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Thursday 16 May 2019
Ten Members of the Aryan Knights Prison Gang Indicted on RICO Charges in Federal CourtRead the Press Release
BOISE – A federal grand jury indicted ten members of an Idaho prison gang called the Aryan Knights on RICO (the Racketeer Influenced and Corrupt Organization Act) charges, U.S. Attorney Bart M. Davis announced. The indictment results from an FBI investigation of the Aryan Knights at the request of the Idaho Department of Correction (IDOC).
As alleged in the indictment, the Aryan Knights, or “AK,” was formed in the mid-1990s in the Idaho prison system. It is a prison gang that operates within IDOC prison facilities and also outside of IDOC facilities. It was founded to organize criminal activity for a select group of white inmates within IDOC custody. The AK has white supremacist and white separatist ideologies. Since its founding, the AK has expanded and is now believed to have over 100 members, both inside and outside of IDOC custody. The AK has used violence and the threat of violence to target non‑white inmates and other targeted inmates. The AK also has used drug trafficking, extortion, and gambling to generate revenue, which was shared among members. The AK has a leadership structure and an evolving code of conduct.
As alleged in the indictment, the AK arranged to smuggle large quantities of illicit drugs into prison over the years, generating revenue and laundering the proceeds through an outside business. The AK increased and maintained its reputation for violence within IDOC through repeated acts of violence.
The Indictment has three counts. In Count One, nine of the defendants were charged with conspiracy to participate in a racketeering enterprise. They are:
- James Ramsey, age 38;
- Christopher Foss, age 30;
- Harlan Hale, age 53;
- Steven Bowman, age 36;
- Jeremy Brown, age 40;
- Nicholas Sites, age 34;
- Buck Pickens, age 30;
- Lucas Johnson, age 30; and
- Michael McNabb, age 34.
In Count Two, Ramsey and Hale also were charged with attempted murder and assault with a dangerous weapon in aid of racketeering for the June 2016 stabbing of an AK member who had come into conflict with Ramsey, the AK’s overall leader at the time.
In Count Three, Bowman and Mark Woodland, age 48, were charged with attempted murder and assault with a dangerous weapon in aid of racketeering for the February 2017 beating and stabbing of an inmate associated with a rival prison gang.
All defendants, except for Johnson, are currently in IDOC custody. Johnson, a former IDOC inmate, was arrested yesterday.
As charged in the Indictment for Ramsey, Foss, Hale, Bowman, Sites, Pickens, and Johnson, the charge of conspiracy to participate in a racketeering enterprise is punishable by up to life imprisonment.
As charged in the Indictment for Brown and McNabb, the charge of conspiracy to participate in a racketeering enterprise is punishable by up to twenty years imprisonment.
As charged in the Indictment, the charge of attempted murder in aid of racketeering is punishable by up to ten years imprisonment.
As charged in the Indictment, the charge of assault with a dangerous weapon in aid of racketeering is punishable by up to twenty years imprisonment.
“This Indictment is the result of remarkable collaboration between state and federal investigators,” said Davis. “It shows the commitment of law enforcement at all levels in Idaho to root out crime wherever it occurs.”
“The defendants in this case didn’t let prison walls deter their acts of brazen violence and crime,” said Special Agent in Charge Paul Haertel of the FBI’s Salt Lake City Field Office. “The FBI is committed to fighting organized crime wherever it takes place and will continue to work closely with our law enforcement partners to make that happen.”
“This Indictment will help make our correctional facilities and communities safer,” said IDOC Director Josh Tewalt. “When people in our custody choose to further their criminal activities while incarcerated, it poses a significant danger to our correctional professionals, the vast majority of people in our custody working hard to turn their lives around, and even reaches into our communities.”
The investigation was prompted by information uncovered by the IDOC’s Special Investigations Unit. Because of the depth and scale of the conspiracy, the department requested the assistance of the U.S. Attorney Office for the District of Idaho and the FBI.
In addition to the FBI, IDOC’s Special Investigations Unit, the Ada County Sheriff’s Office, and the Ada County Prosecutor’s Office participated in the investigation.
An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Sisseton Man Sentenced for Aggravated Assaults Involving Two Women and for a Firearm OffenseRead the Press Release
United States Attorney Ron Parsons announced that a Sisseton, South Dakota, man convicted of felon in possession of a firearm and two counts of assault with a dangerous weapon was sentenced on May 14, 2019, by U.S. District Judge Charles B. Kornmann.
Anthony Janisch, age 29, was sentenced to 63 months in federal prison, to be followed by 3 years of supervised release. He was ordered to pay $300 to the Federal Crime Victims Fund.
According to court documents, on or about June 20, 2017, Janisch, having been previously convicted of a crime punishable by imprisonment for a term exceeding one year, did unlawfully possess a firearm. Janisch also brandished that firearm during the aggravated assault of two women and made specific threats to victims. The firearm was loaded and he put it to the head of one of the victims, while making threats.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation was conducted by Sisseton-Wahpeton Oyate Tribal Law Enforcement and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Janisch was remanded to the custody of the U.S. Marshals Service.
Sisseton Man Charged with Aggravated Sexual Abuse and Assault of Partner by Strangulation or SuffocationRead the Press Release
United States Attorney Ron Parsons announced that a Sisseton, South Dakota, man has been indicted by a federal grand jury for aggravated sexual abuse by force, threat, or fear, and assault of partner by strangulation or suffocation.
Joshua John Max, age 35, was indicted on February 5, 2019. He appeared before U.S. Magistrate Judge William Gerdes on May 13, 2019, and pled not guilty to the Indictment.
According to the Indictment, on or about the 25th day of April, 2015, Max knowingly engaged, and attempted to engage in, a sexual act by using force, by threatening, and by placing in fear of death and serious bodily injury, and unlawfully assaulted an intimate partner by strangling and suffocating.
The maximum penalties upon conviction for each count are as follows: up to life imprisonment and/or a $250,000 fine; a mandatory minimum term of five (5) years, up to life, of supervised release; $100 special assessment for victim/witness fund; $5,000 assessment to the domestic trafficking fund; and restitution may be ordered.
The charges are merely accusations and Max is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Sisseton-Wahpeton Oyate Sioux Tribe’s Law Enforcement and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Max was remanded to the custody of the U.S. Marshals Service. A trial date of June 25, 2019, has been set.
Rhode Island Property Preservationist Indicted for Fraud, Money Laundering, Aggravated Identity Theft and Obstructing an IRS InvestigationRead the Press Release
A federal grand jury returned a 14-count indictment today charging an East Greenwich, Rhode Island, business woman, whose business specializes in preserving foreclosed homes for resale, with nine counts of wire fraud, two counts aggravated identity theft, one count of money laundering, and one count each of structuring and obstructing an Internal Revenue Service investigation, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, United States Attorney Aaron L. Weisman for the District of Rhode Island, Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell, and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
According to the indictment and court documents, Monique N. Brady, owner and operator of MNB LLC, operated a scheme whereby she raised and pocketed millions of dollars from investors, including close friends, a family member, and business associates, by misrepresenting to them that she needed to raise tens of thousands of dollars for various repair projects. In return for their investment, investors were promised a return of 50 percent of the profit.
It is alleged that Brady fraudulently represented to potential investors that MNB had secured contracts to perform large scale rehabilitation projects on foreclosed properties in Rhode Island, Connecticut, Massachusetts, and New Hampshire, and that payments ranging from approximately $20,000 to $80,000 were needed to pay subcontractors to perform the work. Brady often solicited and received multiple investments for the same property. To make potential investors believe she had secured contracts for large scale rehabilitation projects, Brady forwarded to her investors fraudulent emails purporting to be from a national property rehabilitation company claiming Brady had been approved to rehabilitate a property. Brady included in the emails fraudulent itemizations of work to be performed. Brady also included, without permission, the identity of an actual employee of the national property rehabilitation company in an attempt to make the emails appear authentic.
For the majority of properties for which Brady received investments from third parties, allegedly no work whatsoever was performed by MNB. On some properties, MNB performed low-dollar tasks and was paid less than $1,000, at times as little as $25.
From January 2014 to July 2018, Brady received approximately $10.2 million dollars in investments from about 32 individuals and corporations to whom she fraudulently represented that large-scale rehabilitation projects had been awarded to MNB. These investors have sustained a loss of approximately $4.78 million. Some of the investor funds allegedly were spent by Brady on personal expenditures, to include numerous vacations, personal mortgage payments and gambling-related expenses. When individual investors demanded from Brady a return on their investment she would, at times, use other investors funds. In this way, Brady allegedly operated a “Ponzi scheme.”
The indictment further alleges Brady attempted to obstruct an IRS criminal investigation when, after being told by IRS investigators she was under investigation, she asked investors to delete or destroy all email correspondence, texts, and documents relating to their investments in MNB rehabilitation projects.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Each wire fraud charge carries statutory penalties of up to 20 years in prison, up to five years supervised release, and a fine of up to $250,000 or twice the gross profit/loss. Aggravated identity theft is punishable by statutory penalties of a two year mandatory sentence consecutive to any other sentence imposed and one year of supervised release. Money laundering is punishable by statutory penalties of up to 10 years imprisonment, three years supervised release, and a fine of up to $250,000. Structuring is punishable by statutory penalties of up to five years imprisonment, three years supervised release, and a fine of up to $250,000. Obstructing an IRS investigation is punishable by statutory penalties of up to three years in prison, one year supervised release, and a fine of $5,000.
The case is being prosecuted by Assistant United States Attorney Lee Vilker of the District of Rhode Island and Trial Attorney Christopher O’Donnell of the Tax Division.
The matter was investigated by agents from IRS-Criminal Investigation and the FBI.
Rapid City Woman Sentenced for LarcenyRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman convicted of Larceny was sentenced on May 13, 2019, by U.S. District Judge Roberto A. Lange.
Whitney Bagola, age 25, was sentenced to credit for time served, 3 years of supervised release, restitution in the amount of $5,107.68, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bagola was indicted by a federal grand jury on January 23, 2019. She pled guilty on February 22, 2019.
The conviction stemmed from an incident on January 7, 2019, when Bagola entered a vehicle valued at more than $1,000 that was not hers and drove off in it. She abandoned the vehicle approximately 150 miles later, after the car ran out of gas.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Bagola was immediately turned over to the custody of the U.S. Marshals Service.
Property Preservationist Indicted for Fraud, Money Laundering, Aggravated Identity Theft, Obstructing an IRS InvestigationRead the Press Release
PROVIDENCE – A federal grand jury returned a 14-count indictment today charging an East Greenwich, Rhode Island business woman, whose business specializes in preserving foreclosed homes for resale, with nine counts of wire fraud, two counts aggravated identity theft, and one count each of money laundering, structuring, and obstructing an Internal Revenue Service investigation, announced United States Attorney Aaron L. Weisman for the District of Rhode Island, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell, and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
According to the indictment and court documents, Monique N. Brady, owner and operator of MNB LLC, operated a scheme whereby she raised and pocketed millions of dollars from investors, including close friends, a family member, and business associates, by misrepresenting to them that she needed to raise tens of thousands of dollars for various repair projects. In return for their investment, investors were promised a return of fifty percent of the profit.
It is alleged that Brady fraudulently represented to potential investors that MNB had secured contracts to perform large scale rehabilitation projects on foreclosed properties in Rhode Island, Connecticut, Massachusetts, and New Hampshire, and that payments ranging from approximately $20,000 to $80,000 were needed to pay subcontractors to perform the work. Brady often solicited and received multiple investments for the same property. To make potential investors believe she had secured contracts for large scale rehabilitation projects, Brady forwarded to her investors fraudulent emails purporting to be from a national property rehabilitation company claiming Brady had been approved to rehabilitate a property. Brady included in the emails fraudulent itemizations of work to be performed. Brady also included, without permission, the identity of an actual employee of the national property rehabilitation company in an attempt to make the emails appear authentic.
For the majority of properties for which Brady received investments from third parties, allegedly no work whatsoever was performed by MNB. On some properties, MNB performed low-dollar tasks and was paid less than $1,000, at times as little as $25.
From January 2014 to July 2018, Brady received approximately $10.2 million dollars in investments from about 32 individuals and corporations to whom she fraudulently represented that large-scale rehabilitation projects had been awarded to MNB. These investors have sustained a loss of approximately $4.78 million. Some of the investor funds allegedly were spent by Brady on personal expenditures, to include numerous vacations, personal mortgage payments and gambling-related expenses. When individual investors demanded from Brady a return on their investment she would, at times, use other investors funds. In this way, Brady allegedly operated a “Ponzi scheme.”
The indictment further alleges Brady attempted to obstruct an IRS criminal investigation when, after being told by IRS investigators she was under investigation, she asked investors to delete or destroy all email correspondence, texts, and documents relating to their investments in MNB rehabilitation projects.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Each wire fraud charge carries statutory penalties of up to 20 years in prison, up to 5 years supervised release, and a fine of up to $250,000 or twice the gross profit/loss. Aggravated identity theft is punishable by statutory penalties of a 2-year mandatory sentence consecutive to any other sentence imposed and 1 year of supervised release. Money laundering is punishable by statutory penalties of up to 10 years imprisonment, 3 years supervised release, and a fine of up to $250,000. Structuring is punishable by statutory penalties of up to 5 years imprisonment, 3 years supervised release, and a fine of up to $250,000. Obstructing an IRS investigation is punishable by statutory penalties of up to 3 years in prison, 1 year supervised release, and a fine of $5,000.
The case is being prosecuted by Assistant United States Attorney Lee Vilker of the District of Rhode Island and Trial Attorney Christopher O’Donnell of the Tax Division.
The matter was investigated by agents from IRS-Criminal Investigation and the FBI.
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Portage Woman Sentenced to 15 YEARS in Prison for Producing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN –Rachel Marie Burrell, 30, of Portage, Michigan, was sentenced for sexual exploitation of a child, U.S. Attorney Andrew Birge announced today. Burrell was sentenced to 180 months’ imprisonment, followed by five years of supervised release and was ordered to pay fines and other monetary penalties.
Burrell took sexually explicit pictures of an infant in her care and forwarded the images to a man with whom she was in a relationship. She also made the infant available to that man knowing he would sexually assault the infant. According to a victim impact statement filed by the victim’s foster parents, the victim suffers from night terrors and a sensory processing disorder as a result of the abuse. Chief Judge Jonker noted at sentencing "the ultimate injury to the child … was severe."
"Children, and infants in particular, are some of our most vulnerable victims and my office is dedicated to seeking justice when they are harmed," said U.S. Attorney Birge. "As a law enforcement agency and as a community, we have no greater duty than to protect the most vulnerable among us," said Timothy R. Slater, Special Agent in Charge of the FBI’s Detroit Division. "The FBI and our law enforcement partners will relentlessly pursue those who would victimize innocent children and ensure they are brought to justice."
This case is part of the Department of Justice’s Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office, county prosecutor’s offices, and federal, state, and local law enforcement work closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
The case was investigated by the FBI, the Michigan State Police, and the Kalamazoo County Sheriff’s Department and prosecuted by Assistant U.S. Attorney Alexis M. Sanford.
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Plymouth Man Sentenced for Drug DistributionRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that United States District Judge James C. Dever III sentenced NORMAN LYDELL FORD, 45, of Plymouth, North Carolina, to 120 months imprisonment, followed by three years of supervised release.
FORD was named in an Indictment filed on October 3, 2018, charging him with conspiracy to distribute cocaine base (crack) and six counts of distribution of cocaine base (crack). On January 24, 2019, FORD pled guilty to conspiracy and one count of distribution.
According to the investigation, FORD distributed cocaine base (crack) seven times between December 2015 and April 2018. FORD had multiple previous drug distribution convictions.
This case was implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by North Carolina Alcohol Law Enforcement. Assistant United States Attorney Lucy Brown represented the government.
Philadelphia Man Convicted of Illegally Possessing a FirearmRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Kevin Jamelle Archie, 37, of Philadelphia, Pennsylvania was convicted today at trial of one count of felon in possession of a firearm.
On September 10, 2016, Philadelphia Police officers arrested the defendant after responding to a 911 call and finding him in possession of a firearm loaded with ten rounds of ammunition at the corner of Frankford Avenue and East Pacific Street in the Harrowgate section of lower Northeast Philadelphia. The defendant had previously been convicted of a felony – possession with the intent to distribute controlled substances – which barred him from legally possessing a firearm.
“Reducing violent crime is a top priority of my Office and of the Department of Justice, and successful prosecutions of cases like this remain a key part of our deterrence strategy,” said U.S. Attorney McSwain. “My Office is committed to working with the Philadelphia Police Department to clear the city streets of firearms in the hands of convicted felons, which undeniably pose a serious threat to the safety of all residents.”
“Public safety is the core responsibility of all who work in the field of law enforcement. Regardless of our specific agencies or titles, keeping our communities safe is at the heart of our primary mission,” said Philadelphia Police Commissioner Richard Ross. “In order for us to accomplish our mission, collaboration between our law enforcement partners, the community, and initiatives like Project Safe Neighborhoods must remain a priority. The investigation, arrest, and successful prosecution of Mr. Archie serves as evidence of the effectiveness of strong and consistent collaboration between stakeholder agencies.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and is being prosecuted by Assistant United States Attorney Tom Zaleski.
Pelion Man Sentenced to Federal Prison for Loan FraudRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Richard Earl Jeffcoat, age 52, of Pelion, was sentenced to six months in federal prison and six months of home confinement after pleading guilty to Conspiring to Commit Bank Fraud. Senior United States District Court Judge Terry L. Wooten of Columbia imposed the sentence and ordered Jeffcoat to pay over $45,000 in restitution to the victim, Arthur State Bank.
Facts presented in court established that Jeffcoat is an accountant who was producing false documentation in support of loan applications and giving that information to an Arthur State Bank loan officer. The officer than facilitated approvals for mortgages and other loans using the fake documents. Some of the loans were for Jeffcoat’s family members.
Jeffcoat was involved in a total of six loans valued at $529,000. Several are still current. The value of the loss-to-date is approximately $45,000.
The United States Secret Service investigated the case. Assistant United States Attorney Winston D. Holliday, Jr., of the Columbia office prosecuted the case.
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North Charleston Man Sentenced to a Year in Prison on Federal Gun ChargeRead the Press Release
Charleston, South Carolina --- United States Attorney Sherri A. Lydon announced today that Corey Emery Jenkins, 35, of North Charleston, was sentenced to a year in federal prison after pleading guilty to being a felon in possession of a firearm.
Evidence presented to the court showed that on August 10, 2017, officers of the North Charleston Police Department responded to an apartment on Russelldale Avenue regarding reports of gun and drug trafficking. Jenkins answered the door with a gun in his hand, and then tried to close the door on the officer. Officers entered the apartment and secured a search warrant. A search of the apartment revealed three loaded guns, including a stolen Glock, a revolver capable of firing shotgun shells, and an assault rifle. Federal law prohibits Jenkins from possessing firearms based on prior felony convictions.
United States District Judge Bruce Howe Hendricks of Charleston sentenced Jenkins to twelve months in federal prison to be followed by a 3-year term of court-ordered supervision. The Court imposed the maximum sentence available under the terms of Jenkins’ plea agreement. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the North Charleston Police Department. It was prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Assistant United States Attorney Chris Schoen of the Charleston office prosecuted the case.
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Nora Springs Man Charged with Child Sexual Exploitation OffensesRead the Press Release
Aaron Olson, age 35, of Nora Springs, Iowa, has been charged with two counts of sexual exploitation of a child. The charges are contained in an Indictment unsealed on May 9, 2019, in United States District Court in Cedar Rapids.
The Indictment alleges that, between 2017 and 2018, Olson used two minors to engage in sexually explicit conduct for the purpose of producing visual depictions.
If convicted, Olson faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 60 years’ imprisonment, a $500,000 fine, and at least five years and up to life on supervised release following any imprisonment.
Olson appeared on May 9, 2019, in federal court in Cedar Rapids and was held without bond. Olson’s next appearance for trial is set for July 8, 2019.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Iowa Division of Criminal Investigation and the Nora Springs Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 19-2029.
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Nine people, most from Toledo, indicted for their roles in a conspiracy to traffic large amounts of heroin, cocaine and fentanyl in Northwest OhioRead the Press Release
Nine people, most from Toledo, were indicted for their roles in a conspiracy to traffic large amounts of heroin, cocaine and fentanyl in Northwest Ohio.
Named in the eight-count indictment are: Pedro Negrin, 59, Santino Montoya, 26, Aurelio Seoane-Armada, 59, Jamel Gaines, 30, Corey Goings, 48, Nathaniel Houle, Jr., 22, Korey Parker, 29, all of Toledo; Francisco Cabrera-Hernandez, 35, of Casa Grande, Arizona; and Luis Perez-Rodriguez, 31, of Phoenix.
All nine defendants are charged with one count of conspiracy to possess with intent to distribute at least one kilogram of heroin, five kilograms of cocaine and 400 grams of fentanyl.
Goings is charged with being a felon in possession of a firearm, for allegedly having a Springfield Armory .45-caliber pistol despite a previous drug conviction. Various defendants are charged with additional drug counts, including Cabrera-Hernandez and Perez-Rodriguez being charged with possession with intent to distribute 11 kilograms of cocaine.
Prosecutors are seeking to forfeit more than $407,000 seized as part of the investigation, as well as a firearm and two vehicles installed with after-market traps.
“These defendants trafficked in large amounts of heroin, fentanyl and cocaine, drugs that have taken so many lives and destroyed so many families in Ohio,” U.S. Attorney Justin Herdman said. “We will continue to work with our law enforcement partners to prosecute those who profit from this drug crisis.”
“These individuals brought danger and violence to our communities through their illegal drug dealing behavior,” said FBI Special Agent in Charge Eric Smith. “Collaborative law enforcement efforts will continue daily to combat the for profit distribution of illicit life robbing narcotics.”
Toledo Police Chief George Kral said: “Here is yet another example of exemplary police work and collaborations between local, state, and federal law enforcement. As a result of this investigation, ten individuals, mostly from Toledo, were arrested and a substantial amount of dangerous drugs are off of our streets. Toledo is a safer community with the individuals behind bars. I look forward to continuing our long standing relationship with our federal partners."
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
The investigating agencies in this case are the Federal Bureau of Investigation and the Toledo Metro Drug Task Force. The case is being handled by Assistant U.S. Attorneys Alissa M. Sterling and Matthew D. Simko.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
New York Man Indicted for Conspiracy to Distribute Heroin and Interstate ProstitutionRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Akbar Muhammad, age 42, of New York, was indicted on May 14, 2019, by a federal grand jury for conspiracy to distribute more than a kilogram of heroin, and two counts of interstate prostitution.
According to United States Attorney David J. Freed, the indictment alleges that Muhammad, who used the street name “Biz,” participated in the conspiracy to distribute heroin from 2015 to the present, and transported prostitutes from Pennsylvania to New York and from New York to Pennsylvania between October 2016 and 2017.
The indictment stems from an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and Stroud Area Regional Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the drug conspiracy charge is life imprisonment, a term of supervised release following imprisonment, and a fine. The drug charge also carries a mandatory minimum sentence of 10 years’ imprisonment. The maximum sentence for the prostitution offenses is 10 years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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New Orleans Man Pleads Guilty for His Role in Scheme to Defraud Medicare by Soliciting Kickback Payments for Two New Orleans-Area PhysiciansRead the Press Release
A New Orleans, Louisiana, man pleaded guilty today for his role in a scheme to solicit the payment of illegal health care kickbacks to several individuals, including two New Orleans-area physicians, for the referring and certifying of individuals for medically unnecessary home health services.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office made the announcement.
Joseph A. Haynes, 63, pleaded guilty before U.S. District Judge Barry W. Ashe of the Eastern District of Louisiana to one count of conspiracy to solicit and receive health care kickbacks and bribes. Sentencing is set for Aug. 22 before Judge Ashe.
In pleading guilty, Haynes admitted that he participated in a scheme with codefendants Muhammad Kaleem Arshad, M.D., 63, of New Orleans, Padmini Nagaraj, M.D., 61, of Kenner, Louisiana, and others, including patient recruiter Kim Ricard, 52, of Gonzales, Louisiana, and clinic owner Milton Diaz, 66, of Harvey, Louisiana. Haynes admitted that the purpose of the scheme was to solicit and receive kickbacks and bribes for the referral of Medicare beneficiaries to Progressive Home Health (Progressive), of New Orleans, owned by Diaz, and having them certified as eligible to receive home health services. In reality, the beneficiares were not eligible to receive such services. Haynes admitted that he solicited a total of approximately $331,000 in kickbacks from Diaz for Ricard disguised as marketing fees and solicited approximately $1,500 in monthly kickbacks from Diaz for Arshad and Nagaraj disguised as medical director fees.
Arshad pleaded guilty on Feb. 22, 2019 and Nagaraj pleaded guilty on May 2, 2019 before Judge Ashe, to one count each of conspiracy to commit health care fraud. Arshad’s sentencing is set for July 11, 2019, and Nagaraj’s sentencing is set for Aug. 8, 2019. As part of their pleas, Arshad and Nagaraj each admitted that in return for accepting illegal health care kickbacks, which Haynes orchestrated, Arshad and Nagaraj each referred beneficiaries that they treated at a Louisiana-based psychiatric facility for medically unnecessary home health services at Progressive, and further fraudulently certified that the beneficiaries were eligible to receive such services. Diaz, on behalf of Progressive, then submitted the fraudulent claims to Medicare and was reimbursed for the medically unnecessary home health services, he admitted.
Diaz pleaded guilty on July 13, 2017, and is scheduled to be sentenced on July 31, 2019 before U.S. District Judge Jane Triche Milazzo of the Eastern District of Louisiana. Ricard was found guilty after a three-day trial in September 2017, and was sentenced on Jan. 4, 2018, to 51 months in prison.
This case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. Trial Attorneys Jared Hasten, Katherine Payerle and Claire Yan of the Criminal Division’s Fraud Section are prosecuting the case.
The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Nebraska Man Charged with Selling Employer’s Confidential InformationRead the Press Release
NEWARK, N.J. – A Nebraska man was arrested today for allegedly selling one of his employer’s databases, U.S. Attorney Craig Carpenito announced.
Timothy Young, 49, of Moorefield, Nebraska, is charged by complaint with one count of wire fraud. He is scheduled to make his initial appearance May 17, 2019, before U.S. Magistrate Judge F.A. Gossett III, in Omaha, Nebraska, federal court.
According to documents filed in this case:
Young was employed at a data analytics and risk assessment firm based on New Jersey. The company serves customers worldwide, including entities providing insurance and financial services as well as government entities. The company maintains a network that houses, among other things, significant amounts of personally identifiable information.
Young provided to an individual he met online non-public information from the company’s system, including names, logon names, passwords, email addresses, and telephone numbers for some of the company’s clients. Young expected to be paid for providing this information.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Young or twice the gross loss suffered by the victim.
U.S. Attorney Carpenito credited special agents the FBI Cyber Task Force, which includes special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and task force officers from the N.J. State Police, Jersey City Police Department and Federal Protective Service, with the investigation leading to today’s arrest. He also thanked FBI Omaha, under the direction of Randall C. Thysse, for its role in the investigation.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cyber Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Moses Lake Man Sentenced to over 12 Years in Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Loren John Jay Meade, age 32, of Moses Lake, Washington, was sentenced today after having pleaded guilty on October 2, 2018, to conspiracy to distribute 50 or more grams of actual methamphetamine. Chief United States District Judge Thomas O. Rice sentenced Meade to a 12 year and four month term of imprisonment, to be followed by a five-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, Meade conspired with Michael John Montejano, age 28, also of Moses Lake, Washington, to distribute methamphetamine in Moses Lake. For his role in the conspiracy, Montejano was sentenced on April 9, 2019, to a seven year term of imprisonment, to be followed by a five-year term of court supervision.
Joseph H. Harrington said, “Methamphetamine is a highly dangerous and addictive drug and federal law enforcement is committed to investigating and prosecuting those responsible for its distribution anywhere in the Eastern District of Washington. The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives who investigated this case. The sentences imposed in this case by the court removes two drug traffickers from our streets and sends a clear message to others who may choose to distribute methamphetamine in our communities.”
This case was investigated by the Spokane Resident Offices of the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by James A. Goeke, an Assistant United States Attorney for the Eastern District of Washington.
Monona County Man off to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced May 14, 2019, to ten years in federal prison.
Gary Gibbs, 48, from Soldier, Iowa, received the prison term after a November 13, 2018, guilty plea to conspiracy to distribute methamphetamine. Gibbs was previously convicted of four felony drug offenses in Nebraska.
At the plea hearing, Gibbs admitted that from January 2017 through February 2018, he and others were involved in a conspiracy that distributed more than 500 grams of methamphetamine. Gibbs further admitted to obtaining methamphetamine from sources in Omaha, Nebraska to sell in the Monona County area. On November 23, 2017, a Monona County Sheriff’s deputy traffic stopped Gibbs and found Gibbs with about ½ ounce of methamphetamine. The deputy also witnessed Gibbs throw a bag out the passenger door window. Deputies returned to the area where Gibbs had thrown out the bag and located about 3 ounces of methamphetamine, 1 ounce of marijuana, and other indicia of drug distribution in the bag. On June 12, 2018, when arrested on the federal charges in this case, Gibbs was found to be in possession of about ¼ ounce of methamphetamine, and approximately $1,400.
Gibbs was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Gibbs was sentenced to 120 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Gibbs is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Monona County Sheriff’s Office, Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4047. Follow us on Twitter @USAO_NDIA.
Missoula man gets prison for drug distribution and firearms possessionRead the Press Release
Missoula—A Missoula man who admitted distributing methamphetamine and other drugs and to having multiple firearms was sentenced today to eight years in prison and to five years of supervised release, U.S. Attorney Kurt Alme said.
Nickolas William Povsha, 24, pleaded guilty earlier to possession with intent to distribute controlled substances and to possession of a firearm in furtherance of a drug trafficking crime.
Chief U.S. District Judge Dana L. Christensen presided at sentencing.
Prosecutors said in court records that Povsha twice sold a confidential informant MDMA, commonly known as ecstasy, in April and May 2018. And in July 2018, pursuant to a federal search warrant, two packages belonging to Povsha were intercepted and searched. One package contained more than 50 grams of pure methamphetamine and the other contained marijuana seeds. A third package was searched at a later date and was found to contain Xanax.
Law enforcement also executed a search warrant at Povsha’s residence in August 2018 and found multiple firearms, ammunition, drugs, a scale and other items.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the Missoula High Intensity Drug Trafficking Area Task Force and Homeland Security Investigations.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Mission Man Sentenced for Burglary ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Third Degree Burglary was sentenced on May 13, 2019, by U.S. District Judge Roberto A. Lange.
Jonathan Yellow Eyes, age 23, was sentenced to 15 months in federal prison, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Yellow Eyes was indicted by a federal grand jury on September 11, 2018. He pled guilty on February 19, 2019.
The conviction stemmed from an incident that occurred in the early morning hours of December 6, 2017, wherein Yellow Eyes broke into and burglarized the Rosebud Sioux Tribe Head Start Administration Building in Rosebud. While inside the building, Yellow Eyes stole multiple items, including the keys to a vehicle that belonged to the Rosebud Sioux Tribe Head Start. Yellow Eyes subsequently exited the building, located the vehicle, and stole it. The vehicle was later found abandoned in Sioux Falls.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Yellow Eyes was immediately turned over to the custody of the U.S. Marshals Service.
Minnesota Man with Multiple Prior Felony Convictions Pleads Guilty under Project EJECT to Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Bobby Joseph Stallworth, 59, of Minneapolis, Minnesota, entered a guilty plea today before Senior U.S. District Judge David C. Bramlette III to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation.
Stallworth had been previously convicted of approximately twenty felony offenses out of Escambia County, Florida over the past thirty years, most of which involved theft or forgery. On October 9, 2017, Stallworth was found in possession of a firearm in Jackson after law enforcement intervened in a domestic dispute with his then-girlfriend.
Stallworth was indicted for this offense on April 3, 2019. He will be sentenced by Judge Bramlette on August 22, 2019, at 11:00 a.m., and faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The Federal Bureau of Investigation and Jackson Police Department investigated the case. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Minnesota Man Sentenced for Abusive Sexual Contact of a Child under Twelve YearsRead the Press Release
United States Attorney Ron Parsons announced that a Moose Lake, Minnesota, man convicted of two counts of abusive sexual contact of a child under twelve years was sentenced on May 13, 2019, by U.S. District Judge Charles B. Kornmann.
Roland Joseph Brant, age 64, was sentenced to 262 months in federal prison and ordered to pay $100 to the Federal Crime Victims Fund.
According to court documents, between February and July 2007, in Roberts County, South Dakota, Brant knowingly engaged in, and attempted to engage in, sexual acts with two children who had not attained the age of 12.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Brant was remanded to the custody of the U.S. Marshals Service.
Miami-Dade County Resident Sentenced to Five Years in Federal Prison for ArsonRead the Press Release
A Miami-Dade County, Florida resident was sentenced yesterday to five years in federal prison for setting fire to a local business.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, made the announcement.
Fabiola Pena, 41, of Miami-Dade County, pled guilty on April 22, 2019, to one count of arson of a business, in violation of Title 18, United States Code, Section 844(i) (Case No. 19-20005-CR-SCOLA). U.S. District Court Judge Robert N. Scola sentenced Pena to a total of 60 months in prison, to be followed by 3 years of supervised release. A hearing to determine the amount of restitution that Pena will be ordered to pay is scheduled for July 19, 2019 at 10 a.m.
According to the court record, including the agreed upon factual proffer, on December 25, 2018, Pena and a locksmith arrived at Hector’s Pizza located in Miami-Dade County, where the locksmith unlocked the door for the defendant. Pena later went to a nearby gas station, pumped gasoline into a white jug and then returned to the business. While inside the business, Pena set four fires: one in the rear storage area, one on the west rear wall refrigerator, one on the power cord within the office, and one on the northeast wall refrigerator. Pena left shortly after she started the fires. Surveillance video from a nearby business revealed smoke coming out of the front of Hector’s Pizza, after Pena exited the establishment.
Law enforcement responded, observed smoke from the front of the business, and contacted Miami-Dade Fire Rescue Department. Fire personnel observed heavy black smoke upon entering the business, as well as heavy smoke extending from the floor to the ceiling at the freezer located on the west wall in the kitchen. Fire personnel also made a forced entry through the rear door and observed flames in the southwest storage room.
U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF in this matter. She thanked the Miami-Dade Police Department’s Arson Squad for assisting with the investigation and the Miami-Dade Fire Rescue Department for responding to the scene, extinguishing the fire, and protecting the local community. This case was prosecuted by Assistant U. S. Attorney Marty Fulgueira Elfenbein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Miami Man Pleads Guilty to Participating in $1.5 Million Apple Pay Fraud ConspiracyRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Daniel Butler (29, Miami) today pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft. Butler faces a minimum mandatory sentence of 2 years in federal prison for the aggravated identity theft count and up to 20 years in federal prison for the wire fraud count. A sentencing date has not yet been set.
According to the plea agreement, Butler and his co-conspirators fraudulently obtained access to at least 477 credit card accounts and linked those accounts to the Apple Pay application on their iPhones. Then, using their iPhones, Butler and the others made purchases using the victims’ credit card accounts, all without having to present actual credit cards to retailers. The group made more than $1.5 million in fraudulent purchases.
Three co-conspirators previously pleaded guilty for their roles in this scheme. Johnny Max Wesley (23, Miami) was sentenced in December 2018 to four years in federal prison. Laurent Pierre Louis (30, Miami) is scheduled to be sentenced on July 25, 2019, and Rachel Bishop (26, Miami), is scheduled to be sentenced on September 18, 2019.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
McLaughlin Man Sentenced for Possession of Firearms by Prohibited PersonRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, man convicted of felon in possession of a firearm by prohibited person was sentenced on May 13, 2019, by U.S. District Judge Charles B. Kornmann.
Jesse Boyd Brown Otter, age 37, was sentenced to 46 months in federal prison, to be followed by 3 years of supervised release. He was ordered to pay $300 to the Federal Crime Victims Fund.
According to court documents, on or about the 28th day of December, 2017, in the District of South Dakota, Jesse Boyd Brown Otter, having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, and being an unlawful user of a controlled substance, did knowingly possess a firearm and ammunition.
The Indictment alleges that Brown Otter possessed a Bond Arms, Model “Cowboy Texas Defender” 45 Long Colt caliber/410 gauge derringer-style handgun, bearing serial number 33176, and a Bond Arms, Model “Snake Slayer” 45 Long Colt caliber/410 gauge derringer-style handgun, bearing serial number 61571, and 4 rounds of Starline 45 Long Colt ammunition.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Brown Otter was remanded to the custody of the U.S. Marshals Service.
Marion man indicted for lighting a fire in the Kenton Walmart which caused $3.5 million in damageRead the Press Release
A Marion man was indicted in federal court for lighting a fire in the Walmart in Kenton, which caused an estimated $3.5 million in damage.
Caleb T. Poole, 27, was indicted on one count of destroying or damaging property used in interstate commerce.
According to court documents:
An explosion and fire were reported on May 6 at the Walmart on East Columbus Street in Kenton. Police and fire responded and, after controlling the fire, determined the fire originated within a shopping cart that contained two thermoses, toilet paper, a lighter and remnants of an aerosol spray can.
A review of Walmart security videos show a man determined to be Poole using a credit card to buy two thermoses. He exited the store and walked to the gas station across the street, where he filled the thermoses with gasoline. Poole then reentered the store and was observed picking up toilet paper and hairspray, then walking with the items to the origin area of the fire. Video surveillance shows the fire starting in the area with flames rising as high as 20 feet, according to court documents.
Poole is in custody. The investigation is ongoing.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Hardin County Sheriff’s Office, the Kenton Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorneys Thomas Weldon and Matthew D. Simko are handling the case.
An indictment is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Manchester Man Sentenced to 42 Months for Gang-Related Drug Trafficking in Hartford, Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that JEFFREY FERRY, also known as “30,” 32, of Manchester, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 42 months of imprisonment, followed by three years of supervised release, for drug and gun offenses.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department’s Vice and Narcotics Division into the trafficking of narcotics and associated violence in Hartford’s South End by members and associates of the Almighty Latin Kings Nation (“Latin Kings”). The investigation, which included court-authorized wiretaps, physical surveillance and controlled purchases of narcotics, revealed that two alleged members of the Latin Kings operated separate drug trafficking organizations that distributed fentanyl, heroin, cocaine, and crack cocaine. The organizations used multiple locations to process, package, store and distribute narcotics, and possessed firearms in furtherance of their drug trafficking activities.
Ferry was a member of a drug trafficking organization that operated a “trap house” at 149 Wethersfield Avenue in Hartford as a distribution point for drug customers. Ferry delivered drugs to the trap house, and also sold fentanyl to his own customers. On May 22, 2018, an individual was shot and seriously wounded in an apparent robbery of the trap house.
On June 3, 2018, Ferry and a co-defendant were arrested on state charges after intercepted communications revealed that Ferry had a gun and planned to meet someone to settle a dispute. Hartford Police officers stopped a car Ferry was driving on Redding Street and located a loaded 9mm pistol in the car’s glove box.
Ferry’s criminal history includes convictions in 2004 for possessing a weapon in a motor vehicle, and in 2006 for criminal possession of a firearm.
Ferry has been detained since his arrest. On February 20, 2019, he pleaded guilty to one count of conspiracy to distribute fentanyl and one count of possession of a firearm by a convicted felon.
This matter is being investigated by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Manchester Man Arrested for Trafficking Synthetic CannaboidsRead the Press Release
CONCORD - Heath Palmer, 39, of Manchester, was arrested on a federal complaint charging him with possessing a synthetic cannabinoid product containing 5F-MDMB-PICA with intent to distribute, United States Attorney Scott W. Murray announced today.
The complaint filed in court alleges that on April 18, 2019, Palmer was observed by police officers conducting hand-to-hand sales from a car. The Manchester Police stopped Palmer and he voluntarily turned over the product he was selling. Palmer claimed that the product did not contain illegal substances. Testing by the New Hampshire State Police Forensic Laboratory confirmed, however, that the product did contain an illegal substance, 5F-MDMB-PICA.
On May 7, 2019, Palmer was informed by the Manchester Police that the substance he was selling was in fact illegal. Three days later, the Manchester Police observed Palmer continue to make hand-to-hand sales from a car. The police stopped the car and seized the product that Palmer was selling. The product was again tested and it contained the same illegal substance.
Palmer appeared before a federal magistrate judge today and was detained pending further proceedings.
The charges in the complaint are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
According to the DEA, synthetic cannabinoids, which commonly are referred to by names such as “Spice” or “K2,” are designer drugs that are made in laboratories. The chemicals often are sprayed onto plant substances and then smoked in order to obtain a high. These substances have severe adverse effects and have often led to overdoses and deaths. In addition to the dangers associated with the chemical substances themselves, the lack of manufacturing standards may lead to increased health risks.
The DEA issued a regulation on April 16, 2019, that made 5F-MDMB-PICA and several other synthetic cannabinoids Schedule I controlled substances. In its order, the DEA noted that this drug had been associated with over 47 overdoses in Connecticut and at least 244 overdoses in Washington, D.C. Further information is available at https://www.dea.gov/sites/default/files/sites/getsmartaboutdrugs.com/files/publications/DoA_2017Ed_Updated_6.16.17.pdf#page=88.
“Synthetic cannabinoids present a very serious risk to public health,” said U.S. Attorney Murray. “I urge residents of the Granite State to avoid these dangerous substances. You literally do not know what you are putting into your body and can jeopardize your health by using these potentially deadly drugs. We will work closely with our law enforcement partners to stop the distribution of synthetic cannabinoids in the Granite State.
“There is a misconception that synthetic cannabinoids, known on the street as synthetic marijuana, K2, and spice are safe. Synthetic cannabinoids are anything but safe,” said DEA Special Agent in Charge Brian D. Boyle. “They are a toxic cocktail of lethal chemicals with serious health and safety risks. This investigation represents the strength of New Hampshire law enforcement’s efforts to combat this emerging public threat.”
“I would like to thank the U.S. Attorney’s office for their help in this matter,” said Chief Carlo Capano, Manchester Police Department. “The collaboration we received from them was essential in getting to this point.”
The case was investigated by the Manchester Police Department and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Seth R. Aframe.
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Man Sentenced in Drug Conspiracy Following 55-pound Methamphetamine Seizure in Hall CountyRead the Press Release
United States Attorney Joe Kelly announced that United States District Judge Robert F. Rossiter, Jr. sentenced Elmer Alexander Andrade today to imprisonment for 175 months, to be followed by a 5-year term of supervised release. Andrade was convicted of conspiracy to distribute and possess with intent to distribute methamphetamine, in violation of Title 21 U.S.C. § 846.
On January 18, 2018, in Hall County, Nebraska, a Nebraska State Trooper stopped a black Ford Expedition, driven by Andrade, for a traffic violation. Investigators searched the Expedition and recovered approximately 55 pounds of methamphetamine. Investigators subsequently executed a search warrant at an apartment in Hastings, Nebraska. Among the items seized from the apartment were narcotics packaging material, a scale, police scanners, ledgers, $17,820 in United States Currency, and an AR-15 firearm.
The case was investigated by the Central Nebraska Drug and Safe Streets Task Force.
Man Caught on Wiretap Buying Heroin Fined $3,000 and Sentenced to Federal ProbationRead the Press Release
A man whose phone calls and text messages were intercepted by police as he purchased heroin was fined and sentenced on May 14, 2019, to probation and home detention.
Ray Robertson, age 53, from Cedar Rapids, Iowa, received the sentence after a November 1, 2018, guilty plea to using a communication facility to commit a felony drug crime.
Information disclosed at the sentencing hearing indicates that law enforcement was conducting a court-authorized wiretap investigation when Robertson was intercepted, on multiple occasions, purchasing heroin. Robertson used his cell phone to make phone calls and text messages to arrange the purchases of the heroin. Because Robertson had prior drug-related convictions, his purchase and possession of heroin was a felony under federal law.
Robertson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Robertson must serve a three-year term of probation, a condition of which is that he serve a 60-day term of home detention. Robertson must also pay a fine of $3,000.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice, 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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-105.
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Long Island High School Teacher Pleads Guilty to Transportation and Possession of Child PornographyRead the Press Release
Joseph Zanco, a teacher at Massapequa High School, pleaded guilty today at the federal courthouse in Central Islip to transportation and possession of child pornography. The proceeding was held before United States District Judge Joseph F. Bianco. When sentenced, Zanco faces a mandatory minimum of five years’ and a maximum of 20 years’ imprisonment, as well as forfeiture and a fine of up to $250,000.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, announced the guilty plea.
In April 2018, while a teacher at Massapequa High School, Zanco began uploading hundreds of images of child pornography to the cloud-based Google Drive storage feature of his Google account. In accordance with its policies and federal law, Google flagged these uploads, suspended the defendant’s account, and notified law enforcement authorities. Federal prosecutors and agents then obtained search warrants and recovered from Zanco’s Google account the same child pornography Google had reported, as well as additional images and videos containing child pornography from Zanco’s laptop computer and cell phone.
“Zanco now faces years in prison for victimizing children by possessing and transporting images of minors being sexually abused, at the same time he was employed as a teacher and entrusted with the safety and well-being of students,” stated United States Attorney Donoghue. “The protection of innocent children is a priority for this Office and our law enforcement partners. We will continue to make every effort to ensure that those who contribute to the victimization of children are brought to justice.” Mr. Donoghue extended his grateful appreciation to ICE-HSI’s Child Exploitation Group for its investigative work and assistance.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Department of Justice Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Michael R. Maffei is in charge of the prosecution.
The Defendant:
JOSEPH M. ZANCO
Age: 44
Massapequa, New YorkE.D.N.Y. Docket No. 18-CR-412 (JFB)
Local Law Enforcement Officer Honored for Commitment to Drug Abuse PreventionRead the Press Release
A law enforcement officer from Sioux City, Iowa, is being honored by the United States Attorney’s Offices for the Northern and Southern Districts of Iowa and the Drug Enforcement Administration (DEA) for his commitment to reducing drug abuse. A recipient of the 2018 Enrique S. Camarena Award is Lieutenant Brad Bollinger of the Sioux City Police Department.
The award is named after Enrique “Kiki” Camarena, who was an 11-year veteran agent of the DEA before being kidnapped, brutally tortured and then murdered in Mexico in 1985 while working undercover gathering information and evidence about drug lords. This award is presented each year to local law enforcement officers who best exemplify the qualities and principles for which Agent Camarena gave his life—specifically, making their communities a safer place to live through outstanding drug prevention and enforcement efforts.
This year’s award recipient has gone above and beyond the call of duty in pursuit of a drug-free community:
- Lieutenant Brad Bollinger has demonstrated a lifelong dedication to fighting drug abuse and working with young people. Through his work for many years with the GREAT and DARE programs, Lieutenant Bollinger provided valuable anti-drug and anti-gang curriculum to young students in multiple schools. In his capacity leading the Department’s Youth Bureau and as the Community Policing Coordinator, Lieutenant Bollinger developed and coordinated numerous programming activities aimed at keeping young people involved in lawful activities and away from criminal activity and drug abuse. From creating programs such as the “Books for Kids” program, to securing grants to combat opioid abuse, to serving on various boards and advisory committees focused on combatting drug, alcohol, and tobacco abuse among minors, Lieutenant Bollinger has demonstrated a robust passion for securing bright futures for young people in the community.
Peter E. Deegan, Jr., United States Attorney for the Northern District of Iowa, stated, “Lieutenant Bollinger is a worthy recipient of the Enrique S. Camarena award. He is a true public servant who recognizes that there are certain problems that cannot be solved through criminal prosecution alone. Sioux City is safer due to his hard work and dedication to the young people in our community.”
“The Enrique S. Camarena award is given each year to law enforcement professionals who personify the strong character and values of our fallen colleague,” Darin Thimmesch, Acting Special Agent in Charge of the DEA Omaha Division said. “These award winners truly represent the best of Special Agent Camarena with their passion, commitment and generosity continuously on display in their work and home life. It is an honor to recognize these men for their outstanding investigative efforts that have aided in disrupting the illegal activities of drug trafficking organizations from in and around Iowa.”
U.S. Attorney Deegan will present Lt. Bollinger his award at the Sioux City Police Department’s Spring Awards and Promotions Ceremony on May 16, 2019. The ceremony will be held at 7:00p.m. at the Betty Strong Encounter Center.
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Libby tax evader sentenced to probationRead the Press Release
MISSOULA—Libby resident Candace Hessel Cummings, who admitted to not paying income taxes, was sentenced today to five years of probation and ordered to pay $48,516 restitution, U.S. Attorney Kurt Alme said.
Cummings, 65, pleaded guilty to tax evasion in January.
Chief U.S. District Judge Dana L. Christensen presided.
Prosecutors said in court records that Cummings failed to report income of about $140,188 in 2012, which produced a tax loss of $35,096, and income of about $52,500 in 2013, which produced a tax loss of $13,420.
In late 2011, Cummings became the financial caretaker for a person who was unable to care for herself. Adult Protective Services assigned a power of attorney to Cummings on the individual’s behalf. APS told Cummings she needed to keep track of receipts for expenses she paid for the individual, and Cummings agreed to serve as a fiduciary without compensation.
In 2012 and 2013, Cummings used the individual’s money for personal expenses and failed to report the money as income on her own tax returns.
In 2013, after several suspicious transactions involving the individual’s certificates of deposit and savings bonds, the bank contacted APS and local law enforcement. APS revoked Cummings’ power of attorney based on the suspicious activity.
Assistant U.S. Attorney Timothy Racicot prosecuted case, which was investigated by the IRS’s Criminal Investigation Division.
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Lawrence Man Pleads Guilty to Participating in A Conspiracy to Distribute FentanylRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced that that Geudin Nivar Baez, a/k/a/ Jhonatan Mateo, 31, of Lawrence, Massachusetts, pleaded guilty in federal court on Wednesday to participating in a conspiracy to distribute fentanyl.
According to court documents and statements make in court, in May of 2018, Nivar’s co-defendant Santo Benito Lara participated in a conspiracy to sell fentanyl to a customer in Salem, New Hampshire. After the DEA received information about the conspiracy, it began an investigation into Lara’s activities. Between May and September of 2018, Nivar and Lara sold fentanyl in Lawrence to a cooperating individual on multiple occasions.
Lara was found guilty by a jury on May 10, 2019 and is scheduled to be sentenced on August 27, 2019. Nivar is scheduled to be sentenced on August 27, 2019.
“Interstate fentanyl traffickers facilitate the sale of a lethal drug in New Hampshire,” said U.S. Attorney Murray. “Close cooperation by law enforcement agencies operating in both New Hampshire and Massachusetts is necessary to address this problem. We will continue to coordinate efforts to identify and prosecute those who are responsible for distributing this deadly drug in the Granite State.”
This matter was investigated by the DEA, with assistance from the New Hampshire State Police and the Essex County (MA) Sheriff’s Department. The case is being prosecuted by Assistant U.S. Attorneys Anna Dronzek and Jarad Hodes.
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Kentucky Correctional Officer Pleads Guilty to Beating Handcuffed and Compliant InmateRead the Press Release
Devan Edwards, 22, a former correctional officer at the Louisville Metro Department of Corrections, one of three officers charged last week in connection with the beating of a handcuffed and compliant inmate, pleaded guilty today, announced Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division, U.S. Attorney Russell Coleman for the Western District of Kentucky, and FBI Louisville Special Agent in Charge James Robert Brown Jr.
In open court today, Edwards admitted that he and another officer removed an inmate from his cell, handcuffed him, and took him to a holding cell outside the view of surveillance cameras. In the holding cell, while the inmate was seated, handcuffed, and not resisting, the other officer grabbed the inmate by the neck with his right hand and began to strangle him. The inmate struggled to breathe. After the other officer released his grip on the inmate’s neck, the other officer and Edwards punched the inmate repeatedly in the head until a third officer intervened. After the incident, at his supervisor’s direction, Edwards wrote and filed a use-of-force report that exaggerated the inmate’s initial non-compliance and omitted any mention of the beating.
“Correctional officers who abuse their power and harm inmates violate our civil rights laws, said Assistant Attorney General Eric Dreiband. “This type of abuse towards inmates will not be tolerated by the Department of Justice.”
“The rule of law is only upheld in our Commonwealth when all Kentuckians are held to the same standard regardless of position,” stated U.S. Attorney Russell Coleman.
“Today’s guilty plea should send a clear message that the FBI and the Department of Justice will not tolerate the abuse of power or victimization of citizens by anyone in law enforcement,” said Special Agent in Charge Robert Brown Jr. “The Kentucky Public Corruption and Civil Rights Task Force was set up to insure the integrity of our criminal justice system for all citizens. The Task Force will vigorously investigate these kinds of cases, and those who violate the public's trust will be held accountable.”
Edwards faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case was investigated jointly by the FBI’s Louisville Resident Agency Office and by the Louisville Metro Police Department’s Public Integrity Unit. It is being prosecuted by Trial Attorney Christopher J. Perras of the Department of Justice’s Civil Rights Division, and Assistant United States Attorney Amanda Gregory of the Western District of Kentucky.
Jury Convicts Chesapeake Man of Auto Loan Fraud SchemeRead the Press Release
NORFOLK, Va. – A federal jury convicted a Chesapeake man today on charges of credit union fraud and aggravated identity theft.
According to court records and evidence presented at trial, Adante Leshaun Dupree, 25, took part in a scheme to defraud Navy Federal Credit Union. Dupree and his co-conspirators bought the stolen identities of out-of-state victims using the darkweb, opened Navy Federal Credit Union accounts in their name, and applied for auto loans from the credit union in the names of the identity theft victims. The conspirators then paid a woman to impersonate the identity theft victims, pick up the loan checks, and cash them at a Norfolk check cashing store. The scheme unraveled after the woman was caught trying to cash a second auto loan check while wearing a wig to impersonate a victim decades older than the impersonator’s true age.
Dupree faces a maximum penalty of 30 years of in prison for the credit union fraud and a mandatory minimum consecutive sentence of two years for aggravated identity theft when he is sentenced on September 19. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Larry D. Boone, Chief of Norfolk Police, made the announcement after U.S. District Judge Arenda Wright Allen accepted the verdict. Assistant U.S. Attorneys Andrew Bosse and Daniel T. Young are prosecuting the case.
The Virginia Army National Guard Counter Drug Task Force provided significant assistance in this investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-172-2.
Jacksonville Woman Pleads Guilty to Committing Aggravated Identity Theft and Fraud While on Federal Supervised ReleaseRead the Press Release
Jacksonville, Florida – Jaceta Anya Streeter (38, Jacksonville) has pleaded guilty to aggravated identity theft and wire fraud. She faces up to 20 years in federal prison on the wire fraud charge and a consecutive minimum mandatory term of 2 years in federal prison for the aggravated identity theft charge. Streeter was also ordered to pay restitution to her victims.
According to court documents, in 2006, after being found guilty at trial for participating in a scheme involving the passing of counterfeit checks, Streeter was sentenced to seven years in federal prison, followed by three years of supervised release. After she was released from prison and while on federal supervised release, the court issued a warrant for Streeter, as her whereabouts were unknown and she was considered a fugitive. When the U.S. Marshals Service eventually located and arrested her in Orlando, she had multiple counterfeit forms of identification in her possession. A follow-up investigation by law enforcement determined that Streeter had engaged in a scheme involving credit card fraud and identity theft. She obtained credit card account numbers for various victims, along with the victims’ personal identifiable information. Using this information, Streeter went to various merchants, including home improvement and clothing stores, and fraudulently purchased large quantities of merchandise.
This case was investigated by the Jacksonville Sheriff’s Office, the U.S. Department of Treasury – Office of Inspector General Jacksonville Field Office, the U.S. Marshals Service, and the United States Secret Service Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Jackson Man Sentenced to 9 Years in Federal Prison for Illegally Possessing a Firearm as Prior Convicted FelonRead the Press Release
Jackson, Miss. – Rodrecas Tims, 33, of Jackson, was sentenced yesterday by U.S. District Judge Henry T. Wingate to 108 months in federal prison, followed by three years of supervised release, for being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Tims was also ordered to pay a $1,500 fine.
On November 1, 2018, Jackson Police officers approached Tims as he was walking away from his car in a Jackson parking lot after the officers smelled, and observed in plain view, marijuana rolled into a “cigar” in an ashtray. Tims was found to have two pistols concealed in this waistband of his pants. One of the pistols was stolen. Tims was previously convicted of armed robbery in 2000 and again in 2005, and unlawfully possessing a firearm in 2005.
On November 27, 2018, Tims was charged in a federal indictment with possession of a firearm by a convicted felon. He pled guilty before Judge Wingate on February 14, 2019.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Bert Carraway.
Jackson Man Pleads Guilty Under Project EJECT to Illegally Possessing a GunRead the Press Release
Jackson, Miss. – Mackee Donell Jefferson, 37, of Jackson, pled guilty today before Senior U.S. District Court Judge Tom S. Lee to being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation in Mississippi.
On September 14, 2018, Jefferson was waiting in line at a fast food restaurant in Jackson. He became irritated at the long wait in the drive-thru line and approached the drive-thru window. He then produced a black handgun and tapped on the drive-thru window, in an apparent attempt to accelerate his fast food service. A restaurant employee called the Jackson Police Department and officers responded. The officers questioned Jefferson and he admitted to possessing a gun. Jefferson has prior felony convictions for auto burglary in Rankin County and auto theft in Hinds County.
Mackee is currently in custody and will be sentenced by Judge Lee on August 15, 2019 at 9:00 a.m. He faces a maximum penalty of ten years in prison and a $250,000.00 fine.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Independence Sex Offender Sentenced to 15 Years for Child PornographyRead the Press Release
KANSAS CITY, Mo. – A registered sex offender in Independence, Mo., has been sentenced in federal court for possessing and exchanging child pornography over the internet.
Harrison Elliot Combs, 28, was sentenced by U.S. District Judge Roseann Ketchmark on Wednesday, May 15, to 15 years in federal prison without parole. The court also sentenced Combs to 20 years of supervised release following incarceration.
Combs, a registered sex offender, has a prior conviction for possessing child pornography.
On Aug. 10, 2018, Combs pleaded guilty to one count of receiving child pornography over the internet, eight counts of attempting to distribute child pornography over the internet, and one count of possessing child pornography.
This investigation began when a law enforcement officer was conducting an investigation into a peer-to-peer file-sharing network. On three separate occasions, Combs’s computer was downloading child pornography from the network. On Sept. 23, 2016, officers executed a search warrant at Combs’s residence and seized his cell phone and other items. Examiners discovered approximately 1,631 images and 168 videos of child pornography on those items. The majority of the images appeared to be of infant- to toddler-aged females involved in sexually explicit conduct by adults. In addition to his cell phone, child pornography files were also associated with computers, a gaming system, a thumb drive, and optical discs belonging to Combs.
In January 2017, Combs’s computer was again identified by law enforcement as downloading child pornography from a peer-to-peer file-sharing network on several occasions. There were approximately 1,962 image and video files downloaded between Jan. 7 and Jan. 16, 2017. The files included prepubescent males and females as young as toddlers involved in sexually explicit conduct by adults. Officers executed a search warrant at Combs’s residence, where they arrested Combs and seized his cell phone.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Illegal Alien MS-13 Member Sentenced to Nineteen Years in Federal Prison for Violent Crime and Drug DistributionRead the Press Release
NASHVILLE, Tenn. – May 16, 2019 – Gerson Serrano-Ramirez, aka Frijole, 31, an illegal alien and MS-13 gang member from El Salvador, was sentenced today to 19 years in prison, announced U.S. Attorney Don Cochran for the Middle District of Tennessee . At the completion of his sentence, Serrano-Ramirez will be deported from the United States.
Serrano-Ramirez was convicted by a federal jury in September 2018, of using physical force to tamper with a witness; being an illegal alien in possession of a firearm; illegally re-entering the United States after previously being deported; multiple counts of cocaine distribution; and multiple counts of other firearms violations.
According to evidence and testimony presented at trial, in July 2017, the activities of Seranno-Ramirez and other MS-13 Gang members were disrupting the normal operation and business of a local night club and this was brought to the attention of Serrano-Ramirez by an acquaintance, with a request to tone down their disruptive behavior. Serrano-Ramirez later invited the individual to his home in the Antioch, Tennessee area, where he subsequently assaulted him by pointing an assault rifle at him; strangling him with the rifle strap; spraying bleach into his eyes; and then attempted to suffocate him by placing a plastic bag over his head. Finally, while clamping the individual’s finger with a pair of pliers and holding an assault rifle on him, Seranno-Ramirez told the individual that if he told anyone about the assault that he would kill him and his mother.
Evidence introduced during the trial also included video of the assault which was captured on an in-home security system at Serrano-Ramirez’ house and videos of him packaging and selling cocaine from the residence. This video was discovered and seized during the subsequent execution of a search warrant. Also seized during this search was an AK-47 assault rifle; multiple rifle magazines; 582 rounds of ammunition; body armor; and a small amount of cocaine and marijuana.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Drug Enforcement Administration; Homeland Security Investigations – Immigration & Customs Enforcement; and the Metropolitan Nashville Police Department Gang Unit. Assistant U.S. Attorney Ahmed Safeeullah and Department of Justice Trial Attorney Matthew Hoff prosecuted the case.
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Houma Man Sentenced to Five Years for Receiving Child PornographyRead the Press Release
NEW ORLEANS, LOUISIANA – THOMAS BROUSSARD (“BROUSSARD”), age 69, of Houma, Louisiana, was sentenced Tuesday, May 14, 2019 for receiving child pornography, announced United States Attorney Peter G. Strasser.
According to documents filed in federal court, on January 23, 2018, agents with the Louisiana Bureau of Investigation, U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”), and the Louisiana State Police executed a search warrant and arrested BROUSSARD at his Houma home after finding him in possession of several items, including a laptop computer and thumb drive containing images depicting the sexual victimization of prepubescent children. A subsequent computer forensic search by HSI agents revealed over 11,000 images and 85 videos of prepubescent child pornography.
U.S. District Judge Jay C. Zainey sentenced BROUSSARD to five (5) years incarceration to be followed by five (5) years supervised release. BROUSSARD will also be required to register as a sex offender pursuant to the Sex Offender Registration and Notification Act.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Strasser praised the work of the U. S. Department of Homeland Security, Homeland Security Investigations, the Louisiana Bureau of Investigation, the Louisiana State Police, and the Terrebonne Parish Sheriff’s Office in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Financial Crimes Unit Supervisor, Assistant U.S. Attorney Brian M. Klebba.
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Heroin Conspiracy Sends Doctor to Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – A 37-year-old U.S. citizen who was living in Mexico has been ordered to federal prison following his conviction of conspiring to possess with the intent to distribute more than 10 kilograms of heroin, announced U.S. Attorney Ryan K. Patrick.
Jose Roberto Moya pleaded guilty Oct. 26, 2018.
Today, U.S. District Judge Nelva Gonzales Ramos determined Moya had a leadership role in the drug conspiracy and ordered him to serve 144 months in federal prison followed by five years of supervised release.
Moya is a medical doctor who operated a clinic in Reynosa, Mexico.
Law enforcement stopped him June 6, 2018, for a traffic violation just south of Alice as he was driving with two female passengers in the vehicle. As the females exited the car, deputies noticed unusual bulges beneath their clothing. A subsequent pat-down revealed nine bundles of heroin with a total weight of more than 22 pounds strapped to their bodies. Both of the females later plead guilty to conspiring to possess with intent to distribute heroin.
Moya will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of the Jim Wells County Sheriff’s Office. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Hartford Man Sentenced to 42 Months in Federal Prison for Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALVIN CRAWFORD, also known as “Nardy,” 34, of Hartford, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 42 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on April 2, 2018, Crawford, holding a yellow plastic bag, exited a car and ran from Hartford Police in the area of Rockville Street in Hartford. Crawford ignored verbal commands to stop running, tossed the yellow bag over the fence, scaled the fence, picked up the bag and continued to run. Officers apprehended Crawford on Westland Street shortly after he had dropped the bag. A search of the bag revealed a Taurus .38 Special revolver and five rounds of ammunition.
Crawford’s criminal history includes state felony convictions for criminal possession of a firearm, carrying a pistol without a permit, violation of a protective order, and assault in the second degree. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Crawford has been detained since his arrest. On December 11, 2018, he pleaded guilty to one count of possession of firearm by a convicted felon.
This matter was investigated by the Hartford Police Department and the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Hancock County addiction center co-owner sentenced for illegally selling suboxoneRead the Press Release
CLARKSBURG, WEST VIRGINIA – Eric Drake, of Weirton, West Virginia, was sentenced to time served for illegally distributing controlled substances, United States Attorney Bill Powell announced.
Drake, age 49, pled guilty to one count of “Distribution of a Controlled Substance” in October 2018. Drake admitted to selling suboxone in Hancock County in May 2016.
Drake was also ordered to pay $100,000 in a money judgment. Drake was co-owner of an addiction treatment center, Advance Healthcare, Inc., located at 3300 West Street in Weirton.
Assistant U.S. Attorneys Sarah E. Wagner and Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Federal Bureau of Investigation; the Office of Inspector General at the U.S. Department of Health and Human Services; the WV Offices of the Insurance Commissioner Fraud Division; the WV Medicaid Fraud Control Unit; the Office of Ohio Attorney General Health Care Fraud; the Ohio Bureau of Workers’ Compensation; the Hancock-Brook-Weirton Drug Task Force, a HIDTA-funded initiative; the Greater Harrison County Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Hancock County Sheriff’s Office; and the Weirton Police Department investigated.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.Senior U.S. District Judge Irene M. Keeley presided.
Guatemalan Man Sentenced for Transferring False Identification DocumentsRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that MARIO ARGUETA-CHUN, age 41, a native of Guatemala, was sentenced today after previously pleading guilty to a one-count bill of information charging him with unlawfully transferring false identification documents.
United States District Court Judge Eldon E. Fallon sentenced ARGUETA-CHUN to time served (10 months of imprisonment) and a $100 special assessment fee. The defendant will be surrendered to the custody of Immigration and Customs Enforcement for removal proceedings.
According to court documents, in November 2016, Homeland Security Investigations (HSI) received information that an unidentified male was selling fraudulent Social Security and U.S. Lawful Permanent Resident cards to buyers in the New Orleans area. During the investigation, agents learned that ARGUETA-CHUN was one of the people selling the fraudulent identification cards. As a result, the agents purchased documents during undercover buys from the defendant on six (6) occasions, wherein the buyer would have his picture on the documents along with a fraudulent Social Security number. A Forensic Document Examiner analyzed all of the documents purchased from ARGUETA-CHUN and determined that they were counterfeit. The Social Security numbers belonged to people other than the names placed onto the documents and contained holograms, symbols, and sequences of numbers and letters which made the documents appear to have been issued under the authority of the United States.
U.S. Attorney Strasser praised the work of Homeland Security Investigations and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Greek Ship Management Company, Corporate Vessel Owner, and Chief Engineer Indicted for Falsification of Pollution Records, Obstruction of JusticeRead the Press Release
A federal grand jury in Wilmington, Delaware, returned a four-count indictment today charging Evridiki Navigation Inc., Liquimar Tankers Management Services Inc., and Nikolaos Vastardis with failing to keep accurate pollution control records, falsifying records, and obstruction of justice, the Justice Department announced.
According to the indictment, the charges stem from the falsification of records and other acts designed to conceal from the Coast Guard inspectors impermissible overboard discharges of oily bilge water from the Nigerian-flagged oil tanker, M/T Evridiki. According to the indictment, on or about March 11, 2019, Vastardis, who was the chief engineer for the ship, failed to maintain an accurate oil record book which fully recorded both the discharge overboard of bilge water that had accumulated in machinery spaces, and any failure of the ship’s oil filtering equipment. Additionally, when the ship’s pollution control equipment was inspected by the Coast Guard, Vastardis made false statements concerning how the equipment was operated at sea, and demonstrated how the equipment was operated at sea in a manner designed to trick the equipment into reporting the discharge of oily bilge water at permissible levels.
The vessel’s management company, Liquimar Tankers Management Services; the vessel’s owner, Evridiki Navigation; and Vastardis are all charged with failing to maintain an accurate oil record book as required by the Act to Prevent Pollution from Ships, a U.S. law which implements the International Convention for the Prevention of Pollution from Ships, commonly known as MARPOL. The defendants are also charged with falsification of records, obstruction of justice, and making false statements.
An indictment is merely an accusation and defendants are presumed innocent unless and until proven guilty in a court of law.
The case was investigated by the Coast Guard Investigative Service. The case is being prosecuted by Assistant United States Attorney Edmund Falgowski of the United States Attorney’s Office for the District of Delaware, and Joel La Bissonniere, Trial Attorney with the Department of Justice’s Environmental Crimes Section.
GozNym Cyber-Criminal Network Operating out of Europe Targeting American Entities Dismantled in International OperationRead the Press Release
A complex transnational organized cybercrime network that used GozNym malware in an attempt to steal an estimated $100 million from unsuspecting victims in the United States and around the world has been dismantled as part of an international law enforcement operation. GozNym infected tens of thousands of victim computers worldwide, primarily in the United States and Europe. The operation was highlighted by the unprecedented initiation of criminal prosecutions against members of the network in four different countries as a result of cooperation between the United States, Georgia, Ukraine, Moldova, Germany, Bulgaria, Europol and Eurojust.
United States Attorney Scott W. Brady of the Western District of Pennsylvania made the announcement at Europol, located in The Hague, Netherlands, along with his international partners.
The operation was conducted by the United States Attorney’s Office for the Western District of Pennsylvania and the FBI’s Pittsburgh Field Office, along with the Office of the Prosecutor General of Georgia, Prosecutor General’s Office of Ukraine, Office of the Prosecutor General of the Republic of Moldova, Public Prosecutor’s Office Verden (Germany), the Supreme Prosecutor’s Office of Cassation of the Republic of Bulgaria, Ministry of Internal Affairs of Georgia, National Police of Ukraine, General Police Inspectorate of the Republic of Moldova, the Luneburg Police of Germany and the Republic of Bulgaria’s General Directorate for Combatting Organized Crime with the significant assistance of Europol and Eurojust.
“International law enforcement has recognized that the only way to truly disrupt and defeat transnational, anonymized networks is to do so in partnership,” said U.S. Attorney Brady. “The collaborative and simultaneous prosecution of the members of the GozNym criminal conspiracy in four countries represents a paradigm shift in how we investigate and prosecute cybercrime. Cybercrime victimizes people all over the world. This prosecution represents an international cooperative effort to bring cybercriminals to justice.”
Earlier today, the U.S. Attorney’s Office for the Western District of Pennsylvania unsealed an Indictment returned by a federal grand jury in Pittsburgh charging 10 members of the GozNym criminal network with conspiracy to commit computer fraud, conspiracy to commit wire fraud and bank fraud, and conspiracy to commit money laundering. An eleventh member of the conspiracy was previously charged in a related Indictment. The victims of these crimes were primarily U.S. businesses and their financial institutions, including a number of victims located in the Western District of Pennsylvania.
“This takedown highlights the importance of collaborating with our international law enforcement partners against this evolution of organized cybercrime,” said FBI Pittsburgh Special Agent in Charge Robert Jones. “Successful investigation and prosecution is only possible by sharing intelligence, credit and responsibility. Our adversaries know that we are weakest along the seams and this case is a fantastic example of what we can accomplish collectively."
According to the Indictment, the defendants conspired to:
- infect victims’ computers with GozNym malware designed to capture victims’ online banking login credentials;
- use the captured login credentials to fraudulently gain unauthorized access to victims’ online bank accounts; and,
- steal money from victims’ bank accounts and launder those funds using U.S. and foreign beneficiary bank accounts controlled by the defendants.
The defendants reside in Russia, Georgia, Ukraine, Moldova and Bulgaria. The operation was an unprecedented international effort to share evidence and initiate criminal prosecutions against members of the same criminal network in multiple countries.
At the request of the United States, Krasimir Nikolov, aka “pablopicasso,” “salvadordali,” and “karlo,” of Varna, Bulgaria, was searched and arrested by Bulgarian authorities and extradited to the United States in December 2016 to face prosecution in the Western District of Pennsylvania. Nikolov’s primary role in the conspiracy was that of a “casher” or “account takeover specialist” who used victims’ stolen online banking credentials captured by GozNym malware to access victims’ online bank accounts and attempt to steal victims’ money through electronic funds transfers into bank accounts controlled by fellow conspirators. Nikolov is named as a GozNym conspirator in the newly unsealed indictment, although he is charged in a related Indictment filed in the Western District of Pennsylvania. Nikolov entered a guilty plea in federal court in Pittsburgh on charges relating to his participation in the GozNym conspiracy on April 10, 2019. He is scheduled to be sentenced on Aug. 30, 2019.
Five of the named defendants reside in Russia and remain fugitives from justice. However, to overcome the inability to extradite the remaining defendants to the United States for prosecution, an unprecedented effort was undertaken to share evidence and build prosecutions against defendants in the remaining countries where they reside, including Georgia, Ukraine and Moldova. The prosecutions are based on shared evidence acquired through coordinated searches for evidence in Georgia, Ukraine, Moldova and Bulgaria, as well as from evidence shared by the United States and Germany from their respective investigations.
The GozNym network exemplified the concept of “cybercrime as a service.” According to the Indictment, the defendants advertised their specialized technical skills and services on underground, Russian-language, online criminal forums. The GozNym network was formed when these individuals were recruited from the online forums and came together to use their specialized technical skills and services in furtherance of the conspiracy.
According to the Indictment, Alexander Konovolov, aka “NoNe,” and “none_1,” age 35, of Tbilisi, Georgia, was the primary organizer and leader of the GozNym network who controlled more than 41,000 victim computers infected with GozNym malware. Konovolov assembled the team of cybercriminals charged in the Indictment, in part by recruiting them through the underground online criminal forums. Marat Kazandjian, aka “phant0m,” age 31, of Kazakhstan and Tbilisi, Georgia, was allegedly Konovolov’s primary assistant and technical administrator. Konovolov and Kazandjian are being prosecuted in Georgia for their respective roles in the GozNym criminal network.
Gennady Kapkanov, aka “Hennadiy Kapkanov,” “flux,” “ffhost,” “firestarter,” and “User 41,” age 36, of Poltava, Ukraine, was an administrator of a bulletproof hosting service known by law enforcement and computer security researchers as the “Avalanche” network. This network provided services to more than 200 cybercriminals, including Konovolov and Kazandjian, and it hosted more than 20 different malware campaigns, including GozNym. Kapkanov’s apartment in Poltava, Ukraine was searched in November 2016 during a German-led operation to dismantle the network’s servers and other infrastructure. Kapkanov was arrested for shooting an assault rifle through the door of his apartment at Ukrainian law enforcement officers conducting the search. Through the coordinated efforts being announced today, Kapkanov is now facing prosecution in Ukraine for his role in providing bulletproof hosting services to the GozNym criminal network.
Alexander Van Hoof, aka “al666,” age 45, of Nikolaev, Ukraine, was a “cash-out” or “drop master” who provided fellow members of the conspiracy with access to bank accounts he controlled that were designated to receive stolen funds from GozNym victims’ online bank accounts.
Eduard Malanici, aka “JekaProf,” and “procryptgroup, age 32, of Balti, Moldova, provided crypting services to cybercriminals. Malanici crypted GozNym malware in furtherance of the conspiracy to enable the malware to avoid detection by anti-virus tools and protective software on victims’ computers. Malanici, along with two associates, is being prosecuted in Moldova.
Victims of the GozNym malware attacks include:
- An asphalt and paving business located in New Castle, Pennsylvania;
- A law firm located in Washington, DC;
- A church located in Southlake, Texas;
- An association dedicated to providing recreation programs and other services to persons with disabilities located in Downers Grove, Illinois;
- A distributor of neurosurgical and medical equipment headquartered in Freiburg, Germany, with a U.S. subsidiary in Cape Coral, Florida;
- A furniture business located in Chula Vista, California;
- A provider of electrical safety devices located in Cumberland, Rhode Island;
- A contracting business located in Warren, Michigan;
- A casino located in Gulfport, Mississippi;
- A stud farm located in Midway, Kentucky; and
- A law office located in Wellesley, Massachusetts;
Five Russian nationals charged in the Indictment who remain fugitives from justice include:
Vladimir Gorin, aka “Voland,” “mrv,” and “riddler,” of Orenburg, Russia. Gorin was a malware developer who oversaw the creation, development, management, and leasing of GozNym malware, including to Alexander Konovolov.
Konstantin Volchkov, aka “elvi,” age 28, of Moscow, Russia, provided spamming services to cybercriminals. Volchkov conducted spamming operations of GozNym malware on behalf of the conspiracy. The spamming operations involved the mass distribution of GozNym malware through “phishing” emails. The phishing emails were designed to appear legitimate to entice the victim recipients into opening the emails and clicking on a malicious link or attachment, which facilitated the downloading of GozNym onto the victims’ computers.
Ruslan Katirkin, aka “stratos,” and “xen,” age 31, of Kazan, Russia, resided in Khmelnytskyi, Ukraine, during the time frame of the charged conspiracy. Katirkin, like Krasimir Nikolov, was a “casher” or “account takeover specialist” who used victims’ stolen online banking credentials captured by GozNym malware to access victims’ online bank accounts and attempt to steal victims’ money through electronic funds transfers into bank accounts controlled by fellow conspirators.
Viktor Vladimirovich Eremenko, aka “nfcorpi,” age 30, of Stavropol, Russia, and Farkhad Rauf Ogly Manokhin, aka “frusa,” of Volgograd, Russia, were “cash-outs” or “drop masters” on behalf of the GozNym criminal network. Like Alexander Van Hoof, Eremenko and Manokhin provided fellow members of the conspiracy with access to bank accounts they controlled that were designated to receive stolen funds from GozNym victims’ online bank accounts. Manokhin was arrested at the request of the United States while visiting Sri Lanka in February 2017. Following his arrest, Manokhin was released on bail but was required to remain in Sri Lanka pending the outcome of his extradition proceedings to the United States. In December 2017, Manokhin unlawfully absconded from Sri Lanka and successfully fled back to Russia prior to the conclusion of the extradition proceedings.
Other agencies and organizations partnering in this effort include the United States Secret Service, the National Cyber-Forensics and Training Alliance (NCFTA) in Pittsburgh and the Shadowserver Foundation. The Justice Department’s Office of International Affairs provided significant assistance throughout the investigation and spearheaded the efforts to enable the United States to request searches, arrests, and extraditions in the foreign countries as well as the sharing of evidence with those countries through Mutual Legal Assistance Treaty requests.
The case is being prosecuted by Assistant U.S. Attorney Charles A. “Tod” Eberle, Chief of National Security and Cybercrime for the Western District of Pennsylvania.
Gangster Disciple Pleads Guilty to Committing Violent Crimes in Aid of Racketeering, Distribution of Marijuana and Firearms ViolationsRead the Press Release
Jackson, TN – A Madison County man has pled guilty to committing violent crimes in aid of racketeering, distribution of marijuana and firearms violations. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the guilty plea today.
On April 17, 2017, Dontoreus Douglas, aka "D.T." 32, was indicted in the Western District of Tennessee on four counts of violent crimes in aid of racketeering activity (VICAR). Each count is based upon the attempted murder of four different victims on June 12, 2012. Each of the VICAR counts has a corresponding count for using and carrying a firearm during and in relation to a crime of violence. There is also one count for being a felon in possession of a firearm.
According to the indictment, Douglas and other members and associates of the Gangster Disciples engaged in narcotics distribution, firearms trafficking, and acts of violence, involving murder, attempted murder and assault.
The Gangster Disciples enterprise has a highly organized structure with nationwide reach. As of the date of the indictment, the Gangster Disciples were active in 35 states. It is further alleged in the indictment that Douglas committed the attempted murders for the purpose of gaining entrance to or maintaining or increasing position within the Gangster Disciples.
U.S. Attorney D. Michael Dunavant said, "Dismantlement of criminal gangs is a top priority of the Department of Justice, and this case represents the collaborative efforts of federal, state, and local law enforcement to target and remove a significant violent participant in the Gangster Disciples organization. D.T. will now be removed from the streets, and will serve a significant sentence for his violent crimes. We are taking the fight to the gangs in West Tennessee, and we are relentless in our resolve."
For the four counts of violent crime in aid of racketeering activity, the maximum penalty is 10 years in prison and a $250,000 fine. Each of the using and carrying a firearm in relation of a crime of violence counts has a potential penalty of not less than 10 years, consecutive to the respective VICAR counts.
Douglas is presently in federal custody for charges that are pending from an indictment returned against him in June 2016. That indictment alleges charges of possession of marijuana with intent to distribute, felon in possession of a firearm, and possession of a firearm in furtherance of a drug trafficking crime.
Sentencing is scheduled for August 13, 2019 before U.S. Chief District Judge S. Thomas Anderson.
This case was investigated by the Alcohol, Tobacco, Explosives and Firearms (ATF); Federal Bureau of Investigation and the Jackson Police Department’s Gang Enforcement Unit.
Assistant U.S. Attorneys Beth Boswell and Hillary Parham are prosecuting this case on behalf of the government.
Goznym Cyber-Criminal Network Operating Out of Europe Targeting American Entities Dismantled in International OperationRead the Press Release
PITTSBURGH – A complex transnational organized cybercrime network that used GozNym malware in an attempt to steal an estimated $100 million from unsuspecting victims in the United States and around the world has been dismantled as part of an international law enforcement operation. GozNym infected tens of thousands of victim computers worldwide, primarily in the United States and Europe. The operation was highlighted by the unprecedented initiation of criminal prosecutions against members of the network in four different countries as a result of cooperation between the United States, Georgia, Ukraine, Moldova, Germany, Bulgaria, Europol and Eurojust.
United States Attorney Scott W. Brady of the Western District of Pennsylvania made the announcement at Europol, located in The Hague, Netherlands, along with his international partners.
The operation was conducted by the United States Attorney’s Office for the Western District of Pennsylvania and the FBI’s Pittsburgh Field Office, along with the Office of the Prosecutor General of Georgia, Prosecutor General’s Office of Ukraine, Office of the Prosecutor General of the Republic of Moldova, Public Prosecutor’s Office Verden (Germany), the Supreme Prosecutor’s Office of Cassation of the Republic of Bulgaria, Ministry of Internal Affairs of Georgia, National Police of Ukraine, General Police Inspectorate of the Republic of Moldova, the Luneburg Police of Germany and the Republic of Bulgaria’s General Directorate for Combatting Organized Crime with the significant assistance of Europol and Eurojust.
“International law enforcement has recognized that the only way to truly disrupt and defeat transnational, anonymized networks is to do so in partnership,” said U.S. Attorney Brady. “The collaborative and simultaneous prosecution of the members of the GozNym criminal conspiracy in four countries represents a paradigm shift in how we investigate and prosecute cybercrime. Cybercrime victimizes people all over the world. This prosecution represents an international cooperative effort to bring cybercriminals to justice.”
Earlier today, the U.S. Attorney’s Office for the Western District of Pennsylvania unsealed an Indictment returned by a federal grand jury in Pittsburgh charging 10 members of the GozNym criminal network with conspiracy to commit computer fraud, conspiracy to commit wire fraud and bank fraud, and conspiracy to commit money laundering. An eleventh member of the conspiracy was previously charged in a related Indictment. The victims of these crimes were primarily U.S. businesses and their financial institutions, including a number of victims located in the Western District of Pennsylvania.
"This takedown highlights the importance of collaborating with our international law enforcement partners against this evolution of organized cybercrime," said FBI Pittsburgh Special Agent in Charge Robert Jones. "Successful investigation and prosecution is only possible by sharing intelligence, credit and responsibility. Our adversaries know that we are weakest aloing the seams and this case is a fantastic example of what we can accomplish collectively."
According to the Indictment, the defendants conspired to:- infect victims’ computers with GozNym malware designed to capture victims’ online banking login credentials;
- use the captured login credentials to fraudulently gain unauthorized access to victims’ online bank accounts; and,
- steal money from victims’ bank accounts and launder those funds using U.S. and foreign beneficiary bank accounts controlled by the defendants.
The defendants reside in Russia, Georgia, Ukraine, Moldova and Bulgaria. The operation was an unprecedented international effort to share evidence and initiate criminal prosecutions against members of the same criminal network in multiple countries.
At the request of the United States, Krasimir Nikolov, aka “pablopicasso,” “salvadordali,” and “karlo,” of Varna, Bulgaria, was searched and arrested by Bulgarian authorities and extradited to the United States in December 2016 to face prosecution in the Western District of Pennsylvania. Nikolov’s primary role in the conspiracy was that of a “casher” or “account takeover specialist” who used victims’ stolen online banking credentials captured by GozNym malware to access victims’ online bank accounts and attempt to steal victims’ money through electronic funds transfers into bank accounts controlled by fellow conspirators. Nikolov is named as a GozNym conspirator in the newly unsealed indictment, although he is charged in a related Indictment filed in the Western District of Pennsylvania. Nikolov entered a guilty plea in federal court in Pittsburgh on charges relating to his participation in the GozNym conspiracy on April 10, 2019. He is scheduled to be sentenced on Aug. 30, 2019.
Five of the named defendants reside in Russia and remain fugitives from justice. However, to overcome the inability to extradite the remaining defendants to the United States for prosecution, an unprecedented effort was undertaken to share evidence and build prosecutions against defendants in the remaining countries where they reside, including Georgia, Ukraine and Moldova. The prosecutions are based on shared evidence acquired through coordinated searches for evidence in Georgia, Ukraine, Moldova and Bulgaria, as well as from evidence shared by the United States and Germany from their respective investigations.
The GozNym network exemplified the concept of “cybercrime as a service.” According to the Indictment, the defendants advertised their specialized technical skills and services on underground, Russian-language, online criminal forums. The GozNym network was formed when these individuals were recruited from the online forums and came together to use their specialized technical skills and services in furtherance of the conspiracy.
According to the Indictment, Alexander Konovolov, aka “NoNe,” and “none_1,” age 35, of Tbilisi, Georgia, was the primary organizer and leader of the GozNym network who controlled more than 41,000 victim computers infected with GozNym malware. Konovolov assembled the team of cybercriminals charged in the Indictment, in part by recruiting them through the underground online criminal forums. Marat Kazandjian, aka “phant0m,” age 31, of Kazakhstan and Tbilisi, Georgia, was allegedly Konovolov’s primary assistant and technical administrator. Konovolov and Kazandjian are being prosecuted in Georgia for their respective roles in the GozNym criminal network.
Gennady Kapkanov, aka “Hennadiy Kapkanov,” “flux,” “ffhost,” “firestarter,” and “User 41,” age 36, of Poltava, Ukraine, was an administrator of a bulletproof hosting service known by law enforcement and computer security researchers as the “Avalanche” network. This network provided services to more than 200 cybercriminals, including Konovolov and Kazandjian, and it hosted more than 20 different malware campaigns, including GozNym. Kapkanov’s apartment in Poltava, Ukraine was searched in November 2016 during a German-led operation to dismantle the network’s servers and other infrastructure. Kapkanov was arrested for shooting an assault rifle through the door of his apartment at Ukrainian law enforcement officers conducting the search. Through the coordinated efforts being announced today, Kapkanov is now facing prosecution in Ukraine for his role in providing bulletproof hosting services to the GozNym criminal network.
Alexander Van Hoof, aka “al666,” age 45, of Nikolaev, Ukraine, was a “cash-out” or “drop master” who provided fellow members of the conspiracy with access to bank accounts he controlled that were designated to receive stolen funds from GozNym victims’ online bank accounts.
Eduard Malanici, aka “JekaProf,” and “procryptgroup, age 32, of Balti, Moldova, provided crypting services to cybercriminals. Malanici crypted GozNym malware in furtherance of the conspiracy to enable the malware to avoid detection by anti-virus tools and protective software on victims’ computers. Malanici, along with two associates, is being prosecuted in Moldova.
Victims of the GozNym malware attacks include:
- An asphalt and paving business located in New Castle, Pennsylvania;
- A law firm located in Washington, DC;
- A church located in Southlake, Texas;
- An association dedicated to providing recreation programs and other services to persons with disabilities located in Downers Grove, Illinois;
- A distributor of neurosurgical and medical equipment headquartered in Freiburg, Germany, with a U.S. subsidiary in Cape Coral, Florida;
- A furniture business located in Chula Vista, California;
- A provider of electrical safety devices located in Cumberland, Rhode Island;
- A contracting business located in Warren, Michigan;
- A casino located in Gulfport, Mississippi;
- A stud farm located in Midway, Kentucky; and
- A law office located in Wellesley, Massachusetts;
Five Russian nationals charged in the Indictment who remain fugitives from justice include:
Vladimir Gorin, aka “Voland,” “mrv,” and “riddler,” of Orenburg, Russia. Gorin was a malware developer who oversaw the creation, development, management, and leasing of GozNym malware, including to Alexander Konovolov.
Konstantin Volchkov, aka “elvi,” age 28, of Moscow, Russia, provided spamming services to cybercriminals. Volchkov conducted spamming operations of GozNym malware on behalf of the conspiracy. The spamming operations involved the mass distribution of GozNym malware through “phishing” emails. The phishing emails were designed to appear legitimate to entice the victim recipients into opening the emails and clicking on a malicious link or attachment, which facilitated the downloading of GozNym onto the victims’ computers.
Ruslan Katirkin, aka “stratos,” and “xen,” age 31, of Kazan, Russia, resided in Khmelnytskyi, Ukraine, during the time frame of the charged conspiracy. Katirkin, like Krasimir Nikolov, was a “casher” or “account takeover specialist” who used victims’ stolen online banking credentials captured by GozNym malware to access victims’ online bank accounts and attempt to steal victims’ money through electronic funds transfers into bank accounts controlled by fellow conspirators.
Viktor Vladimirovich Eremenko, aka “nfcorpi,” age 30, of Stavropol, Russia, and Farkhad Rauf Ogly Manokhin, aka “frusa,” of Volgograd, Russia, were “cash-outs” or “drop masters” on behalf of the GozNym criminal network. Like Alexander Van Hoof, Eremenko and Manokhin provided fellow members of the conspiracy with access to bank accounts they controlled that were designated to receive stolen funds from GozNym victims’ online bank accounts. Manokhin was arrested at the request of the United States while visiting Sri Lanka in February 2017. Following his arrest, Manokhin was released on bail but was required to remain in Sri Lanka pending the outcome of his extradition proceedings to the United States. In December 2017, Manokhin unlawfully absconded from Sri Lanka and successfully fled back to Russia prior to the conclusion of the extradition proceedings.
Other agencies and organizations partnering in this effort include the United States Secret Service, the National Cyber-Forensics and Training Alliance (NCFTA) in Pittsburgh and the Shadowserver Foundation. The Justice Department’s Office of International Affairs provided significant assistance throughout the investigation and spearheaded the efforts to enable the United States to request searches, arrests, and extraditions in the foreign countries as well as the sharing of evidence with those countries through Mutual Legal Assistance Treaty requests.
The case is being prosecuted by Assistant U.S. Attorney Charles A. “Tod” Eberle, Chief of National Security and Cybercrime for the Western District of Pennsylvania.