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10 September 2019
Massachusetts Chiropractor Sentenced to Prison for Tax EvasionRead the Press Release
The owner of a chiropractic business was sentenced to 6 months in prison for tax evasion after pleading guilty to the charge in June 2019, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
Richard Rogers, a Northborough, Massachusetts chiropractor, operated his practice from his residence. According to court documents, Rogers evaded his taxes from 2012 through 2016 by concealing his income from the Internal Revenue Service (IRS). Rogers encouraged his clients to pay in cash and used a nominee bank account to negotiate check payments when he was not paid in cash. He paid creditors using postal money orders, and used credit card accounts opened with a fictitious social security number. Rogers also concealed the ownership of his residence by titling the property in the name of a trust. Rogers did not file federal tax returns from at least 2008 through 2016, despite his obligation to do so.
United States District Judge Timothy S. Hillman also ordered Rogers to pay $155,164 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant Chief John N. Kane and Trial Attorney Carl F. Brooker of the Tax Division, who prosecuted the case.
Manchester Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - David Nguyen, 37, of Manchester, pleaded guilty in federal court to distributing fentanyl, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on November 1, 2018, a cooperating individual, at the direction of law enforcement officers, arranged to buy fentanyl at Nguyen’s apartment. The cooperating individual later went to Nguyen’s apartment and purchased a quantity of fentanyl.
On December 4, 2018, law enforcement officers executed a search warrant at Nguyen’s apartment, where they located two scales with drug residue.
Nguyen is scheduled to be sentenced on December 17, 2019.
“Fentanyl trafficking endangers public health and safety in Manchester and other communities throughout the State of New Hampshire,” said U.S. Attorney Murray. “Through Operation S.O.S., we are working with the Manchester Police Department and other law enforcement agencies in Hillsborough County to identify and prosecute those who are responsible for selling this deadly drug.”
This matter was investigated by the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Joachim Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Maine’s Project Safe Neighborhoods Initiative Seeks Applications for $100,000 in Available Grant FundingRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced today that up to $100,000 in grant funding is available for allocation to support Maine’s Project Safe Neighborhoods (PSN) initiative.
PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Maine’s PSN program is coordinated by the United States Attorney’s Office.
The Maine Department of Public Safety, acting as the fiscal agent for Maine’s PSN program, is seeking proposals from eligible applicants for grant projects designed to create and foster safer neighborhoods through a sustained reduction in violent crime. Up to approximately $100,000 is available to fund programs focused on reducing violence associated with opioid trafficking, human trafficking, domestic violence, gun trafficking and firearm possession by prohibited persons throughout Maine. The state’s PSN Task Force is comprised of a variety of federal, state and local partners and stakeholders who want to spread the word about this funding to Maine communities, such as private citizens, civic leaders, law enforcement, prosecutors, state and local government, anti-violence advocates, organizations (both for-profit and nonprofit), school administrators, educators, students of all ages and members of the juvenile justice community who might wish to submit proposals.
A copy of the RFP, as well as the Question & Answer Summary and all amendments related to this RFP, may be obtained at the following website:
https://www.maine.gov/dafs/bbm/procurementservices/vendors/rfps
Proposals must be submitted to the State of Maine Division of Procurement Services, via email, at [email protected]. Proposal submissions must be received no later than 4:00 pm, local time, on October 3, 2019, when they will be opened. Proposals will be opened at the Burton M. Cross Office Building, 4th Floor, 111 Sewall Street, Augusta, Maine. Proposals not submitted to the Division of Procurement Services at the above email address by the October 3 deadline will not be considered for contract award.
Lexington Man Sentenced to 80 Months in Prison for Fentanyl TraffickingRead the Press Release
LEXINGTON, Ky. – Eldronte Domonique Washington, of Lexington, was sentenced Monday to 80 months in federal prison, by United States Senior District Judge Joseph M. Hood, for possession with intent to distribute 40 grams or more of fentanyl.
In December 2018, Lexington Police executed a search warrant on Washington’s residence and located 67 grams of fentanyl, multiple baggies, digital scales, three handguns (one stolen, one defaced), and $4,230 in cash. In his plea agreement, Washington admitted that he intended to distribute the fentanyl and further agreed to forfeit his interest in the handguns and currency. Washington pleaded guilty in May 2019.
Under federal law, Washington must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for four years following his release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Dan Dodds, Acting Special Agent in Charge of the DEA; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the sentence.
The investigation was conducted by the U.S. Drug Enforcement Administration and the Lexington Police Department. The United States was represented by Assistant U.S. Attorney David Kiebler.
This case was prosecuted as part of the Organized Crime and Drug Enforcement Task Force’s (OCDETF) Operation Synthetic Opioid Surge (SOS), a Department of Justice initiative designed to target trafficking of dangerous synthetic opioids.
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Kitchen Supervisor Pleads Guilty to Actions Related to Prohibited Relationship with Federal InmateRead the Press Release
LAREDO, Texas - A 51-year-old Laredo resident has admitted she made a false statement and provided contraband in prison, announced U.S. Attorney Ryan K. Patrick.
Oralia Aparicio pleaded guilty to one count of making a false statement and one count of providing contraband to a prison inmate.
Aparicio was employed by GEO Group Inc. as a Kitchen Supervisor at the Rio Grande Detention Center in Laredo. GEO is a Florida-based company that contracts with the Office of the Federal Detention Trustee to operate private corrections facilities.
In early November 2018, Aparicio began engaging in a prohibited romantic relationship with an inmate, including consensual sexual encounters in the warehouse and cleaning utility room of the Rio Grande Detention Center. In January 2019, Aparicio engaged in prohibited favoritism by providing the inmate with contraband nude photographs of herself which Aparicio snuck into the facility in an eyeglass case. At approximately the same time, she also began knowingly providing the inmate with other contraband, including food, an unidentified over-the-counter cold medicine (Xtra), Amoxicillin and a Vicks nasal inhaler.
Aparicio also provided the inmate with weekly to biweekly commissary deposits of up to $30. In order to conceal her prohibited relationship from officials, Aparicio intentionally submitted a fictitious name when making commissary deposits in the inmate’s account from Oct. 25, 2018, to Jan. 15, 2019.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing Jan. 27, 2020. At that time, Aparico faces up to five years imprisonment as well as a $250,000 maximum possible fine.
The FBI and Department of Justice - Office of the Inspector General conducted the investigation.
Assistant U.S. Attorney Sebastian Edwards prosecuted this case.
Joint Statement by U.S. Attorney General William Barr and Minister of Justice of Georgia Thea TsulukianiRead the Press Release
Credit: Department of JusticeOn September 10, 2019, United States Attorney General William Barr met with Georgian Minister of Justice Thea Tsulukiani, to reaffirm the law enforcement partnership between the United States Department of Justice and the Ministry of Justice of Georgia.
Both officials recognized that an independent judiciary, an effective criminal justice system and the protection of human rights, particularly those of the most vulnerable members of society, such as children, are fundamental to the rule of law and an accountable government and democracy.
Attorney General Barr noted the excellent level of cooperation between the United States and Georgia on extradition matters and mutual legal assistance. Minister Tsulukiani, in turn, expressed gratitude for the capacity building support provided by the United States Department of Justice, the Office of Overseas Prosecutorial Development, Assistance, and Training (OPDAT) and its Tbilisi-based Resident Legal Advisors (RLA), particularly in terms of legislative drafting advice and skills development training within the criminal justice sector.
The Attorney General and Minister of Justice committed to continue cooperation in support of Georgia’s efforts to advance judicial reforms and further modernize the country’s criminal justice system. In particular, they expressed an intent to explore opportunities for the Department of Justice to furnish expertise and assistance to the Ministry of Justice with its work to reform Georgia’s penitentiary and probation systems with enhanced rehabilitation and resocialization services.
Inmate at FCI Gilmer sentenced for attempting to obtain suboxoneRead the Press Release
CLARKSBURG, WEST VIRGINIA – Dion Donita Turner, an inmate at FCI Gilmer in Glenville, West Virginia, was sentenced today to 12 months incarceration after admitted to attempting to possession contraband, United States Attorney Bill Powell announced.
Turner, age 42, is pled guilty to one count of “Attempt to Obtain a Prohibited Object (Narcotic).” Turner admitted to attempting to obtain suboxone inside FCI Gilmer in April 2019.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Bureau of Prisons Special Investigation Services investigated.
U.S. District Judge Thomas S. Kleeh presided.
Hattiesburg Woman Sentenced to 4 Years in Federal Prison for Methamphetamine TraffickingRead the Press Release
Hattiesburg, Miss. – Lydia Walters, 34, of Hattiesburg, was sentenced today by Senior U.S. District Judge Keith Starrett to 48 months in federal prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst, Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Special Agent in Charge Brad Byerley with the Drug Enforcement Administration (DEA). Walters was also ordered to pay a $5,000 fine.
Beginning in July 2016, ATF agents received information that Adrian Parker was distributing ounce quantities of methamphetamine at an apartment complex in Hattiesburg. On October 17, 2016, a confidential informant purchased 13.19 grams of methamphetamine from Parker at an apartment in Hattiesburg.
Further investigation revealed that Parker’s girlfriend, Lydia Walters, was also involved in distributing methamphetamine. On December 22, 2016, a DEA confidential informant purchased 17.3 grams of methamphetamine from Walters in the parking lot of a business on Highway 49 in Hattiesburg.
Walters was subsequently indicted for possession with intent to distribute methamphetamine and pled guilty before Judge Starrett on June 6, 2019.
Adrian Parker was indicted for his role and pled guilty before Judge Starrett to possession with intent to distribute methamphetamine on July 1, 2019. He will be sentenced by Judge Starrett on October 2, 2019 at 10:00 a.m.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Shundral H. Cole.
Hartford Gang Member Sentenced to 6 Years in Federal Prison for Distributing Fentanyl and HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that FRANKIE VEGA, also known as “Lips,” 35, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 72 months of imprisonment, followed by three years of supervised release, for distributing fentanyl and heroin.
According to court documents and statements made in court, this matter stems from an investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking in Hartford. The investigation revealed that Wilson Velez, also known as “Wiso,” a member of the Almighty Latin Kings Nation (“Latin Kings”), was distributing heroin and fentanyl. Velez employed family members and other Latin Kings members and associates to process, package and distribute the drugs from apartment buildings on Hamilton Street and Elliot Street in Hartford. During the investigation, law enforcement conducted multiple controlled purchases of narcotics from Velez and other members of the drug trafficking organization.
In May 2017, investigators conducted two controlled purchases of fentanyl from Vega at his residence on Broad Street. On May 3, 2017, a court-authorized search of Vega’s residence revealed more than 1,000 bags of fentanyl/heroin and other items used to process and package narcotics for distribution. Vega was arrested on state charges on that date.
In November 2017, while he was released on bond in his state case, Vega was intercepted on a wiretap negotiating the purchase of 500 bags of fentanyl/heroin from Velez.
On May 1, 2018, a grand jury returned a 41-count indictment charging Velez, Vega and eight other members and associates of the Latin Kings.
Vega has been detained since his arrest on May 7, 2018. On March 4, 2019, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin and fentanyl
In 2008, Vega was arrested after he fired his gun at Hartford Police officers pursuing him in a foot chase. Vega was sentenced to 15 years in prison, suspended after nine years, for that offense. He was released from state prison in April 2016.
Velez was arrested on federal narcotics offenses on December 7, 2017, and was subsequently released on bond. He has been detained since April 5, 2018, when his bond was revoked. On February 22, 2019, he pleaded guilty to one count of conspiracy to distribute one kilogram or more of heroin and/or 400 grams or more of fentanyl, and one count of conspiracy to use and carry a firearm in relation to, and furtherance of, a drug trafficking crime. He awaits sentencing.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Freedom Man Charged with Possession and Distribution of Drugs Resulting in a DeathRead the Press Release
PITTSBURGH - A resident of Freedom, PA, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The two-count Indictment named Zachary Martin Cymbalak, 32, as the sole defendant.
According to the Indictment, on or about Jan. 6, 2019, Cymbalak possessed with the intent to distribute and distributed a mixture of heroin, acetyl fentanyl and fentanyl, which resulted in a death.
The law provides for a maximum total sentence of not less than 20 years in prison and a maximum of life, a fine of not more than $1,000,000, a term of supervised release of at least 3 years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant United States Attorney Chad R. Parks is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, Beaver County Drug Task Force, and Harmony Township Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Fort Myers Felon Sentenced to More Than 11 Years in Prison on Federal Drug and Firearms ChargesRead the Press Release
Fort Myers, FL – U.S. District Judge Sheri Polster Chappell has sentenced Jo’Shwan Danquell Hamilton (26, Fort Myers) to 11 years and 6 months in federal prison for possessing a firearm as a convicted felon, distributing controlled substances, and carrying a firearm in relation to a drug trafficking crime. The court also ordered Hamilton to forfeit a firearm and ammunition.
Hamilton had pleaded guilty on April 25, 2019.
According to court records, on three separate occasions in January and February 2018, Hamilton sold an undercover agent controlled substances (heroin, crack cocaine, and fentanyl). On one of those occasions, Hamilton also sold the undercover agent a stolen, loaded handgun. At the time of the offenses, Hamilton was a previously convicted felon and, therefore, was prohibited from possessing firearms or ammunition under federal law. Hamilton had been released from a state prison in Florida six months before committing these new offenses.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Fort Myers Police Department. It was prosecuted by Assistant United States Attorney Simon R. Eth.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety – one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Former credit union loan officer pleads guilty to role in fraudulent loan schemeRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced today that Cynthia J. Feazell, 48, of Montgomery, Louisiana, pleaded guilty before U.S. District Judge Dee D. Drell to authorizing fraudulent loans that caused nearly a quarter of a million dollars of loss to her credit union employer.
According to the guilty plea, Feazell worked as a loan officer and assistant manager at Valex Federal Credit Union in Rapides Parish from 1997 to 2016. The defendant decided to purchase a mobile home in 2015 and obtained loan funds from Valex. She did not qualify for the loan, so she transferred three vehicle loans taken out in her name to her mother’s name in order for her to qualify for the loan. Additionally, Feazell authorized loans for her ex-husband, even though she knew he did not meet the Valex credit requirements. Feazell falsified documents to accomplish the scheme and was aware her actions were fraudulent. The defendant’s fraudulent acts caused Valex a loss of $243,167.95.
Feazell faces 30 years in prison, five years of supervised release, restitution and a $1 million fine. The court set the sentencing date for December 17, 2019.
The FBI conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger is prosecuting the case.
Former Union Treasurer Sentenced to 2 Years in Federal Prison for Embezzling at Least $82,000 in Union FundsRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Annette Elizabeth Jones, age 45, of Port Deposit, Maryland, to 24 months in prison, followed by 3 years of supervised release, for bank fraud in connection with a scheme to embezzle funds from the labor union where she worked. Jones entered her guilty plea on May 7, 2019.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; District Director Mark Wheeler of the U.S. Department of Labor, Office of Labor - Management Standards; and Special Agent in Charge of the Mid-Atlantic Field Office Kim R. Lampkins for the US Department of Veterans Affairs Office of Inspector General.
According to her plea agreement, Jones is the former Treasurer of the American Federation of Government Employees (AFGE) Local Union 331, which represented approximately 760 employees of the Department of Veterans Affairs (VA) Medical Center in Perry Point, Maryland.
As detailed in her plea agreement, Jones executed two fraud schemes through which she embezzled at least $82,180.73 from the Union. First, from July 2012 through July 2015, Jones stole at least $80,944.80 in Union funds by forging her colleagues’ signatures on 335 Union checks that she wrote to herself and then cashed or deposited those checks at multiple financial institutions. Second, from January 2014 through July 2015, Jones used a Union-issued credit card to pay for $1,235.93 in personal expenses using Union funds on 20 separate occasions.
Jones admitted that she took steps to conceal the scheme from the Union. For example, not only did Jones have exclusive control of the Union’s checkbook, but she also maintained sole custody of a laptop computer that she was issued by the Union to manage its financial records on Union-purchased accounting software. In that software, Jones frequently recorded false information regarding the business purpose of the fraudulent Union checks she forged and negotiated, or recorded no information at all about the business purpose of such checks. Jones also provided false information about the Union’s finances to the Executive Board and the Union membership, caused reports to be submitted to the federal government that falsely certified the amount of money she received from the Union, and lied to the Union’s independent auditor.
Jones’ fraud was discovered in July 2015, when the Union’s Vice President overheard a phone call in which Jones attempted to purchase a smartphone for a family member using the credit card she had been issued to pay for Union expenses only. The Vice President then reported the conversation to the Union’s President. The President later conducted a search of Jones’s office and found two uncashed Union checks made payable to Jones on which it appeared that the President’s signature had been forged. The Union President then met with the manager of the bank where the Union’s account was held, and reviewed each of the checks to Jones that had been drawn on the Union’s account during the preceding three months. The Union President’s signature had been forged on all of them. When the manager provided the President with copies of the Union’s monthly credit-card account statements, the President also discovered that Jones had made a number of personal charges on her Union-issued card.
Jones was immediately removed from her position as Union Treasurer and resigned from the VA soon thereafter. Although Jones had agreed to return her Union-issued laptop at the time she was removed as Treasurer, Jones admitted that she never returned it.
As part of her sentence, Jones is required to pay restitution in the full amount of the loss, which the parties agreed is $82,180.73.
United States Attorney Robert K. Hur commended the DOL and VA-OIG for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Matthew J. Maddox, who prosecuted the federal case.
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Former State DOT Employee Sentenced for Federal Program TheftRead the Press Release
ALBANY, NEW YORK – Jerome Lauzon, age 45, of Gansevoort, New York, was sentenced today to 1 year of probation for misappropriating more than $17,000 from a federally funded program.
The announcement was made by United States Attorney Grant C. Jaquith; Douglas Shoemaker, Special Agent in Charge of the Northeast Regional Office of the United States Department of Transportation, Office of Inspector General (USDOT-OIG); New York State Inspector General Letizia Tagliafierro; and Robert L. Keihm, Chief Investigator for the New York State Department of Transportation (NYSDOT) Investigations Bureau.
Lauzon, formerly an employee of the NYSDOT, was the Engineer in Charge of a $10.5 million road reconstruction project in Washington County, New York, from 2012 to 2017. The Federal Highway Administration, a USDOT agency, provided 80 percent of the funding for the contract.
In pleading guilty, Lauzon admitted that employees of the project contractor purchased more than $17,000 in goods and services for Lauzon’s personal use, and Lauzon unlawfully reimbursed the contractor for these purchases using project funds. These goods and services included more than $2,500 worth of repairs to Lauzon’s personal car, a home entertainment surround sound system, a laptop computer, a computer monitor, a printer, lumber for a treehouse, a paint sprayer, a lawnmower, a snowblower, and a power washer. Lauzon previously paid restitution to New York State as part of a related case brought in Albany City Court.
This case was investigated by USDOT-OIG, NYSDOT’s Investigations Bureau, and the Office of the New York State Inspector General, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Former Executive at Adamo Group Sentenced for Conspiracy to Commit Honest Services Fraud in Connection with the Detroit Demolition ProgramRead the Press Release
Anthony Daguanno, 62, was sentenced today to 12 months in prison after having pleaded guilty to charges of conspiracy to commit honest services fraud in connection with the Detroit Demolition Program.
The Honorable Victoria Roberts sentenced Anthony Daguanno to serve 12 months in federal prison following his conviction for conspiracy to commit honest services fraud by taking bribes and kickbacks from a subcontractor while Daguanno was employed as an executive at Adamo Group. Following his release from prison, Daguanno will serve a two year term of supervised release and will complete 72 hours of community service. The court also ordered Daguanno to pay a $10,000 fine and to forfeit $372,750 for the bribes that he took while at Adamo.
The United States Treasury Department created the Blight Elimination Program, which focused on helping communities demolish vacant houses. The program was paid for through the Hardest Hit Fund (HHF), a housing support program intended to protect home values, preserve home ownership and promote economic growth. The City of Detroit was one of the recipients of this HHF money. Approximately $258,656,459 in Hardest Hits Funds have been allocated to the City of Detroit since Oct. 7, 2013.
As stated during Daguanno’s guilty plea, from January 2013 through January 2019, Daguanno was employed as a "Senior Estimator" at Adamo. Daguanno’s responsibilities at Adamo included soliciting bids from subcontractors, assembling bid packages in response to RFPs issued by the City of Detroit and communicating with subcontractors. In assembling the bid packages submitted to the City of Detroit, Daguanno communicated regularly with various subcontractors and kept track of the bids they submitted. "Contractor A" was one of the subcontractors with whom Daguanno communicated. On numerous occasions, Contractor A paid Daguanno money for disclosing confidential information about bids from Contractor A’s competitors. In return for these payments, Daguanno disclosed confidential information about the lowest competitor bid which allowed Contractor A to submit an even lower bid, ensuring that Contractor A was awarded lucrative contracts. In total, Daguanno accepted over $372,000 in bribes and kickbacks on 71 occasions over eight years.
The sentence imposed today demonstrates the Antitrust Division’s commitment to prosecuting conduct that subverts the competitive process and to protecting taxpayer funds.
"The Antitrust Division will aggressively pursue collusion that corrupts the government procurement process," said Assistant Attorney General Makan Delrahim of the Justice Department's Antitrust Division. "The confidential bid information that Daguanno disclosed in exchange for bribes harmed the competitive process on contracts worth millions of dollars. Bid information is confidential for a reason—disclosing it allows a bidder to unlawfully tilt the bidding process in his favor."
"The City of Detroit and its demolition program were entrusted with millions of taxpayer dollars to tear down abandoned houses in Detroit’s neighborhoods. The corruption of the government contracting process by Anthony Daguanno damaged the integrity of the demolition program and broke the public trust. This prosecution serves as a warning to other private sector companies and individuals that soliciting or accepting bribes will be punished and as a promise to the taxpaying public that such violations of the public trust will not be tolerated," said First Assistant U.S. Attorney Saima Mohsin of the Eastern District of Michigan.
"Investigating bribery that harms full and open competition in TARP-funded demolitions is one of SIGTARP’s highest priorities," said Special Inspector General Christy Goldsmith Romero of the Troubled Asset Relief Program (SIGTARP). "Harming competition through bribery is exactly what Anthony Daguanno did in the Blight Elimination Program from its creation in 2013 until charges were brought against him this year. I warn contractors that bribery in this program will be caught and there will be serious consequences."
"Mr. Daguanno was sentenced in federal court today for corrupting the bidding process while seeking contracts through a federally-funded program," said Special Agent in Charge Rainer Drolshagen of the FBI's Detroit Field Office. "The FBI’s Detroit Area Public Corruption Task Force will continue to investigate and fight corruption by those who give illegal, preferential treatment at the expense of honest American business. I would encourage anyone with information about potential public corruption in Michigan to contact FBI Detroit's Public Corruption tipline at 313-965-2222 or our main number at 313-965-2323."
Assistant Attorney General Delrahim and First Assistant U.S. Attorney Mohsin commended the outstanding work of SIGTARP and the FBI in conducting a comprehensive criminal investigation into the demolition program.
The case was prosecuted by Assistant U.S. Attorneys Sarah Resnick Cohen, Karen Reynolds, Adriana Dydell and DOJ Antitrust Trial Attorney Matthew Stegman.
Former Director of a Law Enforcement Association Sentenced for Stealing FundsRead the Press Release
St. Louis, MO – Paul Kesterson, 48, of Washington, MO, who was employed as a Lieutenant with the Washington, Missouri Police Department, was sentenced to two months and ordered to pay restitution in the amount of $25,556 for stealing funds. Kesterson appeared today before U.S. District Judge Webber.
According to court documents, between February 1, 2018 and April 2019, Kesterson served as the Director of the St. Louis Area Law Enforcement Exploring Association (STLEEA) and as a Lieutenant with the Washington, Missouri Police Department. As the Director of STLEEA, Kesterson handled all of the finances and managed the Explorer Academy training. He was issued a credit and debit card so he could draw upon funds of the STEELA checking account for the benefit of the organization. After the Assistant Director received a phone call from U.S. Bank regarding a late credit card payment, an investigation was conducted regarding Kesterson’s use of the STLEEA account, as well as a Washington Police Department bank account controlled by Kesterson on behalf of STLEEA. Financial records revealed that Kesterson had been using the credit/debit card to make personal purchases. During the instant investigation regarding the STLEEA U.S. Bank account activity from 2018 to April 2019, no other members of the Washington Police Department or any other law enforcement agencies were found to be involved in Kesterson’s criminal activity.
This case was investigated by the U.S. Secret Service, Washington Police Department and O’Fallon, Missouri Police Department.
Former CFO of Long Island Real Estate Company Pleads Guilty to Multi Million Dollar FraudRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Kwesi Bovell, the former chief financial officer (CFO) of The Mulholland Group, a real estate company in Manhasset (Mulholland), pleaded guilty to one count of wire fraud in connection with his embezzlement of millions of dollars from his employer over the course of three years. The plea was entered before United States Magistrate Judge Gary R. Brown. When sentenced, Bovell faces up to 20 years in prison, as well as restitution and a fine.
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 guilty plea.
As described in court filings and as admitted during his guilty plea, Bovell was hired in 2015 as CFO of Mulholland, and was given signature authority over numerous bank accounts of the company and its subsidiaries. Over the next three years, Bovell fraudulently transferred over $3.5 million from Mulholland to his own company, Southgate Holding, LLC. Bovell used the stolen funds to support two laundromats and a fitness center that he owned and to purchase luxury goods.
“With today’s guilty plea, Bovell has been held responsible for betraying his employer’s trust by stealing millions of dollars to benefit himself, from the time he was hired until the discovery of his fraud,” stated United States Attorney Donoghue.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.
The Defendant:
KWESI BOVELL
Age: 36
Valley Stream, New YorkE.D.N.Y. Docket No. 18-571 (JMA)
Former Blackwater Employee RE-Sentenced for Fatal 2007 Shooting at Nisur Square in IraqRead the Press Release
WASHINGTON – Three former security guards for Blackwater USA were sentenced September 5, 2019, for their roles in the Sept. 16, 2007, shooting at Nisur Square in Baghdad, Iraq, that resulted in the killing of 14 unarmed civilians and the wounding of numerous others.
The sentencing, in the U.S. District Court for the District of Columbia, was announced today by U.S. Attorney Liu and Timothy R. Slater, Assistant Director in Charge of the FBI’s Washington Field Office.
Paul Alvin Slough, 39, of Keller, Texas, was sentenced to 180 months; Evan Shawn Liberty, 36, of Rochester, N.H., was sentenced to 168 months; and Dustin Laurent Heard, 37, of Maryville, Tenn., was sentenced to 151 months. All were found guilty by a jury on Oct. 22, 2014, following a 2 ½-month trial. On August 4, 2017, the Court of Appeals for the District of Columbia remanded the case to the district court for re-sentencing. The defendants were sentenced by the Honorable Senior Judge Royce C. Lamberth.
The jury found Slough guilty of 13 counts of voluntary manslaughter, 17 counts of attempted manslaughter, and one firearms offense. Liberty was found guilty of eight counts of voluntary manslaughter, 12 counts of attempted manslaughter, and one firearms offense. Heard was found guilty of six counts of voluntary manslaughter, 11 counts of attempted manslaughter, and one firearms offense.
At the sentencing hearing, Judge Lamberth explained, “We have 13 Iraqi citizens who were all innocent victims who were killed and 17 more who were injured. The defendants' orders were for self-defense, and they were firing wildly into cars. [Some of the victims were] turning around in the other direction. There was just wild shooting that could never be condoned by any court.” Judge Lamberth said that the sentences reflect “what kind of country is the United States. We hold our Armed Forces and our contractors accountable for their actions.” And he noted that “the government found and exposed and delivered to the world a trial where the truth of what happened in Nisur Square came out and was there for the world and the public to see, and I think the government of the United States deserves great credit for how the truth came out in this case and in this trial.” Judge Lamberth emphasized that he “squarely reject[s] any notion … that there is any question as to the factual guilt of each of the three defendants . . .”
The case was investigated by the FBI Washington Field Office’s Northern Virginia Violent Crime Squad, which has extraterritorial investigative responsibilities, and prosecuted by the U.S. Attorney’s Office for the District of Columbia.
Five Defendants Indicted in Mortgage Fraud SchemeRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Iskyo Aronov, Michael Konstantinovskiy, Tomer Dafna, Avraham Tarshish and Michael Herskowitz with conspiracy to commit wire fraud and bank fraud, and related wire fraud counts, in connection with a scheme to defraud mortgage lenders, including the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”) and borrowers. Konstantinovskiy, Dafna, Tarshish and Herskowitz were arrested this morning in New York, and will be arraigned this afternoon before United States Magistrate Judge Lois Bloom. Aronov was arrested in Florida, and will appear this afternoon for a removal hearing at the federal courthouse in Miami.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Robert Manchak, Special Agent-in-Charge, Federal Housing Finance Agency, Office of Inspector General, Northeast Region (FHFA-OIG), and Christina Scaringi, Special Agent-in-Charge, U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Region (HUD-OIG), announced the charges.
According to the indictment, between December 2012 and January 2019, the defendants conspired to defraud mortgage lenders, misleading them into approving short sale transactions at fraudulently depressed prices. In a short sale, with the approval of the mortgage lender or servicer, a mortgage loan borrower sells his or her property for less than the outstanding balance of the mortgage loan. The proceeds from the short sale, less approved closing costs, are applied to the outstanding mortgage loan balance owed to the lender, who typically agrees to forgive the borrower’s remaining mortgage loan balance. Here, the defendants fraudulently manipulated the short sale process by transferring properties for prices well above the short sale prices, and failing to disclose this to the mortgage lenders and servicers. The defendants also took steps to preclude other prospective purchasers from making higher offers for properties by failing to market properties as required by the lenders, and by filing fraudulent liens on properties.
As a further part of the scheme, the defendants provided the mortgage lenders and servicers with false and misleading information in transaction documents and failed to disclose either payments made to the borrower and others related to short sale or contemporaneous agreements to transfer the properties at inflated prices. Many of the affected mortgage loans were insured by the Federal Housing Administration, or owned or guaranteed by Fannie Mae or Freddie Mac.
“As alleged, the defendants defrauded mortgage loan holders out of millions of dollars, with taxpayers saddled with much of the loss,” stated United States Attorney Donoghue. “This Office will continue working with our law enforcement partners to vigorously prosecute those who commit mortgage fraud and enrich themselves at the expense of the financial institutions and government programs that insure or guarantee the loans.” Mr. Donoghue thanked the United States Department of Homeland Security, Homeland Security Investigations, New York Field Office (HSI), the HSI El Dorado Financial Crimes Task Force and the Internal Revenue Service, Criminal Investigation, New York, for their assistance in the ongoing investigation.
“Together with our partners in law enforcement, we have disrupted a scheme to defraud Fannie Mae and Freddie Mac. As demonstrated by this indictment, FHFA-OIG will investigate and hold accountable those who seek to victimize the government-sponsored entities supervised and regulated by FHFA,” stated FHFA-OIG Special Agent-in-Charge Manchak.
“These five individuals allegedly engaged in a scheme of wholesale deception when they provided false, misleading, and incomplete information to lending institutions, borrowers, and the Federal Housing Administration (FHA) causing millions of dollars in damages to the FHA, which typically results in higher premiums being charged to future first-time homeowners,” stated HUD-OIG Special Agent-in-Charge Scaringi. “What makes their alleged crimes even more egregious was their artificial devaluation of properties that, when resold or ‘flipped,’ resulted in large profits. Many of these homes were located in economically challenged areas of New York where affordable housing is at a premium.”
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants each face a maximum of 30 years’ imprisonment and a $1 million fine.
The case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Shannon C. Jones is in charge of the prosecution. Assistant United States Attorney Tanisha Payne of the Office’s Civil Division is handling forfeiture matters.
The Defendants:
ISKYO ARONOV (also known as “Isaac Aronov”)
Age: 32
Miami, FloridaMichael Konstantinovskiy (also known as “Michael Kay”)
Age: 33
Rego Park, QueensTomer Dafna
Age: 48
Great Neck, New YorkAvraham Tarshish (also known as “Avi Tarshish”)
Age: 40
Queens Village, New YorkMichael Herskowitz
Age: 40
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-408 (SJ)
Final Three Defendants Plead Guilty for Their Role in Drug Trafficking OrganizationRead 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 Devincio K.D. James, 30, of Niagara Falls, NY, Luis Andino, 33, and Jenhsen Rodriguez, 33, both of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo for their roles in a drug trafficking organization that distributed drugs in the Niagara Falls and Buffalo areas.
• Defendants James and Rodriguez pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine, and face a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000; • Defendant Andino pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 5 kilograms or more of cocaine, and faces a mandatory minimum penalty of 10 years in prison, a maximum of life in prison and a fine of $10,000,000.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that between July 2017 and September 29, 2017, the defendants conspired with others to distribute cocaine in the Niagara Falls area for a drug trafficking organization led by co-defendant Cesar Rivera-Figueroa.
Defendant James was a mid-level distributor of cocaine for Rivera-Figueroa. James picked up the cocaine from either Rivera-Figueroa or another co-defendant, then sold it in Niagara Falls. On September 29, 2017, James was arrested inside his residence at 1080 99th Street in Niagara Falls. Investigators searched the residence and recovered approximately $29,260 in U.S. currency; a loaded 20 gauge shotgun; 23 live 20 gauge shotgun shells; and five digital scales.
One of defendant Andino’s roles was to assist Rivera-Figueroa by recruiting individuals to provide addresses where packages containing cocaine could be shipped, picking up packages containing cocaine shipped from Puerto Rico, making deliveries of cocaine to customers, and making trips to New York City to transport money and cocaine for the organization. Between June 15 and July 13, 2017, Andino recruited individuals in the Buffalo area to supply at least nine addresses for use by the organization to ship packages of cocaine from Puerto Rico to Buffalo. Andino was paid $100 per address by the Rivera-Figueroa organization. The addressee was then paid $500 per package received by the Rivera-Figueroa organization. When packages were delivered to the recruited recipients, Andino would retrieve the cocaine from the recipient address and transport it back to a stash house where it would then be distributed. During the course of the conspiracy, several packages containing cocaine were intercepted by the United States Postal Inspection Service.
Defendant Rodriguez was also a mid-level distributor of cocaine for Rivera-Figueroa. On September 13, 2017, Rodriguez traveled with a co-defendant to New York City to deliver proceeds of drug trafficking as payment for a quantity of controlled substances. On September 21, 2017, intercepted communications revealed that the Rivera-Figueroa organization expected to receive three postal parcels containing bulk quantities of cocaine that day. Rodriguez agreed to keep watch and take delivery of one of those three parcels destined for a residence on Tonawanda Street in Buffalo. The United States Postal Service intercepted two of the three parcels, including the parcel destined for Tonawanda Street.
On September 29, 2017, investigators executed a federal search warrant at Rodriguez’s residence at 42 Wiley Place. Multiple items were seized including a loaded .22 caliber rifle; approximately 100 rounds of .22 caliber ammunition; $10,115.00 in U.S. currency; a quantity of heroin and cocaine; two 2 scales; and drug packaging materials.
Rodriguez admits that he possessed the firearm in furtherance of his drug trafficking activities.
Following his arrest, defendant Rodriguez was released from custody on October 4, 2017. On December 29, 2018, the defendant was stopped in a vehicle traveling westbound on State Route 17 in Middletown, NY by New York State Police troopers for committing Vehicle and Traffic infractions. When questioned by the trooper, Rodriguez was traveling to New York City to pick up heroin to bring back to Buffalo for distribution.
A total of 12 defendants were charged and convicted in this case.
The pleas are the result of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; 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; and the New York State Police, under the direction of Major Edward Kennedy.
Devincio K.D. James is scheduled to be sentenced on January 31, 2020; Luis Andino is scheduled to be sentenced on January 24, 2020; and Jenhsen Rodriguez is scheduled to be sentenced on January 17, 2020, all before Judge Vilardo.
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Felon in Possession of a Firearm Sentenced to Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. District Judge Brian A. Jackson sentenced Devante Courtney, a 26-year-old resident of Baton Rouge, to 68 months in federal prison following his conviction for possessing a firearm by a convicted felon. The Court further sentenced Courtney to 3 years of supervised release following his term of imprisonment, and ordered that the firearm possessed by Courtney be forfeited.
On November 5, 2018, East Baton Rouge Sheriff's Office deputies conducted a traffic stop on a vehicle being driven by Courtney who, upon contact, was observed stuffing an item between his seat and the center console.
During a subsequent search of the vehicle, deputies located a stolen Glock 19, 9mm handgun, in the area between the driver's seat and the center console. The handgun was fully loaded with 34 live rounds in its extended magazine. Additionally, Courtney was in possession of a clear plastic bag containing 50 individually wrapped bags of a synthetic cannabinoid.
Prior to possessing the firearm, Courtney was convicted of obtaining a controlled dangerous substance by fraud and attempting to obtain a controlled dangerous substance by fraud on December 17, 2014, in East Baton Rouge Parish.
U.S. Attorney Fremin stated, “This conviction and sentence sends the message that my office and our partners remain committed to investigating, arresting, and prosecuting convicted criminals who decide to illegally possess firearms. Great credit goes to our partnership with local authorities for this result. I want to thank our prosecutor, the ATF, and the East Baton Rouge Sheriff’s Office for their work on this case.”
“The sentence imposed today sends a strong message to criminals that they will be held accountable for their actions,” stated ATF New Orleans Field Division Assistant Special Agent in Charge Jeffrey Powell. “ATF is committed to collaborate with all of our federal, state, and local law enforcement partners to remove violent criminals from our neighborhoods and communities.”
“The East Baton Rouge Sheriff’s Office is proud of the partnership we have with the U.S. Attorney’s Office and appreciate their commitment to prosecute these cases on the federal level,” Sheriff Sid Gautreaux said. “This case is a prime example of collaboration and cooperation carried out through all levels of the process to ensure the safety of our community.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the East Baton Rouge Sheriff’s Office, with substantial assistance from the Louisiana State Police Crime Laboratory. The case was prosecuted by Assistant United States Attorney Jessica Jarreau.
Federal Inmate Charged with Illegally Possessing Prescription DrugsRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., was indicted by a federal grand jury in Johnstown on a charge of possession of a prohibited object in prison, United States Attorney Scott W. Brady announced today.
The indictment named Cameron Bivins-Breeden, 26.
According to the indictment presented to the court, on November 7, 2018, Bivins-Breeden possessed a quantity of Buprenorphine.
The law provides for a maximum sentence of 20 years in prison and a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Arnold P. Bernard, Jr. is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Federal Correctional Institution, Special Investigative Staff, conducted the investigation leading to the prosecution of Bivins-Breeden.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
FEMA Deputy Regional Administrator, Former President of Cobra Acquisitions, LLC, and Another Former FEMA Employee Indicted for Conspiracy to Commit Bribery, Honest Services Wire Fraud, Disaster Fraud, Among Other ChargesRead the Press Release
SAN JUAN, Puerto Rico– Ahsha Nateef Tribble, a FEMA Region II, Deputy Regional Administrator; Donald Keith Ellison, former President of Cobra Acquisitions, LLC; and Jovanda R. Patterson, a.k.a. “Jo/Jojo,” former FEMA Deputy Chief of Staff, have been indicted and arrested on charges of: conspiracy to commit bribery of public officials; acts affecting a personal financial interest; false statements; disaster fraud; honest services wire fraud, Travel Act violations, and wire fraud, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico. The Department of Homeland Security (DHS), Office of Inspector General (OIG), conducted the investigation with support from the Federal Bureau of Investigation.
The indictment returned Tuesday, September 3, 2019, by a federal grand jury in the District of Puerto Rico, includes 15 counts against the following individuals:
- Ahsha Nateef Tribble - Federal Emergency Management Agency (FEMA), Region II, Deputy Regional Administrator, assigned to work in Puerto Rico as part of FEMA’s response to Hurricane María. From October 2017 to September 2018, Tribble was also the Sector Lead for Power and Infrastructure in Puerto Rico and the Recovery Office Deputy Director – Infrastructure Directorate/Disaster Recovery Manager in the Office of the FEMA Federal Coordinating Officer.
- Donald Keith Ellison - President of Cobra Acquisitions, LLC until June 2019;
- Jovanda R. Patterson, a.k.a. “Jo/Jojo,” - FEMA Deputy Chief of Staff, assigned to San Juan, PR from October 2017 to March 2018. Patterson resigned from her position with FEMA in July 2018 to work for Cobra Energy LLC.
The indictment alleges that the defendants used Tribble’s positions in FEMA to benefit and enrich themselves and defraud the United States. Following the passage of Hurricane María over Puerto Rico on September 20, 2017, Ahsha Nateef Tribble, Donald Keith Ellison, and Jovanda R. Patterson came to Puerto Rico as part of the recovery and restoration of Puerto Rico’s electric power grid. In Tribble’s position as Sector Lead and Deputy Director, she reported directly to the Federal Coordinating Officer and was FEMA’s primary leader as to the restoration of electric power on the island.
Ellison was President of Cobra Acquisitions, LLC (COBRA), the main contractor for the Puerto Rico Electric Power Authority (PREPA) as to recovery work performed following Hurricane María. PREPA executed two contracts with COBRA with a total contract value of approximately $1,845,429,800.00. Work performed under both contracts was paid through PREPA with federal funds from FEMA.
From October 2017 to April 2019, Tribble and Ellison developed a personal relationship wherein Ellison provided Tribble with things of value with the intent to influence Tribble’s performance of official acts. Ellison provided Tribble with personal helicopter use, hotel accommodations, airfare, personal security services, and the use of a credit card. As part of Ellison’s pattern of providing things of value to Tribble, he also secured employment within COBRA’s affiliated companies for her friend, defendant Patterson. In exchange, Tribble performed official acts, including influencing, advising, and exerting pressure on PREPA and FEMA officials, in order to award restoration work to COBRA and accelerate payments to COBRA.
Count 1 of the Indictment charges Tribble and Ellison with a conspiracy to commit bribery in violation of 18 U.S.C. § 371 based on soliciting and giving things of value to Tribble in order to influence Tribble’s performance of official acts as a FEMA employee. To further the conspiracy, Tribble and Ellison communicated using private email accounts, private cellular telephones, including a disposable prepaid cellular number, Apple iMessage, and SMS texts rather than FEMA issued email accounts or cellular telephones.
Counts 2 through 5 of the Indictment charge Tribble and Ellison with honest services wire fraud in violation of 18 U.S.C. §§ 1346, 1343 pertaining to the defendant’s scheme to deprive the United States and its citizens of the honest services of Tribble, a public official.
Count 6 of the Indictment charges Tribble and Ellison with disaster fraud in violation of 18 U.S.C. § 1040. Despite Ellison’s duty to disclose to PREPA all information and circumstances of its relationships with third persons, and Tribble’s duty to refuse gifts from prohibited sources, Tribble and Ellison concealed Tribble’s receipt and acceptance of things of value from Ellison.
Counts 7 through 10 of the Indictment charge Tribble with Travel Act violations prohibited by 18 U.S.C. § 1952(a)(3) pertaining to her use of interstate wire and electronic communications, with the intent to promote, manage, establish, and carry on the bribery scheme.
Counts 11 and 12 of the Indictment charge Ellison with false statements in violation of 18 U.S.C. § 1001. On March 15, 2019, Ellison stated to FBI and DHS OIG agents as a part of a voluntary interview, that he had no personal relationship with Tribble and was only around her in relation to business. He also stated that he had not taken a helicopter trip with Tribble on or about February 7, 2018. Ellison knew both statements were false.
Count 13 of the Indictment charges Patterson with committing acts affecting personal financial conflicts of interest in violation of 18 U.S.C. § 208. While Patterson was negotiating employment with COBRA and its affiliates from March to July 2018, Patterson participated as a FEMA employee in a May 8, 2018 Past Performance Evaluation for Cobra Logistics LLC as a part of a vendor bid process.
Counts 14 and 15 of the Indictment charge Patterson with wire fraud in violation of 18 U.S.C. § 1343. While negotiating employment with COBRA and its affiliates from March 2018 through July 2018, Patterson falsely represented her FEMA salary to be calculated based on the Office of Personnel Management’s General Schedule (“GS”) Pay Table at GS 14 Step 10. In fact, Patterson’s salary and GS level were lower. The material misrepresentation caused her to be offered an annual salary of $160,000 plus 30% bonus.
Defendants Tribble and Ellison are facing a forfeiture allegation of the following: $1,000,000.00 contained in Charles Schwab & Co., Inc. account in the name of Donald Keith Ellison, seized on April 26, 2019; $3,425,512.93 contained in Charles Schwab & Co., Inc. account in the name of Ellison, seized on June 18, 2019; One Myco Boat Trailer; one Caterpillar Model D5K2LGP Tractor; one Caterpillar Model 320EL Hydraulic Excavator; $71,551.40 in a checking account at JP Morgan Chase, in the name of Ellison; $276,583.84 contained in a savings account at JP Morgan Chase, in the name of Ellison; $100,306.70 contained in a savings account at JP Morgan Chase, in the name of Ellison and Jakyln F. Garrett; One 2018 Invincible 40-foot catamaran; and one 2018 Ford F-150 “XL” crew cab pickup truck.
“These defendants were supposed to come to Puerto Rico to help during the recovery after the devastation suffered from Hurricane María. Instead, they decided to take advantage of the precarious conditions of our electric power grid and engaged in a bribery and honest services wire fraud scheme in order to enrich themselves illegally,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “All government officials are entrusted with performing their duties honestly and ethically. The charged offenses are reprehensible, more so in light of PREPA’s and Puerto Rico’s fiscal crisis.”
“This investigation was a top priority for the Department of Homeland Security (DHS) Office of Inspector General (OIG), which dedicated significant personnel and resources over the last year to investigate the defendants and the events outlined in today’s indictment. This was a nationwide investigative effort, conducted jointly with our partners in the FBI and the U.S. Attorney’s Office. These charges send a clear message that the DHS OIG will aggressively pursue fraud committed by DHS employees and their co-conspirators. Corruption in the ranks at DHS and its components will not be tolerated,” stated Inspector General Joseph Cuffari and Special Agent in Charge of the Major Frauds and Corruption Unit, James Long.
“While there is no known cure to permanently rid society of corruption, there are certain powerful antidotes, namely, arrests and prosecutions. Thanks to our partners at the Department of Homeland Security Office of Inspector General and the United States Attorney’s Office, swift and certain justice will be delivered to all those who would steal funds from citizens most in need,” said Douglas A. Leff, Special Agent in Charge of the FBI.
The case is being prosecuted by Assistant U.S. Attorneys Myriam Y. Fernández and Seth Erbe. If found guilty, the defendants are facing possible sentences of up to 5 years for conspiracy, travel act violations, conflict of interest, and false statements, up to 30 years for honest services wire fraud and disaster fraud. The charges contained in the Indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
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Eastern Oregon Man Sentenced to Nearly 20 Years in Federal Prison for Trafficking Sixty Pounds of Methamphetamine (Photo)Read the Press Release
Over 30 firearms and a large quantity of meth laid out across a conference table. Meth displayed on a trailer ramp next to the propane tank with false bottom where it was found. Seized meth displayed in a vehicle trunk next to the speaker box where it was recovered.PORTLAND, Ore.—Abel Lomas Murillo, 26, of Weston, Oregon, was sentenced today to 235 months in federal prison and five years’ supervised release for conspiring to distribute methamphetamine.
Murillo previously pleaded guilty to one count of conspiracy to possess with the intent to distribute methamphetamine on April 15, 2019.
According to court documents, in November 2017, the Blue Mountain Enforcement Narcotics Team (BENT), the Oregon State Police (OSP) and the FBI began investigating a drug trafficking organization led by Murillo.
Abel Murillo sourced drugs from his older brother and co-defendant Noel Murillo who lived in Vacaville, California in the Eastern District of California. The investigation revealed that as early as July 2017, Noel Murillo transported drugs from Vacaville to Klamath Fall, Oregon where a courier would then deliver them to his brother. Abel Murillo and his co-conspirators also made multiple trips to Medford, Oregon to pick up drugs and transport them back to Morrow and Umatilla Counties for distribution in Northeast Oregon and Southeast Washington.
In January 2018, an OSP trooper stopped one of the Murillo brothers’ couriers, Luis Alberto Navarro, in a vehicle traveling near Klamath Falls en route to Umatilla County. A search of the vehicle revealed 11 concealed packages containing more than 8 kilograms of methamphetamine.
In early May 2018, as the investigation continued, Abel Murillo enlisted another courier, Noel Ponce Villegas, to drive methamphetamine from Medford to Boardman, Oregon. Investigators surveilled Murillo as he traveled from Umatilla County to a storage locker in Medford and loaded a trailer being pulled by his truck. Murillo paid Villegas to drive his truck and trailer while he followed to minimize his own risk. In the early morning hours of May 6, 2018, investigators from BENT, OSP and FBI stopped Murillo and Villegas as they drove near mile marker 102 on Interstate 84.
Investigators seized 42 packages of methamphetamine, 36 of which were concealed in a false bottom of a propane tank. The packages contained approximately 17.6 kilograms of methamphetamine. Later the same day, investigators executed a search warrant at Murillo’s residence, seizing 29 firearms and body armor. Pursuant to a separate search warrants, another 10 pounds of methamphetamine and five firearms were found in a Medford storage locker Murillo had visited earlier in the weekend.
During sentencing, U.S. District Court Judge Michael H. Simon ordered Murillo to pay $20,000 to satisfy a forfeiture money judgment.
On May 7, 2018, Navarro pleaded guilty to one count of possession with the intent to distribute methamphetamine. He will be sentenced on October 15, 2019.
On April 18, 2019, Villegas pleaded guilty to one count of possession with the intent to distribute methamphetamine. He will be sentenced on December 3, 2019.
Co-defendant Noel Murillo is charged with one count of conspiracy to possess with intent to distribute methamphetamine. A three-day jury trial is scheduled for November 5, 2019.
This case was investigated by BENT, OSP and the FBI and prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Department of Justice grant will provide law enforcement assistance in SavannahRead the Press Release
SAVANNAH, GA: The Savannah Police Department is receiving a federal grant to improve safety in the community under the Department of Justice’s Project Safe Neighborhoods program.
The $61,828 grant will provide funding for surveillance cameras, fingerprint scanners and GPS tracking systems for the Savannah Police Department, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
U.S. Attorney Christine announced the grant award Tuesday, Sept. 10, at the Savannah Police Department headquarters.
“The Savannah Police Department is a vital partner in our public safety network,” said U.S. Attorney Christine. “We owe it to the law enforcement and prosecutors we rely upon to ensure that they have the best equipment and cutting-edge technology. These federal grants are a step toward fulfilling that obligation. We would like to congratulate Chief Roy Minter Jr. for the department’s successful application, and thank the Project Safe Neighborhoods grant review committee for their service in reviewing the grant requests.”
Other Southern District recipients of this year’s grants include the Brunswick Police Department, Glynn County Police Department, Richmond County Sheriff’s Office, and the Augusta District Attorney’s Office.
”Savannah Police Department is extremely pleased to be one of the recipients in the Project Safe Neighborhoods grant,” said Chief Roy Minter Jr. “This will be extremely beneficial in furthering the department and the city’s goals of reducing crime in Savannah. Our command staff is currently working on a deployment strategy so that we can ensure that this technology will be used to its fullest capability to help us identify and target offenders in our area.”
The U.S. Department of Justice’s Project Safe Neighborhoods (PSN) is a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer. For example, it was under the umbrella of PSN that the U.S. Attorney’s Office and law enforcement agencies, including the Savannah Police Department, successfully conducted the sweep to reduce criminal gun violence in Savannah’s historic Cuyler-Brownsville neighborhood.
Department of Justice grant will provide law enforcement assistance in Brunswick communityRead the Press Release
BRUNSWICK, GA: Two Brunswick law enforcement agencies are receiving a federal grant to improve safety in their community under the Department of Justice’s Project Safe Neighborhoods program.
The Glynn County Police Department and the Brunswick Police Department will share the $53,554 grant to the Glynn County Board of Commissioners, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The funds will be used to install a camera surveillance system for the Brunswick and Glynn County area.
U.S. Attorney Christine announced the grant awards Tuesday, Sept. 10, at the Glynn County Police Department.
“Local law enforcement partners are a vital part of the public safety network in our communities,” said U.S. Attorney Christine. “We owe it to the law enforcement and prosecutors we rely upon to ensure that they have the best equipment and cutting-edge technology. These federal grants are a step toward fulfilling that obligation. We would like to congratulate Glynn County Police Chief John Powell and Brunswick Police Chief Kevin Jones for their successful application for the Department of Justice grant, and thank the Project Safe Neighborhoods grant review committee for their service in reviewing the grant requests.”
Other Southern District recipients of this year’s grants include the Savannah Police Department, the Richmond County Sheriff’s Office, and the Augusta District Attorney’s Office.
“The Glynn County Police Department, and its public safety partners, consistently focus on developing and improving both security and environmental well-being for our residents,” said Glynn County Police Chief John Powell. “With technology advancing at an exponential rate, we are exceptionally grateful for the ability to keep up with that growth and to improve our ability to reduce or solve violent crime cases. We look forward to utilizing the new technologies afforded to us from this grant to help keep our community safe.”
“On behalf of the Brunswick Police Department we would like to thank the Department of Justice for awarding the Brunswick Police Department and the Glynn County Police Department with a federal grant to improve safety in our neighborhoods,” said Brunswick Police Chief Kevin Jones. “This grant will enhance the Brunswick Police Department’s technological abilities in an effort to continuously serve the communities here in Brunswick, Georgia.
“The Brunswick Police Department and Glynn County Police Department are always looking at ways to continue in our efforts of making Brunswick and Glynn County a safe place to live and visit,” Chief Jones said. “Whenever smaller police departments are awarded extra funding, it is a big help in making sure the citizens in the community get the best service available.”
The U.S. Department of Justice’s Project Safe Neighborhoods (PSN) is a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer. For example, it was under the umbrella of PSN that federal, state and law enforcement agencies and the U.S. Attorney’s Office dismantled a major south Georgia drug trafficking organization whose leader recently was sentenced in U.S. District Court in Brunswick to nearly 11 years in federal prison.
Defendants Indicted in Wichita Among Hundreds Indicted in Worldwide Fraud ProbeRead the Press Release
WICHITA, KAN. – Five men indicted in federal court in Wichita are among hundreds of defendants charged in an international fraud investigation, U.S. Attorney Stephan McAllister said today.
King Bassey Essien, 26, Wichita, Kan., Franklin Ogochukwu Okapu, 20, Wichita, Kan., Oluwatimileyin Aloaye Frederick Diyaolu, 21, Wichita, Kan., Emmanuel Oluwaseun Daramola, 22, Wichita, Kan., and Abasiakara Ime Ekanem, 22, Nigeria, are charged with one count of conspiracy to commit money laundering.
The indictment alleges the defendants received money from victims of fraud in the United States and foreign countries. The frauds took many forms including romance scams and investment scams designed to cause victims to transfer money to bank accounts controlled by the defendants and others. The defendants would transfer the money to other accounts, primarily in Nigeria and Ghana. The defendants also transferred money among themselves, received transfers and made cash withdrawals.
The indictment alleges:
- Essien’s account received cash depots of more than $190,000, international wire transfers of more than $120,000 and domestic wire transfers of more than $88,000. Two-thirds of the money was transferred to bank accounts in Nigeria and Ghana.
- Okapu’s accounts received cash deposits of more than $67,000 and total deposits of more than $337,000, including domestic transfers, money orders and cashier’s deposits.
- Diyaolu’s accounts received total deposits of more than $572,000. Three-quarters of the money was transferred to bank accounts in Nigeria.
- Daramola’s accounts received total deposits of more than $283,000. More than two-thirds of the money was transferred to bank accounts in Nigeria.
- Ekanem’s accounts received total deposits of more than $208,000. Almost half the money was withdrawn as cash.
Together, the defendants are alleged to have transferred more than $923,000 to an unindicted conspirator in Lagos, Nigeria, and more than $211,000 to another unindicted conspirator in Lagos, Nigeria.
The defendants in Kansas were among more than 280 people arrested in the United States and overseas as a result of a joint investigation by the U.S. Department of Justice, the U.S. Department of Homeland Security, the Internal Revenue Service, the U.S. Postal Inspection Service and the U.S. Department of State.
The investigation targeted many kinds of scams including so-called romance scams that obtain money from victims by claiming their loved ones need funds, and investment scams that seek money from victims seeking business opportunities.
If convicted, the defendants face up to 20 years in federal prison and a fine up to $500,000. The FBI investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Danville Woman sentenced to 138 Months for Armed Drug TraffickingRead the Press Release
LEXINGTON, Ky. – Tanisha R. Berry of Danville, Ky., was sentenced by Senior United States District Judge Joseph M. Hood, to 138 months in federal prison, for possessing with the intent to distribute more than 50 grams of methamphetamine and more than 40 grams of fentanyl, as well as possession of a firearm in furtherance of drug trafficking.
On November 24, 2018, the Boyle County Sheriff’s Office, began investigating drug distribution activity at Berry’s residence in Danville. On November 25, 2018, a search warrant was executed at the residence. Berry was present and the search of her bedroom yielded 487 grams of methamphetamine and 66.7 grams of fentanyl. Underneath the mattress, in close proximity to the drugs, deputies located a loaded .380 caliber pistol. Deputies also located $4,179 in drug proceeds.
The investigation was conducted by the Boyle County Sheriff’s Office and the Drug Enforcement Administration. The United States was represented by Assistant U.S. Attorney Roger W. West.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Derek Robbins, Boyle County Sheriff; and Dan Dodds, Acting Special Agent in Charge, DEA Louisville Field Division, jointly announced the sentence.
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Cupertino Man Convicted of Embezzling More Than $7.5 Million in Donated FundsRead the Press Release
SAN JOSE - A federal jury convicted Jonathan Chang of four counts of wire fraud and three counts of money laundering, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The verdict follows a four-week trial before the Honorable Edward J. Davila, United States District Judge.
The evidence at trial demonstrated that Jonathan Chang, 63, of Cupertino, Calif., engaged in a scheme to defraud a wealthy donor of money intended to support the Home of Christ 4 Christian Church (HOC4), located in Saratoga, Calif. Chang, who served as an “elder” responsible for managing the finances of the church, furthered his scheme by establishing charitable organizations with names similar to the church. He then directed more than $6 million from the donor to his own organizations rather than to the HOC4. In addition, Chang embezzled approximately $900,000 from HOC4-related bank accounts in his scheme to defraud.
The jury concluded that Chang solicited funds from the wealthy donor for the stated purpose of acquiring a new HOC4 building (church house) and purported missionary work. In response to Chang’s requests, the donor provided $2.25 million in one-time donations, a $3 million loan to acquire the new building, and approximately $1.5 million total in monthly donations. Chang did not use the funds as directed and authorized by the donor. Instead, he commonly used the funds for personal enrichment. For example, Chang used the funds to buy a number of houses in the Bay Area, purchase luxury vehicles, obtain 15 timeshare interests, invest in commercial real estate, and pay for his health insurance and athletic club dues. The evidence also showed that Chang purchased a home in Fremont with the donor’s funds and then leased the house to one of the donor’s companies, thereby collecting rent on a house that was purchased with funds the donor earmarked for religious purposes. Similarly, Chang purchased another home with donor funds that were designated for religious purposes, but ultimately rented the home to one of his children. In total, between 2004 and January 2016, Chang obtained more than $7.5 million in funds from the donor and HOC4.
Chang also concealed the proceeds of his scheme to defraud by committing money laundering. The evidence at trial demonstrated Chang created fraudulent entities to conceal the wire fraud scheme and forwarded the funds to a variety of other bank accounts he controlled before spending the money on personal purchases.
On February 4, 2016, a federal grand jury indicted Chang and his wife, Grace Chang, 60, charging each with one count of conspiracy to commit wire or mail fraud, in violation of 18 U.S.C. § 1349; four counts of wire fraud, in violation of 18 U.S.C. § 1343; one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h); and three counts of money laundering, in violation of 21 U.S.C. § 1956(a). The jury found Jonathan Chang guilty of all the wire fraud and money laundering counts. The jury did not reach a verdict as to the two charged conspiracy counts, nor did the jury reach a verdict as to the counts filed against Grace Chang.
Jonathan Chang faces a maximum sentence of 20 years imprisonment and a fine of $250,000 for each violation of 18 U.S.C. § 1343. He also face a maximum of 20 years imprisonment and fine of $500,000 or twice the value of the laundered funds, whichever is greater, for each violation of 18 U.S.C. § 1956(a)(1)(B). Additional periods of supervised release, fines and restitution may apply. 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.
Jonathan and Grace Chang are scheduled to appear before Judge Davila on September 17, 2019 for a status conference.
Assistant U.S. Attorneys Patrick R. Delahunty and Sarah E. Griswold are prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation by the FBI.
Columbia City Man Sentenced to 120 Months in PrisonRead the Press Release
FORT WAYNE- Shane Leazier II, 33, of Columbia City, Indiana was sentenced by U.S. District Court Judge Holly A. Brady after pleading guilty to possession with intent to distribute methamphetamine, announced U.S. Attorney Thomas L. Kirsch II.
Leazier was sentenced to a total of 120 months in prison followed by 5 years of supervised release.
This case was investigated by the Fort Wayne FBI Safe Streets Gang Task Force with the assistance of the Fort Wayne Police Department. This case was handled by Assistant United States Attorney Anthony Geller.
City of St. Paul Receives $750,000 in Federal Grant Money to Address Gun-Related Violent CrimeRead the Press Release
United States Attorney Erica H. MacDonald today announced that $750,000 in grant funds have been awarded to the City of Saint Paul to expand its use of the Crime Gun Intelligence Center (CGIC) in partnership with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Saint Paul Field Division. Specifically, the grant provides funding for a crime analyst, a National Integrated Ballistic Information Network (NIBIN) technician, a CGIC prosecutor, and training.
The Local Law Enforcement Crime Gun Intelligence Center Integration Initiative, administered by the DOJ’s Bureau of Justice Assistance, in partnership with the ATF, is a competitive grant program that provides funding to state, local, and tribal government entities that are experiencing precipitous increases in gun-related violent crime. Saint Paul is one of eight local law enforcement jurisdictions across the country to receive this funding.
United States Attorney Erica H. MacDonald said, “These funds will allow for greater partnership between the Saint Paul Police Department and the ATF by expanding the Crime Gun Intelligence Center, focused solely on reducing gun-related violent crime. Keeping Minnesotans safe from violence is my top priority and partnerships such as this are key to identifying and prosecuting individuals who bring gun violence to our communities.”
Saint Paul Police Chief Todd Axtell said, The Saint Paul Police Department is doing everything in its power to reduce gun violence in the city of Saint Paul. This grant money will allow us additional resources to enhance our partnership with the ATF and stop the violent criminals.”
“Given the recent increase in violence in the City of St. Paul, this grant couldn’t have come at a better time,” said ATF Special Agent in Charge William “Terry” Henderson, of the Saint Paul Field Division. “This funding will help to increase the crime-gun intelligence capacity for the city and its police officers. Crime-gun intelligence allows for improved, coordinated efforts amongst law enforcement working within the city to identify, investigate, and prosecute violent offenders. Congratulations to the City of St. Paul and the police department on this monumental opportunity. ATF is committed to continuing our great partnership with the St. Paul Police Department to rid the city of violent crime.”
For more information on the Local Law Enforcement Crime Gun Intelligence Center Integration Initiative, please visit https://www.bja.gov/funding/CGIC19.pdf
As the only crime gun ballistic network in the United States, NIBIN compares images of cartridge casings recovered at crime scenes and firearms recovered by law enforcement to connect shooting incidents and identify shooters. More information on NIBIN is available at https://www.atf.gov/resource-center/fact-sheet/fact-sheet-national-integrated-ballistic-information-network.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Church Leaders Indicted in Forced Labor ConspiracyRead the Press Release
Assistant U. S. Attorney Christopher P. Tenorio (619) 546-8413
IVM Indictment - Click HEREEl CENTRO – A dozen leaders of Imperial Valley Ministries, including the former pastor, are charged in an indictment unsealed today with subjecting dozens of mostly homeless people to forced labor, coercing them to surrender welfare benefits and compelling them to panhandle up to nine hours a day, six days a week, for the financial benefit of the church leaders.
The defendants were arrested today in El Centro, San Diego and Brownsville, Texas and charged with conspiracy, forced labor, document servitude and benefits fraud. The local defendants are scheduled to be arraigned in federal court in El Centro today at 1:30 p.m. before U.S. Magistrate Judge Ruth Bermudez Montenegro.
“The indictment alleges an appalling abuse of power by church officials who preyed on vulnerable homeless people with promises of a warm bed and meals,” said U.S. Attorney Robert Brewer. “These victims were held captive, stripped of their humble financial means, their identification, their freedom and their dignity.”
“Human trafficking robs victims of their most basic human rights,” said FBI Special Agent-In-Charge Scott Brunner. “Victims of human trafficking are often unseen by society, left pleading in silence. Today, the FBI is proud to break up the labor trafficking alleged to have been committed by the leaders of Imperial Valley Ministries in Imperial Valley and San Diego. This investigation is an example of the tireless and dedicated work undertaken by FBI agents and our partners at the El Centro Police Department in combating this heinous crime.”
Imperial Valley Ministries, or IVM, operates a non-denominational church headquartered in El Centro, and has opened approximately 30 affiliate churches throughout the United States and Mexico, including locations in Los Angeles, Santa Ana and San Jose in California; in Las Vegas, Nevada; Phoenix, Arizona; and Brownsville, Texas. IVM’s stated purpose is to “restore” drug addicts at faith-based rehabilitation group homes and raise money to open churches in other cities to do the same.
In addition to the church and main office, IVM owned and operated three group homes the El Centro area, plus one in Calexico and one in Chula Vista. Many victims were recruited from outside of El Centro, including San Diego, and as far away as Texas. IVM leaders allegedly induced many to participate with offers of free food and shelter with the false promise that victims would be provided with resources to eventually return home.
According to the indictment, defendants checked in the victims at the IVM group homes, where they were required to sign agreements to adhere to rules. Many victims, including many who did not require drug rehabilitation services, claimed they were later held at IVM properties against their will.
The indictment alleges that church leaders locked victims inside group homes with deadbolt locks; confiscated identification documents such as driver’s licenses, passports, immigration papers and identification cards, in order to prevent victims from escaping; stole victims’ welfare benefits; and required adherence to rules such as, “you are not to discuss things of the world” and “the only thing to be read is the holy bible” and “if any of the rules are broken there will be discipline.”
Windows were nailed shut at some group home locations, leading a desperate 17-year-old victim to break a window, escape, and run to a neighboring property to call police. The teen was brought to the El Centro Medical Center for cuts sustained from the escape.
Defendants are alleged to have extorted the surrender of participants’ Electronic Benefits Transfer (EBT) cards obtained through the Supplemental Nutrition Assistance Program (SNAP), administered by the CalFresh Program, by using actual and threatened fear of economic loss. The IVM leaders allegedly then used the SNAP benefits for improper purposes, including providing them to ineligible persons, and improperly instructing the intended recipients to not seek or accept outside employment.
Leaders of IVM, including former Pastor Victor Gonzalez, refused to return the confiscated EBT cards and personal property to participants who asked to leave. IVM members also allegedly used various means to coerce participants to stay and continue panhandling for IVM’s financial benefit by saying their children would be taken away if they left, that they would not receive transportation home, or that loved ones had rejected them and they must stay because “only God” loved them. Punishments for violations of home rules, including talking about the outside world, allegedly included the withholding of food.
In another instance, church leaders allegedly refused to allow a diabetic victim to obtain medicine, medical supplies and even food in response to low blood sugar. She was able to escape and get help.
All of the identified victims are now free. Victim specialists have been on standby to provide immediate assistance to any additional victims we find in order to provide them with shelter, transportation or any necessary support services.
“This is the most significant labor trafficking prosecution in this district in many years,” Brewer said. “These cases are few and far between because many victims live in captivity and fear, powerless to report the crimes against them. My office wants victims to know that we are here to help you.”
Brewer praised the FBI and prosecutor Christopher Tenorio for their excellent work on the case. And he expressed appreciation for the assistance of the Imperial County District Attorney’s Office, the El Centro Police Department, the Imperial County Sheriff’s Office, the U.S. Marshals Service, the U.S. Border Patrol and Imperial County Social Services, for their assistance with this case.
To report suspicions of labor trafficking, please contact the FBI at 1-800-CALLFBI (225-5324) or https://tips.fbi.gov/. If you know someone who is a victim of human trafficking, resources can be found at National Human Trafficking Hotline – 1-888-373-7888.
Assistant U.S. Attorney Christopher Tenorio is prosecuting the case with assistance from the Department of Justice Civil Rights Division’s Human Trafficking Prosecution Unit.
IVM Presentation - Click HERE
DEFENDANTS Case Number 19CR3255-BTM Victor Gonzalez Age: 40 Brownsville, TX Susan Christine Leyva
(aka Susan Christine Gonzalez,
Christy Gonzalez) Age: 39 Brownsville, TX Jose “Joe” Anthony Diaz Age: 39 Brownsville, TX Mercedes Gonzales (aka Mercy Diaz) Age: 37 Brownsville, TX Arnoldo Bugarin Age: 47 El Centro, CA Azucena Torres (aka Susana Bugarin) Age: 43 El Centro, CA Sergio Partida Age: 32 El Centro, CA Ana Karen Robles-Ortiz (aka Karen Partida) Age: 29 El Centro, CA Jose “Chito” Morales Age: 47 San Diego, CA Jose Demara Flores (aka Joe Flores) Age: 52 Brownsville, TX Jose Gaytan Age: 47 El Centro, CA Sonia Murillo Age: 51 El Centro, CASUMMARY OF CHARGES
Conspiracy – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and $250,000 fineForced Labor – Title 18, U.S.C., Section 1589
Maximum penalty: Twenty years in prison and $250,000 fineDocument Servitude – Title 18, U.S.C., Section 1592
Maximum penalty: Twenty years in prison and $250,000 fineFood Stamp Act (Benefits Fraud) – Title 7, U.S.C., Section 2024(b)
Maximum penalty: Twenty years in prison and $250,000 fine (If the benefits were $5,000 or more)AGENCY
Federal Bureau of Investigation
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Child Sex Trafficker Sentenced to over 17 Years in PrisonRead the Press Release
SAN JOSE – Damari William Singleton was sentenced today to 210 months (17.5 years) in prison and ordered to pay restitution to child victims of his sex trafficking scheme, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Beth L. Freeman, U.S. District Judge.
On January 22, 2019, Singleton, 29, of Sacramento, pleaded guilty to sex trafficking of children. According to the plea agreement, from December of 2014 thorough early 2016, Singleton, along with various co-conspirators, operated a prostitution business throughout the state of California. Singleton sold the commercial sexual services of underage girls and adult women. Using primarily social media websites, Singleton repeatedly recruited and exploited girls and women from troubled homes with histories of sexual abuse. Singleton arranged for the recruited women and girls to serve as prostitutes for his sex trafficking venture, transporting them throughout the state of California and across state borders to provide sexual services to adult customers. Specifically, Singleton corresponded with potential clients for the girls and women, posted advertisements for their sexual services on “backpage.com,” transported them to and from their prostitution dates, and secured apartments, condominiums, and hotel rooms for use during the prostitution dates. He also provided condoms and lubricant, set rates for specific services, and collected the profits made by the girls and women after their prostitution dates.
As described in the government’s sentencing memorandum, in approximately May of 2019, three months after Singleton pleaded guilty to sex trafficking of children, the government became aware of Singleton’s intention to establish and operate another sex trafficking enterprise. Singleton was in custody and awaiting sentencing in this case. The government began collecting and reviewing Singleton’s jail calls. These calls revealed that from February 2019 to July 2019, Singleton attempted to recruit young female inmates straight from jails throughout California and Nevada to work as prostitutes after they were released. Singleton repeatedly emphasized to his out-of-custody accomplices the importance of picking up the women directly from jail so that they would not have any opportunity to escape his influence. He wanted them “straight from the gates, straight into my house.”
Singleton deliberately targeted young women between the ages of 18 and 25. While in custody, he sent public records requests to several sheriff’s offices and detention facilities throughout California and Nevada, including Fresno County, Placer County, Sacramento County, and Washoe County in Nevada, seeking biographical information on young female inmates, including their photographs, bail amounts, and projected release dates. On the calls, he emphasized that his prime targets were the most vulnerable: foster kids, former drug addicts, and women who had nowhere else to go. Singleton stated that he was “gonna get an empire.”
A federal grand jury indicted Singleton on December 15, 2016, charging him with conspiracy, in violation of 18 U.S.C. § 371; sex trafficking of children, in violation of 18 U.S.C. § 1591; transportation of minors for transportation, in violation of 18 U.S.C. § 2423; and coercion and enticement, in violation of 18 U.S.C. § 2422. On January 22, 2019, Singleton pleaded guilty to the sex trafficking of children charge.
In addition to the prison term and restitution to his child victims, Judge Freeman also ordered Singleton to a seven-year term of supervised release.
Assistant U.S. Attorney Marissa Harris is prosecuting the case with the assistance of Tong Zhang. The prosecution is the result of an investigation by the FBI and the San Jose Police Department with assistance from agencies belonging to the Santa Clara County Human Trafficking Task Force. Several local police agencies including the Santa Clara Police Department and the Sunnyvale Police Department assisted with recovery of the minor victims.
Cedar Rapids Man Who Sold Heroin that Caused Two Overdoses Sentenced to Federal PrisonRead the Press Release
A man who sold heroin to two individuals who nearly died was sentenced today to more than six years in federal prison.
Travon Patterson, age 28, from Cedar Rapids, Iowa, received the prison term after an April 18, 2019 guilty plea to distribution of heroin within 1,000 feet of a protected location after a prior felony drug conviction.
At the guilty plea, Patterson admitted that on December 27, 2016, he distributed heroin to another individual near an elementary school in Marion, Iowa. Court documents reflect that Patterson also admitted that on December 16, 2016, he sold heroin to two of his customers, a male and a female. The female used some of the heroin Patterson sold them and lost consciousness inside a gas station bathroom. Gas station employees discovered her and called the police. First responders found her unresponsive, with shallow, irregular breathing. The first responders administered Narcan, the opioid reversal drug, to the female and she regained consciousness.
Court documents further reflect that, on December 23, 2016, Patterson distributed heroin to the male customer from the December 16 overdose incident. The distribution occurred at Patterson’s mother’s residence, and the male used the heroin there. The male lost consciousness shortly thereafter, and Patterson and his mother called 911. First responders arrived and found the male unconscious with shallow breathing and an abnormally low respiratory rate. The first responders administered Narcan, and he regained consciousness.
Patterson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Patterson was sentenced to 77 months’ and 10 days’ imprisonment. He must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system.
Patterson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement, and prosecuted by Assistant United States Attorneys Justin Lightfoot and Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-00003-CJW-MAR.
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Bronx Man Sentenced to 60 Months for Heroin Trafficking in Columbia CountyRead the Press Release
ALBANY, NEW YORK – Saul E. Pacheco, age 37, of the Bronx, New York, was sentenced today to 60 months in prison, to be followed by 4 years of supervised release, for conspiring with another person to distribute more than 100 grams of heroin in Columbia County.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, New York Division, U.S. Drug Enforcement Administration (DEA); and Columbia County Sheriff David P. Bartlett.
In pleading guilty, Pacheco admitted to supplying heroin to Timothy J. Simpson Jr., a Columbia County drug dealer, from at least April 2017 through March 2018. Pacheco was arrested on April 4, 2018, while attempting to meet Simpson in the parking lot of a casino in Yonkers, Westchester County. In the parking lot, DEA Special Agents located a plastic bag containing approximately 68 grams of heroin, which Pacheco had discarded once he noticed agents approaching him.
Simpson has pled guilty to drug conspiracy and possession charges, and is scheduled to be sentenced on October 16, 2019.
This case was investigated by the DEA and the Columbia County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Pacheco has also pled guilty to an unrelated charge of conspiring to distribute more than 40 grams of fentanyl, in a case investigated by the DEA and prosecuted by the United States Attorney’s Office for the Southern District of New York. Pacheco will be sentenced to at least 5 years in prison in that case as well.
Bookkeeper Admits Stealing $300K+ from Physical Therapy BusinessRead the Press Release
ALBANY – The former bookkeeper of a Valdosta based physical therapy business entered a guilty plea to two counts Bank Fraud in federal court today, announced Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Heather Nicole Gray, 32, of Norman Park, Georgia, entered her guilty plea before U.S. District Judge Louis Sands. The charges each carry a maximum penalty of 30 years in prison, a $250,000 fine, or both. Ms. Gray’s sentencing date has not been scheduled.
According to the stipulation of fact, Ms. Gray began doing financial work for Sutherland Physical Therapy, Inc. (SPT), in Valdosta, Georgia in September 2014 as an employee of Quick Consulting of Adel. In her capacity as bookkeeper, Ms. Gray also had access to the financials for Sutherland Yoga Studio, LLC (SYS). Ms. Gray was hired directly by SPT three years later, in September 2017. Very shortly after beginning work with SPT, in December 2014, Ms. Gray began to make automated clearinghouse (ACH) payments via the internet and mobile access from two bank accounts belonging to SPT without authorization, to pay-off credits cards that she and her ex-husband used. In August 2017, her scheme intensified when she began creating fraudulent checks without authorization, using SPT bank accounts, payable to herself or her ex-husband. She used several methods to hide her scheme, including removing pages of the monthly bank account statement that showed unauthorized checks written to her from the office and changing the “payee” field in the QuickBooks system from her name to a named legitimate expense to hide the true payee, herself. Ms. Gray made a total of 317 fraudulent payments enriching herself or her ex-husband from SPT and SYS accounts until her fraud was discovered in April 2018. In all, the fraud totaled $321,854, including $4,971.62 lost by SYS and $316,882.38 lost by SPT.
“Ms. Gray went to great lengths to avoid detection, carefully hiding her tracks so she could continue pilfering from a locally-owned business, gravely betraying the owners trust,” said Charlie Peeler, the U.S. Attorney. “Our office is focused on protecting small businesses from theft and the banking system from nefarious individuals who commit fraud. I want to commend the Lowndes County Sheriff’s Office and the Secret Service for uncovering this crime and helping bring a measure of justice to the victims.”
“It is a bad situation when a person you trust takes advantage, and in this case, the defendant was both a friend and an employee of the victim. I appreciate the work of the U.S. Attorney’s Office, we can always count on them to find justice for the victim,” said Ashley Paulk, Lowndes County Sheriff.
“Defendant Heather Gray used her position as a book keeper for a locally owned business in Valdosta, Georgia to steal over $321,000 from her employer. Ms. Gray took advantage of those small business owners who provided her a job and betrayed those who gave her a position of trust within their company. The United States Secret Service remains committed to working with our local law enforcement partners in protecting our nation’s financial security, to include aggressively investigating and bringing to justice those responsible for using the banking system to defraud the taxpayers and small businesses who provide the majority jobs in this nation,” said Clint A. Bush, Resident Agent in Charge, Albany, Georgia Resident Office, United States Secret Service.
The case was investigated by the United States Secret Service and the Lowndes County Sheriff’s Office. Assistant U.S. Attorney Robert McCullers is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Berkeley County woman admits to role in cocaine, heroin, and fentanyl distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Brandy Netz, of Martinsburg, West Virginia, has admitted to her role in a cocaine, heroin, and fentanyl distribution operation, United States Attorney Bill Powell announced.
Netz, age 34, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Cocaine Hydrochloride.” Netz admitted to working with someone to distribute cocaine in Berkeley County in January 2019.
Netz is facing up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara K. Omps-Botteicher, Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, and Assistant U.S Attorney Timothy D. Helman, are prosecuting the case on behalf of the government. The Federal Bureau of Investigation; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Berkeley County Prosecuting Attorney’s Office, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.
Baltimore Felon Sentenced to 90 Months in Federal Prison for A Fentanyl and Cocaine Distribution Conspiracy and for Illegal Possession of A FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Porsche Anna Cruz, a/k/a Bridget Annette Barnes, Anna de la Cruz, and Ana Cruz, age 45, of Baltimore, Maryland, to 90 months in federal prison, followed by three years of supervised release, for conspiracy to distribute and possess with intent to distribute fentanyl and cocaine, being a felon in possession of a firearm, and possession with intent to distribute fentanyl and cocaine.
Her son and co-defendant Chardon Angel Cruz, a/k/a Webbie, age 26, also of Baltimore, was sentenced on July 19, 2019, to five years in prison, followed by three years of supervised release, for conspiracy to distribute and possess with intent to distribute fentanyl, crack cocaine, and powder cocaine.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to their plea agreements, neighbors living near the defendants’ home in the 2400 block of Washington Boulevard complained to Baltimore Police that the Cruzes sold drugs at the residence. Porsche Cruz admitted that from May through June 2018, she conspired with others to distribute 270 grams of fentanyl—enough to kill 135,000 people, and more than one kilogram of cocaine in Baltimore. Chardon Cruz assisted his mother with distributing narcotics and collecting drug proceeds.
On May 25, 2018, law enforcement executed a search warrant at the Cruzes’ residence and recovered a loaded shotgun, a loaded pistol, three rifles, an additional shot gun, a box of 12 gauge shotgun shells, and other loose ammunition. On May 25 and June 12, 2018, they recovered a total of 52 plastic twist bags containing 2.16 grams of cocaine and 243 gel caps containing 23.49 grams of fentanyl at the Cruzes’ residence, pursuant to search and seizure warrants.
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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Samika N. Boyd, who prosecuted the case.
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Arkansas Man Sentenced to More Than 12 Years for Coercing a Western PA Minor to Engage in Sexual ActivityRead the Press Release
PITTSBURGH, PA-A former resident of Van Buren, Arkansas, has been sentenced in federal court to a term of imprisonment of 12 years and seven months (151 months) and 27 years of supervised release on his conviction of coercion and enticement of a minor to engage in illegal sexual activity, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Alastair Lee Stewart, 27.
According to information presented to the court, from November 15, 2016 to March 27, 2017, Stewart engaged in internet conversations with a 12 year-old girl over a chatting application called "Live Me," and later communicated with the victim over Skype, Snapchat, and text messages. Stewart then traveled from Arkansas to western Pennsylvania and arranged to meet the victim at her grandfather’s residence, where he sexually assaulted her in a motor home on the property on March 24 and March 25, 2017. Stewart fled the area on March 26, 2017.
Assistant United States Attorneys Christy C. Wiegand and Jessica L. Smolar prosecuted this case on behalf of the government.
The Federal Bureau of Investigation (FBI) and Pennsylvania State Police conducted the investigation leading to the successful prosecution of Stewart.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Albany Felon Sentenced to 37 Months for Unlawful Firearm PossessionRead the Press Release
ALBANY, NEW YORK – Juan A. Torres, age 36, of Albany, was sentenced today to 37 months in prison, to be followed by 3 years of supervised release, for unlawfully possessing a firearm and ammunition as a felon.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
In pleading guilty, Torres admitted that on July 13, 2018, he sold a Kel-Tec 9 millimeter pistol, and four rounds of Luger ammunition, to another person in Rotterdam, New York. Torres had two felony convictions at the time, including a felony drug conviction for which he was sentenced to probation just weeks prior to selling the firearm on July 13, 2018.
This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
281 Arrested Worldwide in Coordinated International Enforcement Operation Targeting Hundreds of Individuals in Business Email Compromise SchemesRead the Press Release
Federal authorities announced today a significant coordinated effort to disrupt Business Email Compromise (BEC) schemes that are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens. Operation reWired, a coordinated law enforcement effort by the U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of the Treasury, U.S. Postal Inspection Service, and the U.S. Department of State, was conducted over a four-month period, resulting in 281 arrests in the United States and overseas, including 167 in Nigeria, 18 in Turkey and 15 in Ghana. Arrests were also made in France, Italy, Japan, Kenya, Malaysia, and the United Kingdom (UK). The operation also resulted in the seizure of nearly $3.7 million.
BEC, also known as “cyber-enabled financial fraud,” is a sophisticated scam often targeting employees with access to company finances and businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments. The same criminal organizations that perpetrate BEC also exploit individual victims, often real estate purchasers, the elderly, and others, by convincing them to make wire transfers to bank accounts controlled by the criminals. This is often accomplished by impersonating a key employee or business partner after obtaining access to that person’s email account or sometimes done through romance and lottery scams. BEC scams may involve fraudulent requests for checks rather than wire transfers; they may target sensitive information such as personally identifiable information (PII) or employee tax records instead of, or in addition to, money; and they may not involve an actual “compromise” of an email account or computer network. Foreign citizens perpetrate many BEC scams. Those individuals are often members of transnational criminal organizations, which originated in Nigeria but have spread throughout the world.
“The Department of Justice has increased efforts in taking aggressive enforcement action against fraudsters who are targeting American citizens and their businesses in business email compromise schemes and other cyber-enabled financial crimes,” said Deputy Attorney General Jeffrey Rosen. “In this latest four-month operation, we have arrested 74 people in the United States and 207 others have been arrested overseas for alleged financial fraud. The coordinated efforts with our domestic and international law enforcement partners around the world has made these most recent actions more successful. I want to thank the FBI, more than two dozen U.S. Attorney’s Offices, U.S. Secret Service, U.S. Postal Inspection Service, Homeland Security Investigations, IRS Criminal Investigation, U.S. Department of State’s Diplomatic Security Service, our partners in Nigeria, Ghana, Turkey, France, Italy, Japan, Kenya, Malaysia, and the UK, and our state and local law enforcement partners for all of their hard work to combat these fraud schemes and protect the hard-earned assets of our citizens. Anyone who engages in deceptive practices like this should know they will not go undetected and will be held accountable.”
“The FBI is working every day to disrupt and dismantle the criminal enterprises that target our businesses and our citizens,” said FBI Director Christopher A. Wray. “Cooperation is the backbone to effective law enforcement; without it, we aren’t as strong or as agile as we need to be. Through Operation reWired, we’re sending a clear message to the criminals who orchestrate these BEC schemes: We’ll keep coming after you, no matter where you are. And to the public, we’ll keep doing whatever we can to protect you. Reporting incidents of BEC and other internet-enabled crimes to the IC3 brings us one step closer to the perpetrators.”
“The Secret Service has taken a multi-layered approach to combating Business Email Compromise schemes through our Global Investigative Operations Center (GIOC),” said U.S. Secret Service Director James M. Murray. “Domestically, the GIOC assists Secret Service Field Offices and other law enforcement partners with analysis and investigative tactics to enhance the impact of local BEC investigations. Internationally, the GIOC targets and identifies transnational organized crime networks that perpetrate these cyber-enabled financial fraud schemes. Through this approach, the Secret Service continues to strive to protect the citizens of the United States and our financial infrastructure from these complex crimes.”
“Homeland Security Investigations (HSI), together with its law enforcement partners, has proven once again, that cyber-enabled financial fraud will not be tolerated in the United States,” said Acting Director Matthew T. Albence of U.S. Immigration and Customs Enforcement (ICE). “Operation reWired sends a clear message to criminals, that no matter how or where crimes are committed, we will do everything within our means to dismantle criminal enterprises that seek to manipulate U.S. institutions and taxpayers.”
“The consequences of this type of fraud scheme are far reaching, affecting not only people in the United States, but also across the world,” said Chief Postal Inspector Gary Barksdale. “This investigation is just another example of how effective law enforcement agencies can be when they join forces. By working together, we can keep our communities and our vulnerable populations safe from financial exploitation. The U.S. Postal Inspection Service is proud to be at the forefront of the fight against fraud and Postal Inspectors will continue to adapt to the ever changing landscape to stop the scammers and protect our customers.”
“In unraveling this complex, nationwide identity theft and tax fraud scheme, we discovered that the conspirators stole more than 250,000 identities and filed more than 10,000 fraudulent tax returns, attempting to receive more than $91 million in refunds,” said Chief Don Fort of IRS Criminal Investigation. “We will continue to work with our international, federal and state partners to pursue all those responsible for perpetrating this fraud, preying on innocent victims and attempting to cheat the U.S. out of millions of dollars.”
“The investigation of these crimes crossed international borders,” said Director Todd J. Brown of the U.S. Department of State’s Diplomatic Security Service (DSS). “Today’s charges are another successful example of our commitment to working together with both foreign colleagues abroad as well as local, state and federal law enforcement partners here at home in the pursuit of those who commit cyber-related financial crimes.”
A number of cases involved international criminal organizations that defrauded small to large sized businesses, while others involved individual victims who transferred high dollar funds or sensitive records in the course of business. The devastating effects these cases have on victims and victim companies affect not only the individual business but also the global economy. According to the Internet Crime Complaint Center (IC3), nearly $1.3 billion in loss was reported in 2018 from BEC and its variant, Email Account Compromise (EAC), nearly twice as much as was reported the prior year. BEC and EAC are prevalent scams and the Justice Department along with our partners will continue to aggressively pursue and prosecute the perpetrators, including money mules, regardless of where they are located.
Money mules may be witting or unwitting accomplices who receive ill-gotten funds from the victims and then transfer the funds as directed by the fraudsters. The money is wired or sent by check to the money mule who then deposits it in his or her own bank account. Usually the mules keep a fraction for “their trouble” and then wire the money as directed by the fraudster. The fraudsters enlist and manipulate the money mules through romance scams or “work-at-home” scams, though some money mules are knowing co-conspirators who launder the ill-gotten gains for profit.
BEC scams are related to, and often conducted together with, other forms of fraud such as:
- “Romance scams,” where victims are lulled into believing they are in a legitimate relationship, and are tricked into sending or laundering money under the guise of assisting the paramour with an international business transaction, a U.S. visit, or some other cover story;
- “Employment opportunities scams,” where victims are convinced to provide their PII to apply for work-from-home jobs, and, once “hired” and “overpaid” by a bad check, to wire the overpayment to the “employer’s” bank before the check bounces;
- “Fraudulent online vehicle sales scams,” where victims are convinced they are purchasing a nonexistent vehicle and must pay for it by sending the codes of prepaid gift cards in the amount of the agreed upon sale price to the “seller;”
- “Rental scams,” where a scammer agrees to rent a property, sends a bad check in excess of the agreed upon deposit, and requests the overpayment be returned via wire before the check bounces; and
- “Lottery scams,” where victims are convinced they won an international lottery but must pay fees or taxes before receiving the payout.
Starting in May 2019, this coordinated enforcement action targeted hundreds of BEC scammers. Law enforcement agents executed over 214 domestic actions including arrests, money mule warning letters, and asset seizures and repatriations totaling nearly $3.7 million. Local and state law enforcement partners on FBI task forces across the country, with the assistance of multiple District Attorney’s Offices, also arrested alleged money mules for their role in defrauding victims.
Among those arrested on federal charges in BEC schemes include:
- Following an investigation led by the FBI’s Chicago Division, Brittney Stokes, 27, of Country Club Hills, Illinois, and Kenneth Ninalowo, 40, of Chicago, Illinois, were charged in the Northern District of Illinois with laundering over $1.5 million from proceeds of BEC scams. According to the indictment, a community college and an energy company were defrauded into sending approximately $5 million to fraudulent bank accounts controlled by the scammers. Banks were able to freeze approximately $3.6 million of the $5 million defrauded in the two schemes. Law enforcement officials seized a 2019 Range Rover Velar S from Stokes and approximately $175,909 from Stokes and Ninalowo.
- As a result of a joint investigation by the FBI, HSI, and DSS, Opeyemi Adeoso, 44, of Dallas, Texas, and Benjamin Ifebajo, 45, of Richardson, Texas, were arrested and charged in the Northern District of Texas with bank fraud, wire fraud, money laundering, and conspiracy. Adeoso and Ifebajo are alleged to have received and laundered at least $3.4 million. In furtherance of their scheme, they are alleged to have assumed 12 fictitious identities and defrauded 37 victims from across the United States.
- As part of a larger investigation by the FBI and the USSS in Miami, Yamel Guevara Tamayo, 36, of Miami, Florida, and Yumeydi Govantes, 39, of Miami, Florida, were charged in the Southern District of Florida with laundering more than $950,000 of proceeds of BEC scams. The two individuals were also responsible for recruiting approximately 18 other individuals to serve as money mules, who laundered proceeds of BEC scams for an international money laundering network. The victims of the BEC scams included title companies, corporations, and individuals. The individuals were indicted June 18, 2019 and arrested June 20, 2019. The change of plea for both individuals is scheduled for Sept. 16.
- In an investigation by FBI Atlanta, two individuals were charged in the Northern District of Georgia for their involvement in a Nigeria-based BEC scheme that began with a $3.5 million transfer of funds fraudulently misdirected from a Georgia-based health care provider to accounts across the United States. Two Nigerian nationals, Emmanuel Igomu, 35, of Atlanta, Georgia, and Jude Balogun, 29, of San Francisco, California, have been arrested on charges of aiding and abetting wire fraud for their part in receiving and transmitting monies derived from the BEC.
- Following an investigation by the FBI, Cyril Ashu, 34, of Austell, Georgia; Ifeanyi Eke, 32, of Sandy Springs, Georgia; Joshua Ikejimba, 24, of Houston, Texas; and Chinedu Ironuah, 32, of Houston, Texas, were charged in the Southern District of New York with one count of conspiracy to commit wire fraud and one count of wire fraud for their involvement in a Nigeria-based BEC scheme that impacted hundreds of victims in the United States, with losses in excess of $10 million.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The cases were investigated by the FBI, U.S. Secret Service, U.S. Postal Inspection Service, ICE’s Homeland Security Investigations (HSI), IRS Criminal Investigation and U.S. Department of State’s Diplomatic Security Service. U.S. Attorney’s Offices in the Districts of Arizona; Central, Eastern and Southern California; Colorado; Delaware; Southern Florida; Northern Georgia; Northern Illinois; Kansas; Eastern Louisiana; Massachusetts; Nebraska; Nevada; Southern New York; Middle North Carolina; Northern Ohio; Oregon; Northern, Western and Southern Texas; Western Tennessee; Eastern Virginia; Eastern Washington, and elsewhere have ongoing investigations some of which have resulted in arrests in Nigeria. The Justice Department’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section, and Office of International Affairs of the Criminal Division provided assistance. District Attorney’s Offices of Harris County, Texas; Fort Bend County, Texas; and Washington County, Arkansas are handling state prosecutions. Additionally, private sector partners and the Nigerian Economic and Financial Crimes Commission, Ghana Police Service (GPS) and Economic and Organized Crime Office (EOCO), Turkish National Police (TNP) Cyber Department, Direction Centrale de la Police aux Frontieres (PAF) of France, Squadra Mobile Di Caserta and Italian National Police, National Police Agency of Japan, Tokyo Metropolitan Police Department (TPMD), Royal Malaysian Police, Directorate of Criminal Investigations (DCI) of Kenya and the National Crime Agency (NCA), North Wales Police, Metropolitan Police Service and Hertfordshire Constabulary of the UK provided significant assistance.
This operation serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Deputy Attorney General Rosen expressed gratitude for the outstanding efforts of the participating countries, including law enforcement actions that were coordinated and executed by the Economic and Financial Crimes Commission (EFCC) in Nigeria to curb business email compromise schemes that defraud businesses and individuals alike.
The Justice Department’s efforts to confront the growing threat of cyber-enabled financial fraud led to the formation of the BEC Counteraction Group (BCG), which assists U.S. Attorney’s Offices and the Department with the coordination of BEC cases and the centralization of related expertise. The BCG facilitates communication and coordination between federal prosecutors, serves as a bridge between federal prosecutors and federal agents, centralizes and manages institutional knowledge and training, and participates in efforts to educate the public about protecting themselves and their organizations from BEC scams.
The BCG draws upon the expertise of the following sections within the Department’s Criminal Division: the Computer Crime and Intellectual Property Section, which regularly investigates and prosecutes cases involving computer crimes, including network intrusions; the Fraud Section, which manages complex litigation involving sophisticated fraud schemes; the Money Laundering and Asset Recovery Section, which brings experience in seizing assets obtained through criminal activity; the Office of International Affairs, which plays a central role in securing international evidence and extradition; and the Organized Crime and Gang Section, which contributes strategic guidance in prosecuting complex transnational criminal cases.
Operation reWired was funded and coordinated by the FBI and the Justice Department’s International Organized Crime Intelligence and Operations Center (IOC-2) and follows “Operation Wire Wire,” the first coordinated enforcement action targeting hundreds of BEC scammers. That effort, announced in June 2018, resulted in the arrest of 74 individuals, the seizure of nearly $2.4 million, and the disruption and recovery of approximately $14 million in fraudulent wire transfers.
Victims are encouraged to file a complaint online with the IC3 at bec.ic3.gov. The IC3 staff reviews complaints, looking for patterns or other indicators of significant criminal activity, and refers investigative packages of complaints to the appropriate law enforcement authorities in a particular city or region. The FBI provides a variety of resources relating to BEC through the IC3, which can be reached at www.ic3.gov.
For more information on BEC scams, visit: https://www.ic3.gov/media/2019/190910.aspx.- “Romance scams,” where victims are lulled into believing they are in a legitimate relationship, and are tricked into sending or laundering money under the guise of assisting the paramour with an international business transaction, a U.S. visit, or some other cover story;
281 Arrested Worldwide in Coordinated International Enforcement Operation Targeting Hundreds of Individuals in Business Email Compromise SchemesRead the Press Release
74 Alleged Fraudsters Arrested in the United States
WASHINGTON – Federal authorities announced today a significant coordinated effort to disrupt Business Email Compromise (BEC) schemes that are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens. Operation reWired, a coordinated law enforcement effort by the U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of the Treasury, U.S. Postal Inspection Service, and the U.S. Department of State, was conducted over a four-month period, resulting in 281 arrests in the United States and overseas, including 167 in Nigeria, 18 in Turkey and 15 in Ghana. Arrests were also made in France, Italy, Japan, Kenya, Malaysia, and the United Kingdom (UK). The operation also resulted in the seizure of nearly $3.7 million.
BEC, also known as “cyber-enabled financial fraud,” is a sophisticated scam often targeting employees with access to company finances and businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments. The same criminal organizations that perpetrate BEC also exploit individual victims, often real estate purchasers, the elderly, and others, by convincing them to make wire transfers to bank accounts controlled by the criminals. This is often accomplished by impersonating a key employee or business partner after obtaining access to that person’s email account or sometimes done through romance and lottery scams. BEC scams may involve fraudulent requests for checks rather than wire transfers; they may target sensitive information such as personally identifiable information (PII) or employee tax records instead of, or in addition to, money; and they may not involve an actual “compromise” of an email account or computer network. Foreign citizens perpetrate many BEC scams. Those individuals are often members of transnational criminal organizations, which originated in Nigeria but have spread throughout the world.
“The Department of Justice has increased efforts in taking aggressive enforcement action against fraudsters who are targeting American citizens and their businesses in business email compromise schemes and other cyber-enabled financial crimes,” said Deputy Attorney General Jeffrey Rosen. “In this latest four-month operation, we have arrested 74 people in the United States and 207 others have been arrested overseas for alleged financial fraud. The coordinated efforts with our domestic and international law enforcement partners around the world has made these most recent actions more successful. I want to thank the FBI, more than two dozen U.S. Attorney’s Offices, U.S. Secret Service, U.S. Postal Inspection Service, Homeland Security Investigations, IRS Criminal Investigation, U.S. Department of State’s Diplomatic Security Service, our partners in Nigeria, Ghana, Turkey, France, Italy, Japan, Kenya, Malaysia, and the UK, and our state and local law enforcement partners for all of their hard work to combat these fraud schemes and protect the hard-earned assets of our citizens. Anyone who engages in deceptive practices like this should know they will not go undetected and will be held accountable.”
“The FBI is working every day to disrupt and dismantle the criminal enterprises that target our businesses and our citizens,” said FBI Director Christopher A. Wray. “Cooperation is the backbone to effective law enforcement; without it, we aren’t as strong or as agile as we need to be. Through Operation reWired, we’re sending a clear message to the criminals who orchestrate these BEC schemes: We’ll keep coming after you, no matter where you are. And to the public, we’ll keep doing whatever we can to protect you. Reporting incidents of BEC and other internet-enabled crimes to the IC3 brings us one step closer to the perpetrators.”
“The Secret Service has taken a multi-layered approach to combating Business Email Compromise schemes through our Global Investigative Operations Center (GIOC),” said U.S. Secret Service Director James M. Murray. “Domestically, the GIOC assists Secret Service Field Offices and other law enforcement partners with analysis and investigative tactics to enhance the impact of local BEC investigations. Internationally, the GIOC targets and identifies transnational organized crime networks that perpetrate these cyber-enabled financial fraud schemes. Through this approach, the Secret Service continues to strive to protect the citizens of the United States and our financial infrastructure from these complex crimes.”
“Homeland Security Investigations (HSI), together with its law enforcement partners, has proven once again, that cyber-enabled financial fraud will not be tolerated in the United States,” said Acting Director Matthew T. Albence of U.S. Immigration and Customs Enforcement (ICE). “Operation reWired sends a clear message to criminals, that no matter how or where crimes are committed, we will do everything within our means to dismantle criminal enterprises that seek to manipulate U.S. institutions and taxpayers.”
“The consequences of this type of fraud scheme are far reaching, affecting not only people in the United States, but also across the world,” said Chief Postal Inspector Gary Barksdale. “This investigation is just another example of how effective law enforcement agencies can be when they join forces. By working together, we can keep our communities and our vulnerable populations safe from financial exploitation. The U.S. Postal Inspection Service is proud to be at the forefront of the fight against fraud and Postal Inspectors will continue to adapt to the ever changing landscape to stop the scammers and protect our customers.”
“In unraveling this complex, nationwide identity theft and tax fraud scheme, we discovered that the conspirators stole more than 250,000 identities and filed more than 10,000 fraudulent tax returns, attempting to receive more than $91 million in refunds,” said Chief Don Fort of IRS Criminal Investigation. “We will continue to work with our international, federal and state partners to pursue all those responsible for perpetrating this fraud, preying on innocent victims and attempting to cheat the U.S. out of millions of dollars.”
“The investigation of these crimes crossed international borders,” said Director Todd J. Brown of the U.S. Department of State’s Diplomatic Security Service (DSS). “Today’s charges are another successful example of our commitment to working together with both foreign colleagues abroad as well as local, state and federal law enforcement partners here at home in the pursuit of those who commit cyber-related financial crimes.”
A number of cases involved international criminal organizations that defrauded small to large sized businesses, while others involved individual victims who transferred high dollar funds or sensitive records in the course of business. The devastating effects these cases have on victims and victim companies affect not only the individual business but also the global economy. According to the Internet Crime Complaint Center (IC3), nearly $1.3 billion in loss was reported in 2018 from BEC and its variant, Email Account Compromise (EAC), nearly twice as much as was reported the prior year. BEC and EAC are prevalent scams and the Justice Department along with our partners will continue to aggressively pursue and prosecute the perpetrators, including money mules, regardless of where they are located.
Money mules may be witting or unwitting accomplices who receive ill-gotten funds from the victims and then transfer the funds as directed by the fraudsters. The money is wired or sent by check to the money mule who then deposits it in his or her own bank account. Usually the mules keep a fraction for “their trouble” and then wire the money as directed by the fraudster. The fraudsters enlist and manipulate the money mules through romance scams or “work-at-home” scams, though some money mules are knowing co-conspirators who launder the ill-gotten gains for profit.
BEC scams are related to, and often conducted together with, other forms of fraud such as:
- “Romance scams,” where victims are lulled into believing they are in a legitimate relationship, and are tricked into sending or laundering money under the guise of assisting the paramour with an international business transaction, a U.S. visit, or some other cover story;
- “Employment opportunities scams,” where victims are convinced to provide their PII to apply for work-from-home jobs, and, once “hired” and “overpaid” by a bad check, to wire the overpayment to the “employer’s” bank before the check bounces;
- “Fraudulent online vehicle sales scams,” where victims are convinced they are purchasing a nonexistent vehicle and must pay for it by sending the codes of prepaid gift cards in the amount of the agreed upon sale price to the “seller;”
- “Rental scams,” where a scammer agrees to rent a property, sends a bad check in excess of the agreed upon deposit, and requests the overpayment be returned via wire before the check bounces; and
- “Lottery scams,” where victims are convinced they won an international lottery but must pay fees or taxes before receiving the payout.
Starting in May 2019, this coordinated enforcement action targeted hundreds of BEC scammers. Law enforcement agents executed over 214 domestic actions including arrests, money mule warning letters, and asset seizures and repatriations totaling nearly $3.7 million. Local and state law enforcement partners on FBI task forces across the country, with the assistance of multiple District Attorney’s Offices, also arrested alleged money mules for their role in defrauding victims.
Among those arrested on federal charges in BEC schemes include:
- Following an investigation led by the FBI’s Chicago Division, Brittney Stokes, 27, of Country Club Hills, Illinois, and Kenneth Ninalowo, 40, of Chicago, Illinois, were charged in the Northern District of Illinois with laundering over $1.5 million from proceeds of BEC scams. According to the indictment, a community college and an energy company were defrauded into sending approximately $5 million to fraudulent bank accounts controlled by the scammers. Banks were able to freeze approximately $3.6 million of the $5 million defrauded in the two schemes. Law enforcement officials seized a 2019 Range Rover Velar S from Stokes and approximately $175,909 from Stokes and Ninalowo.
- As a result of a joint investigation by the FBI, HSI, and DSS, Opeyemi Adeoso, 44, of Dallas, Texas, and Benjamin Ifebajo, 45, of Richardson, Texas, were arrested and charged in the Northern District of Texas with bank fraud, wire fraud, money laundering, and conspiracy. Adeoso and Ifebajo are alleged to have received and laundered at least $3.4 million. In furtherance of their scheme, they are alleged to have assumed 12 fictitious identities and defrauded 37 victims from across the United States.
- As part of a larger investigation by the FBI and the USSS in Miami, Yamel Guevara Tamayo, 36, of Miami, Florida, and Yumeydi Govantes, 39, of Miami, Florida, were charged in the Southern District of Florida with laundering more than $950,000 of proceeds of BEC scams. The two individuals were also responsible for recruiting approximately 18 other individuals to serve as money mules, who laundered proceeds of BEC scams for an international money laundering network. The victims of the BEC scams included title companies, corporations, and individuals. The individuals were indicted June 18, 2019 and arrested June 20, 2019. The change of plea for both individuals is scheduled for Sept. 16.
- In an investigation by FBI Atlanta, two individuals were charged in the Northern District of Georgia for their involvement in a Nigeria-based BEC scheme that began with a $3.5 million transfer of funds fraudulently misdirected from a Georgia-based health care provider to accounts across the United States. Two Nigerian nationals, Emmanuel Igomu, 35, of Atlanta, Georgia, and Jude Balogun, 29, of San Francisco, California, have been arrested on charges of aiding and abetting wire fraud for their part in receiving and transmitting monies derived from the BEC.
- Following an investigation by the FBI, Cyril Ashu, 34, of Austell, Georgia; Ifeanyi Eke, 32, of Sandy Springs, Georgia; Joshua Ikejimba, 24, of Houston, Texas; and Chinedu Ironuah, 32, of Houston, Texas, were charged in the Southern District of New York with one count of conspiracy to commit wire fraud and one count of wire fraud for their involvement in a Nigeria-based BEC scheme that impacted hundreds of victims in the United States, with losses in excess of $10 million.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The cases were investigated by the FBI, U.S. Secret Service, U.S. Postal Inspection Service, ICE’s Homeland Security Investigations (HSI), IRS Criminal Investigation and U.S. Department of State’s Diplomatic Security Service. U.S. Attorney’s Offices in the Districts of Arizona; Central, Eastern and Southern California; Colorado; Delaware; Southern Florida; Northern Georgia; Northern Illinois; Kansas; Eastern Louisiana; Massachusetts; Nebraska; Nevada; Southern New York; Middle North Carolina; Northern Ohio; Oregon; Northern, Western and Southern Texas; Western Tennessee; Eastern Virginia; Eastern Washington, and elsewhere have ongoing investigations some of which have resulted in arrests in Nigeria. The Justice Department’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section, and Office of International Affairs of the Criminal Division provided assistance. District Attorney’s Offices of Harris County, Texas; Fort Bend County, Texas; and Washington County, Arkansas are handling state prosecutions. Additionally, private sector partners and the Nigerian Economic and Financial Crimes Commission, Ghana Police Service (GPS) and Economic and Organized Crime Office (EOCO), Turkish National Police (TNP) Cyber Department, Direction Centrale de la Police aux Frontieres (PAF) of France, Squadra Mobile Di Caserta and Italian National Police, National Police Agency of Japan, Tokyo Metropolitan Police Department (TPMD), Royal Malaysian Police, Directorate of Criminal Investigations (DCI) of Kenya and the National Crime Agency (NCA), North Wales Police, Metropolitan Police Service and Hertfordshire Constabulary of the UK provided significant assistance.
This operation serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Deputy Attorney General Rosen expressed gratitude for the outstanding efforts of the participating countries, including law enforcement actions that were coordinated and executed by the Economic and Financial Crimes Commission (EFCC) in Nigeria to curb business email compromise schemes that defraud businesses and individuals alike.
The Justice Department’s efforts to confront the growing threat of cyber-enabled financial fraud led to the formation of the BEC Counteraction Group (BCG), which assists U.S. Attorney’s Offices and the Department with the coordination of BEC cases and the centralization of related expertise. The BCG facilitates communication and coordination between federal prosecutors, serves as a bridge between federal prosecutors and federal agents, centralizes and manages institutional knowledge and training, and participates in efforts to educate the public about protecting themselves and their organizations from BEC scams.
The BCG draws upon the expertise of the following sections within the Department’s Criminal Division: the Computer Crime and Intellectual Property Section, which regularly investigates and prosecutes cases involving computer crimes, including network intrusions; the Fraud Section, which manages complex litigation involving sophisticated fraud schemes; the Money Laundering and Asset Recovery Section, which brings experience in seizing assets obtained through criminal activity; the Office of International Affairs, which plays a central role in securing international evidence and extradition; and the Organized Crime and Gang Section, which contributes strategic guidance in prosecuting complex transnational criminal cases.
Operation reWired was funded and coordinated by the FBI and the Justice Department’s International Organized Crime Intelligence and Operations Center (IOC-2) and follows “Operation Wire Wire,” the first coordinated enforcement action targeting hundreds of BEC scammers. That effort, announced in June 2018, resulted in the arrest of 74 individuals, the seizure of nearly $2.4 million, and the disruption and recovery of approximately $14 million in fraudulent wire transfers.
Victims are encouraged to file a complaint online with the IC3 at bec.ic3.gov. The IC3 staff reviews complaints, looking for patterns or other indicators of significant criminal activity, and refers investigative packages of complaints to the appropriate law enforcement authorities in a particular city or region. The FBI provides a variety of resources relating to BEC through the IC3, which can be reached at www.ic3.gov. For more information on BEC scams, visit: https://www.ic3.gov/media/2019/190910.aspx.
9 September 2019
Worcester Man Charged with Illegal Possession of a FirearmRead the Press Release
BOSTON - A Worcester man was arraigned on Friday, Sept. 6, 2019, in federal court in Worcester for being a felon in possession of a firearm and ammunition.
Lawrence Rutherford, 37, was charged with one count of being a felon in possession of a firearm and ammunition.
According to the charging document, on June 5, 2019, law enforcement agents found two guns and more than 600 rounds of ammunition in Rutherford’s home while executing a search warrant there. Rutherford is prohibited from possessing a firearm due to prior convictions punishable by more than one year in person.
The charging statute provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Steven M. Sargent, Chief of the Worcester Police Department, made the announcement. Assistant U.S. Attorneys Greg A. Friedholm and John T. Mulcahy of Lelling’s Worcester Branch Office are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Woman Sentenced to 46 Months in Federal Prison for Drunken Driving Fatal CrashRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Tanaya Janatia Tromblee, age 33, of Wapato, Washington, and an enrolled member of the Confederated Bands and Tribes of the Yakama Nation, was sentenced after having pleaded guilty on June 5, 2019, to involuntary manslaughter. United States District Judge Stanley A. Bastian sentenced Tromblee to a 46-month term of imprisonment, to be followed by a three-year term of court supervision after she is released from federal prison. Judge Bastian also ordered Tromblee to pay $82,213 in restitution.
According to information disclosed during court proceedings, on October 23, 2017, Tromblee operated a motor vehicle while under the influence of alcohol and methamphetamine. Tromblee ran a stop sign at an intersection in Wapato and crashed into another vehicle, resulting in the death of a passenger.
United States Attorney Hyslop said, “Driving under the influence of alcohol or drugs is a serious offense that can and does result in grave consequences to victims. The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the Yakama Nation Police Department, Yakima County Sheriff’s Office, Washington State Patrol, and Federal Bureau of Investigation who investigated this case. Their symbiotic professional partnership resulted in the successful outcome of this matter.”
This case was investigated by the Yakima Resident Agency of the Federal Bureau of Investigation, the Yakama Nation Police Department, the Yakima County Sheriff’s Office, and the Washington State Patrol. This case was prosecuted by Benjamin D. Seal, an Assistant United States Attorney for the Eastern District of Washington.
Wells Fargo Bank Personal Banker Pleads Guilty to Money Laundering and Bank FraudRead the Press Release
Assistant U. S. Attorney Blanca Quintero (619) 546-7118
NEWS RELEASE SUMMARY – September 9, 2019
SAN DIEGO – Leopoldo Lara Aguilera, a former Wells Fargo personal banker, pleaded guilty in federal court today to money laundering conspiracy and bank fraud.
Aguilera was arrested by FBI agents on May 2, 2019, for his participation in an international money laundering organization based in Tijuana, Mexico which operated primarily in San Diego.
According to the plea agreement and other public records, Aguilera abused his position of trust as a personal banker with Wells Fargo Bank by opening bank accounts with false identities and wire transferring millions of dollars to Mexico. Aguilera conducted these transactions in exchange for thousands of dollars in cash payments from the criminal organization. The FBI’s investigation linked these funds to the sale of narcotics, specifically the sale of multi-kilogram amounts of fentanyl in the Midwest.
Aguilera pleaded guilty to opening twenty-six bank accounts for the money laundering organization, including eleven that were created by Aguilera using fictitious identities. Specifically, Aguilera used his position as a personal banker with Wells Fargo Bank to knowingly enter false names, passport numbers, and dates of birth on the fictitious bank accounts. These eleven fictitious accounts alone were used by the criminal organization to wire transfer a total of $3.8 million to Mexico, the vast majority of those wire transfers were conducted by Aguilera himself. Aguilera's use of these fictitious accounts were identified by Wells Fargo and brought to the attention of the FBI.
In conjunction with Aguilera’s arrest, the FBI identified and seized seventeen bank accounts that belonged to the money laundering organization containing in excess of $230,000.
The case was investigated by the FBI San Diego Cross Border Violence Task Force and the U.S. Attorney’s Office for the Southern District of California. The investigation was assisted by the participation of Wells Fargo Bank’s internal investigators in Arizona and California. This case is being prosecuted by Assistant U.S. Attorney Blanca Quintero.
DEFENDANT Case Number: 19-CR-1955-BAS
Leopoldo Lara Aguilera Age: 57 Tijuana, Mexico
SUMMARY OF CHARGES
Money Laundering Conspiracy – Title 18, U.S.C., Sections 1956(h) and 1957
Maximum penalties: 20 years’ imprisonment and $500,000 fineBank Fraud – Title 18 U.S.C., Section 1344
Maximum Penalties: 30 years’ imprisonment and $1,000,000 fineAGENCIES
Federal Bureau of Investigation’s San Diego Cross Border Violence Task Force
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Versailles Man Pleads Guilty to Trafficking Fentanyl and HeroinRead the Press Release
LEXINGTON, Ky. – A Versailles, Ky., man admitted in federal court Monday to possession with intent to distribute fentanyl and heroin.
Damon Bristol Hardy, 33, pleaded guilty to possessing with intent to distribute fentanyl and heroin, before Chief United States District Judge Danny C. Reeves. As part of his guilty plea, Hardy confessed that on April 2, 2019, in Woodford County, he possessed and intended to distribute 6.8 grams of a mixture that contained fentanyl and heroin. Hardy also agreed to abandon $587 in cash and various drug paraphernalia seized from him. Hardy admitted that he threw the object that contained the controlled substances away from his body as he fled police.
Hardy also agreed that he has at least one prior felony drug conviction. According to the plea agreement, Hardy has been convicted for first-degree trafficking in a controlled substance (heroin) in Woodford Circuit Court. Due to his serious criminal history, Hardy is subject to an enhanced sentence.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Dan Dodds, Acting Special Agent in Charge, DEA Louisville Field Division; and Chief Mike Murray, Versailles Police Department, jointly announced the guilty plea.
The investigation was directed by the Versailles Police Department and the Drug Enforcement Administration. The United States was represented by Special Assistant U.S. Attorney James T. Chapman.
Hardy is scheduled to be sentenced on December 20, 2019, at 10:15 a.m., before Chief Judge Reeves in federal court in Lexington. Based on Hardy’s criminal history, he faces up to 30 years in prison, as well as a maximum fine of $2,000,000. However, any sentence will be imposed by the Court, after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Uniontown Man Sentenced to Prison for Possessing Materials Depicting the Sexual Exploitation of ChildrenRead the Press Release
PITTSBURGH, PA - A resident of Uniontown, Pennsylvania has been sentenced in federal court to a term of imprisonment of three years and one month (37 months), to be followed by 10 years of supervised release on his conviction of possession of materials depicting the sexual exploitation of minors, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Jason A. Early, age 41, of Uniontown, PA.
According to information presented to the court, in October 2017, Homeland Security Investigations was conducting an investigation into the Internet sharing of child pornography (CP). They obtained and executed a search warrant at the residence of Jason Early. A forensic review of his devices revealed 1,181 images and videos depicting CP, including images and videos of toddlers 2 or 3 years of age, as well as bondage. Early admitted to viewing CP through peer to peer programs and that there was CP stored on his MacBook and on two external hard drives.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The Department of Homeland Security Investigations conducted the investigation in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
U.S. Postal Service Employee Charged with Stealing Government FundsRead the Press Release
BOSTON – A USPS employee was charged on Friday, Sept. 6, 2019, in federal court in Boston with stealing approximately $7,000 in government money.
Adam Lavertue, 37, of Dracut, was indicted on one count of embezzlement and theft of public money, property or records.
According to the indictment, Lavertue began working the United States Postal Service (USPS) in April 2008 and became Postmaster of the Groton Post Office in June 2015. In this role, Lavertue performed a variety of managerial and administrative tasks to facilitate the daily operations of the Post Office, including maintaining the facility’s operational functions, handling customer transactions, and managing mail clerks and delivery staff. In February 2017, Lavertue began using the purchase charge card issued to the Groton Post Office to make over $500 in personal purchases, including food, beverages and tobacco products. Additionally, Lavertue used Post Office Voyager cards, which are used by USPS mail couriers to fuel the official USPS delivery vehicles, to fuel his personally owned vehicle, charging over $5,000 in fuel. Lavertue is also charged with stealing over $1,000 in cash from his assigned cash register drawer and reserve at the Groton Post Office. It is alleged that Lavertue’s scheme cost the USPS approximately $7,000.
The charging statute provides a sentence of up to 10 years in prison, three years supervised release and a $250,000 fine. 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 Eileen Neff, Special Agent in Charge of the United States Postal Service Inspector General, made the announcement today. The case is being prosecuted by Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Pharmacy Chains Pay Civil Monetary Penalties to Resolve Alleged Violations of the Controlled Substances ActRead the Press Release
CONCORD - Two national pharmacy chains agreed to pay civil monetary penalties to resolve allegations that they violated the Controlled Substances Act by filling fraudulent prescriptions, United States Attorney Scott W. Murray announced today.
Pursuant to the terms of the settlement agreements, New Albertsons, L.P., d/b/a Osco Pharmacy agreed to pay $30,000 to resolve allegations that it had filled 13 fraudulent prescriptions for controlled substances at its location in Stratham between December 1, 2013, and July 31, 2014. Additionally, Maxi Drug North, Inc., d/b/a Rite Aid agreed to pay a penalty of $22,500 to resolve allegations that it had filled 15 fraudulent prescriptions for controlled substances at its location in Concord between December 1, 2013, and June 30, 2014.
The Controlled Substances Act prohibits the distribution or dispensing of a controlled substance without a valid prescription. A valid prescription for a controlled substance must be issued for a legitimate medical purpose by an individual practitioner acting in the usual course of his or her practice. The investigations in both cases indicated that pharmacists at the pharmacies should have known that patients had presented fraudulent prescriptions that should not have been filled.
In entering into these civil settlements, both companies denied liability. Both companies also cooperated with the government’s investigations.
“Pharmacies and health care professionals must comply with their legal obligations in order to ensure that controlled substances do not end up in the wrong hands,” said U.S. Attorney Murray. “When businesses or individuals fail to fulfill these obligations, drugs can be diverted into the black market or otherwise misused. We will not hesitate to use federal enforcement tools to ensure that members of the health care industry follow the law.”
“DEA registrants like Osco and Rite Aid have a corresponding responsibility to dispense controlled substances in accordance with the Controlled Substances Act. When these responsibilities are not adhered to it allows for the diversion of prescription pain medication which contributes to the widespread abuse of opiates that are devastating our communities,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s settlements demonstrate DEA’s commitment to improve public safety and public health in New Hampshire.”
These cases were investigated by the Drug Enforcement Administration’s Diversion Control Division. The cases were handled by Assistant United States Attorney Michael McCormack.
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Two Men Indicted in Scheme to Straw Purchase Firearms in Wisconsin and Re-Sell Them in ChicagoRead the Press Release
CHICAGO — Two men have been indicted on federal firearm charges for conspiring to straw purchase 19 handguns in Wisconsin and re-sell them in Chicago.
Wisconsin resident KIRK VALENTINE purchased the firearms at retail stores, pawn shops and gun shows, and falsely certified on required forms that he was the actual buyer, according to an indictment returned in U.S. District Court in Chicago. In reality, Valentine was a straw purchaser who knowingly bought the guns at the direction of FRANCISCO ROCHA, a Chicago resident who identified which firearms he wanted and paid Valentine a premium over the list prices, the indictment states. In the first six months of 2018, the pair caused at least 19 handguns to be purchased in Wisconsin and transported to Chicago, where Rocha and others re-sold and distributed them, the indictment states.
The indictment was returned Aug. 1, 2019, and ordered unsealed Wednesday. Valentine, 23, of La Crosse, Wisc., and Rocha, 28, are charged with conspiracy to deal firearms without a license, and unlawfully dealing and importing firearms.
“Straw purchasers and firearm traffickers enable unlawful possession of guns and the violence that may follow,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “Fighting violent crime is a top priority in our office, and we are committed to holding accountable those who engage in illicit firearm transactions.”
U.S. Attorney Lausch announced the charges along with Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI, and Eddie Johnson, Superintendent of the Chicago Police Department. The U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives provided assistance. The government is represented by Assistant U.S. Attorneys Albert Berry III and Elizabeth Pozolo.
“Straw purchasing firearms is not a victimless crime,” said FBI Assistant SAC Larry L. Lapp. “It is a serious danger to our communities. This indictment demonstrates the FBI’s commitment to working with our law enforcement and prosecutorial partners to help stop the flow of illegal guns into our neighborhoods.”
“We are going to continue to use the full weight of the Chicago Police Department and U.S. Justice Department to send a clear message that we will not tolerate the proliferation and use of illegal guns in Chicago,” said CPD Supt. Johnson. “This case is the latest example of the daily work police officers, federal agents and United States Attorneys are doing to safeguard communities and create a culture of accountability for gun offenders.”
During the investigation, law enforcement utilized ATF’s National Integrated Ballistic Information Network. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms.
Rocha was arrested in Wisconsin on Aug. 9, 2019. He pleaded not guilty Wednesday during his arraignment in federal court in Chicago before U.S. Magistrate Judge Gabriel A. Fuentes. Rocha was ordered to remain in federal custody pending a detention hearing on Sept. 10, 2019, at 1:30 p.m.
Valentine self-surrendered to the Court on Aug. 5, 2019. He pleaded not guilty during his arraignment that day in federal court in Chicago before U.S. Magistrate Judge Maria Valdez. He was ordered released on bond, and a status hearing was scheduled for Sept. 17, 2019, before U.S. District Judge John Z. Lee.
The indictment describes seven firearm transactions in Wisconsin:
- March 8, 2018: Valentine purchased three handguns at Gander Outdoors in Onalaska, Wisc.
- March 23, 2018: Valentine purchased two handguns from a dealer at Bob and Rocco’s Gun Show in Onalaska, Wisc.
- April 13, 2018: Valentine purchased a handgun at Big Rooster Firearms in Sparta, Wisc.
- May 13, 2018: Valentine purchased two handguns at Ace Hardware in La Crosse, Wisc.
- May 17, 2018: Valentine purchased two handguns at Holmen Pawn Shop in Holmen, Wisc.
- May 19, 2018: Valentine purchased two handguns from a dealer at Bob and Rocco’s Gun Show in Onalaska, Wisc.
- May 19, 2018: Valentine purchased seven handguns from a dealer at Bob and Rocco’s Gun Show in Onalaska, Wisc.
Holding straw purchasers accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, including by prosecuting individuals who illegally purchase firearms.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of the indictment is punishable by a maximum sentence of five years in prison. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.