauds.”
“I am grateful to U.S. Attorney Kirsch and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases as evidenced by today’s proceedings,” stated Nancy J. Gargula, U.S. Trustee for Indiana, Central Illinois, and Southern Illinois (Region 10). The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill. The charges resulted, in part, from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the U.S. Attorney. Assistance with the investigation was provided by members of the Northern Indiana Bankruptcy Fraud Working Group coordinated by the U.S. Trustee.
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by Federal Bureau of Investigation and Security Exchange Commission in collaboration with the Northern Indiana Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. This case is being prosecuted by Assistant U.S. Attorneys John Maciejczyk and Jerome McKeever.
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Georgia resident arrested for scheme to sell illegal products claiming to protect against COVID-19Read the Press Release
ATLANTA - Stephen Matthew Shumaker has been charged with mail fraud and knowingly distributing and selling a misbranded pesticidal device.
“Shumaker allegedly used the COVID-19 pandemic to sell a product that does not provide the benefits he advertised,” said U.S. Attorney Byung J. “BJay” Pak. “We are proud to be part of the Georgia COVID-19 Task Force, which continues to identify and prosecute those who attempt to perpetrate Coronavirus-related fraud schemes.”
“The U.S. Postal Inspection Service will remain vigilant in bringing to justice anyone that seeks to defraud individuals during this pandemic,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “This scheme highlights the importance of collaborating with our law enforcement partners to investigate and stop those seeking to take advantage of innocent victims.”
“The defendant is charged with knowingly selling a fraudulent product during the COVID-19 public health emergency in order to make a profit,” said Environmental Protection Agency Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “EPA and our partners in law enforcement remain vigilant to protect consumers from this kind of outrageous behavior. To find out how to protect yourself from fraudulent products please see EPA’s compliance advisory, available at https://www.epa.gov/sites/production/files/2020-05/documents/cornavirus-compliance-advisory.pdf.”
“Selling a misbranded pesticidal device as a protection for COVID-19 gives unsuspecting buyers a false sense of hope and places them in danger,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI is proud to support the Georgia COVID-19 task force in protecting our citizens from these fraudsters.”
“The Federal Trade Commission appreciates the opportunity to work with the U.S. Attorney’s Office and the COVID-19 Task Force on such an important case,” said Anna Burns, the Commission’s Southeast Regional Director. “Interagency cooperation is essential to ensuring U.S. consumers are protected from fraud associated with the coronavirus pandemic.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Shumaker allegedly engaged in a scheme to defraud by soliciting thousands of Georgia residents with false claims that the Beyond Guardian Air™ air purifier kills every major viral and bacterial infection, including the COVID-19 coronavirus disease, in the home. According to the EPA, the device for sale is also a misbranded pesticidal device, another violation of federal law.
Stephen Matthew Shumaker, 43, of Marietta, Georgia, appeared before U.S. Magistrate Judge Christopher C. Bly. Members of the public are reminded that a complaint only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The Department of Justice recommends that Americans take the following precautionary measures to protect themselves from known and emerging scams related to COVID-19:
• Independently verify the identity of any company, charity, or individual that contacts you regarding COVID-19.
• Check the websites and email addresses offering information, products, or services related to COVID-19. Be aware that scammers often employ addresses that differ only slightly from those belonging to the entities they are impersonating. For example, they might use “cdc.com” or “cdc.org” instead of “cdc.gov.”
• Be wary of unsolicited emails offering information, supplies, or treatment for COVID-19 or requesting your personal information for medical purposes. Legitimate health authorities will not contact the general public this way.
• Do not click on links or open email attachments from unknown or unverified sources. Doing so could download a virus onto your computer or device.
• Make sure the anti-malware and anti-virus software on your computer is operating and up to date.
• Ignore offers from suspicious sources for a COVID-19 vaccine, cure, or treatment. Remember, if a vaccine becomes available, you won’t hear about it for the first time through an email, online ad, or unsolicited sales pitch.
• Check online reviews of any company offering COVID-19 products or supplies. Avoid companies whose customers have complained about not receiving items.
• Research any charities or crowdfunding sites soliciting donations in connection with COVID-19 before giving any donation. Remember, an organization may not be legitimate even if it uses words like “CDC” or “government” in its name or has reputable looking seals or logos on its materials. For online resources on donating wisely, visit the Federal Trade Commission’s website at www.ftc.gov.
• Be wary of any business, charity, or individual requesting payments or donations in cash, by wire transfer, gift card, or through the mail. Don’t send money through any of these channels.
• Be cautious of “investment opportunities” tied to COVID-19, especially those based on claims that a small company’s products or services can help stop the virus. If you decide to invest, carefully research the investment beforehand. For information on how to avoid investment fraud, visit the U.S. Securities and Exchange Commission (SEC) website.
This case is part of Georgia’s Coronavirus (COVID-19) Fraud Task Force, aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. Formed by Georgia’s leading state and federal prosecutors, the task force serves to open channels of communication between partner agencies and more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. The task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia and the U.S. Attorney’s Office for the Southern District of Georgia. Georgia’s three U.S. Attorneys, the Attorney General of Georgia, and the Executive Counsel for the Governor’s Office serve on the task force. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at www.justice.gov/DisasterComplaintForm.
The U.S. Postal Inspection Service, the Environmental Protection Agency and the U.S. Immigration and Customs Enforcement, Homeland Security Investigations are investigating this case, with valuable assistance from the Federal Trade Commission.
Special Assistant United States Attorney Valerie M. Verduce is prosecuting the case.
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.
Gambian Man Indicted on Torture ChargesRead the Press Release
A Gambian man previously residing in Denver, Colorado was arrested today for torture charges stemming from his actions specifically intended to inflict severe physical pain and suffering on individuals in his custody and control in The Gambia in 2006.
An indictment was returned on June 2 and unsealed today charging Michael Sang Correa, 41, a national of The Gambia, with one count of conspiracy to commit torture and six counts of inflicting torture on specific individuals. Correa made his first court appearance on the charges today before U.S. Magistrate Judge N. Reid Neureiter in the District of Colorado.
“Michael Correa allegedly committed heinous acts of violence against victim after victim in a brutal effort to coerce confessions from suspected coup plotters in The Gambia,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “These charges underscore that the United States will not be a safe haven for perpetrators of torture and that human rights violators will be held accountable and brought to justice.”
“As federal prosecutors, our mission is to seek out injustice and to hold accountable those who perpetuate it, regardless of where it occurs,” said U.S. Attorney Jason R. Dunn of the District of Colorado. “With this arrest, we are not only holding accountable a man who has allegedly committed horrific acts of torture against his own people, but demonstrating to the people of The Gambia, and indeed the entire world, that the United States stands for the rule of law and against those who abuse human rights.”
“Michael Correa’s case is another example of our commitment to pursue those who attempt to evade accountability for their actions by fleeing to the United States,” said Assistant Director David C. Shaw of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), National Security Investigations Division, who oversees the Human Rights Violators and War Crimes Center. “HSI will continue to investigate perpetrators of torture, genocide, and other war crimes to ensure the United States does not serve as a safe haven for human rights violators.”
The indictment alleges that in 2006, Correa, a former member of a Gambian armed unit known as the Junglers, conspired with others to commit torture against individuals suspected of plotting a failed coup attempt against then-President Yahya Jammeh, and that he inflicted torture on six victims. The Junglers were comprised of individuals who had been selected from the ranks of The Gambia Armed Forces (GAF) but operated outside the regular GAF chain of command. The Junglers received orders from then-President Yahya Jammeh and answered to him.
In March 2006, the Jammeh government learned that individuals within The Gambia were attempting to overthrow the Jammeh government. The Jammeh government reacted by arresting numerous individuals believed to have been part of plotting the attempt to overthrow the Jammeh government. Individuals who were arrested were taken to a prison known as Mile 2 Prison and to the National Intelligence Agency (NIA) Headquarters to be interrogated about their role in the coup attempt, and were subjected to severe physical and mental abuses at NIA Headquarters.
The indictment alleges that during this time frame, in March and April 2006, the defendant and his co-conspirators severely and repeatedly beat their victims with their fists, feet, boots, and objects including plastic pipes, wires, and branches. The co-conspirators sometimes covered the victims’ heads with plastic bags, restricting their ability to breathe, and subjected some victims to electrocution on various parts of their bodies. The indictment further alleges that one victim was suspended over the ground in a rice bag and beaten severely by the co-conspirators. Others had molten plastic or acid dripped on their bodies.
The charges and allegations in the indictment are merely accusations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
HSI Denver is leading the investigation of this case with support from HSI agents in Dakar, Senegal as well the Diplomatic Security Service at the U.S. Embassy in Banjul and the FBI Legal Attaché in Dakar. The Human Rights Violators and War Crimes Center (HRVWCC) significantly supported the case. Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate, and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female genital mutilation, and the use or recruitment of child soldiers.
Trial Attorney Erin Cox and Senior Counsel Christina Giffin of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Greg Holloway of the District of Colorado are prosecuting the case with the assistance of HRSP historian Dr. Christopher Hayden and with the support of the Criminal Division’s Office of International Affairs. The department appreciates the assistance provided by the governments of The Gambia, the Netherlands, and Sweden in this investigation.
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.
Gambian Man Indicted on Torture ChargesRead the Press Release
DENVER – United States Attorney Jason R. Dunn today announced that a Gambian man residing in Denver, Colorado was indicted on torture charges stemming from his actions specifically intended to inflict severe physical pain and suffering on individuals in his custody and control in The Gambia in 2006.
The indictment was returned on June 2, 2020, charging Michael Sang Correa, 41, a national of The Gambia, with one count of conspiracy to commit torture and six counts of inflicting torture on specific individuals. The defendant made his initial appearance today before a U.S. Magistrate Judge where he was advised of his rights and the charges pending against him.
“As federal prosecutors, our mission is to seek out injustice and to hold accountable those who perpetuate it, regardless of where it occurs,” said U.S. Attorney Jason R. Dunn. “With this arrest, we are not only holding accountable a man who has allegedly committed horrific acts of torture against his own people, but demonstrating to the People of The Gambia, and indeed the entire world, that the United States stands for the rule of law and against those who abuse human rights.”
“Michael Correa allegedly committed heinous acts of violence against victim after victim in a brutal effort to coerce confessions from suspected coup plotters in The Gambia,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “These charges underscore that the United States will not be a safe haven for perpetrators of torture and that human rights violators will be held accountable and brought to justice.”
“Michael Correa’s case is another example of our commitment to pursue those who attempt to evade accountability for their actions by fleeing to the United States,” said Assistant Director David C. Shaw of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), National Security Investigations Division, who oversees the Human Rights Violators and War Crimes Center. “HSI will continue to investigate perpetrators of torture, genocide, and other war crimes to ensure the United States does not serve as a safe haven for human rights violators.”
The indictment alleges that in 2006, Correa, a former member of a Gambian armed unit known as the Junglers, conspired with others to commit torture against individuals suspected of plotting a failed coup attempt against then-President Yahya Jammeh and that he inflicted torture on six victims. The Junglers were comprised of individuals who had been selected from the ranks of the Gambia Armed Forces but operated outside the regular GAF chain of command. The Junglers received orders from then-President Yahya Jammeh and answered to him.
In March 2006, the Jammeh government learned that individuals within The Gambia were attempting to overthrow the Jammeh government. The Jammeh government reacted by arresting numerous individuals believed to have been part of plotting the attempt to overthrow the Jammeh government. Individuals who were arrested were taken to a prison known as Mile 2 Prison and to the National Intelligence Agency (NIA) Headquarters to be interrogated about their role in the coup attempt, and were subjected to severe physical and mental abuses at NIA Headquarters.
The indictment alleges that in this time frame, in March and April 2006, the defendant and his co-conspirators severely and repeatedly beat their victims with their fists, feet, boots, and objects including pipes, wires, and branches. The co-conspirators sometimes covered the victims’ heads with plastic bags restricting their ability to breathe and subjected some victims to electrocution on various parts of their bodies. The indictment further alleges that one victim was suspended over the ground in a rice bag and beaten severely by the co-conspirators. Others had molten plastic or acid dripped on their bodies.
The charges and allegations in the indictment are merely accusations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
HSI Denver is leading the investigation of this case with support from HSI agents in Dakar, Senegal as well as personnel at the U.S. Embassy in Banjul and the FBI Legal Attaché in Dakar. Correa was identified by the Human Rights Violators and War Crimes Center (HRVWCC) and it has significantly supported the case. Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female genital mutilation and the use or recruitment of child soldiers.
Assistant U.S. Attorney Greg Holloway of the District of Colorado and Trial Attorney Erin Cox and Senior Counsel Christina Giffin of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) are prosecuting the case with the assistance of HRSP historian Dr. Christopher Hayden and with the support of the Criminal Division’s Office of International Affairs.
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.
Fort Mitchell Man Sentenced to 18 Months for Bank FraudRead the Press Release
COVINGTON, Ky. - Joseph Shockey, 53, of Fort Mitchell, Ky., was sentenced to 18 months in federal prison on Thursday, by Chief U.S. District Judge Danny C. Reeves, after previously pleading guilty, in January 2020, to bank fraud.
In his guilty plea agreement, Shockey admitted that, in 2014, he applied for and obtained a line of credit for $500,000 from Stock Yards Bank and Trust Company. Later that same year, Shockey was sued in Utah and ultimately a default judgment in the amount of $579,063 was entered against him in 2015. Shockey extended the line of credit from Stock Yards but failed to advise the bank, as he had agreed to do, of the judgment. Shockey defaulted on the loan and the bank suffered a loss of $463,000. As part of his plea agreement, Shockey agreed to pay $449,496.07, in restitution.
Under federal law, Shockey must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 5 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation, jointly announced the sentencing
The investigation was conducted by the FBI. The United States was represented by Assistant U.S. Attorney Elaine Leonhard.
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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Former State Employee Sentenced to 30 Months for Mail Fraud, Identity Theft and Theft of FundsRead the Press Release
LEXINGTON, Ky. –Diana Baker, 53, of Louisville and a former employee of the Kentucky Commission (now Office) for Children with Special Care Needs, was sentenced to 30 months on Thursday, by U.S. District Judge Greg Van Tatenhove, for mail fraud, aggravated identity theft, and four counts of theft from the state agency.
Baker was a 28-year employee of the Commission, which is an agency within the Kentucky Cabinet for Health and Family Services that assists families with children with special health care needs in obtaining funding and care. According to the plea agreement, between 2007 and 2018, Baker, who was an Administrative Branch Manager in the Louisville office, manipulated software programs, to generate fraudulent payment vouchers, which purported to reimburse the families of special needs children for out of pocket expenses or pay third party vendors for services to children. These vouchers were sent in the regular course of business to the Kentucky State Treasurer’s Office, which issued checks that were actually used to make payments on Baker’s credit card accounts, to pay doctors and dentists for services to Baker’s family, and, in one instance, to pay a carpenter for work on a dock for lakefront property owned by Baker. The amount of the alleged theft is approximately $45,000.
Under federal law, Baker must serve 85 percent of her prison sentence and will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge, Louisville Field Office, jointly made the announcement.
The investigation was conducted by the FBI and the Kentucky Cabinet for Health and Family Services, Office of the Inspector General. The United States was represented by Assistant U.S. Attorney Ken Taylor.
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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Former Rapides Parish Correctional Officer Pleads Guilty to Civil Rights Offense for Assaulting InmateRead the Press Release
Dominic Davidson, 27, a former Correctional Officer with the Rapides Parish Sheriff’s Office (RPSO), Detention Center 1, in Alexandria, Louisiana, pleaded guilty today to one misdemeanor count of using excessive force against a pretrial detainee housed at the facility.
“The Justice Department works to protect the civil rights of all citizens, including those in our custody,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “It is disheartening to hear of law enforcement officials who violate the civil rights of citizens instead of aiding in the department’s work to protect them.”
“Law enforcement, including correctional officers, are sworn to uphold and defend the laws of our nation,” said U.S. Attorney David C. Joseph for the Western District of Louisiana. “When they themselves break those laws, they violate not just the rights of their victims, but also compromise the public's trust in law enforcement. My office will hold public servants accountable when they break the law.”
According to court testimony and documents filed in connection with the guilty plea, on June 14, 2018, while on duty as a correctional officer, Davidson entered the locked holding cell of pretrial detainee K.F. and began punching K.F. repeatedly in the face and body. Prior to Davidson entering the cell, K.F., who was completely naked and locked securely inside his cell, had been banging on the door in an attempt to get officers’ attention. In response to the banging, Davidson put on a pair of rubber gloves, unlocked and entered K.F.’s cell, pushed K.F. to the ground, and struck K.F. numerous times in the head and body. At no point before, during, or after the assault did K.F. pose a threat to himself or others.
Davidson faces a maximum statutory penalty of up to 12 months in prison and a fine of up to $100,000. The sentencing will take place on Sept., 15, 2020.
This case was investigated by the FBI. Assistant U.S. Attorney Mary Mudrick of the Western District of Louisiana and Trial Attorneys Katherine DeVar and Thomas Johnson of the Civil Rights Division are prosecuting the case.
Former Rapides Parish Correctional Officer Pleads Guilty to Civil Rights Offense for Assaulting InmateRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that Dominic Davidson, 27, a former Correctional Officer with the Rapides Parish Sheriff’s Office (RPSO), Detention Center 1, in Alexandria, Louisiana, pleaded guilty today before Senior U.S. District Judge Dee D. Drell, to one misdemeanor count of using excessive force against a pretrial detainee housed at the facility.
“Law enforcement, including correctional officers, are sworn to uphold and defend the laws of our nation,” said U.S. Attorney David C. Joseph. “When they themselves break those laws, they violate not just the rights of their victims, but also compromise the public's trust in law enforcement. My office will hold public servants accountable when they break the law.”
“The Justice Department works to protect the civil rights of all citizens, including those in our custody,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “It is disheartening to hear of law enforcement officials who violate the civil rights of citizens instead of aiding in the department’s work to protect them.”
According to court testimony and documents filed in connection with the guilty plea, on June 14, 2018, while on duty as a correctional officer, Davidson entered the locked holding cell of pretrial detainee K.F. and began punching K.F. repeatedly in the face and body. Prior to Davidson entering the cell, K.F., who was completely naked and locked securely inside his cell, had been banging on the door in an attempt to get officers’ attention. In response to the banging, Davidson put on a pair of rubber gloves, unlocked and entered K.F.’s cell, pushed K.F. to the ground, and struck K.F. numerous times in the head and body. At no point before, during, or after the assault did K.F. pose a threat to himself or others.
Davidson faces a maximum statutory penalty of up to twelve months in prison and a fine up to $100,000. The sentencing date is set for September 15, 2020.
This case was investigated by the FBI. Assistant U.S. Attorney Mary Mudrick of the Western District of Louisiana and Trial Attorneys Katherine DeVar and Thomas Johnson of the Civil Rights Division are prosecuting the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Owner of Oil Field Construction Business Sentenced for Tax EvasionRead the Press Release
OKLAHOMA CITY – MICKEY ALVIN YOUNG, of Chico, Texas, has been sentenced to five years of probation for evading personal federal income taxes for the 2013 tax year, announced U.S. Attorney Timothy J. Downing. He will spend the first six months in home confinement and must pay $1,197,616.46 in restitution to the IRS.
A federal grand jury indicted Young on December 4, 2018, on two counts of tax evasion. According to the indictment, Young operated Mickey Young Construction, a sole proprietorship that built concrete pits to hold millings at oil and gas drilling sites. Evidence in the case showed that the business had gross receipts of more than $9 million in 2012 and more than $6 million in 2013. Young was required to report income from his business on his personal federal income tax return. He was charged with under-reporting his income in both 2012 and 2013 by treating money that he used for personal purposes as deductible business expenses of Mickey Young Construction. Documents filed in the case showed he improperly treated hundreds of thousands of dollars in each year as business expenses.
A trial in July 2019 resulted in a mistrial after a jury was unable to reach a unanimous verdict on either count. The court set the case for re-trial, but on January 30, 2020, Young pleaded guilty to the felony of tax evasion for the 2013 tax year. Pursuant to a plea agreement, the government moved to dismiss the charge for 2012.
On June 10, 2020, U.S. District Judge Robin J. Cauthron sentenced Young to five years of probation, with the first six months to be served in home confinement. While recognizing the seriousness of the crime, she explained that this sentence is based in part on the dangers that Covid-19 could pose to Young if he were incarcerated. She also ordered Young to pay $1,197,616.46 in restitution, which represents unpaid personal federal income taxes for 2011, 2012, and 2013.
This case is the result of an investigation by the Internal Revenue Service—Criminal Investigations, with assistance from the U.S. Secret Service. Assistant U.S. Attorneys Scott E. Williams and Amanda Green prosecuted the case.
Reference is made to public filings for more information. To download a photo of U.S. Attorney Downing, click here.
Former Owner of Construction Company Admits EmbezzlementRead the Press Release
CAMDEN, N.J. – The former owner of a construction company today admitted his role in defrauding a retirement plan set up by the company, U.S. Attorney Craig Carpenito announced.
Joshua Ferrell, 34, of Chatsworth, New Jersey, the former owner of Indian Mills Contracting Services Inc. (Indian Mills), pleaded guilty plea by videoconference before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of embezzlement and theft from an employee pension or welfare benefit plan or a fund connected with such plan established for the company’s employees.
According to documents filed in this case and statements made in court:
Ferrell admitted that, between 2011 and February 2017, he was the president and owner of Indian Mills, which was a construction company in Chatsworth. Indian Mills was a family owned construction company that worked on federal, municipal, state, commercial and industrial projects throughout New Jersey. Indian Mills employed machine operators, carpenters, cement masons and labors.
In 2015, Ferrell established the Indian Mills Contracting Inc. 401K Plan which was established as a single employer profit sharing and 401K plan. The plan was covered by the Employee Retirement Income Security Act (ERISA) of 1974. Ferrell was the plan administrator.
Under the ERISA regulations, employers are permitted to establish and maintain employer sponsored retirement plans for the benefit of their employees. Once these plans are established, both employers and employees have the option of making regular contributions of funds to them. The accumulated plan assets are generally invested for the benefit of the plan and the plan participants, and any capital gains or income earned through such investment are added to the accumulated plan assets. Upon retirement, or when otherwise eligible, a plan participant may request and receive disbursements from the retirement plan assets. These disbursements correspond to contributions made to the plan by the participant, plus any associated gains made during the term of employment.
Ferrell admitted that the 401K plan allowed employees to defer portions of their salary before taxes from their bi-weekly paychecks and have that money earmarked for contribution into the plan’s trust.
Ferrell admitted that between Jan. 1, 2015, and February 2017, money which was deducted bi-weekly from Indian Mills employees’ paychecks and which was supposed to be contributed to the plan was instead kept by Ferrell and spent by him.
The charges to which Ferrell pleaded guilty carry a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled Oct. 19, 2020.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka in New York; and investigators of the U.S. Department of Labor, Employee Benefits Security Administration (EBSA), under the direction of Philadelphia Regional Director Michael Schloss, with the investigation leading to today’s guilty plea.
The government is represented by Senior Trial Counsel Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Former Office Manager of Boston Dental Practice Pleads Guilty to Bank Fraud, Identity Theft and Tax FraudRead the Press Release
BOSTON – The former office manager of a Boston-based dental practice pleaded guilty yesterday in federal court in Boston to charges of bank fraud and tax fraud stemming from her embezzlement of funds from her former employer.
Yuliya Vaysglus, a/k/a Julia Vaysglus, 36, formerly of Hopkinton, now residing in Campbell, Calif., pleaded guilty to eight counts of bank fraud, one count of aggravated identity theft and three counts of filing false tax returns. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Nov. 17, 2020.
From 2009 until she was terminated in February 2015, Vaysglus was the office manager of a Boston-area dental practice where her duties included tracking client invoices, depositing insurance payments into the practice’s bank account, and recording those deposits for accounting purposes. Between 2009 and December 2014, Vaysglus embezzled more than $348,000 from the dental practice by diverting to herself at least 276 checks from various insurance companies for services rendered to patients. As part of the scheme, Vaysglus made the checks payable to herself, forged the signature of the dental firm’s owner on the checks, and deposited them into her bank account. Vaysglus failed to report the embezzled funds on her federal tax returns.
The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of $1 million. The charge of filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of $250,000. Aggravated identity theft carries a mandatory two-year sentence that must be served consecutively to any other sentence, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service in Boston; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Sara M. Bloom and Victor A. Wild of Lelling’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Former DEA Official Pleads Guilty to Elaborate $4M Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A former Drug Enforcement Administration (DEA) public affairs officer pleaded guilty today to defrauding at least a dozen companies of over $4.4 million by posing falsely as a covert officer of the Central Intelligence Agency (CIA).
According to court documents, Garrison Kenneth Courtney, 44, of Florida, falsely claimed to be a covert officer of the CIA involved in a highly-classified program or “task force” involving various components of the United States Intelligence Community and the Department of Defense. According to the false story told by Courtney, this supposed classified program sought to enhance the intelligence gathering capabilities of the United States government. In truth, Courtney had never been employed by the CIA, and the task force that he described did not exist.
To accomplish the fraud, Courtney approached numerous private companies with some variation of this false story, and claimed that the companies needed to hire and pay him to create what Courtney described as “commercial cover,” i.e., to mask his supposed affiliation with the CIA. Courtney also fraudulently claimed that the companies would be reimbursed in the future for these salary payments, sometimes by the award of lucrative contracts from the United States government in connection with the supposedly classified program.
Courtney went to extraordinary lengths to perpetuate the illusion that he was a deep-cover operative. Among other things, he falsely claimed that his identity and large portions of his conduct were classified; directed victims and witnesses to sign fake nondisclosure agreements that purported to be from the United States government and that forbade anyone involved from speaking openly about the supposedly classified program; told victims and witnesses that they were under surveillance by hostile foreign intelligence services; made a show of searching people for electronic devices as part of his supposed counterintelligence methods; demanded that his victims meet in sensitive compartmented information facilities (SCIFs) to create the illusion that they were participating in a classified intelligence operation; and repeatedly threatened anyone who questioned his legitimacy with revocation of their security clearance and criminal prosecution if they “leaked” or continued to look into the supposedly classified information. Courtney further created fake letters, purporting to have been issued by the Attorney General of the United States, which claimed to grant blanket immunity to those who participated in the supposedly classified program.
As a further part of the scheme, Courtney created a fraudulent backstory about himself, claiming that he had served in the U.S. Army during the Gulf War, had hundreds of confirmed kills while in combat, sustained lung injuries from smoke caused by fires set to Iraq’s oil fields, and that a hostile foreign intelligence service had attempted to assassinate him by poisoning him with ricin. All of these claims were false.
Courtney also convinced several real governmental officials that he was participating in this “task force,” explained that they had been selected to participate in the program, and then used those officials as unwitting props falsely to burnish his legitimacy. For example, he directed his victims to speak with these public officials to verify his claims, and separately instructed the government officials as to exactly what to say. Courtney thereby created the false appearance to the victims that the government officials had independently validated his story, when in fact the officials merely were echoing the false information fed to them by Courtney. At times, Courtney also convinced those officials to meet with victims inside secure government facilities, thereby furthering the false appearance of authenticity.
Through the scheme, Courtney also fraudulently gained a position working as a private contractor for the National Institutes of Health Information Technology Acquisition and Assessment Center (NITAAC), a branch of NIH that provides acquisition support services to federal agencies. Once he had installed himself at NITAAC, Courtney gained access to sensitive, nonpublic information about the procurements of other federal agencies being supported by NITAAC. Courtney thereafter used that information to attempt to corrupt the procurement process by steering the award of contracts to companies where he was then also on the payroll, and used the false pretext of national security concerns to warp the process by preventing full and open competition.
Courtney pleaded guilty to wire fraud and faces a maximum sentence of 20 years in prison when sentenced on October 23. 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; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; and James A. Dawson, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after Senior U.S. District Judge Liam O'Grady accepted the plea. Assistant U.S. Attorneys Matthew Burke, Heidi Boutros Gesch, and Raj Parekh, and Todd Gee, Deputy Chief of the Department of Justice’s Public Integrity Section, are prosecuting the case.
Investigative agency partners include CIA OIG; Intelligence Community OIG; National Geospatial-Intelligence Agency OIG; Air Force Office of Special Investigations; U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU); Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office; Department of Justice OIG; U.S. Department of Health and Human Services (HHS) OIG; and Naval Criminal Investigative Service (NCIS) Washington Field Office.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-84.
Former DEA Official Pleads Guilty to Elaborate $4 Million Fraud SchemeRead the Press Release
A former Drug Enforcement Administration (DEA) public affairs officer pleaded guilty today to defrauding at least a dozen companies of over $4.4 million by posing falsely as a covert officer of the Central Intelligence Agency (CIA).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, and Special Agent in Charge James A. Dawson of the FBI’s Washington Field Office Criminal Division made the announcement
Garrison Kenneth Courtney, 44, of Tampa, Florida, pleaded guilty before Senior U.S. District Judge Liam O'Grady. Sentencing has been scheduled for Oct. 23, 2020.
According to court documents, Courtney falsely claimed to be a covert officer of the CIA involved in a highly-classified program or “task force” involving various components of the United States Intelligence Community and the Department of Defense. According to the false story told by Courtney, this supposed classified program sought to enhance the intelligence gathering capabilities of the United States government. In truth, Courtney had never been employed by the CIA, and the task force that he described did not exist.
To accomplish the fraud, Courtney approached numerous private companies with some variation of this false story, and claimed that the companies needed to hire and pay him to create what Courtney described as “commercial cover,” i.e., to mask his supposed affiliation with the CIA. Courtney also fraudulently claimed that the companies would be reimbursed in the future for these salary payments, sometimes by the award of lucrative contracts from the United States government in connection with the supposedly classified program.
Courtney went to extraordinary lengths to perpetuate the illusion that he was a deep-cover operative. Among other things, he falsely claimed that his identity and large portions of his conduct were classified; directed victims and witnesses to sign fake nondisclosure agreements that purported to be from the U.S. government and that forbade anyone involved from speaking openly about the supposedly classified program; told victims and witnesses that they were under surveillance by hostile foreign intelligence services; made a show of searching people for electronic devices as part of his supposed counterintelligence methods; demanded that his victims meet in sensitive compartmented information facilities to create the illusion that they were participating in a classified intelligence operation; and repeatedly threatened anyone who questioned his legitimacy with revocation of their security clearance and criminal prosecution if they “leaked” or continued to look into the supposedly classified information. Courtney further created fake letters, purporting to have been issued by the Attorney General of the United States, which claimed to grant blanket immunity to those who participated in the supposedly classified program.
As a further part of the scheme, Courtney created a fraudulent backstory about himself, claiming that he had served in the U.S. Army during the Gulf War, had hundreds of confirmed kills while in combat, sustained lung injuries from smoke caused by fires set to Iraq’s oil fields, and that a hostile foreign intelligence service had attempted to assassinate him by poisoning him with ricin. All of these claims were false.
Courtney also convinced several real governmental officials that he was participating in this “task force,” explained that they had been selected to participate in the program, and then used those officials as unwitting props falsely to burnish his legitimacy. For example, he directed his victims to speak with these public officials to verify his claims, and separately instructed the government officials as to exactly what to say. Courtney thereby created the false appearance to the victims that the government officials had independently validated his story, when in fact the officials merely were echoing the false information fed to them by Courtney. At times, Courtney also convinced those officials to meet with victims inside secure government facilities, thereby furthering the false appearance of authenticity.
Through the scheme, Courtney also fraudulently gained a position working as a private contractor for the National Institutes of Health (NIH) Information Technology Acquisition and Assessment Center (NITAAC), a branch of NIH that provides acquisition support services to federal agencies. Once he had installed himself at NITAAC, Courtney gained access to sensitive, nonpublic information about the procurements of other federal agencies being supported by NITAAC. Courtney thereafter used that information to attempt to corrupt the procurement process by steering the award of contracts to companies where he was then also on the payroll, and used the false pretext of national security concerns to warp the process by preventing full and open competition.
Investigative agency partners include CIA Office of Inspector General (OIG); Intelligence Community OIG; National Geospatial-Intelligence Agency OIG; Air Force Office of Special Investigations; U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit; Defense Criminal Investigative Service’s Mid-Atlantic Field Office; Department of Justice OIG; U.S. Department of Health and Human Services OIG; and Naval Criminal Investigative Service Washington Field Office.
Deputy Chief Todd Gee of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Matthew Burke, Heidi Boutros Gesch, and Raj Parekh are prosecuting 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.
Former Calexico City Officials Admit to Accepting BribesRead the Press Release
NEWS RELEASE SUMMARY – June 11, 2020
SAN DIEGO – Former Calexico City Councilman David Romero and Bruno Suarez-Soto, a former commissioner on the city’s Economic Development and Financial Advisory Commission, pleaded guilty in federal court today to corruption charges, admitting that they accepted cash bribes in exchange for promises of official action by the city.
The defendants entered their pleas before U.S. Magistrate Judge Bernard G. Skomal, who set sentencing for September 4, 2020 before District Judge Cathy Ann Bencivengo. Romero and Suarez-Soto were allowed to remain free on $10,000 personal appearance bonds secured by their own signatures.
According to their plea agreements, Romero and Soto accepted $35,000 in cash bribes from an undercover FBI agent who they believed represented investors seeking to open a cannabis dispensary in Calexico. In return, Romero and Soto guaranteed the rapid issuance of a city permit for the dispensary, and to revoke or hinder other applicants if necessary to ensure that the bribe payer’s application was successful. Both men admitted they had taken bribes from others in the past. Referring to this $35,000 payment, they told the undercover agent, “This isn’t our first rodeo.”
In addition to being a councilman, Romero served as Calexico’s Mayor Pro Tem, meaning he was set to become Mayor in July 2020. Soto recently resigned from the City commission responsible for promoting business and community growth and coordinating with prospective developers to help them invest in the City of Calexico. Romero resigned his position with the City of Calexico as part of his plea agreement, effective Monday, June 8.
“David Romero was about to become the highest-ranking public official in the city of Calexico, but he and his partner-in-crime sold their power and influence to the highest bidder in a secret pay-to-play scheme,” said U.S. Attorney Robert Brewer. “They are the ones who will pay now.”
“The corruption, lies, and greed of Romero and Suarez-Soto were uncovered by FBI Agents working in our Imperial Valley Office,” said Omer Meisel, Acting FBI Special Agent in Charge of the San Diego Division and Imperial County Resident Agency. “The community in Imperial Valley has a right to leaders who put the public's interest first and serve the community honorably. The FBI is committed to investigating those who violate their position of trust.”
According to their plea agreements, during a December 19, 2019 meeting at a restaurant in Calexico with the undercover FBI agent, Romero and Soto agreed to fast-track the agent’s purported application for a cannabis dispensary permit and guaranteed its rapid issuance in exchange for a $35,000 bribe. The defendants also offered to delay permit applications by competitors.
Toward the conclusion of the December 19, 2019 meeting, when the undercover agent asked if Romero and Soto might later ask for more than the $35,000 payment, Romero assured him that they would not, per court filings. “This is done. Set and sealed,” Romero said. Romero explained that he and Soto would require the money to be paid up front, however, because they had done similar work for other people, and those people had not paid the agreed-upon fee after the favors had been rendered. Romero and Soto agreed to accept payment of the $35,000 from the agent in two installments, however: half up front, and half “when it’s a for sure thing.”
At this meeting the undercover agent asked whether the payment of $35,000 would “get us in front of the line” of applicants. Soto answered, “Hell yeah,” according to court records. Romero added that he “didn’t want to say it in front of everybody, but it will.”
On January 9, 2020, Romero and Soto attended a second meeting with the undercover agent at a restaurant in El Centro, California. During the meeting, according to court filings, Romero reminded the undercover agent how difficult it was to work with the City of Calexico, and how fortunate it was that the agent was working with Romero. Soto later added that in return for the bribe, Romero would cut through “so much bullshit [red] tape that exists” with the City.
During a discussion of the approval process for the permit application referenced in court records, Romero explained that the people who have to approve the undercover agent’s license were “my best friends at the entire City Hall.” When asked if the “best friends” had already signed off on the plan, Romero responded “Fuck, yeah!” and laughed.
According to admissions in the plea agreements and documents filed in court, at the conclusion of the January 9, 2020 meeting, in the parking lot outside the restaurant, with Romero looking on, the undercover agent handed Soto $17,500 in cash and explained that he divided the first installment of the bribe into two envelopes: one with $8,800 and another with $8,700. The agent asked whether “we’re good,” and Romero responded, “Trust me” and added, “In my line of business, I can’t fuck up. Which means he [Soto] can’t fuck up.”
The defendants accepted the second installment, $17,500 in cash, during a third meeting on January 30 in a parking lot outside a restaurant in El Centro, per the plea agreements. Both men also admitted to creating a shell corporation to launder the proceeds of their bribery scheme.
The charges filed in the case also allege that both men lied to the FBI when interviewed by agents at the conclusion of the January 30 meeting. Romero falsely denied being part of any agreement with the undercover agent, and denied that anyone had made any “guarantees” to the agent. Similarly, Soto falsely denied making any “guarantees” to the undercover agent and denied receiving any prior payments from the agent.
U.S. Attorney Brewer praised Assistant U.S. Attorney Nicholas Pilchak, DOJ Public Integrity Section trial attorney Joshua Rothstein and FBI agents for working hard to achieve justice in this matter.
The case against Romero and Suarez-Soto is a public corruption investigation being conducted by the FBI and the U.S. Attorney’s Office. Any member of the public who has information related to this or any other public corruption matter in Imperial County or San Diego is encouraged to provide information to the FBI’s email tip line at tips.fbi.gov or to contact their local FBI Field Office. In Imperial County, the FBI can be reached 24 hours a day at 858-320-1800 or 1-877-NO-BRIBE (662-7423).
DEFENDANTS Case Number 20cr1215
Calexico City Councilman David Romero Age: 36 Residence: Calexico, CA
Calexico City Commissioner Bruno Suarez-Soto Age: 28 Residence: Calexico, CA
SUMMARY OF CHARGES
Conspiracy to Commit Federal Program Bribery, in violation of Title 18, United States Code, Sections
371 and 666 (a) (1) (B)
Maximum Penalty: Five years in prison; $250,000 fine.
AGENCY
Federal Bureau of Investigation
Florida man charged in telemedicine schemeRead the Press Release
SAVANNAH, GA: A Florida man who supplied Medicare patient information to his co-conspirators to ultimately bill Medicare for durable medical equipment claims has been charged for his alleged participation in a kickback and telemedicine fraud scheme.
Daniel Craig Hallam, a/k/a Daniel Craig, 41, of Palm Beach Gardens, Fla., is accused of conspiring to pay kickbacks for “leads,” or patient identifications and insurance information, of persons who may need durable medical equipment, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. According to court filings, Craig then received a percentage of the profit from a durable medical equipment company – which billed Medicare for the durable medical equipment – in exchange for supplying leads.
The financial total for orders facilitated through this scheme is alleged to be more than $6 million. Medicare beneficiaries whose patient data was brokered were located in the Southern District of Georgia and elsewhere. Hallam was charged by way of an Information, filed in the U.S. District Court for the Southern District of Georgia.
“As the number of defendants identified through this white-collar fraud investigation in the Southern District continue to grow, taxpayers should be aware that it is a priority of this office to work with our dedicated law enforcement partners to vigorously pursue those who would illegally exploit government safety-net programs for personal enrichment,” said U.S. Attorney Christine.
This prosecution, arising out of the related “Operation Brace Yourself” and “Operation Double Helix,” together with those previously announced, continue to add to the largest fraud operation prosecuted in the history of the Southern District of Georgia. Previous charges in this string of cases include eight physicians, two nurse practitioners, three operators of different telemedicine companies, two other brokers of patient data, and several owners of durable medical equipment companies. The Medicare and Medicaid beneficiaries whose identities were used as part of the scheme are located throughout the country, including in the Southern District of Georgia.
The combined total of more than $480 million in fraud charged in the Southern District of Georgia is part of nationwide operations by the Department of Justice that thus far has included allegations involving billions of dollars in fraudulent claims for genetic testing, orthotic braces, pain creams, and other items.
“The FBI is determined to protect all tax paying citizens who are affected by these kickback schemes, especially those who need government assistance for their health care needs," said Chris Hacker, Special Agent in Charge of FBI Atlanta. This case is just a small piece of a much larger operation that has put tremendous pressure on those seeking to take advantage of our federally subsidized health care programs.”
“Now more than ever, it’s vitally important that the health care our Medicare beneficiaries seek is based on sound medical advice, not monetary kickbacks,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Together with our law enforcement partners, we will continue in the fight to ensure that government programs are only used for legitimate purposes.”
“Cases of this magnitude can only be tackled using a strategy that recognizes that the most effective way to fight these large criminal networks is by combining the strengths, resources, and expertise of our federal agencies,” said Resident Agent in Charge Glen M. Kessler of the U.S. Secret Service. “Our nation’s healthcare system cannot tolerate kickbacks to physicians and pharmacies while criminals line their pockets with taxpayer funded healthcare dollars.”
Criminal informations contain only charges; defendants are presumed innocent unless and until proven guilty.
This investigation is ongoing. As telemedicine becomes an increasing part of our healthcare system, particularly during the COVID-19 pandemic, vigilance in ensuring that fraud and kickbacks do not usurp the legitimate practice of medicine by electronic means is more important than ever. If you are aware of any fraud or kickbacks relating to telemedicine, please call the FBI hotline at 1-800-CALL-FBI.
This particular prosecution resulted from a joint investigation of multiple agencies and offices. U.S. Attorney Christine acclaimed the hard work of the investigatory team, led by FBI - Savannah, the Department of Health and Human Services Office of Inspector General, and the U.S. Secret Service.
Assistant U.S. Attorneys J. Thomas Clarkson and Jonathan A. Porter are prosecuting these cases on behalf of the United States.
Five Bay Area Residents Face Federal Charges for Vacaville Gun Store BurglaryRead the Press Release
SACRAMENTO, Calif. —, Five individuals face federal charges for the burglary of a Vacaville gun shop, U.S. Attorney McGregor W. Scott announced.
According to court documents, on June 1, police responded to reports of suspicious activity at Guns, Fishing and Other Stuff, a two-story gun and outdoor recreation store in Vacaville. Guns, Fishing and Other Stuff is a federally licensed firearms dealer. When officers responded, four vehicles fled the scene. After a high-speed chase, one vehicle, a rented minivan, was stopped, and its five passengers were arrested after a foot pursuit.
According to the criminal complaint, inside the minivan were bolt cutters, a power saw, and 13 handguns with price tags from Guns, Fishing and Other Stuff still attached. Donte Marcel Anderson, 31, of Antioch; Desteny Estrella Leilani Salazar, 22, of San Francisco; Donley Thompson, 27, of Pinole; Tracy Whitfield, 31, of Pittsburg; and Adrian Oscar Duran, 23, of San Francisco, were arrested. They are charged with possession of a stolen firearm and burglary of a federally licensed firearms dealer
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Vacaville Police Department. Assistant U.S. Attorney Justin Lee is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 for both counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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 www.justice.gov/projectguardian.
Fifteen Defendants Plead Guilty to Racketeering Conspiracy in International Cyber Fraud SchemeRead the Press Release
Fifteen defendants have pleaded guilty to-date for their roles in a transnational and multi-million dollar scheme to defraud American victims through online auction fraud.
Four of the guilty pleas took place in the past 24 days before U.S. Magistrate Judge Matthew A. Stinnett of the U.S. District Court for the Eastern District of Kentucky.
Bogdan-Stefan Popescu, 30, of Romania, pleaded guilty on June 11, 2020, to one count of RICO conspiracy. According to plea documents, Popescu operated a car wash in Bucharest, Romania, where he managed coconspirators in the RICO enterprise. From at least December of 2013, Popescu oversaw an operation whereby he knowingly negotiated fraudulently obtained Bitcoin. He did so in many ways. For example, he would sometimes receive cryptocurrency from coconspirators who obtained the funds through online fraud scams, transfer the cryptocurrency to other conspirators such as codefendant Vlad-Călin Nistor. He would then direct that Nistor exchange the cryptocurrency for fiat currency, and deposit the fiat currency into bank accounts held in the names of various employees and family members. According to court documents, in addition to providing money laundering services, Popescu also coordinated the dissemination of tools used to defraud American-based victims, such as the language and photographs for fake advertisements as well as usernames and passwords for IP address anonymizing services. Popescu also assisted members of the RICO conspiracy by connecting them with other members who could provide call center services—that is, who would impersonate eBay customer service representatives over the phone.
Liviu-Sorin Nedelcu, 34, of Romania, pleaded guilty on June 11, 2020, to one count of RICO conspiracy. According to court documents, Nedelcu worked in conjunction with others to post advertisements for goods online. To maintain the appearance of legitimacy, Nedelcu created fictitious entities through which he purported to sell vehicles. Once Nedelcu and his coconspirators convinced victims to purchase falsely advertised goods, they sent the victims invoices for payment that appeared to be from legitimate sellers, such as eBay Motors. Upon receiving payment, Nedelcu and his coconspirators engaged in a sophisticated money laundering scheme to convert the victim payment into Bitcoin.
Vlad-Călin Nistor, 33, of Romania, pleaded guilty on May 19, 2020, to one count of RICO conspiracy. According to plea documents, Nistor was the founder and owner of the Romania-based Bitcoin exchange Coinflux Services SRL. He exchanged cryptocurrency into local fiat currency on behalf of the Romania-based members of the conspiracy, knowing that the Bitcoin represented the proceeds of illegal activity. According to plea documents for example, Nistor exchanged over $1.8 million worth of Bitcoin for co-defendant Bogdan Popescu.
Beniamin-Filip Ologeanu, 30, of Romania, pleaded guilty on May 19, 2020, to one count of RICO conspiracy. According to court documents, Ologeanu worked in conjunction with others in the conspiracy to post advertisements for goods to auction websites, including eBay, and sales websites, including Craigslist. Once Ologeanu or his coconspirators convinced victims to purchase and provide payment for falsely advertised items, Ologeanu reached out to U.S.-based conspirators to convert the victim payment into other forms of payment and transfer part of it to Ologeanu in Bitcoin. Ologeanu also purchased fraud proceeds from other coconspirators, typically in the form of prepaid debit cards, to be laundered by U.S.-based coconspirators.
“Today’s modern cybercriminals rely on increasingly sophisticated techniques to defraud victims, often masquerading as legitimate businesses,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “These guilty pleas demonstrate that the United States will hold accountable foreign and domestic criminal enterprises and their enablers, including crooked bitcoin exchanges that swindle the American public.”
“The guilty pleas announced today are a direct result of the extraordinary cooperation and partnership among law enforcement agencies at the local, state, federal, and international levels,” said U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky. “These partnerships helped dismantle a sophisticated organized crime group who preyed upon victims across the United States. I commend the exceptional work conducted by our law enforcement partners and trial team members who worked diligently to hold these defendants accountable.”
“Through the use of digital currencies and trans-border organizational strategies, this criminal syndicate believed they were beyond the reach of law enforcement,” said Assistant Director Michael D’Ambrosio, U.S. Secret Service, Office of Investigations. “However, as this successful investigation clearly illustrates, with sustained, international cooperation, we can effectively hold cyber criminals accountable for their actions, no matter where they reside. I commend the hard work and perseverance of all those who joined together in this investigation and prosecution. This includes our partners in Europe, as well as those closer to home.”
“Today’s guilty pleas serve as a reminder that IRS-CI special agents will uncover illegal activity here and abroad, pierce the perceived veil of anonymity provided by cryptocurrencies, and bring those responsible for unlawful acts to justice,” said Special Agent in Charge Jonathan Larsen of the IRS-Criminal Investigation (IRS-CI) New York Field Office. “We will continue to push the agency to the forefront of complex cyber investigations and work collaboratively with our law enforcement partners to ensure the United States financial system is protected.”
“These are scam artists who hide behind a wall of technology which allows them to prey upon innocent victims throughout the United States,” said Kentucky State Police Commissioner Rodney Brewer. “The dismantling of this criminal enterprise was made possible because of the incredible level of cooperation between the law enforcement community here in Kentucky.”
According to court documents, the defendants participated in a criminal conspiracy that engaged in a large-scale scheme of online auction fraud. Specifically, Romania-based members of the conspiracy posted false advertisements to popular online auction and sales websites—such as Craigslist and eBay—for high-cost goods (typically vehicles) that did not actually exist. Members of the conspiracy would convince American victims to send money for the advertised goods by crafting persuasive narratives, for example, by impersonating a military member who needed to sell the advertised item before deployment.
According to court documents, members of the conspiracy created fictitious online accounts to post these advertisements and communicate with victims, often using the stolen identities of Americans to do so. They also delivered invoices to the victims bearing trademarks of reputable companies in order to make the transaction appear legitimate. Members of the conspiracy also set up call centers, impersonating customer support, to address questions and alleviate concerns over the advertisements.
Once victims were convinced to send payment, the conspiracy participants engaged in a complicated money laundering scheme wherein domestic associates would accept victim funds, convert these funds to cryptocurrency, and transfer proceeds in the form of cryptocurrency to foreign-based money launderers.
The 15 defendants who have pleaded guilty in this case have yet to be sentenced. Two other defendants in the case are scheduled for trial starting on Sept. 14, 2020, before the Honorable Robert E. Wier of the U.S. District Court for the Eastern District of Kentucky. Three others are fugitives.
In addition to pleading guilty in this case, on Jan. 13, 2020, Adrian Mitan pleaded guilty in a related money laundering conspiracy, arising from online schemes, including a credit card phishing and brute-force attack scheme, designed to steal money from Americans. According to court documents, Mitan phished for payment card information of U.S. customers, hacked into the electronic systems of American businesses, and then conducted a brute-force attack on their point-of-sale systems for the purpose of stealing the remaining payment card information. Mitan then directed American money launderers to create clone payment cards with the stolen information, which were used to extract money from the customers’ accounts. These fraudulent proceeds were then returned to Mitan in the form of Bitcoin.
The investigation was conducted by the U.S. Secret Service, Kentucky State Police, Lexington Police Department, IRS Criminal Investigation, and U.S. Postal Inspection Service, and supported by the Justice Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and the International Organized Crime Intelligence and Operations Center (IOC-2). Assistance was provided by the Romanian National Police (Service for Combating Cybercrime) and the Romanian Directorate for Investigating Organized Crime and Terrorism (Agency for Prosecuting Organized Crime). The Criminal Division’s Money Laundering and Asset Recovery Section provided significant support and the Criminal Division’s Office of International Affairs provided significant support in securing and coordinating the arrests and extraditions from Romania of more than a dozen defendants.
This case is being prosecuted by Senior Trial Attorney Timothy C. Flowers and Senior Counsel Frank H. Lin of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Kathryn M. Anderson and Kenneth R. Taylor of the U.S. Attorney’s Office for the Eastern District of Kentucky.
Individuals believing they may be victims of the advanced fee and online auction fraud or brute-force attack schemes described herein are encouraged to visit the following website to obtain more information: https://justice.gov/usao-edky/information-victims-large-cases. Tips to avoid becoming a victim of online auction fraud can be found here on the U.S. Secret Service’s website.
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.
Felon Sentenced to 66 Months for Possessing Loaded FirearmRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jamohn Barney, 25, Madison, Wisconsin was sentenced today by U.S. District Judge James D. Peterson to 66 months in federal prison, followed by a three-year term of supervised release, for unlawfully possessing a loaded firearm as a felon. Barney pleaded guilty to this charge on February 5, 2020.
On August 10, 2019, Barney was passed out behind the wheel of his car, which was running, at a McDonald’s in Monona. He had an open bottle of champagne between his legs. He resisted law enforcement requests to cooperate with sobriety tests, so he was placed in handcuffs. While placing him in handcuffs, officers saw a bag of “white rock-like substance” on the driver's floorboard. Based on their training and experience, they believed the substance was crack cocaine. The car was lawfully searched and in the center console was a loaded Taurus 9mm pistol, wrapped in a blue bandana.
The Bureau of Alcohol, Tobacco, Firearms and Explosives traced the firearm and found that it had been purchased by Lidia Molina on July 12, 2019. Further investigation led to the prosecution of Molina for the purchase of numerous firearms for her boyfriend, a felon (“straw purchases”). In this instance, he sold the Taurus pistol to Barney, who is a friend and associate. Molina is scheduled to be sentenced July 18, 2020.
Barney was convicted of robbery with use of force in 2014, and battery by prisoners in 2015. He was serving a term of extended supervision in Dane County Circuit Court when he unlawfully possessed the Taurus.
The charge against Barney was the result of an investigation conducted by the Monona Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
Felon Sentenced for Illegal Possession and Manufacture of Machine Guns and SilencersRead the Press Release
A 30-year-old Tulsa man was sentenced in U.S. District Court today for firearms charges, including illegally possessing and manufacturing machine guns and silencers, announced U.S. Attorney Trent Shores.
U.S. District Judge Gregory K. Frizzell sentenced Christopher Joseph Kiss to 37 months in federal prison to be followed by three years of supervised release. On Jan. 13, 2020, Kiss pleaded guilty to being a felon in possession of a firearm and ammunition, illegal possession of a machine gun, making unregistered machine guns and silencers, and possession of unregistered silencers.
“The availability of illegal guns all too often leads to violent crime. My office along with our partners at the ATF will continue to target illegal gun manufacturers like Christopher Kiss in order to keep these dangerous firearms off the streets,” said U.S. Attorney Trent Shores.
“Manufacture of unregistered NFA devices is illegal. Possession of unregistered NFA devices is illegal. Manufacture, transfer and possession of any firearm or ammunition by a previously convicted felon is illegal,” stated ATF Special Agent in Charge Jeffrey C. Boshek II. “Mr. Kiss is a trifecta in disregard of the law.”
In his plea agreement, Kiss, a felon, admitted that he possessed, manufactured, and modified multiple firearms. Kiss possessed a .25 auto caliber pistol and a container with a sampling of 95 pounds of ammunition. He also possessed a homemade Glock-style .22 caliber pistol equipped with a Glock switch that enabled the pistol to fire in fully-automatic mode. In addition, investigators discovered an AR-15 style short-barreled 9 mm rifle that Kiss modified to fire in fully-automatic mode. The defendant further illegally manufactured at least four silencers and possessed a total of 26 silencers. In his statement, Kiss agreed that he failed to properly register these machine guns and silencers in the National Firearms Registration and Transfer Record.
Kiss will remain in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation. Assistant U.S. Attorney Mark R. Morgan prosecuted the case.
The case was prosecuted as part of the Justice Department’s Project Guardian, a nationwide initiative leveraging critical law enforcement partnerships to enforce federal firearms laws. Project Guardian is the Department’s signature initiative to reduce gun violence and enforce federal firearms laws. Project Guardian draws upon the Justice 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). This includes taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
Federal Inmate Sentenced to 30 Months for Possessing a Weapon in Butner PrisonRead the Press Release
RALEIGH, N.C. – An inmate housed at the Federal Correctional Complex in Butner, North Carolina (“FCC Butner”) was sentenced yesterday to 30 months of incarceration for possessing weapons inside the federal prison.
According to court documents, Gerald Wayne Timms, 59, was found by Federal Bureau of Prisons (“BOP”) staff to be in possession of multiple homemade sharpened objects on two separate occasions in May, 2019 and again in September, 2019. BOP staff found the weapons inside Timms’ assigned cell during routine searches. Timms was charged by way of a two count indictment for violation of 18 U.S.C. § 1791, possession of contraband in prison. On February 19, 2020, a jury found Timms guilty of both counts. Timms received 30 months on each count to be served concurrently.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. BOP Special Investigative Services investigated the case and Special Assistant U.S. Attorneys Mallory Brooks Storus, Genna D. Petre, and Michael Bredenberg prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00428-FL.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Fairbanks Woman Sentenced to Federal Prison for Bank Fraud and Identity TheftRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a Fairbanks woman has been sentenced to federal prison for multiple crime sprees involving identify theft, mail theft, bank fraud, and credit card fraud.
Natascha Sabrina Clark, 36, of Fairbanks, was sentenced today by U.S. District Judge Ralph R. Beistline to serve 68 months in prison, followed by five years of supervised release, after previously pleading guilty to one count of bank fraud, two counts of aggravated identity theft, and one count of fraudulent transactions with an access device. As part of her sentence, Clark was also ordered to pay $10,429.21 in restitution to the victims, as well as costs associated with credit monitoring services.
According to court documents, on May 25, 2017, Clark made several fraudulent transactions using a stolen credit card, including a $2,439.90 purchase at Evolve Skateboards. The investigation revealed that Clark had stolen C.B.’s credit card from his mailbox, ordered a skateboard online using C.B.’s name, billing address, and credit card, and subsequently pawned the skateboard in order to purchase illegal narcotics.
Clark’s illegal activity continued in November 2018, when she stole checks for an Alaska USA Federal Credit Union account from M.P.’s mailbox and created a counterfeit identification document bearing M.P.’s name, address, and driver’s license number, but with Clark’s photograph. Using M.P.’s stolen checks, Clark then began executing fraudulent transactions at Ulta Salon and other businesses.
The investigation further revealed that, from November 2018 to January 2019, using a Hawaiian Airlines credit card belonging to business R.C.C., which she had previously stolen from a mailbox, Clark made 61 fraudulent transactions totaling $4,854.14. The majority of these transactions occurred at three Holiday Gas Stations in Fairbanks.
The Federal Bureau of Investigation (FBI), the Fairbanks Police Department (FPD), the Alaska State Troopers (AST), and the North Pole Police Department (NPPD) conducted the investigation leading to successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Ryan D. Tansey of the U.S. Attorney’s Office for the District of Alaska.
Erie Man Sentenced to Nine Years’ Imprisonment for Firearms ViolationRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on June 10, 2020, Ted Johnson, Jr., age 38, of Erie, Pennsylvania, was sentenced by U.S. District Court Judge Matthew W. Brann to 108 months’ imprisonment for discharging a firearm during a crime of violence.
According to United States Attorney David J. Freed, Johnson pleaded guilty to using a firearm during a crime of violence in connection with a January 2017 armed robbery of a Unimart in State College, PA. The robbery consisted of two co-conspirators entering the store and firing their weapons while Johnson acted as a lookout and getaway driver.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ferguson Township Police Department. Assistant United States Attorney Geoffrey W. MacArthur prosecuted.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Dominican National Sentenced for Illegal Possession of a Firearm and Illegal ReentryRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for illegal possession of a firearm and ammunition and illegal reentry.
Twaldo Baez was sentenced by U.S. District Court Chief Judge F. Dennis Saylor to 15 months in prison and three years of supervised release. Upon completion of his sentence, Baez will be placed into removal proceedings and deported to the Dominican Republic. In February 2020, Baez pled guilty to being an alien in possession of a firearm and ammunition and illegal reentry.
Baez was first encountered by immigration officials in 2006 while he was serving a sentence for domestic assault and battery and breaking and entering. Upon completion of his sentence, Baez was deported to the Dominican Republic on Aug. 5, 2007.
Sometime after his 2007 removal, Baez illegally reentered the United States. In March 2019, Baez was encountered by law enforcement officers following a high-speed vehicle chase. The vehicle Baez was operating was eventually stopped. During a subsequent search of the vehicle, law enforcement recovered a 9mm semi-automatic firearm and 8 rounds of ammunition. Baez was charged with by the state with possession of the firearm and ammunition. His prints were later obtained and found to match the prints on his 2007 removal. Baez appeared in the Lawrence District Court and was held on bail. In September 2019, Baez posted bail, was then released to ICE, and has been in federal custody since.
United States Attorney Andrew E. Lelling; Todd Lyons, Acting Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Lawrence Police Chief Roy Vasque; and Essex County District Attorney Jonathan W. Blodgett made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
District Man Charged in Federal Court for Vandalizing the Lincoln Memorial During ProtestsRead the Press Release
WASHINGTON – Micah Avery, 26, of Washington, D.C., was arraigned today in federal court on charges of destruction of federal property, resisting a federal officer, and obstructing a law enforcement officer during a civil disorder, announced Acting U.S. Attorney Michael R. Sherwin and Acting Chief of the United States Park Police (USPP) Gregory T. Monahan.
The complaint alleges that on the afternoon of May 30, 2020, officers with the U.S. Park Police witnessed Avery graffiti the words “Yall not tired yet?” with black spray paint on the Lincoln Memorial (see photo below). Avery fled as the officers approached him. After a chase, officers apprehended and handcuffed Avery. Officers attempted to put the defendant into a patrol car, but he resisted their attempts. A crowd converged on the officers and began pushing and striking the officers. During this melee, Avery broke free and ran away. One of the officers sustained an injury to his hand. A look-out was broadcast, and Avery was located shortly thereafter by other officers back at the Lincoln Memorial, still wearing the handcuffs.
The defendant was arraigned today before United States Magistrate Robin M. Meriweather in the United States District Court for the District of Columbia. Judge Meriweather released Avery pending trial, but ordered that he stay away from the Lincoln Memorial. 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 United States Attorney’s Office for the District of Columbia is dedicated to protecting the vital First Amendment right of individuals who choose to peacefully protest the horrific killing of George Floyd in Minneapolis last month. Moreover, as the prosecution of Avery illustrates, the United States Attorney’s Office will not tolerate those who under the guise of the First Amendment exploit peaceful demonstrations to break the law, deface our national monuments, and threaten the safety and security of our nation’s capital. In its commitment to protect the rule of law, this Office will not leave unchecked any criminal activity, whether committed by civilians or law enforcement, that infringes on the fundamental civil rights and ability of any person to be free of violence or fear,” said Acting U.S. Attorney Michael R. Sherwin.
“The defacing of the Lincoln Memorial, one of our national icons, could not be tolerated. We are committed to safeguarding the First Amendment rights of those who come to the District of Columbia to peacefully demonstrate. This crime shows how the actions of one individual can distort and tarnish a message through vandalism and other crimes of opportunity. This case is an example of excellent police work, under challenging conditions, and meets one of the core missions of the United States Park Police,” said Gregory T. Monahan, Acting Chief of the United States Park Police.
In announcing the charges, Acting U.S. Attorney Sherwin and Acting Chief Monahan commended the work of the USPP officers who apprehended Avery and are investigating the incident. The case is being prosecuted by Assistant U.S. Attorney James B. Nelson of the U.S. Attorney’s Office for the District of Columbia.
Department of Justice awards more than $2 million in COVID-19 emergency supplemental funding to New Mexico cities and countiesRead the Press Release
ALBUQUERQUE, N.M. – U.S. Attorney John C. Anderson announced today the Department of Justice has awarded a combined $2,044,990 to the City of Albuquerque, the City of Espanola, the City of Gallup, the City of Rio Rancho, the County of Santa Fe and the County of San Juan as part of the Office of Justice Program’s Coronavirus Emergency Supplemental Funding Program.
“The COVID-19 pandemic continues to present many public safety challenges for New Mexico,” said U.S. Attorney Anderson. “The grant funds awarded to these cities, counties, and law enforcement agencies will assist them in meeting the specific needs of their communities. I am thankful to the Office of Justice Programs for making these urgently needed resources available to our state.”
City of Albuquerque – $1,644,717
City of Espanola – $70,596
City of Gallup – $94,413
City of Rio Rancho – $50,098
County of Santa Fe – $58,008
County of San Juan – $127,158
Coronavirus Emergency Supplemental Funding Program has dedicated $850 million nationally to assist eligible states, local units of government, and tribes in preventing, preparing for, and responding to the coronavirus. The New Mexico Department of Public Safety received a $6 million grant last month.
Allowable projects and purchases include overtime, equipment (including law enforcement and medical personal protective equipment), hiring, supplies (such as gloves, masks, sanitizer), training, travel expenses, and addressing the medical needs of inmates in state, local, and tribal prisons, jails, and detention centers.
Dayton Man Pleads Guilty to Methamphetamine and Fentanyl TraffickingRead the Press Release
ASHLAND, Ky. - A Dayton, Ohio man, Robert Amos, 33, pled guilty in federal court on Tuesday, before U.S. District Judge David Bunning, to possession with intention to distribute 50 grams of more of methamphetamine and fentanyl.
In his guilty plea, Amos admitted that, when was stopped by law enforcement, he was in possession of 50 grams or more of methamphetamine and a quantity of fentanyl for distribution.
Amos was indicted in March 2020.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and J.T. Scott, Special Agent in Charge, DEA Louisville Field Division, jointly announced the guilty plea.
The investigation was conducted by DEA and the FADE Drug Task Force. The United States was represented by Assistant U.S. Attorney Cynthia Rieker.
Amos is scheduled to be sentenced on September 14, 2020. He faces a minimum of five years in prison and a maximum of 40 years in prison. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Craig M. Young sentenced to71 months in prison in $11 million Ayudando Guardians financial fraud schemeRead the Press Release
ALBUQUERQUE, N.M. – A federal judge in Santa Fe, New Mexico sentenced Craig M. Young, 55, of Albuquerque to 71 months in federal prison today for conspiracy and conspiracy to commit money laundering in connection with the operation of Ayudando Guardians, Inc., a non-profit corporation based in Albuquerque that previously provided guardianship, conservatorship, and financial management to hundreds of people with special needs.
Young pleaded guilty on Nov. 12, 2019. In his plea agreement, he admitted committing these crimes while employed as a guardian for Ayudando. Young used a business American Express card to pay personal expenses. He knew that Sharon Moore, 64, of Albuquerque, who served as co-owner and chief finance officer at Ayudando, paid his American Express bill each month from at least 2010 to June 2017 using funds from Ayudando’s client reimbursement and petty cash accounts.
Young further admitted acting with Moore and his mother, Susan K. Harris, 73, of Albuquerque, who was the of 95% owner and president of Ayudando, to write and endorse numerous checks from Ayudando accounts to themselves, to cash, and to family members and to other payees for their own benefit. Young admitted paying his monthly mortgage in this manner. Young further admitted selling a motor home purchased with proceeds from the fraud scheme because he believed federal investigators could seize the motor home as proceeds of criminal activity.
Young must serve a 3-year term of supervised release following imprisonment. He must also pay approximately $6.8 million in restitution to the victims of the fraud scheme.
Moore pleaded guilty on July 9, 2019, to conspiracy, mail fraud, aggravated identity theft, money laundering, and conspiracy to commit money laundering. She is currently serving a 20-year prison sentence.
Harris pleaded guilty on July 11, 2019, to conspiracy, mail fraud, aggravated identity theft, money laundering, and conspiracy to commit money laundering. Young’s stepfather, William S. Harris, 59, of Albuquerque, who also worked as a guardian, pleaded guilty on June 25, 2019, to conspiracy and conspiracy to commit money laundering.
Susan and William Harris are currently in custody awaiting sentencing. The U.S. Marshals Service arrested them in Shawnee, Oklahoma on April 15 after they fled New Mexico and failed to appear for sentencing on March 2.
The Complex Assets Unit of the U.S. Marshals Service is continuing to work to locate assets and funds that can be seized and returned to victims through the forfeiture and restitution process. Additionally, the VA and SSA are working to provide reimbursement of stolen government benefits to those Ayudando clients that received benefits from those agencies, consistent with federal law and regulations.
The Albuquerque offices of the FBI and IRS Criminal Investigation conducted the investigation, which resulted in the charges in the indictment, and are leading the continuing investigation. The Complex Assets Unit and the Albuquerque office of the USMS, the Criminal Investigations Division of the Department of Veterans Affairs Office of Inspector General, and the Dallas Field Division of the Social Security Administration Office of Inspector General are assisting in the investigation. Assistant U.S. Attorneys Jeremy Peña and Brandon L. Fyffe are prosecuting the case.
Corvallis Man Accused of Fraud Scheme Falsely Claiming to Support Christian Missionaries and OrganizationsRead the Press Release
EUGENE, Ore.—U.S. Attorney Billy J. Williams announced today that a Corvallis, Oregon, man has been charged with defrauding members of his church, coworkers, and others by soliciting investments under the false pretense of supporting Christian missionaries and organizations.
A federal grand jury in Eugene has returned an 8-count indictment charging Erik J. Hass, 50, with wire fraud, mail fraud, and money laundering.
According to court documents, in January 2013, Hass is alleged to have founded Simply Gains, Inc., an organization he claimed supported Christian missionaries and organizations while offering significant returns for investors. Hass solicited personal acquaintances to invest in the organization via self-directed retirement and cash accounts. In exchange, he gave investors unsecured promissory notes and promised “monthly interest rate gain around 1.5-2% compounding to approximately 25%-30% per year.”
Hass also claimed that he would only profit from the investment scheme if monthly returns were higher than 2%. Yet, from the start, Hass began taking a salary drawn from investors’ funds, using the proceeds to pay for his own personal expenses. Throughout the scheme, Hass sent investors email statements reflecting their monthly interest gained and account balance. He also sent investor’s false IRS 1099-INT forms.
Hass continued accepting investments well into 2018, knowing he could not honor his investment claims. Instead, these new investments were used as Ponzi payments to older investors who had requested withdrawals from their accounts. In total, at least 20 investors lost more than $1,000,000 investing in Hass’ scheme.
Hass will make his initial appearance in federal court on July 1, 2020 before a U.S. Magistrate Judge.
This case was investigated by the FBI and the Oregon Division of Financial Regulation. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
An indictment 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.
Convicted Felon Sentenced to Prison for Illegal Re-Entry, False Representation of Social Security NumberRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of OLGA MARINA FRANCO DEL-CID, 35, to 24 months in prison for illegal re-entry after removal and false representation of social security account number. FRANCO DEL-CID, who pleaded guilty on February 3, 2020, was sentenced earlier today before Judge Susan Richard Nelson in U.S. District Court, in St. Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, FRANCO DEL-CID was previously removed from the United States on May 4, 2016, following a felony conviction on August 8, 2008, in Lyon County, for criminal vehicular homicide. On November 26, 2019, FRANCO DEL-CID was found in the United States in violation of the previous removal. FRANCO DEL-CID also admitted to falsely representing a social security number on an Employment Eligibility Verification Form I-9.
This case was the result of an investigation conducted by U.S. Immigration and Customs Enforcement.
Assistant U.S. Attorney Laura M. Provinzino prosecuted the case.
Defendant Information:
OLGA MARINA FRANCO DEL-CID, 35
Inver Grove Heights, Minn.
Convicted:
- Illegal re-entry after removal, 1 count
- False representation of social security account number, 1 count
Sentenced:
- 24 months in prison
- Two years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Convicted Felon Arrested for Federal Firearm OffenseRead the Press Release
Ocala, FL – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Malcolm Jerome Straughter (34, Ocala) with possessing a firearm as a convicted felon. If convicted, Straughter faces a maximum penalty of 10 years in federal prison. Federal agents arrested Straughter yesterday.
According to court records, on March 19, 2020, officers from the City of Ocala Police Department conducted a traffic stop on Straughter’s vehicle, during which officers found Straughter in possession of a loaded 9mm firearm and multiple small bags of marijuana. The firearm had an obliterated serial number and was later confirmed to be stolen.
Straughter has prior state felony convictions for possession of cocaine, possession of a short-barreled shotgun, and robbery with a firearm. Because of his prior felony convictions, he is prohibited from possessing firearms or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Ocala Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Tyrie Boyer.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.