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18 November 2019
News Release: Sixth and Final Defendant Pleads Guilty to Participating in Sophisticated International Cellphone Fraud SchemeRead the Press Release
WASHINGTON – A citizen and resident of the Dominican Republic pleaded guilty today in Miami, Florida, to multiple criminal charges in connection with a sophisticated global cellphone fraud scheme that involved compromising cellphone customers’ accounts in the United States and “cloning” their phones to make fraudulent international calls.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Edgar Estarlin Peralta Lopez, 42, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud and one count of aggravated identity theft. Sentencing is scheduled for Jan. 24, 2020, before U.S. District Judge Beth Bloom of the Southern District of Florida.
According to the plea agreement, Peralta and his co-conspirators participated in a scheme to steal access to existing cellphone accounts, and fraudulently open new cellphone accounts, using the personal information of individuals around the United States.
In the plea agreement, Peralta admitted that he played at least two roles in the conspiracy. First, he was a telecommunications trafficker. Specifically, Peralta would contract with telecommunication companies to transmit international calls for them for payment and then route those calls through cellphones reprogrammed with stolen or compromised telecommunications identifying information located at “call sites” in the United States. Peralta and other co-conspirators transmitted thousands of calls to Cuba, Jamaica, the Dominican Republic, and other countries with high calling rates. The calls were later billed to United States customers’ compromised accounts. Second, Peralta was a “line” supplier, providing his co-conspirators with stolen or compromised telecommunications identifying information that they then used to reprogram the cellphones they controlled at call sites.
In addition, in the plea agreement, Peralta admitted to trafficking in approximately 3,158 combinations of stolen or compromised telecommunications identifying information, which were found in around over 1,390 emails he exchanged with co-conspirators. Verizon Wireless reported that fraudulent use of just three of these combinations resulted in a loss of over $33,000. Peralta admitted to a loss amount of at least $315,800.
Peralta is a citizen of the Dominican Republic. He was arrested in the Dominican Republic at the request of the United States, extradited to Miami in August where he is currently in custody.
Peralta is the sixth and last defendant to plead guilty in the case. Previously, defendants Edwin Fana, Farintong Calderon, Jose Santana, Ramon Batista and Braulio de la Cruz pleaded guilty to similar charges and have already been sentenced to prison terms ranging from 36 months to 75 months.
The FBI Miami’s Cyber Task Force investigated the case, dubbed Operation Toll Free, which is part of the FBI’s ongoing effort to combat large-scale telecommunications fraud. The Criminal Division’s Office of International Affairs handled the extradition in this matter, with assistance from the U.S. Marshals Service. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
Newberg Man Sentenced to 9 Months in Federal Prison for Threatening School Shooting at California CollegeRead the Press Release
PORTLAND, Ore.—Vasiliy V. Barbiyeru, Jr., 25, of Newberg, Oregon, was sentenced today to nine months in federal prison and three years’ supervised release for transmitting threatening interstate communications.
According to court documents, on October 7, 2017, Barbiyeru sent a threatening email to several individuals and groups at Deep Springs College in Big Pine, California where he had been denied admission. Barbiyeru had previously posted a threat directed at the college on the 4chan message board and had sent similar threatening emails to the college’s president and other associated persons.
On March 1, 2019, Barbiyeru was charged with first degree disorderly conduct, a misdemeanor, in Clackamas County Circuit Court after making similar threats of violence to Lake Oswego High School. Barbiyeru was arrested a short time later by the Lake Oswego Police Department. His state charges are still pending.
On August 22, 2019, Barbiyeru pleaded guilty to one count of threatening interstate communications.
This case was investigated by the FBI and the Newberg and McMinnville Police Departments and was being prosecuted by Hannah Horsley, Assistant U.S. Attorney for the District of Oregon.
New York Man Who Victimized Immigrants in Kidnapping and Extortion Scheme Sentenced to 8 Years in PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CARLOS ANTONIO HERNANDEZ, 57, of Brooklyn, New York, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 96 months of imprisonment, followed by three years of supervised release, for his role in a kidnapping and extortion scheme.
According to court documents and statements made in court, on several occasions, Hernandez and his co-conspirators targeted individuals after they exited buses at the Port Authority in New York. The victims included women, men and children from Central American countries who did not speak English and were seeking asylum in the U.S. Some of the victims planned to travel from New York to Connecticut. After the victims were told that their connecting bus was not available and that they would provide transportation, Hernandez and others coerced the victims into vehicles. Hernandez and others would then drive the victims around, sometimes for hours, and refused to release them until they or their families agreed to pay the co-conspirators an exorbitant amount of money, on average more than a $1000.
At times, co-conspirators posed as an immigration officer to intimidate the victims further.
Hernandez has been detained since his arrest on December 14, 2016. On March 9, 2018, a federal jury in Bridgeport found Hernandez and two co-conspirators, Francisco Betancourt and Lucilo Cabrera, guilty of kidnapping, extortion and conspiracy offenses. On November 14, 2019, Betancourt was sentenced to 168 months of imprisonment. Cabrera awaits sentencing.
On October 12, 2018, a fourth defendant, Pascual Rodriguez, pleaded guilty to one count of kidnapping. On July 2, 2019, he was sentenced to 135 months of imprisonment.
This investigation was conducted by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Vanessa Richards.
New Haven Man Sentenced to More Than 3 Years for Illegal Gun Possession, Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that SHAQUILLE PEARSON, 25, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 39 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm, and for violating the conditions of his supervised release from a prior federal firearm conviction.
According to court documents and statements made in court, on May 23, 2017, Pearson was sentenced in federal court to 24 months of imprisonment, followed by three years of supervised release, for possession of a firearm by a convicted felon. He was released from federal prison in May 2018.
On March 21, 2019, Pearson led New Haven police officers in a foot chase. Officers apprehended Pearson and then retrieved a loaded Taurus PT25, .25 caliber handgun that Pearson had discarded on Wilson Street during the chase.
In addition to his prior federal conviction, Pearson’s criminal history includes state convictions for burglary and for carrying a dangerous weapon.
On June 17, 2019, Pearson pleaded guilty to one count of possession for a firearm by a convicted felon.
Judge Thompson sentenced Pearson to 27 months of imprisonment for the firearm offense, and a consecutive 12 months of imprisonment for violating the conditions of his supervised release.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorneys Sarah P. Karwan and Maria del Pilar Gonzalez.
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 neighborhoods safer for everyone.
Muncie Mayor Dennis Tyler Indicted on Corruption-Related ChargeRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that the Mayor for the City of Muncie, Indiana has been indicted on a charge of accepting a $5,000 illegal cash payment after he steered lucrative excavation work to a local contractor. The arrest is part of an on-going investigation by the United States Attorney’s Office and the Federal Bureau of Investigation into illegal payments associated with public works projects in Muncie.
"Public officials are entrusted to perform a public service and to legitimately conduct business in the best interest of the community that they represent," said Minkler. "Tyler not only betrayed the trust of his community, but violated federal law, and all in an effort to serve his own personal interests. My office intends to prosecute Tyler to the full extent of the law."
Mayor Dennis Tyler, 76, of Muncie, Indiana, was arrested at his home Monday morning, November 18, 2019, and had his initial appearance that same afternoon in the federal courthouse in Indianapolis. He has served as Muncie’s Mayor since he was elected to that position in 2012. As Mayor, Tyler has authority over supervising subordinate officers, signing bonds, deeds, and contracts of the city, approving licenses issued by the city, and overseeing Muncie’s departments and agencies.
"Public corruption is the top criminal investigative priority for the FBI. It erodes public confidence and undermines the strength of our democracy," said Special Agent in Charge Grant Mendenhall, FBI Indianapolis. "There is a growing intolerance by the American people of public corruption, an intolerance reflected in the willingness to come forward and report abuse of public office. We are always grateful for those who report corruption. That information is critical to our work."
The arrest is part of a multi-year and on-going investigation by the Federal Bureau of Investigation and the Internal Revenue Service into the payment of kickbacks in exchange for public works projects and other corruption-related matters in Muncie that have resulted in the following federal cases:
United States v. Craig Nichols, Former Building Commissioner, 17-CR-0021-TWP- DML, pleaded guilty to wire fraud and money laundering, sentenced to 24 months in prison.
United States v. Tracy Barton, Former Superintendent of Sewer Maintenance, 18-CR- 284-JMS-DLP, set for jury trial on April 3, 2020.
United States v. Jeff Burke, Local Business Man, 18-CR-285-SEB-DLP, set for jury trial on Oct. 28, 2020.
United States v. Rodney Barber, Local Contractor, 19-CR-190-JMS-DML, set for jury trial on March 13, 2020.
United States v. Debra Nicole Grigsby and Tony Franklin, District Administrator of Muncie Sanitary District and Local Contractor, 19-CR-231-JRS-DLP, set for jury trial Feb. 10, 2020.
According to Assistant U.S. Attorney Tiffany J. Preston, who is prosecuting this case for the government, Tyler faces up to 10 years’ in federal prison if convicted of the charge.
An Indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting large-scale fraud schemes that warrant federal resources and arrest those who abuse their positions of trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.3.
Montgomery Man Convicted of Casino TheftRead the Press Release
Montgomery, Alabama – On Thursday, November 14, 2019, a federal jury convicted twenty-eight year old Jory D’Michael Trayvunn Dumas, from Montgomery, Alabama, of theft from a gaming establishment on tribal lands and conspiracy, announced U.S. Attorney Louis V. Franklin, Sr. The jury found that Dumas conspired with others to steal nearly $200,000.00 from the Wind Creek Casino in Montgomery.
Evidence presented at trial showed that on August 10, 2018, Dumas was at the casino with two relatives, Timothy Dean Pettiway and Tameka Thomas. Dumas had previously recruited an employee, Courtney Deandra Stanton, to give him access to keys to the cash kiosks at the casino. Dumas instructed Stanton to leave the keys on top of a cash kiosk for Pettiway to retrieve and open the machines. Pettiway then took cash cassettes from two separate kiosks to Dumas who was waiting in a nearby bathroom. Dumas forced entry into the boxes, hid the money on his person, and exited the casino with a total of $192,800.00. During the theft, Thomas relayed messages to Dumas via cell phone as to Pettiway’s progress in obtaining the keys and cash cassettes.
Pettiway was previously sentenced to 33 months in federal prison for his role in the crime. Thomas and Stanton have pled guilty and are awaiting sentencing.
Following the trial, Dumas was remanded to the custody of the United States Marshals to await sentencing where he faces up to 20 years prison. There is no parole in the federal system.
The Poarch Creek Tribal Police, the Poarch Creek Indian Gaming Commission, and the FBI investigated the case. Assistant United States Attorneys Ben Baxley and Stephanie Billingslea prosecuted the case.
Milwaukee Man Sentenced to 10 Years in Federal Prison for Sex Trafficking ConspiracyRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that Dameion D. Wyatt (age 41), of Milwaukee was sentenced on Friday, November 15, 2019 to 10 years in prison followed by three years on supervised release for engaging in a conspiracy to commit sex trafficking by force, fraud, or coercion. Wyatt pled guilty on July 2, 2019.
According to the plea agreement, Wyatt trafficked multiple women around the state of Wisconsin, as well as in other states including Illinois and Indiana. These victims earned money at Wyatt’s direction, all of which they were forced to turn over to him, by engaging in commercial sex and stealing valuables from their prostitution customers. Wyatt controlled these women through a combination of violence, threats, and manipulation. He also instructed his victims to lie to law enforcement about his identity in order to avoid arrest. Wyatt might have continued to avoid detection but for the courage of one of his victims, who decided to make disclosures about Wyatt to law enforcement in 2016, several years after her victimization. After she paved the way, several others also shared their stories, leading to Wyatt’s arrest in April 2018.
“Sex traffickers like Dameion Wyatt inflict horrific trauma on their victims, making it difficult for them to step forward and ultimately find healing,” said United States Attorney Krueger. “We commend the victims who had the courage to work with law enforcement. The United States Attorney’s Office and our law enforcement partners stand ready to listen to survivors, help them find needed services, and bring justice to traffickers.”
The case was investigated by the Wisconsin Department of Justice, Division of Criminal Investigations and prosecuted by Assistant United States Attorneys Laura S. Kwaterski and Erica J. Lounsberry.
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Michigan City Man Sentenced to 63 Months for Bank RobberyRead the Press Release
HAMMOND-Jason Cheek, 42, of Michigan City, Indiana, was sentenced before U.S. District Court Judge Philip P. Simon after his plea of guilty to three counts of bank robbery, announced U.S. Attorney Kirsch.
Mr. Cheek was sentenced to 63 months in prison, 2 years of supervised release and ordered to pay $15,694 in restitution to the banks involved and $8,584.66 in restitution to a particular bank teller.
According to documents in this case, between June 5, 2018, and July 31, 2018, Mr. Cheek robbed three banks: two in Michigan City, Indiana, and one in Portage, Indiana.
This case is the result of the investigative efforts of the Federal Bureau of Investigation with the assistance of the Portage Police Department and the Michigan City Police Department. The case was handled by Assistant U.S. Attorney Jill R. Koster.
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Mental Health Clinic Owner Pleads Guilty to Making a False Claim to MedicaidRead the Press Release
St. Louis, MO – Naim Muhammad, 56, of St. Charles, MO, pled guilty to one count of making a false claim to Medicaid. Mr. Muhammad appeared today before U.S. District Judge Audrey G. Fleissig who accepted his plea and set sentencing for February 28, 2020.
According to the plea agreement, Mr. Muhammad was the President of Community Behavioral Health (“CBH”). CBH maintained an office in the City of St. Louis, Missouri. Mr. Muhammed had no psychiatric training or license.
Mr. Muhammed billed the Missouri Medicaid program for mental health therapy services to a patient identified by initials W.W. Mr. Muhammad told Medicaid that a licensed provider with the initials D.P. had provided the therapy to W.W. on June 21, 2017. However, Mr. Muhammad’s statements were false and fraudulent in that patient W.W. was not treated by the licensed provider D.P. on June 21, 2017, the date of service shown in defendant’s therapy records for W.W. Mr. Muhammad’s statements were material to the Missouri Medicaid program because the program does not pay for services not actually provided to the patient and does not pay for mental health services provided by unlicensed individuals.
The Indictment in this case further alleges that Mr. Muhammad repeatedly billed the Missouri Medicaid program for therapy services allegedly provided on dates when the patient was actually deceased, and, therefore, unable to receive any services. For example, W.W. died on June 8, 2017, before the alleged June 21, 2017 session.
This charge carry a maximum possible penalty of five years imprisonment, a fine of $250,000 or both imprisonment and a fine. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Office of Inspector General investigated this case for the U.S. Department of Health and Human Services and the Medicaid Fraud Control Unit of the Missouri Attorney General’s Office, with assistance from the Division of Professional Registration of the Missouri Department of Commerce and Insurance.
MS-13 Gang Member Sentenced to 20 Years in Machete Attack CaseRead the Press Release
An MS-13 gang member was sentenced to 20 years in federal prison for his role in a brutal machete attack at a park just outside Dallas, Texas, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Erin Nealy Cox for the Northern District of Texas.
Manuel Amaya-Alvarez, 22, pleaded guilty in May to four counts of violent crime in aid of racketeering (VICAR). U.S. District Judge Jayne Boyle for the Northern District of Texas sentenced Amaya-Alvarez Nov. 14.
According to court documents, Amaya-Alvarez – an El Salvadorian national in the United States illegally – admitted he belonged to MS-13, a notorious and violent transnational street gang.
In Sept. 25, 2017, he admitted he and fellow MS-13 gang members attempted to “take out,” or kill, four individuals at Running Bear Park in Irving, Texas.
That night, the gang lured an individual – a man they perceived to be a rival gang member – to the park under the guise that they wanted to buy his tattoo machine. The man came with two other men and a female acquaintance. When they arrived, gang members lured them to wooded area in the back of the park, where additional gang members – armed with a shotgun, machetes, and clubs – lay in wait.
After Amaya-Alvarez and another gang member, both seated on a park bench, greeted the victims, the other gang members appeared and surrounded the victims, forcing them to kneel on the ground before robbing them and attacking them with machetes and clubs, according to court documents. The three men fled, but the female could not escape and was savagely maimed and left for dead.
Two of the men also suffered serious physical injuries, including blunt trauma from blows and severe cuts from a machete.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Irving Police Department conducted the investigation. Trial Attorney Julie Finocchiaro with the Department of Justice's Organized Crime and Gang Section and Assistant U.S. Attorneys Gary Tromblay and Sid Moody are prosecuting the case.
Kenyan Woman Sentenced for Flight from ArrestRead the Press Release
United States Attorney Joe Kelly announced that Lydia Moraa Matunda, 33, was sentenced today by the United States Magistrate Judge Susan M. Bazis for one count of Assaulting, Resisting, or Impeding Certain Officers or Employees and one count of Willful Injury or Depredation of Property of the United States. Both counts are misdemeanors. Matunda was sentenced to 10 months’ imprisonment for Count I and one month imprisonment for Count II to be served consecutively. Matunda also received a one-year term of supervised release upon her release from prison. The Kenyan national’s immigration removal proceeding is still active.
On July 11, 2019, Deportation Officers with the United States Department of Homeland Security, Immigration and Customs Enforcement, were investigating the whereabouts of Matunda. Matunda, who was in the course of immigration removal proceedings, had her bond rejected by the Board of Immigration Appeals and was ordered to be returned to Immigration and Customs Enforcement custody.
When Deportation Officers located Matunda at an apartment in Bellevue, Nebraska, she fled from Deportation Officers in her car at a high rate of speed. At the time she fled, Matunda was wearing a GPS ankle bracelet as a condition of her immigration bond. The GPS ankle bracelet allowed Deportation Officers to quickly locate Matunda at a nearby gas station. When the Deportation Officers arrived at the gas station, Matunda had cut off the GPS ankle bracelet, however, she was still at that location. Matunda was taken into custody.
This case was investigated by the United States Department of Homeland Security, Immigration and Customs Enforcement.
Indian National Charged with Aggravated Sexual Abuse while Working as a U.S. Military Contractor in AfghanistanRead the Press Release
An Indian national arrived in the U.S. yesterday after being ordered detained and removed to the U.S. for the alleged sexual assault of a U.S. national on a military base in Afghanistan.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu of the District of Columbia, Special Agent in Charge Ansuman Baral of the U.S. Army Criminal Investigation Command's Bagram, Afghanistan Field Office and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office made the announcement.
Lokesh Naik, 35, of India, was charged by a federal grand jury in the District of Columbia on Nov. 6, 2019, with two counts of aggravated sexual abuse and one count of abusive sexual contact. U.S. military authorities in Afghanistan arrested Naik on Nov. 8, 2019, and his initial appearance was held before U.S. Magistrate Judge Harvey via video teleconference, at which time Naik was ordered detained and removed to the United States pursuant to the Military Extraterritorial Jurisdiction Act (MEJA). Naik arrived at Joint Base McGuire-Dix-Lakehurston by a military transport aircraft in the custody of Deputy U.S. Marshals.
According to the indictment, on Aug. 7, while working as an employee of a U.S. military contractor on Operating Base Fenty, Afghanistan, Naik allegedly entered the room of a 24-year-old U.S. national and sexually assaulted her by force.
Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Andrea Hertzfeld of the District of Columbia are prosecuting the case. The U.S. Army Criminal Investigation Command and the FBI’s Washington Field Office are investigating the case. Invaluable assistance with the defendant’s transfer to civilian custody and removal to the United States was provided by the Department of Defense, United States Central Command, U.S. Forces – Afghanistan, and the U.S. Marshals Service. The Criminal Division’s Office of International Affairs also provided valuable assistance.
The charges in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Husband and Wife Sentenced in Connection with Pain Clinic Pill Mill SchemeRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Springville couple involved in a St. Clair County pill mill scheme, announced U.S. Attorney Jay E. Town and Drug Enforcement Administration Special Agent in Charge Brad Byerley and IRS-Criminal Investigations Atlanta Field Office Special Agent in Charge Thomas J. Holloman.
United States District Judge R. David Proctor sentenced Cindy Louise Hyche Dunn, 54, to 10 years in prison on one count of conspiracy to distribute a controlled substance outside the usual course of professional practice and not for legitimate medical purpose and one count of conspiracy to commit money laundering for purposes of promoting the pill conspiracy. Her husband, Thomas Mason Dunn, 57, was sentenced to 30 months in prison for the same money laundering conspiracy. The couple pled guilty in March.
From January 2012 through December 2015, Cindy Dunn ran a pain management clinic in Moody, Alabama operating under the name Cindy Dunn & Dr. Buckingham, M.D., Weight Loss Clinic and Pain Management (CDPM). CDPM was not a legitimate pain clinic. It was a pill mill churning out thousands of prescriptions for opioid painkillers. Thomas Dunn performed financial transactions on behalf of CDPM to further the pill mill scheme. He also received prescriptions for opioid painkillers from CDPM.
“The opioid crisis remains a significant problem in the country and in the Northern District of Alabama,” Town said. “The Department of Justice is determined to stamp out the operation of illegal pain clinics by all means as a part of the fight against opioid abuse, and the Northern District of Alabama is fully committed to the fight. The defendants will now serve time in a federal prison for their crime, and they will be joined shortly by those like them.”
“The drug-addiction epidemic is growing and is a significant problem across the country, including here in Alabama,” Byerley said. “DEA is committed to bringing to justice those who engage in the dispensing of prescription drugs outside the course of a legitimate medical purpose. The defendants in this case preyed upon those addicted to prescription drugs in order to line their own pockets. The sentences handed down are a direct result of the hard work put forth by all law enforcement agencies involved. Today justice has been served.
“Today's sentencings are just another step by law enforcement to stand up to the threat of pill mill operations who flood our streets with dangerous substances. This investigation is just a small piece of the puzzle in the ongoing fight against the opioid crisis," Holloman said. "Our communities have been ravaged by the steady influx of illegal prescribed controlled substances. IRS-CI will continue to work with our law enforcement partners in an effort to dismantle pill mill operations, by following the money and leveraging our resources."
The DEA and IRS-CI investigated the case, which Assistant U.S. Attorneys Mohammad Khatib and Robin Beardsley Mark prosecuted.
Husband and Wife Admit Ponzi Scheme Relating to Hedge Fund Investments in Foreign CurrenciesRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, couple have admitted to operating a Ponzi scheme in which they defrauded approximately two dozen investors by making extraordinary guarantees about investment returns and then used the money for extravagant purchases and to pay off other victims, U.S. Attorney Craig Carpenito announced.
Alcibiades Cifuentes, 36, and his wife, Jennifer Wee Cifuentes, 38, formerly of West New York, New Jersey, each pleaded guilty to all six counts with which they were charged by indictment in May 2017: four counts of wire fraud, one count of conspiring to commit wire fraud, and one count of theft by a commodity pool operator. Jennifer Wee Cifuentes pleaded guilty today before U.S. District Judge Esther Salas in Newark federal court. Alcibiades Cifuentes pleaded guilty on Nov. 8, 2019.
According to documents filed in this case and statements made in court:
Alcibiades and Jennifer Wee Cifuentes engaged in an investment fraud scheme from 2012 through March 2015. They fraudulently induced victims to invest in the foreign currency and commodity markets through Cifuentes Fund Management (CFM), their hedge fund that purportedly invested in foreign currencies. Instead, they almost immediately spent those investment funds on personal items, such as an Audi R8 and jewelry. The couple would then pay back a portion of the victims’ money with money received from newly duped victims. The couple defrauded approximately 25 victims of more than $500,000.
Each count of wire fraud and wire fraud conspiracy to which the defendants pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss caused by the scheme. The count of commodities theft to which the defendants pleaded guilty carries a maximum potential penalty of 10 years in prison and a fine of $1 million, or twice the gross gain or loss. Sentencing for Alcibiades Cifuentes is scheduled for Feb. 27, 2020, and for Jennifer Wee Cifuentes, Feb. 28, 2020.
U.S. Attorney Carpenito credited inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn in Newark, and Special Agents with the U.S. Attorney’s Office for the investigation leading to the guilty pleas. He also thanked the N.J. Bureau of Securities in the State Attorney General’s Division of Consumer Affairs, under the direction of Attorney General Gurbir S. Grewal and Bureau Chief Christopher Gerold, as well as the U.S. Commodity Futures Trading Commission’s Division of Enforcement, under the direction of Director James M. McDonald, for their respective roles in the investigation.
The government is represented by Assistant U.S. Attorneys Anthony P. Torntore and Courtney A. Howard.
Defense counsel: Alcibiades Cifuentes: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Jennifer Wee Cifuentes: Aidan P. O’Connor Esq., Hackensack, New JerseyHawaii Resident Pleads Guilty to Wire Fraud in Connection with Scheme to Defraud East Bay BusinessesRead the Press Release
OAKLAND – Rodney Ticanis Sparrow pleaded guilty today to committing wire fraud in connection with a scheme to defraud business owners of fees for promised business loans announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The plea was accepted by the Honorable Haywood S. Gilliam, Jr., U.S. District Judge.
According to the plea agreement, Sparrow, 38, of Kahului, Maui, Hawaii, admitted that between 2012 and 2015, he implemented an “Advanced Fee” scheme in which he used fake identities of supposed New York-based Goldman Sachs bankers to convince his victims to pay fees in exchange for business improvement loans. Sparrow admitted he never had the means nor intent to provide the loans.
While living in Hawaii, Sparrow pretended to be a New York banker, using Goldman Sachs and “GS Financial Co.” in email correspondence with victims. He never used his own name and instead used the names of “Brad Schuller” and “Chad Edwardson,” two persons that did not exist. Sparrow promised to process and provide business loans in exchange for substantial fees. In emails and telephone calls with his victims, Sparrow directed his victims to pay the fees by wire and other electronic means into a Bank of America account he represented was a business account affiliated with Goldman Sachs. In truth, Sparrow controlled the Bank of America account, he never worked for Goldman Sachs, and he never worked in the financial industry in any capacity. Pursuant to the scheme, Sparrow defrauded at least ten victims into paying him approximately $298,350 in bogus advanced fees.
On March 26, 2019, a federal grand jury indicted Sparrow, charging him with ten counts of wire fraud, in violation of 18 U.S.C. § 1343. Sparrow pleaded guilty to one count. If Sparrow complies with his plea agreement, the remaining counts will be dismissed at sentencing.
Judge Gilliam has scheduled Sparrow’s sentencing for March 9, 2020. The maximum statutory penalty for wire fraud is 20 years in prison, a $250,000 fine, and 3 years of supervised release. Additional fines, forfeitures, and special assessments also may be imposed, however, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorney Thomas R. Green is prosecuting this case with the assistance of Katie Turner. This prosecution is the result of an investigation by the FBI.
Government Contractor Eagle Alliance Pays the United States $110,000 to Resolve Allegations of Improper Billing and Overbilling the Federal Government for Computer HardwareRead the Press Release
Baltimore, Maryland – Eagle Alliance, a Northrop Grumman partnership, has paid the United States $110,000 to resolve False Claims Act allegations that it improperly billed the government for computer hardware.
The settlement was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office (DCIS); and Inspector General Robert P. Storch of the National Security Agency (NSA).
“We rely on government contractors to bill the government fairly,” said U.S. Attorney Robert K. Hur. “When the government is overbilled or billed improperly under its contracts, taxpayers suffer. We will pursue government contractors to recover the fraudulently obtained funds.”
According to the settlement agreement, Eagle Alliance contracted with a government agency to provide new computer hardware. However, during several periods of time between 2012 and 2013, Eagle Alliance billed the government twice for the same equipment. Moreover, the government contends that Eagle Alliance also improperly billed certain used computer equipment to the government as if it were new.
The claims resolved by this settlement are allegations. The settlement is not an admission of liability by Eagle Alliance or Northrop Grumman, nor a concession by the United States that its claims are not well founded.
Jeffrey Brenner, a former Eagle Alliance employee, originally filed this lawsuit under the qui tam, or whistleblower, provisions of the False Claims Act. These provisions permit private individuals with knowledge of fraud to sue on behalf of the government for false claims and to share in any recovery, even where the government intervenes to take over the action, as it did here. Brenner will receive $18,700 of the settlement.
The settlement reminds contractors of their obligations to carefully account for their billings under government contracts, as improper billings and overages will subject them to liability under the False Claims Act.
United States Attorney Robert K. Hur commended the DCIS and the NSA Office of the Inspector General for their work in the investigation. Mr. Hur also thanked Assistant United States Attorney Molissa H. Farber, who handled the case.
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Gibson County Man Sentenced to 15 Years in Federal Prison for being a Convicted Felon Illegally Possessing a FirearmRead the Press Release
Jackson, TN – Jonathan Lynn Luten, 40, has been sentenced to 180 months in federal prison for being a convicted felon in possession of a firearm. U.S. Attorney, D. Michael Dunavant announced the sentence today.
According to information presented in court, on January 14, 2015, officers with the Trenton Police Department were advised that Luten had committed an armed robbery and fled in a vehicle. The investigating officers were given a description of the vehicle, which was located a short time later. Luten fled from the vehicle and after a foot pursuit was apprehended. During the chase Luten abandoned a .22 caliber revolver which officers later recovered and Luten admitted to possessing.
Because of his previous violent felony convictions, Luten was determined to be an armed career criminal and subject to a mandatory minimum sentence of 180 months. On November 7, 2019, U.S. District Court Judge J. Daniel Breen sentenced Luten to 180 months in federal prison followed by 2 years supervised release.
U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms are an inherent danger to community, and in this case, Luten was an armed career criminal who continued to commit senseless gun violence despite his prior felony conviction history. There is and ought to be a significant consequence for such recidivist criminal behavior, and this sentence is just punishment for such violent victimization of an innocent citizen."
This case was investigated by the Trenton Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case was prosecuted by the Eastern Division of the U.S. Attorney’s Office.
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Getting Tough on Domestic ViolenceRead the Press Release
As U.S. Attorney, I am charged with leading the federal response to our most pressing criminal problems. We have spent considerable resources in the fights against the opioid epidemic and violent crime in western Pennsylvania. Together with our state and local law enforcement partners, we prosecuted a record number of drug dealers and violent criminals last year, and we have witnessed significant decreases in overdose deaths and in violent crime rates. But as we in law enforcement know, no strategy to combat violent crime is complete without addressing domestic violence.
Domestic violence touches every community in Pennsylvania. Every day, domestic violence hotlines receive over 21,000 calls, or 15 calls per minute. The National Coalition Against Domestic Violence estimates that 1 in 3 women in the United States has experienced some form of physical violence by an intimate partner. In Pennsylvania, over 1,170 domestic violence victims were killed from 2009 to 2018. Each of those numbers is another tragedy for an individual, a family, and a community.
We all know a person whose life has been touched by this tragedy. I am no different. On November 18, 2010, Rebecca “Becky” Patterson Bibart - mother of two beautiful children, a brilliant and charismatic educator, and one of my oldest and dearest friends - was killed by her husband in their home.
Becky and I grew up together in Greenville, Pennsylvania, a small blue collar town in Mercer County. We took virtually every class, and attended every school and community event together from kindergarten on. She was smart and kind and lit up every room she was in. Becky was among the top students of our high school class, studied English and education at Wittenberg University, and became an English teacher in public schools in California and Pennsylvania. She was a dynamic educator whose students adored her.
In 2010, Becky had been going through a difficult separation from her husband. While Becky had not been subjected to physical abuse until that last, fateful day, what we friends didn’t know was that she had suffered extensive emotional and psychological abuse from her husband. At the end of September, Becky filed for divorce; she wanted a new life for her and her children. But on November 18, 2010, her husband stole that opportunity from Becky and her children forever.
During my time as U.S. Attorney, I have been deeply touched by the stories domestic violence survivors have shared with me. I have spoken at domestic violence awareness events, together with domestic violence advocates throughout western Pennsylvania. I have spoken with federal, state and local law enforcement leaders about our collective law enforcement response. And through these conversations, one thing became clear: the Department of Justice needs to do more.
In June of this year, Attorney General William Barr formed the Department of Justice’s first-ever Domestic Violence Working Group. Our goal is to lead a national conversation about domestic violence, to share best practices among federal, state and local partners, and to bring a renewed focus on prosecuting domestic violence abusers federally. While most domestic violence cases are handled by state and local authorities, there are certain federal laws that we believe can be impactful, as we seek to find the inflection point at which federal action can prevent domestic violence-related fatalities.
One of our most powerful tools in fighting violent crime are federal firearms laws. Federal law prohibits anyone convicted of a misdemeanor domestic violence crime or against whom a final protection from abuse (PFA) order has been entered from possessing a firearm. Knowing that the presence of a firearm during a domestic violence incident increases the risk of homicide by over 500%, we are committed to assisting state and local officials in identifying and prosecuting those abusers who should not have guns in the first place.
Additionally, we know that abusers increasingly use technology and social media to maintain control through identity theft, hacking, cyberstalking, sextortion, and other forms of cybercrime. The U.S. Attorney’s Office and the FBI’s Pittsburgh field office have some of the most experienced and sophisticated cyber investigators and prosecutors in the country. We will leverage our extensive expertise in cybercrime to domestic violence threats and will seek to prosecute this type of domestic violence-related cybercrime federally.
Today marks the 9th anniversary of Becky’s death. When friends from Greenville High School’s Class of 1987 get together, as we did several weeks ago, we invariably talk about Becky - both the remarkable woman and friend that she was, and that day in 2010 that changed our lives forever. While October was a critical month for raising awareness, know that the Department of Justice is engaged on this issue every month of the year. As U.S. Attorney, my goal is to protect every person in western Pennsylvania from domestic violence, because every man, woman and child deserves to be safe in our homes.
Franklin County Man Sentenced to 108 Months for Illegal Firearm PossessionRead the Press Release
FRANKFORT, Ky. – Jeffery Scott West Jr., 39, of Frankfort, was sentenced on Friday, to 108 months in federal prison by United States District Judge Gregory F. Van Tatenhove. West had previously plead guilty to one count of being a convicted felon in possession of a firearm.
According to his plea agreement, on November 27, 2018, West admitted that officers observed him attempting to kick a loaded firearm under a couch while the officers were attempting to execute an arrest warrant on another person inside a residence in Frankfort. West further admitted that officers were able to seize the firearm, detain West, and confirm that he was prohibited from possessing a firearm, having several prior felony convictions.
Under federal law, West must serve 85 percent of his 108 month sentence. Upon completion of his term, he will be under the supervision of the United States Probation Office for a period of three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan , Acting Special Agent in Charge, ATF, Louisville Field Division; Norman Arflack, United States Marshal for the Eastern District of Kentucky; and Charles Adams, Chief of Police, Frankfort Police Department, jointly made the announcement.
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 PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Four South Carolina Law Enforcement Officers Receive 2019 Strom Thurmond Awards for Excellence in Law EnforcementRead the Press Release
COLUMBIA, SOUTH CAROLINA –United States Attorney Sherri A. Lydon announced today that the United States Attorney’s Office’s Law Enforcement Coordinating Committee, along with the South Carolina Law Enforcement Officers’ Association (SCLEOA) and the Strom Thurmond Foundation, hosted the 36th annual Strom Thurmond Awards for Excellence in Law Enforcement Luncheon at the Lexington Two Innovation Center in Cayce. Approximately 150 state, local, and federal law enforcement officials from across the state attended the awards luncheon.
The following South Carolina law enforcement officers received the 2019 awards:
City – Chief Terrence Green, Lexington Police Department
County – Sergeant Randy Clinton, York County Sheriff’s Office
Federal – Supervisory Senior Resident Agent Michael Connelly, Federal Bureau of Investigation
State – Deputy Director Brian Joseph Bolchoz, South Carolina Department of Corrections
The Strom Thurmond Awards for Excellence in Law Enforcement were established by Senator Strom Thurmond in 1983 to recognize law enforcement officers whose performance demonstrates the highest ideals of excellence in professional law enforcement. An annual award is given in each of four categories: (1) City Officer; (2) County Officer; (3) State Officer; and (4) Federal Officer. An awards committee composed of representatives from the U.S. Attorney's Office, the Strom Thurmond Foundation, the Federal Bureau of Investigation, and the South Carolina Law Enforcement Division, along with a police chief and sheriff who have received the award, selected the recipients from nominations received from across the state.
U.S. Attorney Lydon stated, "These four outstanding officers exemplify the best in law enforcement. They serving their agencies, this state, and our nation day in and day out with distinction, integrity, and character. Like all of our fine men and women in uniform, they make tremendous personal sacrifices to ensure just enforcement.”
City Recipient
Terrence Green – Chief, Lexington Police Department
Chief Green began his career in law enforcement at the University of South Carolina Police Department as a reserve police officer. After graduating from USC, he joined the Town of Lexington Police Department in 1993. He quickly rose through the ranks to become Assistant Police Chief. Chief Green was appointed Chief of Police of the Town of Lexington Police Department on October 2, 2006.
Chief Green embraces the community policing concept and strives to solve problems by building a partnership with the community that he serves. “Despite his considerable achievements, Chief Green has maintained a reputation of both personal integrity and humility. He is a role model for all law enforcement officers to emulate,” said Lexington County Sheriff Jay Koon.
Chief Green has a BA in Criminal Justice and an MPA from Strayer University. He has also earned several other accreditations from the FBI National Academy and the Law Enforcement Executive Development Program. Chief Green and his wife Melinda have three children and are active members of the Brookland Baptist Church.
County Recipient
Randy Clinton – Sergeant, York County Sheriff’s Office
Sergeant Randy Clinton began his career in 1984 and became involved in canine handling at the York County Sheriff’s Office in 1988. During his tenure as a canine team member and leader at the York County Sheriff’s Office, Sergeant Clinton has been personally involved in over 4000 tracks resulting in approximately 2500 locates or captures. These incidents have ranged from missing vulnerable persons, to persons eluding law enforcement for simple crimes to murders. Sergeant Clinton is recognized not only in the State of South Carolina, but nationwide as an expert in human and bloodhound tracking.
He has been instrumental in coordinating and hosting an annual York County Bloodhound Tracking School for 19 years. He has instituted a bloodhound breeding program that has provided over 75 bloodhounds to agencies across South Carolina, North Carolina, Georgia, and West Virginia.
In January 2018, Sergeant Clinton nearly gave the ultimate sacrifice while tracking a violent domestic offender and was seriously shot and wounded along with 3 other officers. His positive attitude and outlook in the following days and months inspired and helped the healing process for those affected, as well as the community.
“It is without fail that Sergeant Clinton comes through for those in need. It is the act to which his life’s focus has been, though he remains humble in his actions of service and sacrifice,” said The Honorable Bruce M. Bryant, Representative, District 48, South Carolina House of Representatives.
Federal Recipient
Michael Connelly - Supervisory Senior Resident Agent, Federal Bureau of Investigation
Prior to joining the FBI, Supervisory Senior Resident Agent Mike Connelly served in the U.S. Army for almost ten years, including a combat tour in Iraq with the 82nd Airborne Division. In his 20-year FBI career, SSRA Connelly has served in several investigative and leadership assignments to include four tours to war zones in Iraq, Pakistan, and Afghanistan.
As the Supervisory Senior Resident Agent for the Myrtle Beach and Florence Resident Agencies (RAs), SSRA Connelly is responsible for all aspects of both RAs. As the senior FBI official in Myrtle Beach, he understands the priorities of local law enforcement leaders and utilizes the FBI's sophisticated and technological capabilities to support those agencies. SSRA Connelly leads and actively contributes as a case Agent. He is the lead investigator on Myrtle Beach's largest Organized Crime Drug Enforcement Task Force investigation in over a decade, which charged 33 defendants. He planned and coordinated 27 simultaneous arrests of violent offenders by leveraging relationships with 125 state and local officers. He led two investigations in Myrtle Beach resulting in the conviction of over 60 gang subjects involved in trafficking heroin and fentanyl. He supplemented his FBI resources by building three separate federal task forces to combat violent crime, terrorism, and human trafficking. He led two separate death penalty investigations, and also led the FBI's response in Florence to a police officer shooting where two officers were killed and five more officers severely wounded.
“No matter the task, Mike performs his duties both as a supervisory special agent and as a case agent with unmatched skill, integrity, and effectiveness. He is relentless. He is making a difference. I find myself just trying to keep up with him. The people of Myrtle Beach and its surrounding areas are safer because of Mike Connelly,” said U.S. Attorney Lydon.
“We are proud to see Senior Supervisory Resident Agent Mike Connelly recognized for his outstanding accomplishments. He is also an exceptional leader and that has been demonstrated by the remarkable work done by his FBI colleagues in conjunction with our federal, state and local partners in and around Myrtle Beach. SSRA Connelly has dedicated his adult life to serving his country by way of being an officer in the U.S. Army and now as an FBI Special Agent. We all should be grateful to have him on our team here in South Carolina,” said FBI Special Agent in Charge Jody Norris.
State Recipient
Brian Joseph Bolchoz - Deputy Director, South Carolina Department of Corrections
Brian Bolchoz is the Deputy Director of Police Services for the South Carolina Department of Corrections with over 24 years of law enforcement experience. His previous positions include serving nine years with the Mount Pleasant Police Department; three years as a special investigator with the 9th Circuit Solicitor’s Office; and seven years with the South Carolina Law Enforcement Division as a criminal investigator and lieutenant. Since joining the Department of Corrections, Deputy Director Bolchoz has used his knowledge and relationships built throughout his career to reorganize the Division of Police Services in order to successfully handle the criminal and administrative investigative needs of the Department of Corrections.
Since joining the Department of Corrections, Deputy Director Bolchoz increased the number of Class 1 Law Enforcement Officers from 22 to 46 to better meet the needs of the agency and to better protect its staff and inmates and the public. Additionally, contraband cell phones have been a dangerous tool that inmates utilize to continue their criminal behavior from behind bars. Deputy Director Bolchoz took this public safety threat seriously and created a criminal analyst section for monitoring activities of the inmate population. This important addition has allowed SCDC Police Services to become an intelligence focal point for local, state, and federal authorities in an effort to combat criminal activity related to criminal gangs and their related enterprises inside and outside the walls of SCDC.
“It is rare to find such a dedicated and determined law enforcement officer such as Deputy Director Bolchoz. He works continuously to help our State continue to be a safer place for future generations,” said SCDC Director Bryan P. Stirling.
Deputy Director Bolchoz earned his Bachelor’s Degree in Sociology with a minor in Criminal Justice from the College of Charleston. He is a member of the South Carolina Law Enforcement Officers Association, the Southern States Police Benevolent Association, and the South Carolina Correctional Association.
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Four Grand Island Family Members Indicted for Their Roles in Bank Robberies and ObstructionRead 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 a federal grand jury has returned a superseding indictment charging four members of a Grand Island, NY, family for their roles in two bank robberies. Timothy L. Mulvey, 33, is charged with aggravated bank robbery; entering a bank with intent to commit a larceny; bank larceny; obstruction of justice; false statements; conspiracy to obstruct justice; tampering with evidence; conspiracy to tamper with a witness; and tampering with a witness. The charges carry a maximum penalty of 25 years in prison and a $250,000 fine.
In addition, Timothy’s father, mother, and sister were charged as follows:• Lawrence M. Mulvey, 66, (father) is charged with conspiracy to obstruct justice; obstruction of justice; accessory after the fact; and making a false statement; • Kelsey A. Mulvey, 27, (sister) is charged with conspiracy to obstruct justice and obstruction of justice; and
• Cheryl A. Mulvey, 67, (mother) is charged with obstruction of justice; conspiracy to tamper with a witness; and tampering with a witness.Lawrence, Kelsey, and Cheryl Mulvey all face a maximum penalty of 20 years in prison and a $250,000 fine if convicted.
Assistant U.S. Attorney Joshua Violanti, who is handling the case, stated that according to the superseding indictment, on June 27, 2018, Timothy Mulvey is accused of robbing the Northwest Savings Bank located at 2300 Grand Island Boulevard, Grand Island, NY. He is also accused in a July 11, 2018, robbery which took place at M&T Bank, 880 Military Road, Niagara Falls, NY. In both instances, Timothy Mulvey displayed a weapon in a threatening manner.
The superseding indictment alleges that on July 12, 2018, the day after the second robbery, the defendant destroyed his cellular telephone. On July 13, Timothy Mulvey falsely told Special Agents of the Federal Bureau of Investigation that on July 11, 2018, (the date of the M&T Bank robbery) that he was in Rochester, NY, for work, and that his cellular telephone was electronically wiped by his employer.
In addition, the superseding indictment alleges that between mid-July 2018 and March 2019, defendants Timothy, Lawrence and Kelsey Mulvey are accused of conspiring to and destroying a black gun in order to prevent it from being used as evidence in this case. Timothy Mulvey is also accused of persuading an individual to throw the black gun, which was stored in the basement of the Mulvey residence, into a dumpster. Timothy and Cheryl Mulvey are also accused of encouraging the individual not to cooperate with law enforcement officers. In addition, Timothy and Cheryl Mulvey are accused of instructing the individual to tell law enforcement officers that such individual was drunk when initially interviewed in July of 2018.
Cheryl Mulvey is also accused of testifying falsely and evasively as to whether she spoke with Timothy Mulvey about certain bank robberies; testifying falsely and concealing information about Timothy Mulvey's possession of a black gun; refusing to testify and concealing information about whether Kelsey Mulvey found BB pellets in Timothy Mulvey's vehicle; concealing information about a black gun that was delivered to her residence in July 2018; and attempting to undermine the credibility of a witness.
The defendants were arraigned before U.S. Magistrate Judge H. Kenneth, Schroder, Jr. Timothy Mulvey is in custody. Lawrence, Kelsey, and Cheryl Mulvey were all released on conditions.
Prior to the return of the superseding indictment in this matter, Kelsey Mulvey was separately charged in a different indictment returned earlier this year which charged her with illegally obtaining controlled substances by fraud, tampering, and violation of the Health Insurance Portability and Accountability Act.
The superseding indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard, and the Niagara Falls Police Department, under the direction of Superintendent Thomas Licata.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Fort Madison Man Sentenced to Prison for Drug OffenseRead the Press Release
DAVENPORT, Iowa –On November 15, 2019, United States Chief District Judge John A. Jarvey sentenced Kevin Lamond Claville, 33, to 160 months in prison on the charge of Distribution of a Controlled Substance, announced United States Attorney Marc Krickbaum. Claville was also order to serve four years of supervised release following imprisonment, and pay $100 to the Crime Victims’ Fund.
Claville pleaded guilty to distributing at least 5 grams of actual methamphetamine, a Schedule II controlled Substance. Claville admitted that on two separate occasions he distributed actual methamphetamine to another person.
This case was investigated by the Lee County, Iowa, Drug Task Force and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former Westminster Police Officer Pleads Guilty to Sexually Assaulting an IndividualRead the Press Release
Curtis Arganbright, 42, a former Westminster Police Department (WPD) Officer, pleaded guilty today in federal court in Denver, Colorado, to one count of violating the civil rights of a female in his care whom he sexually assaulted.
According to court documents, Arganbright worked as a police officer for WPD in August 2017. While on duty in the early morning hours of Aug. 24, 2017, Arganbright responded to a call of a theft at St. Anthony Hospital. After hospital personnel declined to press charges against the victim, Arganbright agreed to drive the victim home. During the transport home, Arganbright pulled off the main road and sexually assaulted the victim. Arganbright admitted that his contact resulted in bodily injury to the victim. As part of the plea agreement, Arganbright agreed to never again seek employment as a police officer and to register as a sex offender.
Arganbright was originally charged in state court and ultimately pleaded guilty to unlawful sexual contact and official misconduct. He was then sentenced to 90 days in county jail.
“The Department of Justice will continue to vigorously prosecute law enforcement officers who abuse their authority and sexually assault vulnerable people in their care,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division.
“As federal prosecutors, our job is to ensure that justice is always served,” said U.S. Attorney Jason Dunn for the District of Colorado. “When we see an injustice, we will not hesitate to step in, particularly when it involves vulnerable people or those in positions of power.”
“The FBI takes color of law allegations of misconduct seriously and we will vigorously investigate any public official who willfully deprives those we serve of their constitutionally protected rights,” said FBI Denver Special Agent in Charge Dean Phillips. “Law enforcement officers at all levels are given tremendous authority and the abuse of that authority is detrimental to the safety of our community. The FBI is tremendously grateful for the cooperation from Broomfield and Westminster Police Departments.”
Arganbright faces a maximum penalty of up to 10 years’ imprisonment. A sentencing hearing is scheduled for March 11, 2020.
This case is being investigated by the Denver Division of the FBI. The Broomfield Police Department also provided substantial assistance throughout the investigation. It is being prosecuted by Assistant United States Attorney Bryan Fields of the District of Colorado and Trial Attorneys Maura White and Katherine DeVar of the Civil Rights Division of the U.S. Department of Justice.
Former Westminster Police Officer Pleads Guilty to Sexually Assaulting Woman While on DutyRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Curtis Arganbright, age 42, a former Westminster Police Officer, pleaded guilty today in U.S. District Court in Denver to one count of violating the civil rights of a female in his care whom he sexually assaulted. The guilty plea was entered before U.S. District Court Judge William J. Martinez. Arganbright appeared at the hearing free on bond. Bond was continued pending sentencing, which is scheduled for March 11, 2020.
According to court documents, Arganbright worked as a police officer for Westminster Police Department in August 2017. While on duty in the early morning hours of August 24, 2017, Arganbright responded to a call of a theft at St. Anthony Hospital. After hospital personnel declined to press charges against the woman, Arganbright agreed to drive her home. During that transport, Arganbright pulled off the main road and sexually assaulted the victim. Arganbright admitted that his contact resulted in bodily injury to the victim. As part of the plea agreement, Arganbright agreed to never again seek employment as a police officer and to register as a sex offender.
Arganbright was originally charged in state court and ultimately pleaded guilty to unlawful sexual contact and official misconduct. He was then sentenced to 90 days in county jail.
“As federal prosecutors, our job is to ensure that justice is always served,” said U.S. Attorney Jason Dunn. “When we see an injustice, we will not hesitate to step in, particularly when it involves vulnerable people or those in positions of power.”
“The Department of Justice will continue to vigorously prosecute law enforcement officers who abuse their authority and sexually assault vulnerable people in their care,” said Assistant Attorney General Eric Dreiband.
“The FBI takes color of law allegations of misconduct seriously and we will vigorously investigate any public official who willfully deprives those we serve of their constitutionally protected rights,” said FBI Denver Special Agent in Charge Dean Phillips. “Law enforcement officers at all levels are given tremendous authority and the abuse of that authority is detrimental to the safety of our community. The FBI is tremendously grateful for the cooperation from Broomfield and Westminster Police Departments.”
Arganbright faces a maximum penalty of up to 10 years’ imprisonment.
This case is being investigated by the Denver Division of the FBI. The Broomfield Police Department also provided substantial assistance throughout the investigation. It is being prosecuted by Assistant United States Attorney Bryan Fields of the District of Colorado and Trial Attorneys Maura White and Katherine DeVar of the Civil Rights Division of the U.S. Department of Justice.
Former Nanny Sentenced to 30 Years in Federal Prison for Producing Child Pornography of Multiple Children under His CareRead the Press Release
LOS ANGELES – A former nanny was sentenced today to 360 months in federal prison for producing child pornography with at least five children – most of whom were eight and nine years old – who had been placed under his care.
Travis Elconin, 35, of Burbank, was sentenced today by United States District Judge Terry J. Hatter Jr., who also placed Elconin on supervised release for the rest of his life after he completes serving his prison sentence. Elconin pleaded guilty on March 18 to a two-count criminal information charging him with production of child pornography.
Elconin used his position as a nanny to exploit and abuse the children in his care, holding himself out as the “perfect caretaker,” which induced numerous families – including his friends – to hire him, according to court documents. Elconin placed advertisements on websites, one of which stated, “I know how important it is as a parent to know that your children are safe when you’re not around. That would by my top priority.”
Between August 2016 and November 2018, Elconin ingratiated himself with several families, only to sexually abuse their minor children and make sexually explicit videos of his crimes with his iPhone 8. In his plea agreement, Elconin admitted to producing child pornography with four children placed under his care. Since his arrest on January 9, the government has identified eight victims directly connected to him.
In November 2018, German law enforcement contacted the FBI about Elconin, who had exchanged more than 10,000 messages via encrypted chatting programs and the dark web over the previous two years with suspected child sex abusers in Germany. Those messages discussed child sex abuse and the exchange of such images. The FBI also obtained warrants and searched his digital devices.
This matter was investigated by the FBI. Germany’s Bundeskriminalamt (BKA) Police and the Santa Barbara County Sheriff’s Office provided assistance in this matter.
This case was prosecuted by Assistant United States Attorney Devon A. Myers of the Cyber and Intellectual Property Crimes Section.
Former McLean County Man Sentenced to 6 1/2 Years in Prison for Embezzling $500,000 from Elderly Peoria WomanRead the Press Release
PEORIA, Ill. – Senior U.S. District Judge Michael M. Mihm has sentenced a former Bloomington, Ill., man, Timothy J. Herman, 59, currently of Mesa, Ariz., to 6 ½ years (78 months) in prison for defrauding an elderly woman of more than $500,000. Herman was ordered to pay restitution in the amount of $509,325, and, at the conclusion of the sentencing hearing, on Nov. 15, 2019, was taken into custody by the U.S. Marshals Service for transfer to the Bureau of Prisons. Herman will remain on supervised release for five years following his release from incarceration.
Following a bench trial in March 2019, Herman was convicted of engaging in the fraud scheme from 2013 to December 2017, and making false statements to federal agents. Herman, who befriended the elderly victim through her church, offered the victim an investment opportunity which he falsely represented as safe and more profitable than what could be earned from banks. However, instead of investing the funds, Herman used the victim’s money to make mortgage payments on his home which was about to be foreclosed, to pay bank loans, take cruises and to live beyond his means.
In addition, Herman was convicted for making materially false statements about his conduct to law enforcement officers with the Federal Bureau of Investigation and the U.S. Postal Inspection Service when he was interviewed in December 2017.
Herman also defrauded a Minneapolis marketing company which waived $149,000 in restitution. Herman’s company, Delta Direct, worked with the marketing company to manage a rewards program for Republic Services, a waste hauler based in Arizona. Republic Services deposited $300,000 to an account controlled by Herman. With the initial $300,000 deposit, Herman began embezzling funds; upon discovery of his embezzlement, he continued to steal funds from the account until he was removed from the business.
Supervisory Assistant U.S. Attorney Darilynn Knauss led the prosecution, joined by Assistant U.S. Attorneys Katherine Legge and Douglas McMeyer. The case was investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service.
Each year, more than 13% of older Americans become victims of financial fraud, resulting in losses of more than $3 billion annually to financial scams. As soon as a suspicious or fraudulent transfer of funds is detected, immediately contact your financial institution, which may be able to stop payment on the transfer. If you or someone you know has been the victim of elder fraud, contact your local police department. Visit https://www.justice.gov/elderjustice to learn more about the Department of Justice’s Elder Justice Initiative.
Former Bank Employee Sentenced for Bank TheftRead the Press Release
United States Attorney Joe Kelly announced that Erica File, 34, was sentenced today in federal court in Omaha for theft by a bank employee. The Honorable Laurie Smith Camp sentenced File to twelve months and one day of imprisonment. There is no parole in the federal prison system. After her release from prison, File will serve a five-year term of supervised release. File was also ordered to pay $12,143 in restitution to the bank, who reimbursed the unauthorized withdrawals.
In December 2017, federal agents began investigating suspicious withdrawals from an account at First Nebraska Bank in Fremont, Nebraska. The investigation showed that between August 2017 and December 2017, Erica File, a bank employee during that time period, and her husband, Marcus File, acted together to make unauthorized withdrawals from a customer’s account.
This case was investigated by the Federal Bureau of Investigation.
Fifth St. Croix Woman Pleads Guilty in Multi-Defendant Tax Fraud SchemeRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Thema Liverpool, age 31, of St. Croix, pled guilty on November 18, 2019 to conspiracy to defraud the United States.
According to the plea agreement filed with the court, from January 2011 to July 2012, Liverpool and others participated in a scheme to steal money from the United States treasury by fraudulently obtaining federal income tax refunds. The scheme involved the acquisition of personal identifying information used to electronically file falsified tax returns for tax years 2010 and 2011. According to court documents, Liverpool and nine co-conspirators filed tax returns using individuals’ true names, actual social security numbers and dates of birth but falsified information regarding the individuals’ income earned, tax withholding amounts, credits, and other information. The scheme allowed Liverpool and others to claim tax refunds to which they were not entitled. Liverpool and her co-conspirators designated bank accounts for receipt of the refunds, which, once received, they withdrew and spent for personal use. As a result of the scheme, $128,040 was designated to Hughes’ bank account, of which $66,578 was actually deposited therein.
Of ten defendants charged in the tax fraud scheme, Liverpool is the fifth to plead guilty. Four others have entered guilty pleas one of whom has been sentenced. No sentencing date has been set for Liverpool. The remaining five defendants are scheduled for trial in 2020. Liverpool faces a maximum sentence of ten years and a $250,000 fine.
The case was investigated by the Internal Revenue Service, Criminal Investigations, and is being prosecuted by Assistant U.S. Attorneys Alphonso Andrews, Jr. and Melissa Ortiz.
Federal Jury Convicts Sex Trafficker of Coercing Victims into ProstitutionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has convicted Ray Davis, 30, of Rochester, NY, of two counts of sex trafficking, one count of sex trafficking conspiracy, two counts of production of child pornography, and two counts of distribution of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum penalty of life, and a $250,000 fine.
Assistant U.S. Attorneys Melissa Marangola and Meghan McGuire, who prosecuted the case, stated that in 2015, the defendant ran a sex trafficking operation with co-defendant, Marcus Brown. Davis and Brown preyed upon and exploited teenagers who were homeless and vulnerable, coercing them to engage in commercial sex acts.
Davis and Brown worked together to take sexually explicit photos of the minor victims and post them on Backpage.com, an online classified advertisement website that was previously shut down by the Department of Justice.
The verdict is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Gary Loeffert.
Ray Davis is scheduled to be sentenced on February 25, 2020, at 10:00 a.m. before U.S. District Judge Charles J. Siragusa, who presided over the trial of the case.
Marcus Brown was previously convicted and is scheduled to be sentenced on November 26, 2019, at 11:00 a.m., also before Judge Siragusa.
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Fayette County Woman Pleads Guilty to Wire FraudRead the Press Release
WVDEP Employee Made Over $61,000 in Fraudulent Purchases with State Credit Card
CHARLESTON, W.Va. – A Fayette County woman entered a guilty plea to the felony offense of wire fraud, announced United States Attorney Mike Stuart. Yvonne Dozier, 50, of Boomer, faces up to 20 years of incarceration, a $250,000 fine, and three years of supervised release when she is sentenced on February 13, 2020. She will also be required to pay restitution to the West Virginia Department of Environmental Protection (WVDEP) where she was previously employed. Stuart praised the work of the United States Secret Service, the West Virginia State Auditor’s Office, and the WVDEP.
“This office has made the prosecution of public corruption a priority. There’s no such thing as a little bit of corruption, but this was no little bit,” said United States Attorney Mike Stuart. “Dozier stole over $61,000 for such critical personal needs – wink, wink – as a vacation rental in North Carolina. This is the type of outrageous stuff that the people of West Virginia don’t deserve. Trusted public employees who steal from taxpayers need to pay a heavy price and Ms. Dozier will learn her fate when her sentencing occurs in February."
Dozier previously worked for the WVDEP as an accounting tech. She was assigned a West Virginia state purchasing card where she was permitted to make authorized purchases on behalf of the WVDEP. These cards could not be used to make personal purchases. Dozier devised a scheme where she used the state purchasing card to make personal purchases and fraudulently wired credit card information. She then altered invoices and modified the state accounting software to adjust the purchases and make the fraudulent purchases appear as though they were legitimately made. From 2014 to 2018, Dozier made hundreds of unauthorized purchases, costing the state of West Virginia $61,753.72. Dozier gave a Mirandized statement to a Special Agent with the United States Secret Service, in which she admitted to misusing the state purchasing cards to make personal purchases, altering invoices, and ultimately passing these expenses onto the State of West Virginia.. The fraudulent purchases moved money in interstate commerce both from the actual purchase with the credit card and the State of West Virginia’s paying her Visa card expenses. Dozier used her state purchasing card to pay for personal expenses such as electric, insurance, cable, and cell phone bills, and vacation rental homes. Dozier no longer works for the State of West Virginia.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Erik S. Goes is handling the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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East St. Louis Police Sergeant Pleads Guilty, Admits Obtaining Funds from the City of East St. Police Department by FraudRead the Press Release
An East St. Louis police officer appeared in federal district court today and pleaded guilty to obtaining department funds by fraud. Mario H. Fennoy, 48, of Lebanon, Illinois, entered an “open plea” to the federal indictment returned against him in June, admitting that he falsely submitted claims for overtime pay for nearly a year while working as a patrol sergeant with the East St.
Louis Police Department.
According to the indictment, while he claimed to be working overtime, Fennoy was actually spending extended periods of time at a secondary residence in East St. Louis. Fennoy was also accused of falsely clearing calls and reporting that he had responded to dispatches when, in fact, he never left the house. From April 2017 to March 2018, he allegedly submitted over 50 bogus requests for overtime pay totaling over 200 hours.
Fennoy acknowledged in court today that he obtained the overtime compensation by fraud. The indictment alleges that the false claims significantly increased Fennoy’s earnings, from his base salary of $69,382 to $205,000 in total wages in 2017. The parties, however, do not have an agreement as to the total loss.
Sentencing is scheduled for Feb. 27, 2020. Fraudulently obtaining money from an organization that receives federal funds, like the East St. Louis Police Department, carries a maximum sentence of 10 years in prison and a $250,000 fine. Restitution is mandatory.
“The City of East St. Louis is a high crime area served by very dedicated police officers, many of whom work considerable overtime,” said U.S. Attorney Steven D. Weinhoeft. “Abuse of the overtime system by one officer should not detract from the important work of the East St. Louis Police
Department as a whole.”
The investigation was conducted by the Southern Illinois Public Corruption Task Force, which consists of agents with the FBI, Internal Revenue Service/Criminal Investigation, and the Illinois
State Police. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith. Citizens are encouraged to report suspicions of public corruption to the Southern Illinois Public Corruption Task Force Tip Line at (618) 589-7373.
Davenport Man Resentenced to 90 Months in Prison for Felon in Possession of a FirearmRead the Press Release
DAVENPORT, Iowa – On November 14, 2019, United States Chief District Judge John A. Jarvey, sentenced Devonte Darnell Holston, 25, of Davenport, Iowa, to 90 months in prison, after Holston pleaded guilty to Felon in Possession of a Firearm, announced United States Attorney Marc Krickbaum.
On June 26, 2016, Holston possessed two handguns inside a vehicle in the City of Davenport. When law enforcement attempted to identify him, Holston provided a false name and then ran from officers. Holston was previously convicted of two Wisconsin felonies for burglary in 2012, which were punishable by imprisonment for more than one year. On March 7, 2017, Holston pleaded guilty to Count Two of the two count indictment.
This matter was investigated by the Davenport, Iowa, Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Council Bluffs Man Sentenced for Tampering with and Retaliating Against a WitnessRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced that on November 12, 2019, 24 year-old Javon Joshua Jennings was sentenced to 57 months in prison by District Court Judge Rebecca Goodgame Ebinger for one count of Tampering with a Witness, and one count of Retaliating Against a Witness. Jennings was also ordered to serve a three-year term of supervised release for each count, to run concurrently, following the period of incarceration. The sentence was also ordered to be served consecutive to a sentence imposed in state court in April, 2019, for Child Endangerment Causing Death and Involuntary Manslaughter.
An inmate in the Pottawattamie County Jail was served a subpoena by the Federal Bureau of Investigation in April, 2019, and when the inmate informed his family in a telephone conversation other inmates overheard the conversation. Shortly thereafter, Jennings repeatedly assaulted the inmate that had been served with the subpoena.
This case was investigated by the Council Bluffs Police Department, the Pottawattamie County Sheriff’s Office, and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon Is Sentenced to More Than 11 Years on Drug and Gun ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Quinton Oshumond Littlejohn, 31, of Charlotte, was sentenced to 135 months in prison, followed by four years of supervised release on drug and gun charges. U.S. District Judge Robert J. Conrad Jr. presided over the hearing.
Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD), join U.S. Attorney Murray in making today’s announcement.
According to filed court documents, evidence presented at trial, and today’s sentencing hearing, Littlejohn had been previously convicted in federal court of possession of a firearm by a felon, and was sentenced to 37 months in prison, and two years of supervised release. On September 21, 2017, officers with the U.S. Probation Office and the North Carolina Department Public Safety were conducting a routine check at Littlejohn’s residence. While searching the premises, probation officers discovered marijuana, a violation of Littlejohn’s conditions of release. CMPD officers obtained a search warrant for Littlejohn’s residence and vehicle. While executing the search warrant, the officers seized various items from the vehicle and the residence, including crack cocaine, digital scales, drug paraphernalia, $4,095 in cash, and a stolen firearm, loaded with five rounds of ammunition.
In February 2019, a federal jury convicted Littlejohn of possession of a firearm by a convicted felon, possession with the intent to distribute crack cocaine, and possession of a firearm in furtherance of a drug trafficking crime.
In making today’s announcement, U.S. Attorney Murray thanked the ATF and CMPD for their investigation of this case, and the U.S. Probation Office and the North Carolina Department of Public Safety for their invaluable assistance.
Assistant U.S. Attorneys Christopher Hess and Erik Lindahl, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Connecticut Man Sentenced for Possessing Fentanyl at Veterans Affairs Facility in Bath, NYRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Nolan Rogers, 32, of Lisbon, CT, who was convicted of possession of fentanyl, was sentenced to time served and one year supervised release by U.S. Magistrate Judge Marian W. Payson.
Assistant U.S. Attorney Sean C. Eldridge, who handled the case, stated that the defendant was a resident at the Bath, NY Veterans Affairs Medical Center. On March 3, 2019, Rogers returned to the facility after a trip home to Connecticut, when he encountered a VA Police officer. During a pat-down, 20 small bags were removed by the officer from the defendant’s pocket, and Rogers told the officer that the bags contained fentanyl. Laboratory testing confirmed that the substance was fentanyl.
The sentencing is the result of an investigation by the Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent-in-Charge Sean J. Smith; and the Bath Veterans Affairs Police Department, under the direction of Chief Joseph Day. Assistance was also provided by the Steuben County Sheriff’s Office, under the direction of Sheriff James L. Allard; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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Chinese National Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON - A Chinese national pleaded guilty today in federal court in Boston to illegally reentering the United States after being deported.
Chun Lin Zhang, 43, pleaded guilty to one count of illegal reentry of a deported alien. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Feb. 19, 2020.
Zhang was previously deported on July 17, 1999. Law enforcement officers discovered Zhang on Jan. 29, 2018, and determined him to be illegally present in the United States.
The charge of illegal reentry provides for a sentence of up to two years in prison, up to three years of supervised release and a fine of $250,000. Zhang will be subject to deportation upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Criminal Division is prosecuting this case.
Carbondale Man Sentenced to Federal Prison for Aggravated Identity TheftRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Bruce Alexander McIntyre, age 67, of Carbondale, Colorado was sentenced by U.S. District Court Judge William J. Martinez on November 15, 2019 to 24 months (2 years) imprisonment and 1 year of supervised release for Aggravated Identity Theft. The defendant appeared at the hearing in custody and was remanded at the hearing’s conclusion.
According to the stipulated facts contained in the plea agreement, McIntyre was a fugitive who traveled the world using a stolen identity for more than 25 years. In 1994, McIntyre was charged in the U.S. District Court for the District of Arizona with offenses involving money laundering and marijuana distribution, and he was released on bond. McIntyre absconded from that bond, bought stolen identity documents that belonged to another Arizona resident, and fled from the United States. Between 1994 and 2018, McIntyre traveled the world extensively buying art and antiques that he sold from a home in Canada, all under the stolen identity.
McIntyre returned to Carbondale in January 2017 and renewed a United States passport in the name of the stolen identity. In December 2018, the true identity holder sought a United States passport under the same identification that had been coopted by McIntyre. Because two different people claimed the same identifiers, the conflict was referred to the U.S. Department of State’s Diplomatic Security Service (DSS). DSS Special Agents investigated and concluded that McIntyre’s claim to that identity was fraudulent.
DSS Special Agents located McIntyre in Chaing Mai, Thailand on January 30, 2019 and revoked his fraudulently obtained passport. The Thailand Immigration Bureau then apprehended McIntyre for Thai immigration violations. McIntyre was questioned by DSS Special Agents in Thailand, and he admitted his true identity. A criminal complaint was obtained in the U.S. District Court for the District of Colorado and McIntyre was then escorted, in custody, back to the United States to face charges in Colorado.
“No matter where you go, if you are wanted by federal authorities you will eventually be found and held accountable,” said U.S. Attorney Jason Dunn. “This case demonstrates that hiding under a stolen identification won’t work.”
"The Diplomatic Security Service is committed to investigating and pursuing anyone who applies for or obtains a United States passport using false documents," said Angela L. Brenner, Resident Agent in Charge of DSS’ Denver Resident Office. "The U.S. passport is the most coveted travel document in the world. There are individuals who attempt to fraudulently acquire U.S. passports in someone else’s identity to flee, or to carry out criminal activities. These crimes threaten the national security of the United States."
This case was investigated by DSS’ Denver Resident Office with assistance from the Thailand Immigration Bureau. The defendant was prosecuted by Assistant U.S. Attorney David Tonini.
California Man was Smuggling Heroin and Meth to Kansas CityRead the Press Release
KANSAS CITY, KAN. – A California man who was arrested on his way to Kansas City pleaded guilty today to smuggling heroin and methamphetamine, U.S. Attorney Stephen McAllister said.
Allan Bryan DeJesus, 39, Bakersfield, Calif., pleaded guilty to one count of possession with intent to distribute heroin. In his plea, he admitted he was on his way to Kansas City on Jan. 5, 2019, when the Kansas Highway Patrol pulled him over on I-70 in Thomas County. In DeJesus’ vehicle, a trooper found two pounds of heroin and 20 pounds of crystal methamphetamine.
Sentencing is set for Feb. 3, 2019. He could face a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $5 million. McAllister commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney David Lind for their work on the case.
CBL/BFL Member Pleads Guilty to Racketeering Conspiracy and Selling Crack CocaineRead 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 Larry Watkins, 27, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to racketeering conspiracy and possession with intent to distribute crack cocaine. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that the defendant was a member of the CBL/BFL Gang, which stands for, among other things, “Cash Been Long” and “Brothers for Life.” The gang, which was involved in the illegal possession and distribution of narcotics, was formed around 2009 and operates primarily in the City of Buffalo at the Towne Gardens Housing Complex. The Towne Gardens served as a central hub for the gang with many members living within the housing complex, and many housing units used to store firearms and narcotics. Parking lots and business fronts adjacent to the Towne Gardens were utilized by members of the gang to distribute street level quantities of narcotics, including heroin, fentanyl, cocaine, crack cocaine, marijuana, and other drugs. The gang used violence, including murder and attempted murder, threats, and intimidation to defend their territory against rivals and anyone deemed to be a threat to the gang.
On January 11, 2014, Buffalo Police Officers were on patrol on Stanton Street and observed the defendant with another person. Watkins then ran down the street with his hand on the handle of a gun. The defendant then threw the firearm over the fence of a house on Stanton Street. Officers recovered a loaded 38 special revolver and ammunition.
On April 6, 2017, investigators executed a search warrant at 181 Sherman Street in Buffalo, and recovered one bag of crack cocaine and two digital scales in a grill in the backyard. The items belonged to the defendant. During the course of the investigation, investigators learned that Watkins frequently used the location at 181 Sherman Street as a location to store, manufacture, and distribute cocaine and crack cocaine.
On April 21, 2018, Buffalo Police Officers stopped the defendant’s vehicle which he was driving without a license and illegally tinted windows. Officers located a bag of crack cocaine and a bag of marijuana inside the car.
On July 24, 2018, the defendant was at 998 Smith Street in Buffalo when investigators executed a search warrant and recovered one bag crack cocaine, four bags of marijuana, a digital scale, and narcotics packaging.
“The good citizens of Western New York do not deserve to live in fear of young men who decide to join these violent neighborhood street gangs,” stated U.S. Attorney Kennedy. “In joining these gangs, members agree to a rulebook which seems to require them to poison their home field through drug dealing and to eradicate their opposition through gun violence. Those are not the rules, however, and if these young men ignore the warnings being given to them by law enforcement through its community policing efforts and decide to participate in a zero sum game that is gang membership, then my Office will enforce the actual rulebook—in the form of federal criminal law—and remove them from our community. By actively targeting and removing those who possess or use guns illegally, federal prosecutions for illegal firearms this year at an all-time high in our District. It is no coincidence that this surge in federal gun prosecutions has corresponded with the reduction in gun violence in the community.”
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the New York State Police, under the direction of Major Edward Kennedy; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; the Cheektowaga Police Department, under the direction of Chief David Zack; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Lackawanna Police Department, under the direction of Chief James Michel; and the Erie Crime Analysis Center. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn.
Sentencing is scheduled for April 6, 2020, before Judge Vilardo.
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Business owner sentenced to 8 years in prison for crimes involving more than $2 million in Department of Defense contractsRead the Press Release
COLUMBUS, Ohio – Daniel Emerson Norton, 52, formerly of Arlington, Va. and the owner of Torrance, Calif.-based Emerson Company, was sentenced in U.S. District Court today to 96 months in prison. Norton fraudulently secured approximately $2.2 million in contracts to provide critical parts to the U.S. Department of Defense, which he then filled with defective parts made in China, in violation of the Buy American Act.
A trial against Norton began on April 8. He interrupted the trial after five days to enter pleas of guilty.
According to court documents and testimony at trial, the Department of Defense (DOD) barred Emerson Company from doing business with the U.S. Government in 2011. Between 2011 and 2013, Norton continued to recruit people who either already had companies or were willing to start companies to do his bidding on solicitations and contract with the military to provide parts for the U.S. military. When one of the companies was awarded a purchase order, Norton directed the company to send the purchase order to Emerson Company, which would buy and ship the part directly to DoD.
Norton bought the parts from manufacturers in China, even though the contracts required a large number of the parts to be made in the United States. The parts Norton provided had dimensional defects, material substitutions, incorrect or missing markings, incorrect finishes, improper shapes or styles, mislabeled packaging or poor workmanship and thus failed to conform to the contract requirements.
Additionally, when contracts called for an exact part from a specific domestic manufacturer, rather than obtaining these parts from the specified manufacturer (OEM), Norton supplied imitation parts obtained from China that were defective. They involved a variety of parts used on military aircraft, vessels, vehicles, weapons systems and nuclear reactor programs, including the F-16 Fighting Falcon, A-10 Thunderbolt, C-130 Hercules, B-52 Stratofortress, AH-64 Apache attack helicopter, the Paladin M109A6 155mm Artillery System, HMMWV “HUMVEE” vehicles and Nimitz Class CVN Aircraft Carriers. Emerson’s defective parts were recalled from military depots worldwide.
Once Norton realized he was under investigation in 2013 by the Defense Logistics Agency (DLA), the Defense Criminal Investigative Service (DCIS) and the U.S. Attorney’s Office, he took several steps to mislead the government in its investigations.
For example, in an effort to avoid an extension of debarment for providing a non-conforming bolt used on a C-130 aircraft engine, Norton submitted false documents to the DoD deflecting blame from Emerson Company to one of the nine companies under his control. Norton knew, however, that he, personally, had ordered the bolts from a manufacturer in China and they were not supplied by the required OEM.
Norton also admitted to obstructing justice by falsely communicating information to his attorney, or allowing such information to be communicated, with the intent that it be communicated to the United States as it related to its grand jury investigation, thereby obstructing that investigation.
As part of his sentence, Norton was ordered to pay $2.38 million in restitution, and forfeit more than $333,000 in his bank account in the name of Emerson Manufacturing Inc. and a $725,000 residence held by Emerson Manufacturing Company in Kihei, Hawaii.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Leigh-Alistair Barzey, Special Agent in Charge, U.S. Department of Defense, Defense Criminal Investigative Services (DCIS), Central Field Office; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation announced the sentence imposed today by U.S. District Judge Michael H. Watson. Assistant United States Attorneys Jessica W. Knight and J. Michael Marous represented the United States in this case.
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Buffalo Man Indicted for Murder and Selling Heroin That Led to A DeathRead 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 a federal grand jury has returned a 12-count superseding indictment charging Donte Walker, a/k/a Slim, 28, of Buffalo, NY, with murder while engaged in a continuing criminal enterprise and narcotics conspiracy, tampering with a witness, discharge of firearms causing death in furtherance of crimes of violence and drug trafficking crimes, conspiracy to distribute heroin resulting in death, and several narcotics offenses. The charges can carry a mandatory sentence of life in prison, or a mandatory minimum penalty of 20 years in prison and a maximum penalty of life in prison and a fine up to a $20,000,000.
Assistant U.S. Attorneys Charles J. Volkert, Jr. and Paul. C. Parisi, who are handling the case, stated that according to the superseding indictment, the defendant is accused of orchestrating the murder of Ryan Thurnherr on October 16, 2018, and causing the heroin overdose death of an individual identified as M.O.
Between 2012 and November 2018, Walker was a leader of a heroin and cocaine trafficking organization operating in the Buffalo, NY, area. In 2013, as part of the ongoing narcotics conspiracy, the defendant was responsible for the distribution of heroin to M.O., which resulted in M.O.’s death.
To further his drug-trafficking operation, Walker utilized various associates, including drug runners and lower-level drug dealers. At a peak in the defendant’s heroin distribution enterprise in 2015 and 2016, Walker was responsible for the daily distribution of hundreds of grams of heroin, sometimes mixed with butyryl fentanyl or furanyl fentanyl. Over the years, the defendant also regularly sold cocaine.
On October 16, 2018, the defendant lured Ryan Thurnherr to an area near the East Ferry Liquor Store in Buffalo under the auspices of engaging in a drug transaction. Shortly after shots were fired, and Thurnherr was found murdered in a vacant lot near the T-intersection of Winslow Avenue and Brooklyn Street. Walker believed Thurnherr was a witness or a threat to become a witness in the ongoing DEA investigation into the defendant’s drug-trafficking organization.
Donte Walker is scheduled for an arraignment on the superseding indictment on November 22, 2019, at 10:30 a.m.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Tonawanda Police Department, under the direction of Chief William Strassburg; and the Cheektowaga Police Department, under the direction of Chief David Zack.
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Brookshire woman imprisoned for sending homemade bombs to state and federal officialsRead the Press Release
HOUSTON – A 48-year-old resident of Brookshire has been ordered to prison after admitting to transportation of explosives with the intent to kill, injure and intimidate a person, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Perrye K. Turner of the FBI. Julia Ann Poff pleaded guilty July 1, 2019.
Today, U.S. District Judge Vanessa Gilmore handed Poff a 120-month sentence to be immediately followed by three years of supervised release. She was also ordered to pay $9,700 in restitution.
Poff admitted to mailing a package on or about Oct. 2 - 3, 2016, that contained a homemade bomb that was addressed to the former president of the United States. As part of her plea, she also acknowledged mailing two similar packages addressed to the Texas governor and then Acting Social Security Administrator.
Each of those packages contained a victim-activated, booby trapped, improvised explosive device (IED) containing explosives materials.
The investigation revealed that on Oct. 6, 2016, authorities intercepted a U.S. Postal Service (USPS) small, flat rate box at a White House mail handling facility at Bolling Air Force Base in the District of Columbia. They opened the package, and it appeared to contain a bomb.
An FBI explosives expert conducted an examination and determined it to be a homemade bomb.
Further examination linked the box and its contents to Julia Poff or her husband. The outer box contained a taped address label, under which they found a feline hair. Testing revealed this hair was microscopically consistent with the hairs taken from a cat the Poff family cared for and owned. Also, a box contained within the USPS box contained a micro-USB cable box, cellular phone, hobby fuse, matches, paper wadding, plastic sacks, sandpaper and two 20-ounce coke bottle caps as well as pyrotechnics and smokeless powder.
Poff’s daughter identified the phone as her old cell phone which was last seen in their home’s garage in August or September 2016. Authorities also learned Poff used her bank debit card to purchase a micro-USB box with the same bar code as the one found in the USPS package.
At the time of her plea, Poff admitted she was solely responsible for sending the bomb-filled packages.
She has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bryan FBI JTTF conducted the investigation with assistance from the U.S. Postal Inspection Service, Texas Rangers, Social Security Administration - Office of Inspector General (OIG) and Department of Agriculture - OIG. The Bryan Resident Agency JTTF is comprised of the FBI; sheriff’s offices in Brazos, Waller and Walker Counties; police departments in Bryan, Texas A&M University and College Station; Secret Service; Texas Department of Criminal Justice - OIG and Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorneys Ralph Imperato, Rob Jones and Alamdar Hamdani prosecuted the case.
Brooklyn Businessman Sentenced to 18 Months’ Imprisonment for Defrauding Investors in Cryptocurrency Initial Coin OfferingsRead the Press Release
Earlier today, in federal court in Brooklyn, Maksim Zaslavskiy was sentenced by United States District Judge Raymond J. Dearie to 18 months’ imprisonment for conspiring to commit securities fraud. The conspiracy stemmed from two Initial Coin Offerings (ICOs) – REcoin Group Foundation, LLC (“REcoin”) and DRC World, Inc., also known as Diamond Reserve Club (“Diamond”) – which Zaslavskiy and others fraudulently marketed to the public. The amount of restitution will be determined by the Court at a later date.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Zaslavskiy committed an old-fashioned fraud camouflaged as cutting-edge technology,” stated United States Attorney Donoghue. “This Office will continue to investigate and prosecute those who defraud investors, whether involving traditional securities or virtual currency.” Mr. Donoghue extended his grateful appreciation to the Securities and Exchange Commission (SEC), New York Regional Office, for their assistance in this case.
In July 2017, Zaslavskiy marketed RECoin as “The First Ever Cryptocurrency Backed by Real Estate,” and subsequently Diamond as an “exclusive and tokenized membership pool” hedged by diamonds. In reality, Zaslavskiy bought neither real estate nor diamonds, and the certificates he sent to investors were worthless. Zaslavskiy also falsely advertised that REcoin had a “team of lawyers, professionals, brokers and accountants” who would invest the proceeds from the REcoin ICO in real estate, and that 2.8 million REcoin tokens had been sold.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Julia Nestor and Andrey Spektor are in charge of the prosecution.
The Defendant:
MAKSIM ZASLAVSKIY
Age: 39
Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-647 (S-1) (RJD)
Atchison Company Agrees to Pay $1 Million for Violating Clean Air ActRead the Press Release
TOPEKA, KAN. – An Atchison, Kan., company today pleaded guilty to violating the federal Clean Air Act and is expected to pay a $1 million fine, U.S. Attorney Stephen McAllister said.
MGP Ingredients, Inc. pleaded guilty to a misdemeanor offense of negligently violating the Clean Air Act. In its plea, the company admitted that on Oct. 21, 2016, a greenish-yellow chlorine gas cloud formed when 4,000 gallons of sulfuric acid were mistakenly combined with 5,800 gallons of sodium hypochlorite. The Atchison County Department of Emergency Management ordered community members to shelter in place and to evacuate in some areas. Approximately 140 individuals including members of the public, first responders, employees of MGP Ingredients and Harcos Chemicals sought medical attention.
Sentencing is set for Feb. 24. The company could be sentenced to a term of probation up to five years.
McAllister commended the Environmental Protection Agency and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Victims can get more information on US v. Midwest Grain Products, Inc., by visiting https://www.justice.gov/usao-ks/victim-witness and filling out a victim questionnaire, leaving a message on a designated phone line at 913-551-6543 or emailing questions to [email protected] .
Alleged Cryptocurrency Fraudster Extradited from Thailand to Face Charges in Multi-Million Dollar Investment SchemeRead the Press Release
A citizen of Sweden has been extradited from Thailand to the United States today to stand trial for alleged securities fraud, wire fraud and money laundering.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney David L. Anderson of the Northern District of California and Special Agent in Charge Kelly R. Jackson of the IRS Criminal Investigation (IRS-CI), Washington, D.C. Field Office made the announcement.
On July 25, 2019, a federal grand jury indicted Roger Nils-Jonas Karlsson, 45, and his company, Eastern Metal Securities (EMS), charging the defendants with engaging in a scheme to defraud victims of more than $11 million. Karlsson was arrested June 17, 2019, in Thailand.
According to a complaint filed March 4, 2019, in connection with the case, since September 2006, Karlsson, also known by several aliases, including Steve Heyden, Euclid Deodoris, Joshua Millard, Lars Georgsson, Paramon Larasoft and Kenth Westerberg, used websites to communicate false representations to victims in a scheme to defraud potential investors. For example, one website, www.easternmetalsecurities.com, allegedly was registered to a fictitious person and advertised shares in a product called a “Pre Funded Reversed Pension Plan” (PFRPP). The indictment alleges Karlsson used the website to invite potential investors to purchase shares of the plan for $98 per share in exchange for an eventual payout of 1.15 kilograms of gold per share, even though as of Jan. 2, 2019, 1.15 kilograms of gold was worth more than $45,000.
Karlsson also allegedly advised investors that, in the unlikely event that the gold payout did not happen, he guaranteed to them 97 percent of the amount they invested. According to the complaint, the government found no evidence of any accounts held by Karlsson that would allow him to pay off the investors. Instead, the complaint alleges, the funds provided by victims were transferred to Karlsson’s personal bank accounts and now appear to be tied up in real estate in Thailand.
The complaint further describes how Karlsson allegedly used a second website, www.hci25.com, to make multiple false communications to potential investors. Karlsson allegedly brought the investors in HCI25 together with the investors in the PFRPP and posted multiple communications to delay the moment investors would realize there would be no payout. For example, on one occasion, Karlsson allegedly explained that a payout had not occurred because releasing so much money all at once could cause a negative effect on financial systems throughout the world. Karlsson also falsely represented that EMS was working with the U.S. Securities and Exchange Commission to prepare the way for a payout.
The complaint alleges Karlsson directed his victims to make investments using virtual currencies, such as Bitcoin. Karlsson allegedly defrauded no less than 3,575 victims of more than $11 million.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorney Catherine Alden Pelker of the Department of Justice Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney William Frentzen of the Northern District of California are prosecuting this case with the assistance of Bridget Kilkenny. This prosecution is the result of an investigation by the IRS-CI Washington, D.C. Cyber Crimes Unit. The Criminal Division’s Office of International Affairs, the FBI Legal Attaché Office in Thailand, the IRS Criminal Investigation Attaché Office in Hong Kong and the Royal Thai Police Crime Suppression Division provided significant assistance.
Alleged Cryptocurrency Fraudster Extradited from Thailand to Face Charges in Multi-Million Dollar Investment SchemeRead the Press Release
SAN FRANCISCO – Roger Nils-Jonas Karlsson, a citizen of Sweden, has been extradited from Thailand to stand trial for alleged securities fraud, wire fraud, and money laundering, announced United States Attorney David L. Anderson; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Washington, D.C. Field Office.
On July 25, 2019, a federal grand jury indicted Roger Nils-Jonas Karlsson, 45, and his company, Eastern Metal Securities (EMS), charging the defendants with engaging in a scheme to defraud victims of more than $11 million. Karlsson was arrested June 17, 2019, in Thailand.
According to a complaint filed March 4, 2019, in connection with the case, Karlsson, also known by several aliases including Steve Heyden, Euclid Deodoris, Joshua Millard, Lars Georgsson, Paramon Larasoft, and Kenth Westerberg, used websites to communicate false representations to victims in a scheme to defraud potential investors. For example, one website, www.easternmetalsecurities.com, allegedly was registered to a fictitious person and advertised shares in a product called a “Pre Funded Reversed Pension Plan” (PFRPP). The complaint alleges Karlsson used the website to invite potential investors to purchase shares of the plan for $98 per share in exchange for an eventual payout of 1.15 kilograms of gold per share, even though as of January 2, 2019, 1.15 kilograms of gold was worth more than $45,000.
Karlsson also allegedly advised investors that, in the unlikely event that the gold payout did not happen, he guaranteed to them 97% of the amount they invested. According to the complaint, the government found no evidence of any accounts held by Karlsson that would allow him to pay off the investors. Instead, the complaint alleges, the funds provided by victims were transferred to Karlsson’s personal bank accounts and now appear to be tied up in real estate in Thailand.
The complaint further describes how Karlsson allegedly used a second website, www.hci25.com, to make multiple false communications to potential investors. Karlsson allegedly brought the investors in HCI25 together with the investors in the PFRPP and posted multiple communications to delay the moment investors would realize there would be no payout. For example, on one occasion, Karlsson allegedly explained that a payout had not occurred because releasing so much money all at once could cause a negative effect on financial systems throughout the world. Karlsson also falsely represented that EMS was working with the U.S. Securities and Exchange Commission to prepare the way for a payout.
The complaint alleges Karlsson directed his victims to make investments using virtual currencies, such as Bitcoin. Karlsson allegedly defrauded no less than 3,575 victims of more than $11 million.
The indictment charges Karlsson with wire fraud, in violation of 18 U.S.C. § 1343; securities fraud, in violation of 15 U.S.C. §§ 78j(b) and 78ff and 17 C.F.R. § 240.10b-5; and money laundering, in violation of 18 U.S.C. § 1957. Karlsson was arrested June 17, 2019, in Thailand and arrived in the United States today to face the charges.
An indictment and a criminal complaint merely allege that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Karlsson made his initial federal court appearance this morning before U.S. Magistrate Judge Sallie Kim. Magistrate Judge Kim ordered Karlsson detained and pending a further detention hearing scheduled for Friday, November 22, 2019.
If convicted, the defendant faces a maximum sentence of 20 years in prison and a maximum $250,000 fine for the wire fraud and securities fraud charges, and 20 years in prison and a $500,000 maximum fine for the money laundering charge. In addition, the court also may order an additional term of supervised release, fines or other assessments, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney William Frentzen and Trial Attorney Catherine Alden Pelker of the Department of Justice Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting this case. This prosecution is the result of an investigation by the IRS-CI Washington, D.C. Cyber Crimes Unit. The Criminal Division’s Office of International Affairs, the FBI Legal Attaché Office in Thailand, the IRS Criminal Investigation Attaché Office in Hong Kong and the Royal Thai Police Crime Suppression Division provided significant assistance.
17 November 2019
Sioux Falls Woman Sentenced for Possession of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, woman convicted of Possession of Child Pornography was sentenced on November 15, 2019, by U.S. District Judge Karen E. Schreier.
Sharon Dvorak, age 49, was sentenced to time served, 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Dvorak was indicted by a federal grand jury on March 5, 2019. She pled guilty on August 5, 2019.
The conviction stemmed from incidents between on or about July 16, 2018, and July 19, 2018, when Dvorak knowingly possessed child pornography that had been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including by computer.
While on Facebook, Dvorak communicated with three individuals on the internet. Their messages were sexual in nature and they exchanged images of child pornography. Some of the images included prepubescent children.
This case was investigated by the Department of Homeland Security. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Mission Man Indicted for Aggravated SexualRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse and Sexual Abuse.
Larry Black Lance, III, age 28, was indicted on November 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 15, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 25, 2019, in Todd County, South Dakota, Black Lance knowingly engaged in a sexual act with the victim, by the use of force, and that the victim was incapable of declining participation in the sexual act.
The charges are merely accusations and Black Lance is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Black Lance was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mission Man Charged with Felon in Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Felon in Possession of a Firearm and Ammunition.
David D. Larvie, Jr., age 37, was indicted on November 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 15, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 25, 2019, in Todd County, South Dakota, Larvie, having previously been convicted of a felony, knowingly possessed a firearm and ammunition.
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 charge is merely an accusation and Larvie is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Larvie was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Fort Thompson Man Charged with Aggravated Sexual Abuse by Force and Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse by Force and Sexual Abuse.
Devon Wayne Saul, age 27, was indicted on November 5, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 14, 2019, and pled not guilty to the Indictment.
According to the Indictment, on August 18, 2019, in Buffalo County, South Dakota, Saul knowingly caused and attempted to cause the victim to engage in a sexual act by using force. The indictment also alleges that Saul engaged in a sexual act with the victim while the victim was incapable of appraising the nature of the conduct, or physically incapable of declining participation in and communicating her unwillingness to engage in the sexual act.
The maximum penalties upon conviction for each count are as follows: up to life imprisonment and/or a $250,000 fine; a mandatory minimum term of five (5) years, up to life, of supervised release; $100 to the Federal Crime Victims Fund; $5,000 assessment to the domestic trafficking fund; and restitution may be ordered.
The charges are merely accusations and Saul is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs – Office of Justice Services. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Saul was released to the custody of third party custodians. A trial date of January 14, 2020, has been set.