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Friday 11 October 2019
Sterling Heights Man Pleads Guilty to Exporting Firearms Parts Hidden Inside Toy Motorcycles to AustraliaRead the Press Release
A Sterling Heights man pleaded guilty today to willfully exporting firearms parts without a license, announced Matthew Schneider, United States Attorney for the Eastern District of Michigan.
Schneider was joined in the announcement by Special Agent in Charge Vance Callender of Homeland Security Investigations (HSI), Detroit.
Rrok Martin Camaj, 34, entered the guilty plea before United States District Court Judge Terrence G. Berg.
According to court records, from March 2018 through January 2019, Camaj sent firearms parts—including pistol frames, firing pins, springs, ejectors, and magazines—through the mail to cohorts in Australia. The parts were thereafter assembled into operable firearms in Australia. Australia has some of the strictest gun laws in the world. Black market handguns cost more than $15,000 on the street in Australia. To lawfully ship firearms and certain firearms parts—including those sent by Camaj—an individual or business must be licensed. Camaj was not licensed.
To avoid detection by law enforcement officers, Camaj secreted the firearms parts inside large motorized toy motorcycles.
“When Americans attempt to exploit the black market for firearms in Australia, we will respond and hold them accountable,” stated United States Attorney Schneider.
“Investigating international arms trafficking is a priority for HSI,” said Special Agent in Charge Vance Callender, HSI Detroit. “HSI stands vigilant to deny transnational criminal organizations the ability to use arms to promote criminal activity overseas. I salute AFP for their partnership with us in the investigation. HSI will continue to work with our foreign and domestic law enforcement partners to fight international arms smuggling and ensure the integrity of our borders.”
Australian Federal Police (AFP) Detective Superintendent Andrew Bailey took this opportunity to thank the AFP’s Homeland Security Investigation partners and reiterate just how vital international law enforcement cooperation continues to be to Australian operational policing success.
“Attempting to import items like these will always attract a swift and comprehensive response from law enforcement. We do not want unregulated and unchecked items possibly making their way to criminal groups, which then has far-reaching consequences for the safety of the community,” stated Bailey. “There is now no chance that these weapons will end up on the streets in the hands of criminals. The AFP and our partners will continue to work together with our international colleagues to stop these items entering our community. This is an example of cooperative policing with a positive outcome for everyone.”
Assistant United States Attorney Kevin M. Mulcahy of the Eastern District of Michigan, prosecuted the case. Agents from the Department of Homeland Security, Homeland Security Investigations investigated the case
Seven Indicted in California to Rhode Island Drug Trafficking PipelineRead the Press Release
PROVIDENCE – Seven individuals have been indicted for their alleged roles in a drug trafficking conspiracy that investigators believe is responsible for the shipment of more than 200 packages containing significant quantities of heroin and cocaine from the Los Angeles, CA., area to rented commercial mailboxes in dozens of locations in greater Providence and Southeastern Massachusetts.
The investigation revealed that more than 100 packages containing large amounts of cash were allegedly sent from the greater Providence area Southeastern Massachusetts back to members of the conspiracy in Los Angeles, Culver City, and Marina del Rey, CA.
A federal indictment unsealed Thursday in U.S. District Court in Providence, RI, charges two individuals from Los Angeles and five individuals from Providence with allegedly having had some role in ensuring that large quantities of drugs were shipped from the Los Angeles area to Southern New England and that payment for the drugs was shipped to the Los Angeles area.
According to court documents and information presented to the Court, investigators from the United States Postal Inspection Service (USPIS) and the Rhode Island State Police High Intensity Drug Trafficking Area (HIDTA) Task Force determined that beginning in as early as February 2017, Robert A. Brown, 41, and Deondre Jones, 42, of Los Angeles, allegedly began shipping packages of cocaine and heroin from the Los Angeles area to commercial mailboxes in Southern New England. The mailboxes were allegedly rented by Valerie G. Gamboa, 26, Marion V. Gamboa, 25, and Giselle S. Polanco, 21, of Providence, using fraudulent driver’s licenses.
According to court documents, the packages were allegedly retrieved from the mailboxes by Joel P. Sennon, 41, and Shawn A. Silva, 37, of Providence, Polanco, and others. Packages containing payment for the drugs were allegedly mailed to Brown, Jones, and others in the Los Angeles area by Silva and others.
USPIS and HIDTA investigators determined that members of the conspiracy allegedly shipped at least 219 packages containing large quantities of cocaine or heroin, including packages containing 383 grams of heroin and 560 grams of cocaine seized by law enforcement, to commercial mailboxes in Southern New England. At least 107 packages containing large amounts of cash for payment for the drugs were mailed to the Los Angeles area. Many of the mailings and the retrieval of packages were captured on video surveillance.
A court-authorized search of Brown’s Los Angeles apartment on August 14, 2019, resulted in the seizure of more than a kilogram of cocaine in vacuumed sealed bags, $32,150 in cash, a loaded semi-automatic handgun and a semi-automatic rifle, various Priority Mail package receipts, commercial mailbox rental receipts, numerous fraudulent driver’s licenses, a cash counting machine, and various items used in the packaging and distribution of drugs.
The indictment is announced by United States Attorney Aaron L. Weisman, Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
The case is being prosecuted by Assistant U.S. Attorneys William J. Ferland and Christine D. Lowell.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
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Serial Fraudster Sentenced to 46 Months in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Curlee Smittee, Jr., age 47, of Baltimore, to 46 months in federal prison, followed by five years of supervised release, for conspiracy to commit wire fraud and bank fraud, and for bank fraud, resulting in losses of more than $373,000. Judge Chasanow also entered an order requiring Smittie to pay restitution of $342,776.89.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to Smittee’s plea agreement, from March 2013 through July 29, 2015, while Smittee was on supervised release from a previous federal fraud conviction, he and his long-time romantic partner, Douglina Rosa Battle, conspired to defraud at 15 banks and credit card companies.
As detailed in his plea agreement, Smittee and Battle submitted fraudulent credit card and loan applications using false employment and earnings information, and false personal information, including name, address and social security numbers. Once the cards and loans were obtained, Smittie and Battle used them primarily for personal spending, but also applied some of the funds to avoid or postpone default on other fraudulent loans or credit cards. For example, Smittee submitted fraudulent applications to obtain car loans, but after obtaining the loan did not purchase the vehicle, instead depositing the check into a bank account controlled by Smittee and/or Battle.
In all, Smittee and Battle obtained a total of 53 credit cards and personal loans from 15 banks and financial services companies, resulting in losses of more than $373,000. Eleven of the credit cards were obtained by Smittee while he was on federal pretrial release after pleading guilty to a federal fraud charge, in violation of the requirement that he “not open any new lines of credit without prior approval of Pretrial Services.”
Douglina Rose Battle, age 43, of Baltimore, also pleaded guilty to the fraud scheme and was sentenced to four months in federal prison, followed by four months of home detention as part of three years of supervised release. Battle was also ordered to pay restitution of $188,746.81.
United States Attorney Robert K. Hur praised the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case.
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Rogers Woman Sentenced to Federal Prison for Wire Fraud and Bankruptcy FraudRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Monserrate Morales, age 29, was sentenced yesterday to serve 33 months in federal prison followed by three years of supervised release for her conviction on one felony count of Wire Fraud and one felony count of Bankruptcy Fraud. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in 2011, Morales began working for a local law firm where she conducted data entry into bankruptcy software, gathered documents, and drafted correspondence for two attorneys. Throughout her employment with the law firm, with rare exception, Morales was not authorized to collect client payments or deposit them without the assistance of other personnel. In April 2018, the FBI began investigating Morales based upon a bankruptcy fraud referral from the United States Trustee’s office.
The investigation revealed that Morales was converting cash payments from potential clients to her own use during the course of her employment with the law firm. In an effort to lull the potential clients and forestall inquiries into their cases, Morales told them that their documents were being prepared and their cases being filed, when, in many cases, the law firm was unaware that the potential clients had ever sought to retain the firm or made any payments. When the law firm was aware that clients had sought to retain the firm, Morales told attorneys that the clients had not been in contact, and, in some events, caused the closure of client files without informing the attorneys of payments made by those clients.
In furtherance of this scheme, Morales forged bankruptcy documents that contained the signatures of a Federal Judge, the Clerk of the Court’s name and title, and the seal of the Court on documents. She falsely informed potential clients that bankruptcy petitions were being filed on their behalf and forged court documents, bankruptcy documents, and other correspondence. These documents were created by Morales in order to forestall inquiries from clients, lull the clients into continuing payments to Morales, and to conceal her fraudulent behavior from the law firm and attorneys.
Morales was named in a two-count Information filed in May 2019, in the Western District of Arkansas, Fayetteville Division, and entered her guilty plea in May 2019.
The investigation was conducted by the FBI and the Springdale Police Department. Assistant United States Attorney Benjamin Wulff prosecuted the case for the United States.
Porum Man Sentenced to 121 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Anthony Michael Grant, age 35, of Porum, Oklahoma, was sentenced to 121 months’ imprisonment and 5 years of supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A). The charges arose from an investigation by the Porum Police Department, the McIntosh County Sheriff’s Office, and the Federal Bureau of Investigation.
The Indictment alleges that on or about October 28, 2018, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with the intent to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “Rural Oklahoma has seen so much devastation caused by methamphetamine. Overdose deaths caused by methamphetamine are on the rise and we must continue to diligently pursue drug dealers. Because of the joint efforts of the FBI and its Safe Trails Task Force agency partners, federal law enforcement resources were effectively used to make a positive impact in Eastern Oklahoma. Law enforcement works best when we work together.”
“The trafficking and use of methamphetamines have severely impacted communities across Oklahoma," said Special Agent in Charge Melissa Godbold of the FBI's Oklahoma City Field Office. “The FBI and our Safe Trails Task Force partners will continue to combat our state’s drug epidemic. “
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Clay Compton represented the United States.Port Barre Man Pleads Guilty to Transportation of a Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that Cory Shane Disotell, 48, of Port Barre, Louisiana, appeared before U.S. District Judge Robert R. Summerhays today and pled guilty to transportation of a minor with the intent to engage in criminal sexual activity.
According to facts presented during today’s plea, Disotell devised a plan to coerce a 15-year old Port Barre minor to leave school and run away with him. On March 28, 2019, the defendant traveled to the school where the minor was a student and convinced the child to leave with him. He then transported her to Mississippi, and thereafter to Durango, Colorado, where he was apprehended after an extensive nationwide manhunt. At the time of his arrest, the defendant admitted he took the child from Port Barre, Louisiana, to Mississippi, and ultimately to Durango, Colorado, engaging in sexual acts along the way.
At sentencing Disotell faces 10 years to life in prison, five years to life of supervised release, mandatory registration as a sex offender, a fine of up to $250,000, and forfeiture of a Braztech S41118 .410 caliber shotgun seized at the time of his arrest in Colorado. Judge Summerhays set sentencing for January 10, 2020.
The FBI, U.S. Marshal’s Service, Port Barre Police Department, Archuleta County Sheriff’s Office, and Durango, Colorado Police Department conducted the investigation. Assistant U.S. Attorney John Luke Walker and Supervisory Assistant U.S. Attorney Myers P. Namie are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Pill-mill doctor convicted on 16 counts of healthcare fraud, illegally dispensing drugsRead the Press Release
SAVANNAH, GA: A Savannah doctor who operated a “pill mill” dispensing massive amounts of controlled substances – usually in return for cash – has been found guilty on 16 counts after a three-and-a-half day trial.
Dr. Frank H. Bynes Jr., of Savannah, was found guilty by a federal jury on 13 counts of Unlawful Dispensation of Controlled Substances, and three counts of Health Care Fraud, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The penalty for the charges is up to 20 years in prison, followed by a period of supervised release, for each of the counts of Unlawful Dispensation of Controlled Substances, and 10 years for each of the counts of Health Care Fraud. There is no parole in the federal system.
Sentencing will be at a later date.
“The actions of Dr. Bynes are especially shocking in their massive scope, with countless individuals suffering because of the products of his illegal pill mill, including cocktails of opioids and other controlled substances, which he distributed to feed the addictions of people who were supposed to be in his care,” said U.S. Attorney Christine. “Medical professionals who violate their oaths and ethics while violating the law will find no safe haven in the Southern District, and we will be relentless in shutting down these white-coated drug dealers.”
According to court testimony and documents, Bynes worked at the MBA Community Clinic in Savannah, a/k/a MBA Diabetic Shoe and Supply Store, and at Georgia Laboratory Diagnostic in Garden City, where he wrote prescriptions for massive quantities of narcotics. Many of those prescriptions were for the known “holy trinity” drug cocktail of opioids, alprazolam and Soma, and were provided to large numbers of patients – including those who Bynes knew were addicted to controlled substances. According to evidence introduced at trial, Bynes prescribed the deadly drug cocktail more frequently to Medicare patients than any other physician in the United States.
While operating his illegal pill mill, Bynes falsely claimed to work for the Department of Justice and displayed false law enforcement credentials to his patients and others. Bynes also engaged in unprofessional sexual conduct with female patients, using his prescribing as a tool to coerce female patients.
Among other evidence introduced at trial, Bynes collected photographs of his female patients in his phone and e-mail accounts, including hundreds of women to whom he prescribed controlled substances. Evidence also included documents establishing Bynes knew multiple patients suffered an overdose – yet Bynes disregarded numerous warnings to continue to prescribe the drug cocktail on which his patients had overdosed. In addition, Bynes defrauded Medicaid, Medicare and Tricare, resulting in excess of $2 million in fraudulent pharmacy claims.
“For years, Dr. Bynes manipulated his patients and helped fuel one of the worst public health epidemics in Georgia’s history,” said Georgia Attorney General Chris Carr. “I am hopeful that the jury’s verdict may now begin the healing process for the many individuals and families afflicted by Dr. Bynes’ illegal prescribing practices.”
Robert J. Murphy, the Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA) stated, “The dispensing of addictive prescription pain medication under the guise of a doctor’s care is not about the good of the community or an individual’s specific health needs; it is about greed. Individuals like Dr. Bynes who are involved in ‘pill mill’ activity are drug dealers who are licensed to wear white coats and carry stethoscopes. The guilty verdict makes the Savannah area a safer place today.”
“Today’s verdict underscores the egregious criminal conduct of Dr. Bynes,” says Derrick L. Jackson, Special Agent in Charge for Health and Human Services Office of the Inspector General (HHS-OIG) in Atlanta. “For a physician to engage in sexual acts with patients while writing an inordinate amount of unnecessary and fraudulent opioid prescriptions goes against the very oath he has taken to ‘first, do no harm.’ HHS OIG will continue to work with our partners to protect the health and well-being of all Americans.”
“It saddens me that Dr. Bynes victimized military members and their dependents who were struggling with addiction,” stated Special Agent in Charge Cynthia A. Bruce, Defense Criminal Investigative Service, Southeast Field Office. “DCIS and our law enforcement partners will fully investigate and bring to justice those who choose to put their own personal interests ahead of the medical well-being of their patients.”
“I am both excited and saddened by Doctor Frank Bynes’ conviction. One of the oldest oath’s in history, which doctors completing medical school still take today in various versions, states the ethical and moral obligations that doctors have to their patients. While the vast majority of the country’s licensed physicians are caring and conscientious individuals who hold the oath as inviolate, there are a minority of doctors that violate the sacred pledge they have taken and violate the trust of their patients. Sadly in this case, Dr. Bynes chose to violate his oath in exchange for sexual and financial gain,” said Everett Ragan, Director of the Chatham-Savannah Counter Narcotics Team (CNT). “In doing so, Dr. Bynes not only violated his oath but also violated the trust of his patients, flooding the Chatham County community and Southeast region with these very dangerous and addictive narcotic/opioid pain medications. I take pride in knowing the Chatham-Savannah Counter Narcotics Team played a major role in dismantling Dr. Bynes and his unlawful dispensation of controlled substances, and am thankful he can no longer poison our community.”
Any individuals who believe they were victims of Bynes should call Assistant U.S. Attorney J. Thomas Clarkson at (912) 652-4422.
The case was investigated by the DEA, HHS-OIG, DCIS, the Georgia Medicaid Control Fraud Unit, and CNT, and prosecuted for the United States by Assistant U.S. Attorneys J. Thomas Clarkson and Matthew Josephson, with assistance from Litigation Technologist Dean Athanasopoulos and Jim Mooney, Deputy Director of the Georgia Medicaid Control Fraud Unit and Special Assistant U.S. Attorney.
Pennsylvania woman sentenced for role in heroin distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jalisa L. Hawkins, of Duquesne, Pennsylvania, was sentenced today to 39 months and 20 days incarceration for her role in a heroin distribution operation, United States Attorney Bill Powell announced.
Hawkins, also known as “Ashley,” age 30, pled guilty to one count of “Conspiracy to Distribute Heroin” and one count of “Distribution of Heroin in Proximity of a Protected Location” in June 2019. Hawkins admitted to distributing heroin, sometimes near Emmanuel Christian School in Clarksburg, from January 2016 to May 2016 in Harrison County and elsewhere.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Paris, Texas Man Sentenced to 60 Months Probation, $14,000 Restitution for Theft from Gaming EstablishmentsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jason Lyle Mooneyham, age 48, of Paris, Texas, was sentenced to 5 years of probation and ordered to pay $14,000 in restitution for one count of Theft from Indian Gaming Establishments in violation of Title 18, United States Code, Section 1167(b). The charges arose from an investigation by the Choctaw Nation Tribal Police and the Bureau of Indian Affairs.
The Indictment alleged that in December 2018, in the Eastern District of Oklahoma, the defendant willfully took and carried away with the intent to steal money, funds, and other property of a value in excess of $1,000.00 belonging to the Choctaw Nation Casino and Resort, an Indian gaming establishment operated by the Choctaw Nation of Oklahoma and the Chickasaw Nation Winstar World Casino and Resort, an Indian gaming establishment operated by the Chickasaw Nation of Oklahoma.
United States Attorney Brian J. Kuester said, “Working with our tribal law enforcement partners is a critical component to serving the people of the Eastern District of Oklahoma, and the tribal governments that are headquartered here. The U.S. Attorney’s Office values those relationships. Whether it be violent crime or, as in this case, financial crime, we are at our best when we work together.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Special Assistant United States Attorney Courtney Jordan represented the United States.Oshkosh Man Sentenced in Green Bay Federal Court for Illegal Firearm PossessionRead the Press Release
United States Attorney Matthew D. Krueger announced that on October 11, 2019, Scott E. Billington, (age: 28) of Oshkosh, Wisconsin, was sentenced to five years in federal prison for illegally possessing a firearm.
In September of 2018, officers with the Oshkosh Police Department obtained and executed a search warrant at Billington’s residence. Officers recovered a large amount of marijuana, approximately $10,000 in U.S. currency, a .40 caliber firearm, and .22 caliber firearm. Billington was convicted on state charges related to the marijuana.
A Special Agent with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) conducted further investigation and tied Billington directly to the firearms. Billington previously was convicted of domestic violence related battery in Winnebago County Circuit Court, and was therefore prohibited from ever possessing a firearm.
In handing down the sentence, Chief Judge Griesbach noted the “very serious nature of the crime” and the defendant’s lengthy criminal record. In addition to the five-year prison sentence, he ordered Billington to spend three years on supervised release following his release from federal prison.
This case was investigated by the Oshkosh Police Department and the Milwaukee office of the ATF. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Orlando Large-Scale Drug Trafficker Sentenced to Ten Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Gregory A. Presnell has sentenced Sebastian Denton Zayas (30, Orlando) to 10 years and 10 months in federal prison for possession with the intent to distribute cocaine.
Denton had pleaded guilty on July 22, 2019.
According to court documents and statements made during today’s sentencing hearing, in May 2019, Denton possessed with the intent to distribute approximately 170 kilograms of cocaine, which was delivered to him by mail. In addition, in June 2019, Denton received another mail delivery of three packages that contained approximately 190 kilograms of cocaine.
“This investigation is a great example ATF’s broad investigative expertise,” said ATF Special Agent in Charge Daryl McCrary. “While working with our partners at DEA, this case severely impacted drug trafficking in our continued efforts to protect the public.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
Operation Independence Day Arrest Results in Guilty PleaRead the Press Release
A man arrested as part of a month long operation to capture predators and identify child victims pleaded guilty Friday in federal court for sexual exploitation of a child, announced U.S. Attorney Trent Shores.
Thomas Dustin Daughtry, 42, of Sperry, illegally engaged with the minor from Feb. 18, 2019 through June 25, 2019. In his plea agreement, Daughtry stated that he knowingly enticed a 15-year-old into engaging in sexually explicit conduct and persuaded the minor to send sexual images to him.
“The U.S. Attorney’s Office is a fierce advocate for Oklahoma’s children,” said U.S. Attorney Trent Shores. “Child predators like Mr. Daughtry use the internet as their hunting grounds to find vulnerable prey. Prosecutors and our law enforcement partners will remain vigilant in our own righteous hunt for these abusers and bring them forward to account for their crimes.”
This prosecution resulted from Operation Independence Day, an investigation which was conducted in the month of July and resulted in nine individuals being charged federally in the Northern District of Oklahoma.
The nationwide operation relied on the 86 FBI-led Child Exploitation and Human Trafficking Task Forces, which leverage the resources and intelligence of other federal, state, local and tribal partners. In total, law enforcement recovered or identified 103 child victims and arrested of 67 sex traffickers.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Shannon Cozzoni is prosecuting the case.
Olean Man Going to Prison for More Than 15 Years for Receipt of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jacob Tunison, 30, of Olean, NY, who was convicted of receipt of child pornography, was sentenced to serve 188 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that in November of 2018, Tunison used Facebook to communicate with a minor female who was less than 16 years old. The defendant sent numerous lewd images of himself to the minor and solicited the minor to produce and send various images of herself to him.
The sentencing is the result of an investigation by the Cuba Police Department, under the direction of Chief Dustin Burch, and the Federal Bureau of Investigation, Jamestown Office, under the direction of Special Agent-in-Charge Gary Loeffert.
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Norwalk Bookkeeper Pleads Guilty to Fraud and Tax OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that PENNI SHERMAN, also known as PENNI PARKER, 52, of Norwalk, waived her right to be indicted and pleaded guilty today in Bridgeport federal court to fraud and tax offenses stemming from an embezzlement scheme.
According to court documents and statements made in court, Sherman operated PSP Accounting & Bookkeeping, and provided bookkeeping services to area businesses. Between 2011 and 2018, Sherman stole a total of $418,197.09 from clients and used the funds to pay her own credit card bills and to cover other personal expenses, including salon services.
Sherman failed to report the embezzled funds, and certain other business receipts, on her federal income tax returns, resulting in a loss of $125,167 to the Internal Revenue Service.
Sherman pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of making and subscribing a false tax return, which carries a maximum term of imprisonment of three years. As part of her plea agreement, Sherman has agreed to make full restitution to victims and to the IRS.
When confronted about the embezzlement, Sherman returned $163,730 to one of her victims, from whom she had stolen more than $396,000.
Sherman is released pending sentencing, which is not yet scheduled.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). This case is being prosecuted by Assistant U.S. Attorney Jennifer R. Laraia.
North Dartmouth Woman Admits to Obtaining Cocaine from Puerto Rico Through the U.S. MailRead the Press Release
BOSTON – A North Dartmouth woman pleaded guilty yesterday in federal court in Boston in connection with her role in obtaining cocaine from Puerto Rico through the mail.
Cristina Lopez, 44, pleaded guilty to conspiring to possess with intent to distribute five kilograms or more of cocaine and possession with intent to distribute 500 grams or more of cocaine. U.S. District Court Judge Leo Sorokin scheduled sentencing for Jan. 8, 2020.
Between March 2017 and August 2018, the U.S. Postal Inspection Service identified more than 40 suspicious parcels that had been sent through the mail from Puerto Rico to various addresses in Massachusetts, including residences in Quincy, North Dartmouth, Weymouth, and New Bedford. The suspicious parcels were often sent on the same day from Puerto Rico to two or more different addresses in Massachusetts. Agents executed search warrants on two of the parcels and seized approximately two kilograms of cocaine hidden in sealed coffee cans. Through surveillance, it was determined that Lopez and John Tavares, 31, of Weymouth, were receiving the majority of the parcels. It was also determined that Lopez and Tavares had been flying regularly from Massachusetts to Puerto Rico for trips lasting only 30 to 72 hours, and that the parcels suspected of containing cocaine were then typically sent to Massachusetts within one to three days after their return.
Multiple search warrants were executed on Aug. 18, 2018, including at three different residences in Weymouth, North Dartmouth and Boston. During those searches, more than three kilograms of cocaine, in excess of $100,000 in U.S. currency, two firearms and various drug paraphernalia was seized.
Tavares has pleaded not guilty and set to stand trial on Oct. 28, 2019. The details contained in the charging documents with respect to Tavares are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service in Boston; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Norfolk County District Attorney Michael W. Morrissey; Bristol County District Attorney Thomas M. Quinn, III; and Bristol County Sheriff Thomas M. Hodgson made the announcement today. Police Departments in Quincy, Weymouth, Braintree, North Dartmouth and Boston also assisted with the investigation. Assistant U.S. Attorneys James E. Arnold and Nadine Pellegrini of Lelling’s Narcotics and Money Laundering Unit are prosecuting the case.
Newark Man Admits Role in Drug Distribution After Seizure of Heroin at Newark Penn StationRead the Press Release
NEWARK, N.J. – A Newark man today admitted possessing heroin that was seized from him at Newark Penn Station, U.S. Attorney Craig Carpenito announced.
Jeremy Lorenzo, 30, of Newark, pleaded guilty before U.S. District Judge Kevin McNulty to one count of possession with intent to distribute more than 200 grams of heroin.
According to documents filed in this case and statements made in court:
Law enforcement officers learned of potential narcotics trafficking by train between Newark and Harrisburg, Pennsylvania. Lorenzo encountered law enforcement officers at Penn Station while waiting to board an Amtrak train to Harrisburg. Lorenzo’s statements and behavior caused law enforcement to suspect that he was transporting narcotics. After a certified narcotics dog signaled the presence of narcotics in Lorenzo’s bags, law enforcement initiated a search and recovered more than 200 grams of heroin.
The count to which Lorenzo pleaded guilty carries a mandatory minimum sentence of five years in prison, a maximum sentence of 40 years in prison and a fine of up to $5 million. Sentencing is scheduled for Jan. 22, 2020.
U.S. Attorney Craig Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s guilty plea. He also thanked officers of NJ Transit Police for their assistance.
The government is represented by Assistant U.S. Attorney Ryan L. O’Neill of the U.S. Attorney’s Office’s Organized Crime Drug Enforcement Task Force/Narcotics Unit in Newark.
New Orleans Man Pleads to Violations of Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that BRIAN STEPHENS, age 35, of New Orleans, pleaded guilty on October 8, 2019 to possessing firearms after felony convictions.
According to court documents, STEPHENS, a convicted felon, possessed firearms on three instances after being convicted of a felony. On July 16, 2017, STEPHENS was stopped in a vehicle in possession of a firearm with an obliterated serial number. On October 3, 2018, STEPHENS discarded a stolen firearm during a foot chase with police officers. On December 20, 2018, law enforcement officers executed a search warrant at STEPHENS’ home in Metairie and located two firearms, one of which was stolen.
Court documents indicate that, if the District Court finds that STEPHENS’ prior convictions satisfy the Armed Career Criminal Act, 18 United States Code, 924(e), he faces a term of imprisonment of 15 years to life, a fine of $250,000, and up to five years of supervised release. If STEPHENS is not sentenced under this statute, he faces a term of imprisonment of up to 10 years, a fine of $250,000, and up to three years of supervised release. U.S. District Court Judge Wendy B. Vitter set sentencing for STEPHENS for January 7, 2020 at 1:30 p.m.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Louisiana State Police, the Federal Bureau of Investigation, and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Maria M. Carboni is in charge of the prosecution.
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New Orleans Man Pleads Guilty to Conspiracy to Commit Access Device Fraud and Aggravated Identity TheftRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that RYAN CLARK, age 34, of New Orleans, LA, pleaded guilty on October 9, 2019 to conspiracy to commit access device fraud and aggravated identity theft (count 1) and aggravated identity theft (count 3) before U.S. District Judge Lance M. Africk.
According to court documents, the defendant was arrested after an investigation initiated by the Jefferson Parish Sheriff’s Office and the United States Secret Service. CLARK and others created and sold fake Louisiana drivers’ licenses with the names and dates of birth of real persons who were victims of identity theft. Using the fake licenses, CLARK facilitated the sale of at least six motor vehicles from several local dealerships. The fraudsters would use the stolen identities and the fake licenses to buy high end used cars. No money was ever paid and the loans went into default.
CLARK is facing up to five years of incarceration for the conspiracy (count 1) and two years consecutive to whatever sentence is imposed for the aggravated identity theft (count 3). Each count can be followed by up to three years of supervised release. Sentencing is set for January 22, 2020.
U.S. Attorney Strasser praised the agencies that contributed to this indictment, which represents a coordinated effort of federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force. The Task Force includes representatives from the U.S. Secret Service, U.S. Postal Inspection Service, Louisiana Attorney General’s Office, Jefferson Parish Sheriff’s Office, New Orleans Police Department, Covington Police Department, Hammond Police Department, Kenner Police Department, Louisiana State Police, Mandeville Police Department, Slidell Police Department, St. Bernard Parish Sheriff’s Office, St. John The Baptist Sheriff’s Office, St. Tammany Parish Sheriff’s Office, Tangipahoa Parish Sheriff’s Office, St. Tammany Parish District Attorney’s Office, Homeland Security Investigations, U.S. State Department, Internal Revenue Service, Social Security Administration-Office of Inspector General, and the Defense Criminal Investigative Service. U.S. Attorney Strasser also thanked the Jefferson Parish District Attorney’s Office for their assistance. The case is being prosecuted by Assistant United States Attorney Edward J. Rivera.
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Nevada Real Estate Broker Sentenced to Prison for Tax FraudRead the Press Release
William Waller Jr., a Las Vegas real estate broker and the owner of Burbank Holdings or Platinum Properties, was sentenced today to 78 months in prison for tax evasion and willful failure to file tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
“The vast majority of Americans work hard to file honest tax returns and pay their fair share of taxes every year,” said Principal Deputy Assistant Attorney General Zuckerman. “Those who willfully evade taxes with false claims that the tax laws do not apply to them will be prosecuted and risk imprisonment, like William Waller’s sentence today.”
“Paying your taxes is not a choice, hiding your income in shell companies is not an option, and lying about those practices will not be tolerated as demonstrated by today’s sentencing,” said Chief Don Fort, IRS Criminal Investigation.
According to court pleadings and evidence presented at trial, Waller sought to evade taxes by incorporating a shell entity, opening bank accounts in its name, and directing his income into those accounts rather than accounts in his own name. He also dealt extensively in cash and reduced his equity in his home, the only asset he held in his own name, thereby making it an unattractive asset for the IRS to seize.
Waller testified at trial that he believed that he was not required to file tax returns or pay taxes, but acknowledged that he was influenced by the teachings of several prominent tax defiers. These included one who had been convicted three times of tax fraud, and another who had been stripped of his CPA license. Waller also admitted to purchasing and watching tax defier courses, including one on how to beat criminal tax charges. Following the defendant’s testimony and the conclusion of the trial, the jury returned guilty verdicts on March 18, 2019.
In addition to the term of imprisonment, U.S. District Court Judge James C. Mahan also ordered Waller to pay $1,459,535.70 in restitution to the IRS and serve three years of supervised release.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Christopher Magnani and Michael Landman of the Tax Division, who prosecuted the case, and Paralegal Specialist Saundra Burgess of the Tax Division, who assisted at trial.
Nevada Real Estate Broker Sentenced to Prison for Tax FraudRead the Press Release
WASHINGTON – William Waller Jr., a Las Vegas real estate broker and the owner of Burbank Holdings or Platinum Properties, was sentenced today to 78 months in prison for tax evasion and willful failure to file tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Tax Division and United States Attorney Nicholas A. Trutanich for the District of Nevada.
“The vast majority of Americans work hard to file honest tax returns and pay their fair share of taxes every year,” said Principal Deputy Assistant Attorney General Zuckerman. “Those who willfully evade taxes with false claims that the tax laws do not apply to them will be prosecuted and risk imprisonment, like William Waller’s sentence today.”
“Paying your taxes is not a choice, hiding your income in shell companies is not an option, and lying about those practices will not be tolerated as demonstrated by today’s sentencing,” said Chief Don Fort, IRS Criminal Investigation.
According to court pleadings and evidence presented at trial, Waller sought to evade taxes by incorporating a shell entity, opening bank accounts in its name, and directing his income into those accounts rather than accounts in his own name. He also dealt extensively in cash and reduced his equity in his home, the only asset he held in his own name, thereby making it an unattractive asset for the IRS to seize.
Waller testified at trial that he believed that he was not required to file tax returns or pay taxes, but acknowledged that he was influenced by the teachings of several prominent tax defiers. These included one, who had been convicted three times of tax fraud, and another, who had been stripped of his CPA license. Waller also admitted to purchasing and watching tax defier courses, including one on how to beat criminal tax charges. Following the defendant’s testimony and the conclusion of the trial, the jury returned guilty verdicts on March 18, 2019.
In addition to the term of imprisonment, U.S. District Court Judge James C. Mahan also ordered Waller to pay $1,459,535.70 in restitution to the IRS and serve three years of supervised release.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Trutanich thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Christopher Magnani and Michael Landman of the Tax Division, who prosecuted the case, and Paralegal Specialist Saundra Burgess of the Tax Division, who assisted at trial.
Montgomery County Man Convicted of Illegally Possessing Fully Automatic Assault WeaponRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Sharif Khalid, 42, of Willow Grove, PA was convicted at trial of possession of a machine gun.
According to the evidence presented at trial, in March 2018 Khalid knowingly possessed a firearm that was a fully automatic weapon, specifically an AR-57, and 50 live rounds of ammunition for that model rifle. The defendant was also charged with possession of a non-registered firearm, in his case, a machine gun that had been altered to fire fully automatic. The investigation began when at ATF agent received a report from the owner of a gun shop and range in Philadelphia that a customer was firing a fully automatic weapon at their firing range. ATF agents arrived at the gun shop, confronted the defendant and performed a field test on the rifle, determining that the weapon was fully automatic. Agents seized the rifle and through their investigative work found that the defendant is not registered to possess a firearm.
“By owning and firing this illegal weapon, the defendant endangered everyone in his midst,” said U.S. Attorney McSwain. “Thanks to our dedicated partners at ATF and our Office’s trial team, the defendant will no longer freely wander the streets with a dangerous, illegal weapon and will be held accountable for his crime.”
“ATF’s top priority is combating violent crime; one of the ways we accomplish that mission is by keeping firearms out of the hands of violent offenders,” said Donald Robinson, Special Agent in Charge, ATF Philadelphia Field Division. “This conviction is a perfect example of the collaborative effort between ATF and our partners at the United States Attorney’s Office in targeting violent offenders and protecting our communities.”
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.
The defendant faces a maximum possible sentence of 20 years’ imprisonment, three years supervised release, a $500,000 fine and a $200 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi.
Missoula man sentenced to 12 years for child pornography crimesRead the Press Release
MISSOULA—A Missoula man who admitted to multiple child pornography crimes was sentenced today to 12 years in prison, 10 years of supervised release and ordered to pay $3,000 restitution, U.S. Attorney Kurt Alme said.
Mark Allen McNeely, Sr., 51, pleaded guilty in June to a dozen counts, including distribution of child pornography, transportation of child pornography and receipt of child pornography.
U.S. District Judge Donald W. Molloy presided.
In court records filed in the case, the prosecution said that on Nov. 20, 2018, a Missoula Police detective and member of the Internet Crimes Against Children Task Force served a search warrant on McNeely’s residence. An examination of a laptop seized in the search determined it had been used to search for, download and store images and videos of child pornography. The laptop also had been used to communicate with others in chatrooms on child pornography. The detective also obtained records from Skype and Facebook that were associated with accounts used by McNeely. Those records showed that McNeely distributed images of children engaged in sexually explicit conduct on multiple dates.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by the Missoula Police Department, Bozeman Police Department and ICAC Task Force.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Michigan Attorney Indicted for Tax FraudRead the Press Release
A grand jury in Detroit, Michigan, returned an indictment yesterday charging Carl L. Collins III, a Michigan attorney, with tax evasion, filing two false tax returns and seven counts of willfully failing to file individual and corporate tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew J. Schneider for the Eastern District of Michigan.
According to the indictment, Collins was a personal injury attorney with offices in Southfield, Michigan. Collins also allegedly owned two medical companies, MedCity Rehabilitation Services LLC and Alpha Living LLC, as well as a real estate company called First Third LLC. The indictment charges that Collins filed a tax return for 2012 with the Internal Revenue Service (IRS), which failed to report approximately $550,000 in income. Collins allegedly deposited most of this unreported income into an attorney trust account, which he failed to disclose to the Michigan State Bar Foundation and his tax return preparer. The indictment further alleges that Collins evaded personal income taxes for 2015 by depositing approximately $580,000 of income into his undisclosed attorney trust account and using much of the money to purchase real estate. The indictment also charges that, in 2017, Collins filed a false delinquent tax return for 2015.
The indictment further alleges that Collins willfully failed to timely file tax returns for several years for both himself and his corporations. Specifically, Collins failed to timely file his individual tax returns for 2013 through 2015, corporate income tax returns for Alpha Living LLC for 2013 through 2015, and corporate income tax returns for MedCity Rehabilitation Services LLC for 2013.
If convicted, Collins faces a maximum sentence of five years in prison for the tax evasion count, three years for each of the false return counts, and one year for each of the failure to file counts. He also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Schneider commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Kenneth Vert and Jeffrey McLellan of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Miami-based Financial Advisor Pleads Guilty for Conspiring to Launder Money Relating to FCPA and Ecuadorian Bribery Law ViolationsRead the Press Release
A financial advisor based in Miami, Florida, pleaded guilty today to a money laundering conspiracy for his role in using the U.S. financial system to launder money to promote violations of the Foreign Corrupt Practices Act (FCPA) and Ecuadorian bribery law violations and to conceal and disguise the true nature of those illegal bribe payments. Specifically, this conspiracy related to a scheme to pay bribes to officials of Ecuador’s state-owned and state-controlled oil company, Empresa Pública de Hidrocarburos del Ecuador (PetroEcuador).
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Kelly Jackson of the IRS-Criminal Investigation’s (IRS-CI) Washington, D.C. office, Special Agent in Charge Raymond Villanueva of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C., office and Special Agent in Charge George Piro of the FBI’s Miami Field Office made the announcement.
Frank Roberto Chatburn Ripalda (Chatburn), 42, a dual U.S. and Ecuadorian citizen, pleaded guilty in federal district court in Miami before the Honorable Marcia G. Cooke to one count of conspiracy to commit money laundering, which carries a 20-year statutory maximum sentence. Chatburn is scheduled to be sentenced by Judge Cooke on Dec. 18.
According to his admissions at the plea hearing, Chatburn conspired with an oil services contractor to pay nearly $3 million in bribes to Ecuadorian government officials in an effort to obtain and retain contracts with PetroEcuador. As a financial advisor to the contractor, Chatburn agreed to make bribe payments for the benefit of several then-PetroEcuador officials through the use of shell companies and bank accounts in the United States, Panama, the Cayman Islands, Curacao and Switzerland. To conceal the bribe payments and to promote the scheme, Chatburn established Panamanian shell companies with Swiss bank accounts on behalf of two then-PetroEcuador officials.
Chatburn further admitted that he conspired with another Ecuadorian government official to conceal bribe payments intended for the official from Odebrecht S.A., the Brazilian construction conglomerate. Chatburn facilitated hiding these bribe payments by conducting the transactions through several shell companies and bank accounts in multiple jurisdictions, including in the United States. Odebrecht S.A. pleaded guilty on Dec. 21, 2016, in the Eastern District of New York to conspiring to violate the anti-bribery provisions of the FCPA in connection with a broader scheme to pay nearly $800 million in bribes to public officials in twelve countries, including Angola, Argentina, Brazil, Colombia, Dominican Republic, Ecuador, Guatemala, Mexico, Mozambique, Panama, Peru and Venezuela.
To date, 10 individuals, including former Ecuadorian government officials, oil services contractors and financial advisors, have pleaded guilty to criminal charges in U.S. courts for their involvement in the PetroEcuador bribery and money laundering schemes.
This case was investigated by HSI and IRS-CI, jointly under the auspices of the Global Illicit Financial Team, and by the FBI’s International Corruption Squad in Miami. Southern District of Florida Assistant U.S. Attorneys Karen Rochlin, Nalina Sombuntham and Alison W. Lehr have provided substantial assistance with the prosecution of this case, along with Deputy Chief Brian Young, Assistant Chiefs David Fuhr and Lorinda Laryea, Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section, and Trial Attorneys Randall Warden and Mary Ann McCarthy of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS).
The U.S. Marshals Service and the Criminal Division’s Office of International Affairs have provided significant assistance by obtaining evidence in this case, as have public authorities in, among other countries, Ecuador, Panama and the Cayman Islands.
MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
To learn more about the government’s FCPA enforcement efforts, go to www.justice.gov/criminal/fraud/fcpa.
Miami-Based Financial Advisor Pleads Guilty for Conspiring to Launder Money Relating to FCPA and Ecuadorian Bribery Law ViolationsRead the Press Release
A financial advisor based in Miami, Florida, pleaded guilty today to a money laundering conspiracy for his role in using the U.S. financial system to launder money to promote violations of the Foreign Corrupt Practices Act (FCPA) and Ecuadorian bribery law violations and to conceal and disguise the true nature of those illegal bribe payments. Specifically, this conspiracy related to a scheme to pay bribes to officials of Ecuador’s state-owned and state-controlled oil company, Empresa Pública de Hidrocarburos del Ecuador (PetroEcuador).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Kelly Jackson of the IRS-Criminal Investigation’s (IRS-CI) Washington, D.C. office, Special Agent in Charge Raymond Villanueva of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C., office, and Special Agent in Charge George Piro of the FBI’s Miami Field Office made the announcement.
Frank Roberto Chatburn Ripalda (Chatburn), 42, a dual U.S. and Ecuadorian citizen, pleaded guilty in federal district court in Miami before the Honorable Marcia G. Cooke to one count of conspiracy to commit money laundering, which carries a 20-year statutory maximum sentence. Chatburn is scheduled to be sentenced by Judge Cooke on Dec. 18.
According to his admissions at the plea hearing, Chatburn conspired with an oil services contractor to pay nearly $3 million in bribes to Ecuadorian government officials in an effort to obtain and retain contracts with PetroEcuador. As a financial advisor to the contractor, Chatburn agreed to make bribe payments for the benefit of several then-PetroEcuador officials through the use of shell companies and bank accounts in the United States, Panama, the Cayman Islands, Curacao and Switzerland. To conceal the bribe payments and to promote the scheme, Chatburn established Panamanian shell companies with Swiss bank accounts on behalf of two then-PetroEcuador officials.
Chatburn further admitted that he conspired with another Ecuadorian government official to conceal bribe payments intended for the official from Odebrecht S.A., the Brazilian construction conglomerate. Chatburn facilitated hiding these bribe payments by conducting the transactions through several shell companies and bank accounts in multiple jurisdictions, including in the United States. Odebrecht S.A. pleaded guilty on Dec. 21, 2016, in the Eastern District of New York to conspiring to violate the anti-bribery provisions of the FCPA in connection with a broader scheme to pay nearly $800 million in bribes to public officials in twelve countries, including Angola, Argentina, Brazil, Colombia, Dominican Republic, Ecuador, Guatemala, Mexico, Mozambique, Panama, Peru and Venezuela.
To date, 10 individuals, including former Ecuadorian government officials, oil services contractors and financial advisors, have pleaded guilty to criminal charges in U.S. courts for their involvement in the PetroEcuador bribery and money laundering schemes.
This case was investigated by HSI and IRS-CI, jointly under the auspices of the Global Illicit Financial Team, and by the FBI’s International Corruption Squad in Miami. Deputy Chief Brian Young, Assistant Chiefs David Fuhr and Lorinda Laryea, Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section, and Trial Attorneys Randall Warden and Mary Ann McCarthy of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) are prosecuting the case.
The U.S. Marshals Service and the Criminal Division’s Office of International Affairs have provided significant assistance by obtaining evidence in this case, as have public authorities in, among other countries, Ecuador, Panama and the Cayman Islands.
MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
To learn more about the government’s FCPA enforcement efforts, go to www.justice.gov/criminal/fraud/fcpa.
Mexican National Indicted for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that OSIEL PEREZ-CORREA, age 30, was charged on October 10, 2019 in a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to the indictment, OSIEL PEREZ-CORREA (“PEREZ”), reentered the United States after he was previously deported on September 14, 2019. If convicted, PEREZ faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U. S. Attorney Strasser reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U. S. Attorney Spiro Latsis is in charge of the prosecution.
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Member of Baltimore’s Violent “Murdaland Mafia Piru” Bloods Gang Sentenced to 30 Years in Federal Prison for Racketeering and Drug ConspiraciesRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Shakeen Davis, a/k/a “Creams,” age 25, of Baltimore, Maryland to 30 years in federal prison, followed by five years of supervised release, for racketeering and drug conspiracies related to his participation in the gang activities of the Murdaland Mafia Piru (MMP), a subset of the Bloods gang. Davis was also convicted of possession with intent to distribute crack cocaine; two counts of possession of a firearm by a felon; and possession of a firearm in furtherance of a drug trafficking crime. The evidence established that Davis attempted to murder two individuals on May 30, 2015, firing multiple rounds at his intended victims with an assault rifle in the middle of a busy intersection in broad daylight. The jury returned its guilty verdict on April 30, 2019.
“Armed drug traffickers are on notice that federal, state and local law enforcement are working together to target leaders and key members of violent gangs,” said U.S. Attorney Robert K. Hur. “We will not tolerate those who peddle death through drugs and gun violence in our neighborhoods. Shakeen Davis will now spend 30 years in federal prison. This sentence sends a strong message that gun crime can lead to federal time, where there is no parole—ever. Please put down the gun. You’ll save a life, maybe even your own.”
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; Chief Melissa R. Hyatt of the Baltimore County Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore County State’s Attorney Scott Shellenberger.
According to court documents and the evidence presented at the six-week trial, MMP, also known as the “Mob” or “Mobsters,” is a violent subset of the Bloods gang that operates in Maryland and elsewhere. MMP was modeled after the Italian Mafia and was organized hierarchically, with “the Don” at the top and various “Bosses,” “Underbosses,” “Capos,” “Lieutenants,” and “Mobsters” underneath. For many years, MMP has controlled the drug trade in large swaths of Northwest Baltimore City and neighboring Baltimore County, including Forest Park, Windsor Mill, Gwynn Oak, Howard Park, Woodlawn, and Walbrook Junction. The gang’s drug shop in the 5200 block of Windsor Mill Road was particularly lucrative due to its close proximity to Interstate 70, and it frequently attracted drug customers driving from Western Maryland and neighboring states. MMP’s members enriched themselves through drug trafficking and other criminal activities, and using violence and threats of violence to intimidate or retaliate against witnesses, protect the gang’s territories, enforce debts, and eliminate rivals.
According to trial testimony, one of the founding principles of the gang was a rule against cooperation with law enforcement. Violations of this rule were punishable by death. MMP members enhanced their status within the gang by carrying out acts of violence against rivals. For instance, members could earn a lightning bolt tattoo for “killing for the Mob.” MMP members, including Davis, used social media websites to assert the gang’s claim to particular drug territories, intimidate rival gangs and drug traffickers, enhance MMP’s status, and enhance members’ status within the gang. Davis posted photographs and comments to social media websites in which he boasted about his membership in MMP and flaunted firearms. For example, on March 9, 2016, Davis posted a comment that said, “Go Against the MOBB GET MURDERED.” The evidence proved that members and associates of MMP participated in the gang’s affairs through a pattern of racketeering activities, including murder, extortion, witness tampering and retaliation, and drug distribution. According to witness testimony, Davis sold both cocaine and heroin and had guns, including an AR-15.
According to trial evidence, on May 30, 2015, Davis attempted to murder two victims in furtherance of MMP. Davis fired at least nine rounds at the two individuals with an assault rifle in broad daylight as the victims sat in their car at a busy intersection. One individual suffered graze wounds to his back, and both victims suffered cuts from broken glass. A witness testified that the shooting was in retaliation for the victims pulling a gun on another MMP member earlier that day.
On April 26, 2016, Davis was arrested by members of the Baltimore County Police Department. The officers recovered a loaded, stolen, police-issue handgun, a loaded AR-15 rifle (with a shoulder strap), and several cell phones from the trunk of Davis’s vehicle. They also recovered a balaclava mask, a small, digital scale, and a bottle of the cutting agent Inositol. Davis is prohibited from possessing firearms or ammunition as a result of a previous felony firearm conviction.
One of the cell phones seized from Davis on April 26, 2016 contained hundreds of text messages in which Davis arranged drug transactions with customers. These included text messages in which customers asked for specific quantities of “boy” and “girl”—street terms for heroin and cocaine, respectively, as well as texts in which Davis advertised the potency of the drugs he had for sale—e.g., “Got fire,” or “I got a bomb.” Importantly, on April 9, 2016, a drug customer who had recently purchased drugs from Davis sent him a text message indicating that he had overdosed and wound up in the hospital. The customer said: “Made it through detox, ended up in the hospital but I’m better now, I’ll send people your way if they are looking.” The cell phone also contained text messages in which Davis indicated that he was “beefing with” certain individuals and was “hunting” for them in order to kill them.
On August 5, 2016, Davis received a message from a co-defendant using coded language to ask Davis to get three guns. On the morning of August 10, 2016, that co-defendant and others abducted, bound, robbed, and murdered Ricardo Johnson, a/k/a “Uncle Rick,” then attempted to set his body on fire. Johnson was found hog-tied, blindfolded, and with over 20 bullet wounds, in the back of a stolen van in at 6:25 a.m. on August 10. The government presented evidence at trial that Davis was involved in Johnson’s murder, including witness testimony that was present when the co-defendant discussed kidnapping and robbing “Uncle Rick,” whom they believed had a lot of drugs. Davis also spoke with the co-defendant by phone at 3:07 a.m. on August 10—roughly half an hour after Johnson had been abducted, and had 12 phone calls with the co-defendant on the day before the murder.
On April 29, 2019, the final day of trial before the case went to the jury for deliberation, Davis was caught trying to smuggle razor blades into the federal courtroom. A Deputy U.S. Marshal conducted a routine search of Davis’s person before he was brought into the courtroom and recovered two razor blades, approximately 3/4-inch in length, located inside each of Davis’s shoes.
Twenty-five defendants have been convicted in the case, including Davis, MMP leader Dante Bailey, Randy Banks, Jamal Lockley, and Corloyd Anderson, who were convicted on April 30, 2019 after a six-week trial. Twenty defendants, including Davis, have been sentenced, with most receiving between 10 and 30 years in federal prison. Judge Blake has scheduled sentencing for Dante Bailey, a/k/a “Gutta,” “Almighty,” and “Wolf,” age 40, of Windsor Mill, Maryland on November 8, 2019; for Jamal Lockley, a/k/a “T-Roy” and “Droid,” age 40, of Baltimore, on November 4, 2019; and for Corloyd Anderson, a/k/a “Bo,” age 36, of Owings Mills, Maryland on November 26, 2019. They all face a maximum of life in prison. The final defendant is awaiting trial.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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 its 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.
United States Attorney Robert K. Hur praised the ATF, the Baltimore City and Baltimore County Police Departments, and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Hur thanked Assistant United States Attorneys Christina A. Hoffman and Lauren E. Perry, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Melvindale Man Sentenced for Defrauding the Michigan Unemployment Insurance AgencyRead the Press Release
A Melvindale, Michigan resident was sentenced yesterday to 70 months in federal prison after having pleaded guilty to wire fraud and aggravated identity theft in connection with unemployment compensation scheme, United States Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Tim Kolar, State Administrator – Investigations and Collections Unemployment Insurance
LeRoy Constantine, 33, was sentenced by U.S. District Judge Mark A. Goldsmith who also ordered Constantine to pay full restitution in the amount of $188,946 and 3 years of supervised release.
According to information provided to the court at the June 4, guilty plea, from April 2016 through May 2016, Constantine obtained personal identifying information of unsuspecting victims, including their name, date of birth, and social security numbers and submitted false claims to the Michigan Unemployment Insurance Agency for unemployment insurance benefits. Once Constantine falsely applied for the benefits, he would receive a prepaid debit card charged with unemployment insurance benefit funds and use them for his personal benefit. Constantine submitted 63 false claims which resulted in a loss to the Michigan Unemployment Insurance Agency of $188,946.
“Unemployment insurance is designed to provide benefits for employees who need money while they are out of work,” Schneider said. “People who abuse the system will pay the consequences.”
“Leroy Constantine stole the identities of Michigan residents, causing harm to those victims, taxpayers, and business owners, stated Administrator Kolar. “The Unemployment Insurance Agency, U.S. Department of Labor Office of Inspector General, and the U.S. Attorney’s Office remain committed to investigating, charging and convicting these criminals. Justice will continue to prevail.”
The investigation of this case was conducted by the Department of Labor, Office of Inspector General with the assistance of the State of Michigan Unemployment Insurance Agency Fraud Division. The case was prosecuted by Assistant United States Attorney Jihan Williams.
Manchester Man Sentenced to 96 Months for Drug Trafficking Conspiracy ChargeRead the Press Release
CONCORD - Daniel Irving, 28, of Manchester, was sentenced in federal court to 96 months in prison for participating in a conspiracy to distribute methamphetamine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on September 19, 2018, law enforcement officers encountered Irving and another individual in a vehicle near a convenience store in Concord, New Hampshire. Inside the vehicle, officers found more than 70 grams of methamphetamine and two firearms. In addition, drug paraphernalia, including a glass mirror, digital scale, a ledger, syringes and plastic baggies were confiscated.
Irving previously pleaded guilty on July 1, 2019.
“Armed drug dealers are a menace to public safety,” said U.S. Attorney Murray. “As Mr. Irving has learned, those who possess firearms while trafficking in illegal drugs should expect to serve substantial prison terms. In order to protect the public, we will continue to seek long prison sentences for drug dealers who arm themselves with firearms.”
"The high-risk road Daniel Irving chose to follow had no shortage of warning signs for what lie ahead: Addiction and petty crimes escalated to his being caught in a car with two firearms and peddling methamphetamine - a dangerous drug he claims to have been a victim of himself," said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. "Today's sentencing is that rare second chance for Mr. Irving to find a new direction. Because rest assured, we and our law enforcement partners will hold the course in our pursuit of illegal drug traffickers inflicting pain and suffering on our communities."
This matter was investigated by the Federal Bureau of Investigation and the Concord Police Department. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
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Man Sentenced for Sexually Abusing a Child and Child PornographyRead the Press Release
NEWPORT NEWS, Va. – A Williamsburg man was sentenced today to six years in prison for travelling to North Carolina to sexually abuse a child, and receiving child pornography from a child in Nebraska.
According to court documents, Derek Thomas, 26, met Jane Doe #1 online and began a relationship during the summer of 2018 when she was 14 years old. During the summer, both Jane Doe #1 and Thomas sent nude images of themselves to one another over social media platforms. Eventually, Thomas travelled to North Carolina to engage in sexual activities with the child. Also, during the summer of 2018, he met Jane Doe #2 on-line. They sent nude images of themselves to one another. Thomas knew the age of each victim prior to engaging in criminal activity with the children.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Lisa R. McKeel prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-12.
Man Convicted by South Florida Jury of Laundering More than $3 Million in Proceeds from International Cyber ScamsRead the Press Release
FORT LAUDERDALE - Elvin I. Lewis, Jr., of Hollywood, Florida, was convicted today of conspiracy to commit money laundering and money laundering charges, following a five-day jury trial. The charges stemmed from his decision to launder more than $3 million dollars in fraud proceeds from business email compromise (“BEC”) cyber scams, announced U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge Brian Swain of the U.S. Secret Service (USSS) Miami Field Office, and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office.
According to evidence at trial, from approximately November 2017 through August 2018, in Broward County, Florida, and elsewhere, Lewis knowingly and willfully agreed to participate in, and did participate in, a conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h) (Case No. 19cr60034). The purpose of the scheme was for Lewis and his co-conspirators to unlawfully enrich themselves, to hide illegal proceeds, and to further wire fraud schemes by, among other things, withdrawing, depositing, and transferring fraudulently obtained funds between banks, and individuals. As trial testimony established, Lewis also recruited others into the money laundering network, including a co-conspirator based in Detroit, whom he originally solicited on Craigslist.
Lewis’s co-conspirators – believed to be located abroad – contacted businesses (the “business victims”) located throughout the United States, using email, social media, and other Internet-based methods of communication, and falsely and fraudulently posed as vendors seeking payment for services rendered, in order to facilitate the BEC scams. The co-conspirators, posing as vendors, used spoofed emails and email account takeover techniques to send emails falsely and fraudulently directing the business victims to make payments to various bank accounts, through wire transfers, in purported satisfaction of invoices due to the actual vendors.
Lewis’s role in the laundering conspiracy was to wire fraud proceeds from the BEC scams into other corporate accounts under his and his co-conspirators’ control, in return for a five to ten percent cut of the funds. In particular, as trial evidence established, Lewis created more than eight accounts at different banks for his purported real estate investment business, “A NuFinancial Consortium LLC.” Through these accounts, Lewis laundered more than $3 million in BEC proceeds in less than a year, approximately $2.3 million of which was laundered in less than two weeks. Lewis variously converted the funds to cashier’s checks and cash, and wired money between accounts.
The business victims of the cyber scams included: a major Canadian city; a trucking company in Tennessee; a power company in Ohio; an axle company in Indiana and Detroit; an importing business in Chicago; and others.
In total, Lewis made more than $160,000 in cash during the course of the fraud and money laundering schemes. He used the funds to acquire a Porsche, which law enforcement seized as part of this criminal case.
Lewis is scheduled to be sentenced on Jan. 10, 2020 at 3:30 p.m. before U.S. District Judge Roy K. Altman. He faces a statutory maximum sentence of twenty years in prison as to each of the eleven counts of conviction. He also faces up to three years of supervised release, restitution and monetary penalties.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the USSS and FBI in this matter. She also thanked IRS-CI’s Orlando Field Office for the trial assistance provided by a money laundering expert. This case is being prosecuted by Assistant U.S. Attorneys Lisa H. Miller and Michele S. Vigilance. The asset forfeiture component of the case is being handled by Assistant U.S. Attorneys Alison W. Lehr and Daren Grove.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Man Convicted by South Florida Jury of Laundering More than $3 Million in Proceeds from International Cyber ScamsRead the Press Release
FORT LAUDERDALE - Elvin I. Lewis, Jr., of Hollywood, Florida, was convicted today of conspiracy to commit money laundering and money laundering charges, following a five-day jury trial. The charges stemmed from his decision to launder more than $3 million dollars in fraud proceeds from business email compromise (“BEC”) cyber scams, announced U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge Brian Swain of the U.S. Secret Service (USSS) Miami Field Office, and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office.
According to evidence at trial, from approximately November 2017 through August 2018, in Broward County, Florida, and elsewhere, Lewis knowingly and willfully agreed to participate in, and did participate in, a conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h) (Case No. 19cr60034). The purpose of the scheme was for Lewis and his co-conspirators to unlawfully enrich themselves, to hide illegal proceeds, and to further wire fraud schemes by, among other things, withdrawing, depositing, and transferring fraudulently obtained funds between banks, and individuals. As trial testimony established, Lewis also recruited others into the money laundering network, including a co-conspirator based in Detroit, whom he originally solicited on Craigslist.
Lewis’s co-conspirators – believed to be located abroad – contacted businesses (the “business victims”) located throughout the United States, using email, social media, and other Internet-based methods of communication, and falsely and fraudulently posed as vendors seeking payment for services rendered, in order to facilitate the BEC scams. The co-conspirators, posing as vendors, used spoofed emails and email account takeover techniques to send emails falsely and fraudulently directing the business victims to make payments to various bank accounts, through wire transfers, in purported satisfaction of invoices due to the actual vendors.
Lewis’s role in the laundering conspiracy was to wire fraud proceeds from the BEC scams into other corporate accounts under his and his co-conspirators’ control, in return for a five to ten percent cut of the funds. In particular, as trial evidence established, Lewis created more than eight accounts at different banks for his purported real estate investment business, “A NuFinancial Consortium LLC.” Through these accounts, Lewis laundered more than $3 million in BEC proceeds in less than a year, approximately $2.3 million of which was laundered in less than two weeks. Lewis variously converted the funds to cashier’s checks and cash, and wired money between accounts.
The business victims of the cyber scams included: a major Canadian city; a trucking company in Tennessee; a power company in Ohio; an axle company in Indiana and Detroit; an importing business in Chicago; and others.
In total, Lewis made more than $160,000 in cash during the course of the fraud and money laundering schemes. He used the funds to acquire a Porsche, which law enforcement seized as part of this criminal case.
Lewis is scheduled to be sentenced on Jan. 10, 2020 at 3:30 p.m. before U.S. District Judge Roy K. Altman. He faces a statutory maximum sentence of twenty years in prison as to each of the eleven counts of conviction. He also faces up to three years of supervised release, restitution and monetary penalties.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the USSS and FBI in this matter. She also thanked IRS-CI’s Orlando Field Office for the trial assistance provided by a money laundering expert. This case is being prosecuted by Assistant U.S. Attorneys Lisa H. Miller and Michele S. Vigilance. The asset forfeiture component of the case is being handled by Assistant U.S. Attorneys Alison W. Lehr and Daren Grove.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Long Island Man Sentenced to 10 Years in Prison for Possession of Cocaine, Crack and FirearmsRead the Press Release
Earlier today, in federal court in Central Islip, Daniel Harris was sentenced by United States District Judge Arthur D. Spatt to 10 years’ imprisonment for possession with intent to distribute more than 500 grams of cocaine and 28 grams of cocaine base, as well as possession of multiple firearms in furtherance of a drug trafficking crime. Harris pleaded guilty to the charges on April 8, 2019.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the sentence.
“With today’s sentence, the defendant is deservedly punished for endangering the residents of eastern Long Island with his drug dealing and arming himself to the teeth to protect his illicit business,” stated United States Attorney Donoghue. “This Office will continue working relentlessly with our federal and local law enforcement partners to address the dangerous combination of narcotics and firearms.” Mr. Donoghue thanked the Federal Bureau of Investigation, New York Field Office (FBI), and the Suffolk County East End Drug Task Force for their outstanding work on the case.
As part of an investigation into narcotics trafficking in and around Riverhead, New York, law enforcement agents and officers made multiple purchases of crack cocaine from Harris at his home in Flanders. On November 14, 2018, Harris was arrested, and a search warrant was executed at his home resulting in the seizure of more than one kilogram of powder cocaine and over 50 grams of cocaine base, $10,073 in cash, a shotgun, a .38 caliber revolver and a 9mm. handgun. At his guilty plea proceeding, Harris admitted that he kept the firearms to protect his drug trafficking business.
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.
The government’s case is being prosecuted by Assistant United States Attorney Michael Maffei.
The Defendant:
DANIEL HARRIS
Age: 36
Flanders, New YorkE.D.N.Y. Docket No. 18-CR-628 (ADS)
Local man set to appear for allegedly ramming military baseRead the Press Release
CORPUS CHRISTI, Texas – A 47-year-old Beeville man has been charged with possession of a stolen firearm, announced U.S. Attorney Ryan K. Patrick
Brian Dale Robinson is set to appear before U.S. Magistrate Judge Jason Libby at 9:00 a.m. today for a preliminary and detention hearing.
A criminal complaint was filed Oct. 7, after Robinson allegedly stole a truck and hit the denial barricade located at the North gate entrance of the Naval Air Station (NAS) in Corpus Christi. The charges allege that he was at a gas station in Beeville when he spotted a Dodge Ram 3500 pickup truck with the engine running. Robinson then allegedly entered the vehicle without permission and departed the area.
He approached the NAS and attempted to gain unauthorized access to the base, according to the charges. After he hit the barricade, the vehicle allegedly become inoperable. The charges allege Robinson exited the vehicle and left on foot with a handgun he had found inside and hid next to a dumpster.
Robinson allegedly had suicidal thoughts. However, he opted to drop the weapon so no one else would be hurt.
Following Robinson’s arrest, law enforcement located an HS Produkt, model XDM-9, 9mm pistol loaded with a full magazine.
The Naval Criminal Investigative Service and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Brian Joseph Bowder, 41, of Lincoln, was sentenced today to 23 years and seven months in federal prison by Chief United States District Judge John M. Gerrard for conspiracy to distribute and possess with the intent to distribute actual (pure) methamphetamine, methamphetamine mixture and marijuana between August of 2017 and July of 2018. Following the prison term, Bowder will serve 10 years on supervised release.
Information provided to law enforcement indicated that Bowder was responsible for the distribution of at least 5 grams of methamphetamine actual, at least 5 kilograms (11 pounds) of methamphetamine mixture and less than a kilogram of marijuana in the Lincoln area during that time-period. Bowder admitted as part of his plea agreement that he possessed a firearm in connection with this offense.
Between December of 2017 and February of 2018, an undercover officer made six purchases of methamphetamine from Bowder for a total of more than 30 grams. Purity analysis on two of those purchases showed at least 11 grams of actual (pure) methamphetamine. During one purchase, Bowder also provided a small amount of marijuana to the undercover officer.
In February of 2018, Bowder was contacted by Lincoln Police officers and was found in possession of drug paraphernalia. At that time, he admitted he was selling methamphetamine and marijuana. A search warrant was executed at his residence. During the search, officers found a small amount of methamphetamine and packaging materials.
On two occasions in July of 2018, Bowder was contacted by LPD officers and was found in possession of small amounts of methamphetamine.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Leaders and Members of Outlaw Gangsta Crips and Shoota Gang Sentenced to up to 210 Months’ ImprisonmentRead the Press Release
Yesterday, at the federal courthouse in Brooklyn, Lenard Barletto, a member of the Outlaw Gangsta Crips (“OGC”) and the Shoota Gang, was sentenced to 210 months’ imprisonment for racketeering conspiracy, conspiracy to distribute crack cocaine and conspiracy to murder two gang rivals. Barletto pleaded guilty to the charges in June 2018. He is the final gang member to be sentenced in this case, in which 23 defendants, including the gangs’ leaders, were charged and convicted of racketeering conspiracy, murder conspiracy, attempted murder, narcotics trafficking conspiracy and bank fraud, among other crimes. The sentencing proceedings were held before United States District Judge William F. Kuntz II.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentences.
“With Outlaw Gangsta Crips and Shoota Gang leaders and members now serving well-deserved prison terms, the East Flatbush community is a much safer place,” stated United States Attorney Donoghue. “We warn all violent street gang members, in no uncertain terms, to expect a similar fate for menacing our communities.”
“Violent street gangs, and the crews and subsets that splinter off from them, remain a focus of law enforcement wherever their illegal trade in narcotics and brutal rivalries threaten the safety of our city’s neighborhoods and residents,” stated NYPD Commissioner O’Neill. “We applaud our federal partners for working together in this case to eradicate a criminal franchise and ensure justice for the East Flatbush community with the culmination of this successful prosecution.”
OGC and the Shoota Gang were based in the East Flatbush neighborhood of Brooklyn. OGC was a violent set of the nationwide Crips street gang, and the Shoota Gang was a local offshoot of OGC that included members of OGC, the Eight Trey Gangsta Crips, the Bosses in Business (“BIB”) and the Bloods. Between August 9, 2013 and May 12, 2015, members of OGC and the Shoota Gang committed multiple acts of violence, sold drugs and guns, committed robberies and bank fraud and promoted prostitution. Among the crimes of conviction were the following:
Attempted Murder
On June 3, 2014, Conell Brogdon, a leader of both OGC and the Shoota Gang, and Malik Campbell, a member of the Bloods and the Shoota Gang, attempted to murder a victim identified as John Doe #1. Brogdon, Campbell and three other Shoota Gang members surrounded John Doe #1 inside the Big Boy Deli on Nostrand Avenue and attempted to steal his necklace. During the confrontation, Brogdon handed Campbell a gun, and Campbell shot John Doe #1, who survived.
Murder Conspiracy
In January 2014, OGC member Kareem Mitchell, also known as “Pop,” was murdered, and OGC and the Shoota Gang believed BIB was responsible. In a series of phone calls intercepted pursuant to judicially authorized wiretaps, Parris Desuze, a leader of both OGC and the Shoota Gang, and Lenard Barletto and Courtney Coy, both members of OGC and the Shoota Gang, confirmed that they had firearms and would meet at the location identified by Solomon Artis, another OGC member, to attack two BIB members. The plan was thwarted by FBI agents and NYPD detectives monitoring the wiretaps, and Artis, Barleto, Coy and Desuze were arrested. Subsequently, co-conspirator Andre Holman, a member of the Eight Trey Gangsta Crips, was also arrested.
Assault
On July 19, 2014, Cordero Passley, a member of the Eight Trey Gangsta Crips and associate of OGC, assaulted and stabbed a victim on Lenox Road. The confrontation began when Passley ordered a woman to stop playing a song recorded by an alleged rival gang member and rapper. When the victim defended the woman, Passley and others attacked him.
Drug Trafficking
Between August 9, 2013 and May 12, 2015, members of OGC and the Shoota gang conspired to sell crack cocaine in Brooklyn, Connecticut, West Virginia and elsewhere.
Bank Fraud Conspiracy
Between January 6, 2014 and January 20, 2015, members and associates of OGC, and members of the Eight Trey Gangsta Crips, conspired to defraud Bank of America, JPMorgan Chase, Citibank and TD Bank. The conspirators obtained paychecks issued to others and used the information on the checks to create fraudulent checks that appeared to be written by business entities. Those checks were then deposited into bank accounts, and the deposits were promptly withdrawn.
Convictions and Sentences
- Conell Brogdon, a leader of both OGC and the Shoota Gang, was sentenced to 210 months’ imprisonment for racketeering conspiracy, including predicate acts of attempted murder and conspiracy to distribute crack cocaine.
- Parris Desuze, a leader of both OGC and the Shoota Gang, was sentenced to 210 months’ imprisonment for racketeering conspiracy, including predicate acts of conspiracy to murder and conspiracy to distribute crack cocaine.
- Lenard Barletto, a member of both OGC and the Shoota Gang, was sentenced to 210 months’ imprisonment for racketeering conspiracy, including predicate acts of conspiracy to murder and conspiracy to distribute crack cocaine.
- Malik Campbell, a member of the Bloods and the Shoota Gang, was sentenced to 188 months’ imprisonment for racketeering conspiracy, including predicate acts of attempted murder and conspiracy to distribute crack cocaine.
- Courtney Coy, a high-ranking member of both OGC and the Shoota Gang, was sentenced to 168 months’ imprisonment for racketeering conspiracy, including predicate acts of conspiracy to murder and conspiracy to distribute crack cocaine.
- Solomon Artis, a member of OGC, was sentenced to 121 months’ imprisonment for racketeering conspiracy, including predicate acts of conspiracy to murder and conspiracy to distribute crack cocaine.
- Steven Cherenfant, Stanley Cherenfant and Stephon Rene, brothers and members of the Eight Trey Gangsta Crips and the Shoota Gang, were sentenced to 135, 121 and 121 months’ imprisonment, respectively, for conspiracy to distribute crack cocaine with OGC.
- Aikiam Floyd, a member of the Bloods and the Shoota Gang, was sentenced to 121 months’ imprisonment for conspiracy to distribute crack cocaine with OGC.
- Andre Holman, a member of the Eight Trey Gangsta Crips and associate of OGC, was sentenced to 87 months’ imprisonment for conspiracy to murder.
- Cordero Passley, a member of the Eight Trey Gangsta Crips and an associate of OGC, was sentenced to 46 months’ imprisonment for assault in aid of racketeering.
The government’s case was handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Allon Lifshitz is in charge of the prosecution.
The Defendant Sentenced Yesterday:
LENARD BARLETTO
Age: 31
Brooklyn, New YorkDefendants Previously Sentenced:
SOLOMON ARTIS
Age: 30
Brooklyn, New YorkDERRICK BIENAIME
Age: 24
Brooklyn, New YorkCONELL BROGDON
Age: 32
Brooklyn, New YorkDAVON BROWN
Age: 21
Brooklyn, New YorkMALIK CAMPBELL
Age: 32
Brooklyn, New YorkSTANLEY CHERENFANT
Age: 24
Brooklyn, New YorkSTEVEN CHERENFANT
Age: 28
Brooklyn, New YorkCOURTNEY COY
Age: 32
Brooklyn, New YorkPARRIS DESUZE
Age: 31
Brooklyn, New YorkBRANDON GREENIDGE
Age: 34
Brooklyn, New YorkCORY HARRIS
Age: 41
Brooklyn, New YorkJAMAR HARRY
Age: 30
Brooklyn, New YorkANDRE HOLMAN
Age: 31
Brooklyn, New YorkJEFFREY JOSEPH
Age: 34
Brooklyn, New YorkSILBERT NICHOLSON
Age: 27
Brooklyn, New YorkCORDERO PASSLEY
Age: 25
Brooklyn, New YorkGABRIEL PATTERSON
Age: 24
Brooklyn, New YorkSTEPHON RENE
Age: 23
Brooklyn, New YorkAKEEM WATSON
Age: 27
Brooklyn, New YorkE.D.N.Y. Docket No. 15-CR-287 (S-1) (WFK)
- Conell Brogdon, a leader of both OGC and the Shoota Gang, was sentenced to 210 months’ imprisonment for racketeering conspiracy, including predicate acts of attempted murder and conspiracy to distribute crack cocaine.
Law Enforcement in South Florida Lead Effort to Seize Independentgirls.com, an Internet Forum for Prostitution Ads Some Ads Involved MinorsRead the Press Release
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Sheriff Gregory Tony of the Broward County Sheriff’s Office (BSO) announced the Oct. 4, 2019 seizure of independentgirls.com, an Internet forum for escort services and prostitution.
The main purpose of independentgirls.com was to allow escort agencies and independent escorts to post advertisements for prostitution services and provide a forum in which potential customers of prostitution could review the prostitute and post it on the website for others to read. Independentgirls.com allowed customers paying for sex to buy upgraded user accounts where they would be able to read customer reviews of advertising prostitutes, write reviews of prostitutes that were seen by other members, private message prostitutes, and view which prostitutes were currently available. Website members with upgraded user accounts were entitled to discounted hourly rates, invitations to parties hosted by independentgirls.com, as well as message forums discussing recent law enforcement action. Some of the females advertised for escort services and prostitution were minor victims.
“Our goal, as a law enforcement community, is to ensure that websites that facilitate human trafficking and child exploitation cease to exist and that the traffickers are held accountable in a court of law for their criminal exploits,” stated U.S. Attorney Fajardo Orshan. “There is no lawful market for companies or individuals that profit off of illicit commercial sex and the victimization of others.”
“The FBI will not tolerate sex trafficking regardless if it is arranged in person or over the Internet,” said George L. Piro, Special Agent in Charge of the FBI Miami’s Field Office. “The FBI and our law enforcement partners will continue to work tirelessly to combat those who engage in the sexual exploitation of others for profit.”
“At the center of this investigation was a website operated out of Broward County that catered to prostitution and served as a platform for human traffickers to advertise their victims for commercial sex acts,” said Sheriff Gregory Tony. “I commend BSO detectives and our federals partners who, through this significant arrest and seizure of this website, have made a large impact on the human trafficking activities in South Florida.”
In April of 2019, Neil Steven Greenberg, of Sunrise, Florida, the owner of the website independentgirls.com was arrested on a federal indictment charging him with two counts of production of child pornography, in violation of Title 18, United States Code, Sections 2251(a) and (e) (Case No. 19cr60132). During the execution of a search warrant at Greenberg’s residence, law enforcement is alleged to have discovered videos of Greenberg engaging in illicit sex acts with two minors. The case is pending before U.S. District Court Judge Rodolfo A. Ruiz II in Fort Lauderdale.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The effort to seize independentgirls.com was led by the U.S. Attorney’s Office for the Southern District of Florida. The law enforcement agencies conducting the investigation and seizure include the FBI’s Miami Field Office, BSO, and the South Florida Internet Crimes Against Children/Human Trafficking Task Force. The criminal case is being prosecuted by Assistant U.S. Attorney Jodi L. Anton. Assistant U.S. Attorney Richard O. Brown is handling the asset forfeiture aspects of the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Juries Return Convictions in Two Separate "Operation 922" Domestic-Violence Gun TrialsRead the Press Release
OKLAHOMA CITY – TERRENCE L. HILL, 38, of Oklahoma City, and RONALD BENTON, 47, of Temple, Oklahoma, have been convicted in separate cases of illegally possessing ammunition and a firearm respectively, announced U.S. Attorney Timothy J. Downing. Both cases are part of "Operation 922," the U.S. Attorney’s Office’s effort to prosecute individuals who perpetrate domestic violence and violate federal gun laws.
The Terrence L. Hill Conviction
A grand jury indicted Terrence Hill on February 5, 2019, for possessing four .380 caliber steel cartridge casings after having been convicted of a felony. On October 8 and 9, 2019, a federal jury heard evidence that Hill, who has a felony conviction, shot his former girlfriend at her residence in northwest Oklahoma City in the early morning hours of September 19, 2018. After having dated for approximately two years, Hill and his girlfriend broke up in early 2018. The girlfriend filed a petition for a protective order against Hill in Oklahoma County District Court on September 12, 2018. The evidence at trial showed that on the evening of September 18, 2018, Hill called his former girlfriend and threatened to kill her and her daughter. After a nearly sleepless night, the girlfriend saw Hill in her backyard at around 7:00 a.m. According to the trial evidence, he fired at least four shots at her through a patio window and hit her twice in the back as she tried to escape. Investigators recovered four casings in the backyard. The victim’s wounds were not fatal.
On October 11, 2019, a jury unanimously found Hill guilty of possessing ammunition after a felony conviction. At sentencing, he faces a maximum penalty of ten years in prison, followed by three years of supervised release, and a fine of up to $250,000. Sentencing will take place in approximately 90 days.
The Ronald Benton Conviction
Ronald Benton was indicted on December 12, 2018, for possessing a firearm after being convicted of a misdemeanor crime of domestic violence. He entered a guilty plea on March 11, 2019. On August 22, 2019, however, the court allowed him to withdraw his guilty plea because of a new U.S. Supreme Court case that held that the government must prove the defendant knew the status that made his gun possession a federal crime. On September 3, a grand jury returned a superseding indictment that added the allegation that Benton made a false statement on Bureau of Alcohol, Tobacco, Firearms & Explosives ("ATF") Form 4473 when he purchased a 9mm pistol in Lawton in May 2018 and stated he had never been convicted of a misdemeanor crime of domestic violence.
A jury heard the evidence against Benton on October 8, 2019. In particular, it heard that Benton had been convicted of misdemeanor battery against his spouse in New Mexico in 2007. The evidence showed the ATF contacted him after his May 2018 firearm purchase to inform him he was not allowed to possess a firearm. The ATF executed a search warrant at his home in Temple, Oklahoma, on June 15, 2018, and found the pistol and ammunition in his bedroom.
Benton was convicted unanimously on October 9 on the gun crime. The jury acquitted him of lying to purchase the weapon. He faces a maximum penalty of ten years in prison, followed by three years of supervised release, and a fine of up to $250,000. Sentencing will take place in approximately 90 days.
* * * * *
The Hill conviction is the result of an investigation by the Oklahoma City Police Department and the ATF, with assistance from FBI-Oklahoma City Division. It is being prosecuted by Assistant U.S. Attorneys Jacquelyn M. Hutzell and Matthew P. Anderson. The Benton conviction is the result of an investigation by the ATF. It is being prosecuted by Assistant U.S. Attorneys Wilson D. McGarry and Jason M. Harley.
"Operation 922" is the local implementation of the national PSN initiative in the Western District of Oklahoma. Rather than focusing on prosecutions coming from a geographic area, "Operation 922" prioritizes prosecutions on a subject matter plaguing Oklahoma: domestic violence. As part of this initiative, federal prosecutors focus on enforcing 18 U.S.C. § 922, which precludes specific individuals—including not only felons, but also domestic-violence abusers who are subject to a victim protective order or who have been previously convicted of a misdemeanor crime of domestic violence—from possessing firearms or ammunition. In addition, the U.S. Attorney’s Office prosecutes domestic abuse in Indian Country, including assaults, batteries, strangulations, and homicides.
Reference is made to public filings for further information.
Jamaican Citizen Sentenced to 46 Months for Defrauding Elderly Albany CoupleRead the Press Release
ALBANY, NEW YORK – Kevin R. Palmer, age 37, a Jamaican citizen residing in Suwanee, Georgia, was sentenced today to 46 months in prison for stealing more than $320,000 from an elderly Albany couple in a mail-based prize scam.
The announcement was made by United States Attorney Grant C. Jaquith and Joseph Cronin, Inspector in Charge, United States Postal Inspection Service (USPIS), Boston Division.
In March 2019, Palmer pled guilty to 1 count of mail fraud conspiracy and 12 counts of mail fraud. He admitted that in 2017, an elderly couple residing in Albany County was contacted through the mail and by telephone, and was told that they needed to send money in order to obtain an inheritance and tax refund, and claim lottery and sweepstakes prize money.
As instructed, the husband and wife mailed bank checks to addresses in Georgia, including Palmer’s address. They mailed a total of 12 checks; 10 of these checks were payable to Palmer, and all 12 were deposited into bank accounts for which Palmer was a signatory. Palmer admitted that his role in the fraudulent scheme was to receive checks sent by the couple, deposit them, and distribute the proceeds (totaling $321,342) among the participants to the scheme. At sentencing, he admitted to keeping 10 to 15 percent of the fraud proceeds for himself, and sending the remainder to co-conspirators overseas.
Palmer also admitted that in 2010, while residing in New York City, he committed a similar scam, fraudulently obtaining money from victims who were led to falsely believe they had won the lottery or a sweepstakes. Palmer pled guilty to a misdemeanor in Queens County Criminal Court and served a 90-day jail sentence.
In sentencing Palmer, Judge D’Agostino specifically found that he preyed upon vulnerable victims, and knew or reasonably should have known that they were vulnerable. “You are the worst kind of defendant in my eyes,” she told Palmer, because he had been imprisoned for committing a scheme to defraud in 2010, but was undeterred and went on to participate in the 2017 scam.
Judge D’Agostino ordered Palmer to pay restitution in the amount of $321,342. Additionally, as a result of his guilty plea, Palmer’s lawful status in the United States may be revoked, and he may be removed to Jamaica.
This case was investigated by the United States Postal Inspection Service, with assistance from the Georgia Bureau of Investigation, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Fraudsters routinely use the U.S. Mail to falsely inform victims that they have to pay “fees” or “taxes” in order to receive a tax refund, lottery or sweepstakes prize, or inheritance. These scams often target the elderly. To learn how to detect and avoid these scams, please visit the web site of the Federal Trade Commission, at https://www.consumer.ftc.gov/articles/0199-prize-scams.
Jacksonville Duo Sentenced to Prison for Selling Methamphetamine in Duval, Nassau, and Baker CountiesRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Sabrina Nicole Hoffa (40, Jacksonville) to eight years and four months in federal prison and Jeffrey Allen Mays (38, Jacksonville) to six years and three months in federal prison for distributing methamphetamine. The court also ordered Hoffa and Mays to forfeit $1,265 in U.S. currency, which was proceeds of the offense.
Hoffa and Mays had pleaded guilty on July 11, 2019.
According to court documents, in March 2019, an undercover detective from the Nassau County Sheriff’s Office began purchasing methamphetamine from Hoffa. After two transactions, Hoffa asked the detective to travel to her residence in Jacksonville to conduct future purchases. Hoffa also advised the detective that he should transport the drugs in a locked safe so that law enforcement could not open it without a court order.
The detective, working with the Bureau of Alcohol, Tobacco, Firearms and Explosives, made two additional purchases of methamphetamine from Hoffa at her residence. During one transaction, Hoffa told the detective that she had sold 17 ounces of methamphetamine the previous day for $550 per ounce. During the final transaction, Hoffa and Mays, working together, sold two ounces of methamphetamine to the undercover detective. The Drug Enforcement Administration later determined that the methamphetamine was 98% pure.
On March 27, 2019, Hoffa was arrested in Baker County after she showed up to sell two ounces of methamphetamine to a confidential source who was working with the Baker County Sheriff’s Office. The following day, ATF executed a search warrant at Hoffa and Mays’s home in Jacksonville. Mays was inside of the residence at the time and was arrested. He had two keys to two safes in his possession. Upon searching the safes, ATF located 16.8 grams of 99% pure methamphetamine, MDMA pills, diazepam pills, and other controlled substances.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Nassau County Sheriff’s Office, and the Baker County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
Inmate Led Sex and Drug Trafficking Ring from State Prison CellRead the Press Release
NORFOLK, Va. – A California man pleaded guilty today to organizing and running a methamphetamine trafficking conspiracy and commercial sex ring from his state prison cell.
“Gaines directed a drug and sex trafficking organization from the confines of his state prison cell,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “His crime was brazen, dangerous, manipulative, and inflicted untold mental, emotional, and physical harm on some of our community’s most vulnerable individuals.”
According to court documents, Foster Shane Gaines, 42, was serving an eight-year sentence in the California Department of Corrections and Rehabilitation for prostituting an adult woman. Beginning in approximately 2016, Gaines launched a drug trafficking organization that distributed methamphetamine from a source of supply in California to co-conspirators in the Tidewater area. Using cellphones smuggled into prison, Gaines directed co-conspirators in California, Nevada, and elsewhere to mail parcels of methamphetamine to co-conspirators in Chesapeake, Virginia Beach, Norfolk, Petersburg, and elsewhere. Once the methamphetamine was distributed to customers that Gaines, at times, personally arranged using his contraband cellphones, the co-conspirators returned the proceeds from the sales to Gaines and his confederates by way of prepaid stored value cards or bulk cash sent through the mail.
“Gaines didn’t learn his lesson. Even though he was already serving a prison sentence in California, he brazenly used contraband cell phones to lead a meth and sex trafficking conspiracy while incarcerated,” said Michael K. Lamonea, Assistant Special Agent in Charge of Homeland Security Investigations Norfolk. “Thanks to HSI and our law enforcement partners, we were able to take down this drug and sex trafficking ring and rescue multiple minor victims.”
In addition to his methamphetamine trafficking, Gaines also organized and led a commercial sex ring that at times involved approximately 10 adult females and two juvenile girls. Again using his smuggled cellphones, Gaines recruited women and girls to work as prostitutes by contacting them over various social media platforms. In exchange for 40 to 50 percent of their commercial sex proceeds, Gaines created online advertisements for commercial sex, rented hotel and motel rooms, communicated with customers, organized transportation, and otherwise managed their commercial sex activities. Gaines also arranged for a professional photographer to take sexually suggestive photographs of some women for use in the commercial sex advertisements he created for them, and frequently directed his co-conspirators to provide cocaine, methamphetamine, marijuana, and other drugs to the women and girls prostituting. As with the proceeds from the methamphetamine sales, Gaines directed that the women and girls transmit their commercial sex proceeds to him through bulk cash mailings or prepaid stored value cards.
“The U.S. Postal Inspection Service is determined to protect Postal employees and thwart illegal and dangerous use of the U.S. Mail,” said Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service. “Postal Inspectors will work with our law enforcement partners to pursue anyone, even those already incarcerated, who corrupt the U.S. Postal Service to further their criminal enterprises.”
Gaines pleaded guilty to conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine, commonly known as “ice,” and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, and sex trafficking of a child. Each charge carries a mandatory minimum term of 10 years and a maximum of life in prison when sentenced on Jan. 31, 2020. 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, James A. Cervera, Chief of Virginia Beach Police, Col. K.L. Wright, Chief of Chesapeake Police, Larry D. Boone, Chief of Norfolk Police, and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after U.S. District Judge Arenda Wright Allen accepted the plea. Assistant U.S. Attorneys Darryl J. Mitchell and V. Kathleen Dougherty are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-143-1.
Inglewood-based Tax Preparer Convicted in Scheme that Sought More than $5 Million in Fraudulent RefundsRead the Press Release
LOS ANGELES – A tax preparer and ex-California Franchise Tax Board employee was found guilty by a jury today of federal criminal charges accusing him of defrauding the IRS out of millions of dollars by declaring bogus withholdings used to fraudulently claim substantial tax refunds.
Cubby Wayne Williams, 64, of Alhambra, was found guilty of 22 counts of assisting in the preparation of false tax returns for his clients and four counts of subscribing to false tax returns for himself.
United States District Judge Percy Anderson has scheduled a December 16 sentencing hearing, at which time Williams will face a statutory maximum sentence of 78 years in federal prison.
Williams, who owns and operates the Inglewood-based tax services company Williams Financial Network, filed tax returns claiming that his clients had accrued Original Issue Discount (OID) interest income, according to the evidence presented at his four-day trial. OID is a form of interest that accrues over the life of a bond or other debt instrument, but is not payable as it accrues. Financial institutions use IRS Forms 1099-OID to report this accrued, but unpaid, income, and any tax withholdings on it.
Williams fraudulently claimed OID withholdings on 22 tax returns for his clients for the tax years 2013 through 2016, and sought hundreds of thousands in bogus tax refunds. Williams took a cut of many of these refunds often by directing the IRS to deposit a portion into a bank account under Williams’s control.
When his clients complained that their returns had fallen under IRS scrutiny, had been corrected and that they now owed money to the IRS, Williams told them the IRS had made a mistake and they were still entitled to their tax refunds. When the same clients informed Williams they were being audited, he assured them he would represent them before the IRS and resolve any issues, but he ultimately did little other than to submit further fraudulent documentation to the IRS.
According to prosecutors, Williams’ scheme included many false returns in addition to the returns charged in the indictment, through which Williams attempted to fraudulently obtain more than $5 million in tax refunds and, in fact, obtained nearly $3 million for himself and his clients.
This case was investigated by IRS Criminal Investigation.
This matter is being prosecuted by Assistant United States Attorneys James C. Hughes and Ranee A. Katzenstein of the Major Frauds Section.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Oct. 8 was:
Emily Kaye Marie Gourneau, 32, of Poplar, on charges of assault with a dangerous weapon and assault resulting in serious bodily injury. If convicted of the most serious crime, Gourneau faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Gourneau was detained pending further proceedings. The case was investigated by the FBI, Wolf Point Police Department and Fort Peck Tribal law enforcement. Pacer case reference. 19-74.
Allesandro Shalamar Foursouls, 27, of Harlem, on charges of assault by strangulation and assault resulting in substantial bodily injury to a dating partner. If convicted of the most serious crime, Foursouls faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Foursouls was detained pending further proceedings. The case was investigated by the FBI and Fort Belknap Law Enforcement Services. Pacer case reference. 19-73.
Zachary Shawn Kendall, 27, of Fort Belknap Agency, on charges of assault with a dangerous weapon, assault resulting in serious bodily injury and domestic abuse by habitual offender. If convicted of the most serious crime, Kendall faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Kendall was detained pending further proceedings. The case was investigated by the FBI and Fort Belknap Law Enforcement Services. Pacer case reference. 19-75.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Oct. 8 was:
Wyatt Michael Grayson, 23, of Billings, on charges of possession of a stolen firearm and receipt of a firearm by a person under indictment. If convicted of the most serious crime, Grayson faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Grayson was detained pending further proceedings. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 19-117.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Oct. 8 was:
Biranna Nicole Sparling, 32, of Ronan, on charges of possession with intent to distribute methamphetamine. If convicted of the most serious crime, Sparling faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. Sparling was detained pending further proceedings. The case was investigated by the Drug Enforcement Administration. Pacer case reference. 19-46.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indianapolis Man Sentenced for Multi-State Walgreens RobberiesRead the Press Release
United States Attorney for the District of Nebraska Joe Kelly announced that U.S. District Judge Donovan Frank, District of Minnesota, sentenced Javonn T. Lewis, 24, this week to 6 years, 10 months’ imprisonment for his involvement in two robberies. Lewis previously pleaded guilty to the robberies; one in Omaha and one in Edina, Minnesota. He was also ordered to pay $81,057 in restitution and will be required to serve 3 years of supervised release after his release from prison.
On March 11, 2018, the Walgreens Pharmacy at 1701 South Street, Lincoln, Nebraska was robbed by Lewis. He entered the pharmacy, threatened to kill the pharmacist and then took more than $20,000 worth of controlled substances. He was not immediately caught. A couple weeks later, empty pill bottles from the Walgreens were found on the grounds of a Lincoln hotel and Lewis’s fingerprints were found on one of the bottles.
On July 17, 2018, Lewis robbed a Walgreens Pharmacy in Edina, Minnesota by threatening employees with a replica firearm. Approximately $51,000 of controlled substances were taken.
Lewis was arrested in Minnesota. The FBI was able to link the two cases. The U.S. Attorney’s office for the District of Nebraska coordinated with the U.S. Attorney’s Office from the District of Minnesota for Lewis to enter his guilty plea in Minnesota.
The Lincoln Police Department and the FBI Great Plains Violent Crime Task Force, comprised of FBI agents, Omaha Police Department detectives, Nebraska State Patrol Investigators and Papillion Police Department Detectives were responsible for the investigation.
Hooksett Man Sentenced to Probation and Order to Pay Restitution for Embezzling Labor Union AssetsRead the Press Release
CONCORD - Dennis Robertson, 43, of Hooksett, was sentenced on Thursday in federal court to 3 years of probation and ordered to pay more than $37,000 in restitution for embezzling labor union assets, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Robertson served as the business manager for a local union based in New Hampshire for approximately 14 years until his dismissal in or around March 2017. He was the only full-time paid officer or employee of the local union, which had approximately 140 to 170 dues-paying members. Robertson’s duties included managing finances, receiving dues, dispatching workers, and handling grievances.
Robertson had access to the organization’s bank accounts. After Robertson left the union in approximately March of 2017, an audit revealed substantial financial discrepancies under Robertson’s tenure. In sum, this review revealed that between August 2015 and February 2017, Robertson wrote and signed unauthorized expense checks to himself and made unauthorized cash withdrawals from the union’s checking account in the approximate amount of $23,519. He additionally embezzled union funds in two other ways: (1) by making unsupported mileage payments to himself of approximately $11,333 and (2) failing to disclose cash dues payments he received from members in the amount of approximately $3,045. When approached by investigators, Robertson admitted to taking the funds in order to fund his addiction to crack cocaine and other narcotics. The Court’s sentence includes restitution to make the local union and its insurer whole for their losses.
Robertson previously pleaded guilty on June 25, 2019.
“Union members put their trust in Mr. Robertson and he betrayed that trust,” said U.S. Attorney Murray. “The defendant improperly appropriated union funds for his personal use. As a result of his self-serving actions, he is now a federal felon.”
“Combatting financial fraud and investigating embezzlement of union funds help safeguard financial integrity in labor unions,” said DOL-OLMS Northeastern Regional Director Andriana Vamvakas. “This is a major priority for the U.S. Department of Labor’s Office of Labor-Management Standards. We will work with the United States Attorney’s Office to identify criminal violations and pursue appropriate legal action whenever anyone puts personal financial gain ahead of the best interests of union members.”
This matter was investigated by the U.S. Department of Labor, Office of Labor Management Standards. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Henrico Police Athletic League Agrees to Settle ADA ComplaintRead the Press Release
ALEXANDRIA, Va. – The Henrico Police Athletic League, (Henrico PAL), which is a chapter of the National Police Athletic/Activities Leagues, Inc., has agreed to pay $5,000 to one child, provide tuition-free enrollment in its summer camp program to a second child, and take remedial action to resolve two complaints that Henrico PAL failed to modify its policies, practices, and procedures to allow children with diabetes to attend its programs.
The allegations involved two children with Type I diabetes. When Henrico PAL was informed that the children had Type I diabetes and would need help with blood glucose monitoring, insulin administration, and other diabetes care tasks, it allegedly informed one parent that her child could no longer attend its after school program and informed another parent that her child could not attend its summer camp program.
“My office is committed to ensuring that children with disabilities have the same access to child care programs as their peers without disabilities,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Quality child care is essential to allowing parents to work or go to school. We are pleased that Henrico PAL has agreed to take steps to ensure that all of its programs will provide appropriate modifications to its policies, practices, and procedures to allow children with diabetes to attend its programs.”
The Henrico PAL serves over 2,500 youth each year through its after school and summer camp programs throughout Henrico County.
To resolve these complaints, Henrico PAL has agreed to adopt policies that will make its services accessible to children with diabetes; designate an ADA Administrator, who will be responsible for ensuring Henrico PAL’s compliance with the ADA; provide assistance with diabetes care tasks for children who need it; and provide training for its personnel on the ADA’s requirements and child-specific care for each child with diabetes.
The matter was investigated by Assistant U.S. Attorney Steve Gordon, who is the Civil Rights Enforcement Coordinator for the U.S. Attorney’s Office. The civil claims settled by this Americans with Disabilities Act agreement are allegations only; there has been no determination of civil liability.
The Department of Justice has a number of publications available to assist entities in complying with the ADA, including Commonly Asked Questions About Child Care Centers and the Americans with Disabilities Act, and the Justice Department has a toll-free ADA Information Line at 800-514-0301 or 800-514-0383. Additionally, the National Institutes of Health has published a guide entitled Helping the Student with Diabetes Succeed: A Guide for School Personnel. ADA complaints may be filed by email to: [email protected].
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Harrison County man sentenced after he admits to sex offender chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Scotty Lee Morris, of Bridgeport, West Virginia, was sentenced today to 30 months incarceration after he admitted to failing to update his sex offender registration, United States Attorney Bill Powell announced.
Morris, age 48, pled guilty today to one count of “Failure to Update Sex Offender Registration.” Morris failed to update his sex offender registration in October 2018 in Harrison County.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The United States Marshal Service investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Harlem man sentenced to prison for domestic abuseRead the Press Release
GREAT FALLS—A Harlem man was sentenced to 21 months in prison and three years of supervised release on Oct. 10 for conviction on domestic abuse charges, U.S. Attorney Kurt Alme said.
Jerel Edgar Johnson, 35, of Harlem, pleaded guilty in June to domestic abuse by a habitual offender.
U.S. District Judge Brian M. Morris presided.
The prosecution said in court records that Johnson assaulted the victim twice in June 2018 near Snake Butte on the Fort Belknap Indian Reservation. Johnson had been convicted of at least two separate prior domestic assaults in tribal court. The victim sought medical treatment for her injuries and reported the abuse. The victim reported that Johnson had hit, kneed, slapped and choked her.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the Fort Belknap Police Department and the FBI.
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Glenwood Postal Service Employee Pleads Guilty to Stealing More Than $100,000 in Government BenefitsRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of LISA ANN SCHAFER, 57, for stealing $108,490.47 in federal disability benefits. SCHAFER, who was charged via felony information on September 24, 2019, entered her guilty plea before Judge Eric C. Tostrud in U.S. District Court in St. Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, from September 18, 2015, through May 3, 2019, SCHAFER, at the time an employee of the United States Postal Service, knowingly claimed Federal Employees’ Compensation Act (FECA) benefits by falsely asserting that a work-related injury prevented her from working in a full-time capacity. SCHAFER reported to her doctor that her medical condition required her to rest most of the day and that she could tolerate only sedentary work. SCHAFER’s doctor accordingly limited her to no more than two hours of office work a day, enabling SCHAFER to collect FECA benefits due to her purported work-related injury. However, during this time period, SCHAFER was observed participating in 30-40 dog-agility competitions where she is seen running, bending quickly at the waist, and using large arm movements to navigate dogs through a variety of exercises. In total, SCHAFER stole $108,490.47 in FECA benefits that she knew she was not entitled to receive.
Special Agent-in-Charge John D. Masters, Western Area Field Office, USPS Office of the Inspector General said, “The American public trusts that U.S. Postal Service employees will obey the law. When an employee of the Postal Service violates that trust, the Postal Service Office of Inspector General (USPS OIG) investigates those matters. Today’s plea sends a clear message that workers' compensation fraud is a federal crime, which carries serious consequences. The USPS OIG, along the U.S. Attorney's Office, remain committed to safeguarding the integrity of the workers’ compensation program and ensuring the accountability and integrity of U.S. Postal Service employees.”
This case is the result of an investigation conducted by the United States Postal Service, Office of Inspector General (USPS-OIG).
Assistant U.S. Attorney Jordan L. Sing is prosecuting the case.
Defendant Information:
LISA ANN SCHAFER, 57
Glenwood, Minn.
Convicted:
- Theft of government funds, 1 count
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Georgia Man Pleads Guilty to Operating Ponzi Scheme on University of Georgia’s CampusRead the Press Release
A former University of Georgia undergraduate student pleaded guilty today for his role in a $1 million Ponzi scheme that targeted investors, including his fellow students.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Charles Peeler of the Middle District of Georgia and Special Agent in Charge J.C. Hacker of the FBI’s Athens, Georgia Field Office made the announcement.
Syed Arham Arbab, 22, of Augusta, Georgia, pleaded guilty to a one-count information charging him with securities fraud before U.S. District Judge C. Ashley Royal of the Middle District of Georgia. Sentencing is scheduled for Jan. 8, 2020, before Judge Royal.
As part of his guilty plea, Arbab admitted that from May 2018 through May 2019, while enrolled as an undergraduate student at the University of Georgia campus in Athens, Georgia, he solicited investors, many of whom were his fellow students, to invest in his entities, Artis Proficio Capital Management and Artis Proficio Capital Investments (collectively, APC), which he told investors were “hedge funds.” Arbab admitted that he convinced approximately 117 investors in Georgia and other states to invest funds with him and APC.
Arbab admitted that he made a number of misrepresentations in order to persuade victims to invest with him, including misrepresenting the funds’ returns, the number of investors, the total funds invested and the nature of the investment plays being made. He also admitted fabricating account statements. Victims invested approximately $1 million with Arbab in the course of his scheme, with Arbab falsely promising rates of returns as high as 22 percent or 56 percent, when his overall returns were nowhere near these amounts. Arbab offered some investors a seemingly risk-free “guarantee” on the first $15,000 invested, and the majority of investors, especially those who were students or younger professionals, invested less than this amount, believing that even if Arbab’s investment choices proved unsound or the market behaved unpredictably, they would still be paid back their entire principal investment.
Arbab admitted that knew he did not have the liquid capital to make good on these guarantees when he made them, but he did not disclose this to his investors. Further, when Arbab learned that some prospective investors were UGA football fans, he told them that a famous NFL player and UGA alumnus was an investor in the fund, when in fact the football player had never invested with APC. Arbab also misrepresented that he was an MBA candidate at UGA’s Terry College of Business. In fact, ARBAB had applied to and been rejected by UGA’s MBA program and was operating the fund primarily from his fraternity house as an undergraduate.
Arbab further admitted that he spent investor funds on personal expenses, including clothing, shoes, retail purchases, fine dining, alcoholic beverages, adult entertainment and interstate travel, including spending thousands of dollars gambling during three trips to Las Vegas in 2018 and 2019.
The FBI investigated the case. Trial Attorney Katie Rasor and Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lyndie Freeman of the Middle District of Georgia are prosecuting the case. The Department of Justice appreciates the substantial assistance of the Enforcement Division of the Securities and Exchange Commission (SEC).
Arbab is also the subject of a previously filed civil complaint by the SEC alleging a Ponzi scheme and offering fraud.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.