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Friday 3 May 2019
Three Germans Who Allegedly Operated Dark Web Marketplace with over 1 Million Users Face U.S. Narcotics and Money Laundering ChargesRead the Press Release
Following a nearly two-year international investigation involving U.S. law enforcement and authorities in Germany and the Netherlands, federal prosecutors have charged three German nationals with being the administrators of Wall Street Market (WSM), which was one of the world’s largest dark web marketplaces that allowed vendors to sell a wide variety of contraband, including an array of illegal narcotics, counterfeit goods and malicious computer hacking software.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna for the Central District of California, U.S. Attorney McGregor W. Scott for the Eastern District of California, Assistant Director in Charge Paul Delacourt of the FBI’s Los Angeles Field Office, Special Agent in Charge Chris Nielsen of the U.S. Drug Enforcement Administration (DEA) San Francisco Division, Chief Don Fort of IRS Criminal Investigation, Inspector in Charge Michael Ray of the U.S. Postal Inspection Service and Acting Executive Associate Director Alysa D. Erichs of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) made the announcement.
A criminal complaint filed Wednesday in U.S. District Court in Los Angeles alleges that the three defendants, who currently are in custody in Germany, were the administrators of WSM, a sophisticated online marketplace available in six languages that allowed approximately 5,400 vendors to sell illegal goods to about 1.15 million customers around the world. Like other dark web marketplaces previously shut down by authorities – Silk Road and AlphaBay, for example – WSM functioned like a conventional e-commerce website, but it was a hidden service located beyond the reach of traditional internet browsers on the Tor network, a service designed to conceal user identities.
For nearly three years, WSM allegedly was operated on the dark web by the three men who now face charges in both the United States and Germany. An “exit scam” was allegedly conducted last month when the WSM administrators took all of the virtual currency held in marketplace escrow and user accounts – believed by investigators to be approximately $11 million – and then diverted the money to their own accounts. Exit scams are common among large darknet marketplaces, which typically hold money in escrow while a vendor delivers illicit goods.
The three defendants charged in the United States were arrested in Germany on April 23 and 24. They are:
- A 23-year-old resident of Kleve, Germany;
- A 31-year-old resident of Wurzburg, Germany; and
- A 29-year-old resident of Stuttgart, Germany.
These defendants also face charges in Germany. See: https://www.europol.europa.eu/newsroom/news/double-blow-to-dark-web-marketplaces and https://twitter.com/bka.
A fourth defendant linked to Wall Street Market was charged yesterday in a criminal complaint filed in U.S. District Court in Sacramento, California. Marcos Paulo De Oliveira-Annibale, 29, of Sao Paulo, Brazil, also faces federal drug distribution and money laundering charges for allegedly acting as a moderator who, among other things, mediated disputes between vendors and their customers. Annibale, who used the online monikers “MED3LIN,” also acted as a public relations representative for WSM by, among others things, promoting WSM on websites such as Reddit, according to the complaint. The case naming Annibale was unsealed today when Brazilian authorities executed a search warrant at his residence.
“Just as international law-enforcement partners began dismantling Wall Street Market and taking action against its members, as alleged in the complaint, the site’s administrators decided to steal their customers’ money via an exit scam,” said Assistant Attorney General Brian Benczkowski. “This operation sends a crystal-clear message: dark markets offer no safe haven. The arrest and prosecution of the criminals who allegedly ran this darknet marketplace is a great example of our partnership with law enforcement authorities in Europe, with the support of Europol, and demonstrates what we can do when we stand together.”
“We continue to keep pace with sophisticated actors on the dark web by increasing our technical abilities and working even more closely with our international law enforcement partners,” said U.S. Attorney Nick Hanna. “While they lurk in the deepest corners of the internet, this case shows that we can hunt down these criminals wherever they hide.”
“We are on the hunt for even the tiniest of breadcrumbs to identify criminals on the dark web,” said U.S. Attorney McGregor W. Scott. “The prosecution of these defendants shows that even the smallest mistake will allow us to figure out a cybercriminal’s true identity. As with defendant Marcos Annibale, forum posts and pictures of him online from years ago allowed us to connect the dots between him and his online persona ‘Med3l1n.’ No matter where they live, we will investigate and prosecute criminals who create, maintain, and promote dark web marketplaces to sell illegal drugs and other contraband.”
The affidavit in support of the criminal complaint filed in Los Angeles outlines how the defendants operated a sophisticated online marketplace that offered encrypted communications between buyers and sellers, as well as an online forum to discuss vendors and the quality of their wares. The affidavit also describes an international investigation that was able to identify the three administrators of WSM, show how they previously operated another German-based darknet marketplace that shut down in 2016, and link them to computer servers in Germany and the Netherlands that were used to operate WSM and process virtual currency transactions.
The three defendants allegedly created WSM, maintained the website, and operated the marketplace to ensure that buyers could access vendor pages and that financial transactions were properly processed. The investigation outlined in the complaint affidavit linked the three defendants to WSM in a number of ways, including their access to the WSM computer infrastructure. One defendant, for example, used virtual private networks to access WSM computers, but when a VPN connection would fail, his IP was revealed and authorities were able to identify his specific location.
The three defendants charged in the Central District of California were arrested in Germany after the WSM administrators conducted an exit scam in the wake of WSM recently becoming regarded as the world’s pre-eminent dark web marketplace and gaining a significant influx of new vendors and users, according to the affidavit. On April 16, vendors realized they could not collect the virtual funds that had been placed in escrow by their customers, which prompted German authorities to execute a series of arrest and search warrants.
The complaint affidavit identifies several cases that have been filed in the United States against WSM vendors. One darknet vendor who advertised on WSM is currently serving a 12-year federal prison sentence after being convicted in the Western District of Wisconsin for distributing a fentanyl analogue resulting in the overdose death of a Florida resident who ordered a nasal spray laced with the powerful opioid from the vendor.
Two of the “top vendors” on WSM – identified by the online monikers Platinum45 and Ladyskywalker – were based in the Los Angeles area and were major drug distributors. One vender, “Ladyskywalker,” operated on several darknet marketplaces, where the individual advertised and sold opioids such as fentanyl, oxycodone and hydrocodone.
The second top vendor – who used the moniker “Platinum45” and operated on at least two darknet marketplaces, including WSM – advertised and sold drugs such as methamphetamine, Adderall and oxycodone to customers in the United States and around the world, including in Germany and Australia. “Platinum45” also manufactured Adderall tablets and advertised the sale of up to 1 kilogram quantities of methamphetamine on WSM.
“Investigators from many countries overcame the national, legal and diplomatic challenges to hold accountable sophisticated actors who operated one of the largest known encrypted marketplaces in the shadowy environment of the Darknet,” said Assistant Director Paul Delacourt of the FBI’s Los Angeles Field Office. “This case is an example of successful global collaboration among law enforcement entities who share the many challenges of prosecuting transnational criminal activity conducted by individuals who operate anonymously across borders.”
“The dark web marketplace, Wall Street Market, was one of the largest operating hosts for vendors peddling illegal wares,” said DEA San Francisco Special Agent in Charge Chris Nielsen. “Law enforcement is always adapting to changes in technology and this case sends a clear message to those breaking the law and attempting to hide behind the illusion of anonymity – we will identify and find you. The success of this case is due to the excellent cooperation between law enforcement agencies from around the globe who delivered another blow to criminal networks operating in the underground cyberspace.”
“Anyone who thinks the dark web is a safe place to conduct illegal commerce should know they are not anonymous,” said Inspector in Charge Michael Ray. “They will be found and they will be brought to justice. The Postal Inspection Service has a highly trained, skilled and committed cyber unit that works tirelessly with other law enforcement agencies to disrupt marketplaces and stop vendors from using the U.S. mail to ship illegal goods and dangerous drugs.”
“Taking down this site is a huge win for past and future victims of crimes perpetrated due to the proliferation of illegal products and services being sold,” said Chief Don Fort of IRS Criminal Investigation. “We are committed to using our unique financial investigative abilities to tackle these kinds of threats head on to protect citizens, to promote cyber security and to inform the global community.”
“HSI and our partners are at the forefront of combating narcotics trafficking, financial crimes and illicit activities purveyed by online black markets,” said HSI Acting Executive Associate Director Alysa D. Erichs. “While criminal operators may continue to grow the reach of their businesses through these dark web marketplaces, ultimately they do not escape the reach of law enforcement. We continue to investigate, disrupt, and dismantle hidden illegal networks that pose a threat in cyberspace.”
The charges against the three WSM administrators were announced today in conjunction with authorities in Germany and the Netherlands.
The U.S. case is the result of an investigation by the FBI, the DEA, the U.S. Postal Inspection Service, IRS Criminal Investigation, and HSI, and was supported and coordinated by the Department of Justice’s multi-agency Special Operations Division (SOD). The case in the United States is being prosecuted by Assistant U.S. Attorneys Ryan White and Puneet Kakkar of the Central District of California, Assistant U.S. Attorney Grant Rabenn of the Eastern District of California, Justice Department Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, and Justice Department Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section.
The Department thanks its law enforcement colleagues at the German Federal Criminal Police (the Bundeskriminalamt), the German Public Prosecutor’s Office in Frankfurt, the Dutch National Police (Politie), the Netherlands National Prosecutor’s Office, Federal Police of Brazil (Policia Federal), Europol and Eurojust. Significant assistance was provided by the Criminal Division’s Office of International Affairs and Organized Crime and Drug Enforcement Task Force Program.
The last of four defendants was sentenced to prison their roles in a conspiracy to defraud the MetroHealth Hospital System and others through a series of bribes and kickbacksRead the Press Release
The last of four defendants was sentenced to prison their roles in a conspiracy to defraud the MetroHealth Hospital System and others through a series of bribes and kickbacks totaling hundreds of thousands of dollars related to the hospital’s dental program.
Yazan B. Al-Madani, 35, of Westlake, was sentenced to sentenced to more than 10 years in prison on Thursday.
Former hospital Chief Operating Officer Edward R. Hills, 59, of Aurora, was sentenced to more than 15 years in prison.
Sari Alqsous, 35, of Cleveland, was sentenced to more than 12 years in prison.
Tariq Sayegh, 39, of Cleveland, was sentenced to five years in prison.
A jury last year found all four men guilty of criminal charges following a trial that lasted several weeks.
“These defendants stole from a hospital that serves the most needy in our community,” U.S. Attorney Justin Herdman said. “These prison sentences underscore that people who abuse positions of trust to enrich themselves will be held accountable for their crimes.”
“Mr. Hills and his associates will now serve time behind bars for their roles in defrauding our healthcare system,” FBI Special Agent in Charge Eric B. Smith said. “The investigation revealed these individuals engaged in a pervasive pattern of fraud, betraying the MetroHealth Hospital System, its employees, and our community. The collective efforts of the FBI, IRS, Ohio Bureau of Criminal Investigation, Ohio Office of the Inspector General, United States Attorney's Office, and MetroHealth officials led to the disruption of this destructive illegal activity. "
“Today’s sentencing marks the end of this major health care fraud case that had such a negative impact on our community. These defendants conspired to misuse their position of trust for their own personal gain and obstructed justice by telling witnesses to not to cooperate with law enforcement and this is what ultimately lead to the downfall of these defendants,” said William Cheung, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “These types of investigations are often solved most efficiently through a multiple-agency approach to crime fighting.”
“These four criminals hit Ohio’s taxpayers and healthcare system right in the teeth,” said Ohio Attorney General Dave Yost. “With today’s sentence, justice struck back. I’m pleased our Bureau of Criminal Investigation could assist our law enforcement partners who investigated and prosecuted this case.”
Hills worked in various capacities at MetroHealth, including as Chief Operating Officer and Director of MetroHealth Dental. He also served as interim President and Chief Executive Officer from December 2012 through July 2013. Alqsous, Al-Madani and Sayegh are dentists who worked for MetroHealth.
According to court documents, testimony and documents presented at trial:
Hills, Alqsous and Al-Madani engaged in a racketeering conspiracy from 2008 through 2016 involving a series of elaborate bribery conspiracies, witness tampering and other crimes. These bribes include Hills soliciting cash, checks, a $3,879 Louis Vuitton briefcase, a 55-inch television, airline flights and use of a downtown apartment from Alqsous, Al-Madani and others. In return, Hills took official actions on their behalf, including allowing them to work at their private dental businesses during regular business hours while receiving a full-time salary from MetroHealth.
Alqsous, Al-Madani and others gave cash, checks and other things of value to Hills beginning in 2009. Evidence included text messages and meetings, often at expensive restaurants, which resulted in cash being deposited into Hills’ bank accounts.
Alqsous sent a text message to Al-Madani and another person in 2013 that stated: “With 22nd of October approaching we ll be celebrating Dr hills bday earlier this year…1000 dollars each is the gift from the 3 sons their father.” Later that day, $3,000 was deposited into Hills’ bank account.
In 2012, Alqsous rented and lived in an apartment at the Perry Payne apartment building in downtown Cleveland. When he bought a residence, Hills instructed Alqsous to continue paying rent and other bills at the Perry Payne building, even though Alqsous would no longer be living there. Hills used the Perry Payne apartment to house an associate and for his own personal use in 2013 and 2014 while Alqsous, acting on Hills’ orders, continued to pay rent and other bills.
Hills instructed Alqsous to purchase furniture for the apartment for Hills’ personal use. Alqsous sent Hills a text in 2013 stating: “I bought your bedroom yesterday…there is mirrors everywhere…You will like it.”
Hills became interim President and CEO of the MetroHealth Hospital System in December 2012. Around that time, he told Alqsous, Al-Madani and others that he wanted a specific Louis Vuitton briefcase because his predecessor had a similar briefcase.
Alqsous texted a photo of the briefcase to Hills and wrote: “The guys are also very excited about their raise haha.” Hills responded with: “Thanks I’m so excited to have my bag to start my new job as #1.” Later that day, Alqsous, Al-Madani and others purchased the briefcase for $3,879 from Saks Fifth Avenue in Beachwood and later presented it to Hills.
As director of MetroHealth Dental, Hills was responsible for determining monthly bonuses for dentists who produced receipts in excess of their monthly salary and benefits. Dentists typically received a monthly bonus totaling 25 percent of the monies they generated for excess receipts.
Between 2010 and 2014, Hills regularly upwardly adjusted the bonuses of Alqsous, Al-Madani and others, by a total of approximately $92,829.
Hills also allowed Alqsous, Al-Madani and others to retain full-time salaries and benefits at MetroHealth without requiring them to work full-time hours, thus allowing them to operate private dental clinics. Hills, acting at the request of Alqsous and Al-Madani, provided MetroHealth dental residents to practice at those private clinics during regular business hours. Neither Alqsous nor Al-Madani paid wages or salaries to the resident dentists.
Additionally, Alqsous, Al-Madani and Sayegh solicited and accepted bribes totaling tens of thousands of dollars from prospective candidates to the MetroHealth Dental residency program.
In a typical year, the MetroHealth Dental residency accepted four to six candidates for the residency program from a pool of 40 to 60 applicants. Alqsous, Sayegh and Al-Madani each had the authority to influence the selection of dental residents, and Hills had final decisional authority over who was selected for the residency program.
Alqsous and Sayegh often identified and selected candidates who were from Jordan or trained at a Jordanian dental school, telling them they would have to pay a “donation” to MetroHealth to be considered. Alqsous and Sayegh directed the candidates to pay the “donation” directly to them, and in some cases, told the candidates a portion of the money would go to Hills.
Alqsous, Sayegh and Al-Madani solicited at least $75,000 in bribes from resident dentist candidate between 2008 and 2014.
In another conspiracy, Al-Madani and Alqsous paid bribes to Hills in exchange for him taking actions to refer Medicaid recipients to private dental clinics owned by Al-Madani and Alqsous instead of MetroHealth. All three took steps to conceal this activity by claiming kickback checks totaling $17,600 written to Hills were for “consultation fees” or “professional fees”.
Hills, Alqsous and Al-Madani also conspired to obstruct justice, instructing people not to cooperate with law enforcement after becoming aware of the federal investigation in 2014.
Hills also made false statements on tax returns, failing to claim approximately $165,751 in unreported income stemming from bribes, kickbacks and other things of value between 2011 and 2013.
This case was prosecuted by Assistant U.S. Attorneys Om Kakani, Michael L. Collyer and James Lewis following an investigation by the FBI, IRS-CI, Ohio Bureau of Criminal Investigation and the Ohio Office of the Inspector General.
Two Greek Shipping Companies Sentenced After Illegally Discharging Oil into Texas Port WatersRead the Press Release
WASHINGTON – Two Greek shipping companies, Avin International LTD and Nicos I.V. Special Maritime Enterprises, were sentenced today in the Eastern District of Texas before Judge Marcia A. Crone on charges stemming from several discharges of oil into the waters of Texas ports by the oil tanker M/T Nicos I.V., announced Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division and United States Attorney Joseph D. Brown for the Eastern District of Texas.
Avin International was the operator and Nicos I.V. Special Maritime Enterprises was the owner of the Nicos I.V., which is a Greek-flagged vessel. The Master of the Nicos I.V., Rafail-Thomas Tsoumakos, and the vessel’s Chief Officer, Alexios Thomopoulos, also pleaded guilty to making material false statements to members of the United States Coast Guard during the investigation into the discharges.
Both companies pleaded guilty to one count of obstruction of an agency proceeding, one count of failure to report discharge of oil under the Clean Water Act, and three counts of negligent discharge of oil under the Clean Water Act on Nov. 26, 2018. Under the plea agreement, the companies will pay a $4 million criminal fine and serve a four-year term of probation, during which vessels operated by the companies will be required to implement an environmental compliance plan, including inspections by an independent auditor. Mr. Tsoumakos and Mr. Thomopoulos both pleaded guilty to one count of making a material false statement and were sentenced to pay fines of $10,000 each on Dec. 20, 2018.
“Our nation, including the State of Texas, rely on America’s ports and coastal waters for trade, recreation, and environmental enjoyment. Foreign companies acting in defiance of the laws and regulations that protect these valued resources threaten adjacent communities as well as marine ecosystems more broadly,” said Assistant Attorney General Clark. “The Division remains committed to pursuing justice for these offenders, and today’s action stands as proof of that commitment.”
“Our coastal waterways are critically important,” said United States Attorney Joseph D. Brown. “Companies that use them are expected to help maintain them by abiding by the Clean Water Act. When they do not, there will continue to be investigations and consequences for those violations. Furthermore, individuals are always expected to tell the truth when investigations are required, and failure to deal truthfully with investigators always makes a situation worse.”
“We are very grateful for the opportunity to work with the Coast Guard Investigative Service, the United States Department of Justice’s Environmental Crimes Section, and the United States Attorney’s Office, who were all instrumental in achieving this significant outcome,” said Captain Jacqueline Twomey of U.S. Coast Guard Sector MSU Port Arthur. “We believe that the results of this case will serve as a deterrent that will ultimately prevent or reduce the damage to the environment. By demonstrating the consequences of this vessel’s illicit actions, the intense collaboration and attention to detail of all team members ensured this vessel and others, with similar intentions that conduct trade in the United States, comply with domestic and international environmental laws intended to eliminate marine pollution around the globe.”
According to documents filed in court, the Nicos I.V. was equipped with a segregated ballast system, a connected series of tanks used to control the trim and list of the vessel by taking on or discharging water, the latter involving an operation called deballasting. At some point prior to July 6, 2017, the ballast system of the Nicos I.V. became contaminated with oil and that oil was discharged twice from the vessel into the Port of Houston on July 6 and July 7, 2017, during deballasting operations. Both Tsoumakos and Thomopoulos were informed of the discharges of oil in the Port of Houston. Tsoumakos failed to report the discharges, which, as the person in charge of the vessel, he was required to do under the Clean Water Act. Neither discharge was recorded in the vessel’s oil record book, as required under MARPOL and the Act to Prevent Pollution from Ships.
After leaving the Port of Houston, en route to Port Arthur, Texas, oil was observed in several of the ballast tanks. After arriving in Port Arthur, additional oil began bubbling up next to the vessel, which was then reported to the U.S. Coast Guard. During the ensuing investigation, both Tsoumakos and Thomopoulos lied to the Coast Guard, stating, among other things, that they had not been aware of the oil in the ballast system until after the discharge in Port Arthur, and that they believed that the oil in the ballast tanks had entered them when the vessel took on ballast water in Port Arthur.
The case was investigated by the U.S. Coast Guard Investigative Service, with assistance from the U.S. Coast Guard Sector MSU Port Arthur, which conducted the inspection of the ship. Additional assistance was provided by the U.S. Environmental Protection Agency’s Criminal Investigation Division, the Jefferson County Sheriff’s Office Marine Unit, and the Beaumont Police Department. The prosecution was handled by Trial Attorney Lauren D. Steele of the Environmental Crimes Section of the U.S. Department of Justice and Assistant United States Attorney Joseph R. Batte of the Eastern District of Texas.
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St. Louis County Executive Pleads Guilty to Pay to Play SchemeRead the Press Release
St. Louis, MO – Steven V. Stenger, 47, of Clayton, pleaded guilty today on three counts of honest services bribery/mail fraud in front of U.S. District Court Judge Catherine D. Perry, who set his sentencing hearing on August 9, 2019.
According to court documents, beginning in October 2014 and continuing through December 31, 2018, Stenger and various individuals and companies schemed to defraud and deprive the citizens of St. Louis County of their right to his honest and faithful services, and the honest and faithful services of the St. Louis Economic Development Partnership’s Chief Executive Officer, through bribery and the concealment of material information. The purpose of the scheme was for Stenger to secretly use his official position to enrich himself through soliciting and accepting campaign contributions from individuals and their companies in exchange for favorable official action, and for individuals and their companies to enrich themselves and their companies by secretly obtaining favorable action for themselves and for their companies, through corrupt means.
Specifically, Stenger, in exchange for campaign donations and several fundraising events, took official action to ensure that John Rallo and his company, Cardinal Insurance, obtained insurance contracts through St. Louis County during 2015 and 2016. Further, the Indictment alleges that Stenger took official action to ensure that John Rallo and his company, Cardinal Creative Consulting, obtained a 2016 consulting contract through the St. Louis County Port Authority. Additionally, Stenger took official action to ensure that John Rallo and his company, Wellston Holdings, LLC, obtained options to purchase two properties in Wellston, Missouri, which were held by the Land Clearance for Redevelopment Authority of St. Louis County during 2016 and 2017. The Indictment also alleges that Stenger, in exchange for campaign donations and fundraising activities, took official action to ensure that “Company One,” as set forth in the Indictment, obtained a 2019 - 2021 state lobbying contract from the St. Louis Economic Development Partnership. The Indictment alleges that Stenger took steps to hide, conceal and cover up his illegal conduct and actions, including making false public statements.
Today’s guilty plea is the result of an investigation that began during March 2018 and remains active and ongoing. Following today’s guilty plea, Executive Assistant U.S. Attorney Reginald Harris noted, “The events of this week, including the unsealing of the Grand Jury’s Indictment; the resignation of the defendant as St. Louis County Executive; and, today, the defendant’s guilty plea to all charges in the Indictment, should send a message that the Department of Justice and federal law enforcement will not tolerate public corruption at any level of government.”
Harris added, “The people deserve and are entitled to honest services, and trust in their elected officials. And when those elected officials abuse the people’s trust, they will be held accountable and there will be consequences.”
"Steve Stenger benefitted himself at the expense of St. Louis County citizens by accepting financial gain in exchange for official action," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "The FBI will continue to investigate and hold accountable public officials who betray the trust of the St. Louis communities they serve. Our citizens deserve nothing less."
If convicted, each charge carries a maximum penalty of 20 years in prison and a $250,000 fine. Restitution is also mandatory. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Federal Bureau of Investigation and the Postal Inspection Service are investigating this case with the assistance of the Internal Revenue Service Criminal Investigations. Assistant U.S. Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
St. Albans Man Sentenced for Drug DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Jeffry Robtoy, 49, of St. Albans, was sentenced yesterday in United States District Court in Rutland, Vermont, to serve 42 months in prison after his guilty plea to distribution of heroin and cocaine base. Chief U.S. District Judge Geoffrey W. Crawford also ordered Robtoy to serve a three year term of supervised release upon his release from prison.
According to court records and proceedings, Robtoy sold heroin and cocaine base at his North Elm Street residence on April 24, 2017. Then on November 2, 2017, law enforcement entered the North Elm Street residence in order to evict Robtoy and execute an outstanding arrest warrant for him. Inside the residence, they found co-defendant Andre Hudson, from Connecticut, in one of the bedrooms. They subsequently searched the residence and found large knives and drug paraphernalia in Robtoy’s bedroom. In the bedroom where Hudson was located, they found over 7 grams of a mixture containing fentanyl and over 14 grams of cocaine base.
Hudson has pleaded guilty to possession with intent to distribute heroin and cocaine base. He has not yet been sentenced.
Assistant U.S. Attorneys Nicole Cate and Jonathan Ophardt handled the prosecution. Robtoy was represented by Michelle Anderson Barth, Esq. U.S. Attorney Christina E. Nolan commended the efforts of the Drug Enforcement Administration and the St. Albans Police Department in the investigation and prosecution of Robtoy.
South Carolina man indicted in federal court in Cleveland on charges of kidnapping and obstruction of justiceRead the Press Release
A South Carolina man was indicted in federal court in Cleveland on charges of kidnapping and obstruction of justice.
Anthony Ingram, 32, was arrested in Kentucky. He has been indicted on one count of kidnapping and one count of obstruction of justice.
According to the indictment:
Ingram on August 10, 2018, kidnapped a person identified in the indictment as H.K. for the purpose of sexually assaulting her. He used a semi-trailer truck to transport her from Michigan to Ohio as part of the kidnapping.
Ingram also discarded a cellular phone, clothing and towel on August 10, 2018, for the purpose of making them unavailable for any court proceeding, according to the indictment.
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.
This case was investigated by the FBI, Ohio State Highway Patrol and the Pennsylvania State Highway Patrol, with assistance from the Summit County Prosecutor’s Office. It is being prosecuted by Assistant U.S. Attorney Peter Daly.
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.
Seven People Arrested in Marijuana Trafficking ConspiracyRead the Press Release
BIRMINGHAM – Federal agents this week arrested seven people indicted in April on charges that they conspired to distribute marijuana, announced U.S. Attorney Jay E. Town and Alcohol, Tobacco and Firearms Special Agent in Charge Marcus Watson.
A 12-count superseding indictment charges Stephen Lamar Gadson, 38, Lynn Darnell Gadson, Jr., 32, Ryan Jamal Washington, 31, Keoni Keith Gaddy, 30, Erica Jacinda Gadson, 30, Cormisha Ketua Quinn, 24, and Janacia Latrice Thomas, 28, all from Birmingham, in a conspiracy to possess with the intent to distribute more than 100 kilograms of marijuana between January 2016 and late March 2019. The charges arise from an operation to bring large quantities of marijuana from California to Birmingham via commercial airline flights.
“These arrests are the result of a long-term investigation by our law enforcement partners,” Town said. “Guns and drugs are a volatile mix, as well as a problem for the Northern District of Alabama, which we will continue to do everything within our power to stop.”
“These indictments represent the long term enforcement efforts by ATF and area law enforcement,” Watson said. “As a result, the violent criminal acts that plaque our neighborhoods have been reduced.
The indictment includes one count charging Stephen Gadson, Lynn Gadson, Jr., Ryan Washington, Erica Gadson, and Cormesia Quinn with in a money laundering.
According to the indictment, Stephen Gadson, Lynn Gadson, Jr., and Ryan Washington also have individual federal firearm charges. Stephen Gadson is charged with possessing and discharging a firearm during a drug trafficking crime. Lynn Gadson, Jr. and Ryan Washington are charged with felon in possession of a firearm.
Stephen Gadson, who led the conspiracy, was indicted in February for being a felon in possession of a firearm. In January 2019, ATF agents and Jefferson County Sheriff's deputies found a gun in his car while arresting him on an outstanding state trafficking marijuana warrant from 2016. The state warrant arose from an incident where Gadson is alleged to have shot a Jefferson County Sherriff’s Deputy during a narcotics search warrant in June 2016. Three of Gadson's individual charges in the April 2019 federal indictment deal with Gadson's conduct during the 2016 arrest, including discharging a firearm during a drug trafficking crime, which has a mandatory minimum consecutive sentence of ten years in federal prison.
The mandatory minimum for possession with intent to distribute 100 kilograms of marijuana is five years in prison. The maximum penalty for money laundering is 20 years in prison. The minimum penalty for discharging a firearm during a drug trafficking crime is a 10 years in prison, which must be served consecutively to any other sentence imposed. The penalty for felon in possession of a firearm is a maximum of 10 years in prison and a $250,000 fine.
ATF investigated the case along with the Irondale Police Department, Jefferson County Sheriff’s Office, Birmingham Police Department, and Oxford Police Department. Assistant United States Attorney John Geer is prosecuting.
An indictment carries only charges. A defendant is presumed innocent unless and until proven guilty.
Richland County Man Sentenced to 9 Years in Prison on Methamphetamine-Related ChargesRead the Press Release
Brian E. Jordan, 51, of Olney, Illinois, was sentenced today to 108 months in federal prison on methamphetamine-related charges. Jordan had previously pleaded guilty to three counts in a federal indictment returned late last year. Counts 1 and 2 charged that on October 25 and 26, 2018, Jordan distributed methamphetamine. Count 3 charged that on October 27, 2018, Jordan possessed with intent to distribute methamphetamine.
As part of his sentence, Jordan was also ordered to serve three years on supervised release.
The investigation in this case was conducted by the Richland County Sheriff’s Office.
Remaining Members of California-Based White Supremacist Group Plead Guilty to Federal Rioting Charges in Connection with August 2017 “Unite the Right” Rally in CharlottesvilleRead the Press Release
Charlottesville, VIRGINIA – Benjamin Drake Daley and Michael Paul Miselis, members of the white-supremacist organization known as the Rise Above Movement (RAM), pleaded guilty today in U.S. District Court in Charlottesville to one count of conspiracy to riot in connection with the August 2017 “Unite the Right” rally in Charlottesville and other alleged political rallies in California. Daley, one of the founders of RAM, was chiefly responsible for organizing the group’s presence at the Unite the Right rally. The announcement was made by United States Attorney Thomas T. Cullen, Special Agent in Charge David W. Archey of the FBI’s Richmond Division, and Colonel Gary T. Settle of the Virginia State Police.
“These avowed white supremacists traveled to Charlottesville to incite and commit acts of violence, not to engage in peaceful First Amendment expression,” U.S. Attorney Cullen stated today. “Although the First Amendment protects an organization’s right to express abhorrent political views, it does not authorize senseless violence in furtherance of a political agenda.”
“As RAM members, Daley and Miselis trained to engage in violent confrontations and attended the Unite the Right Rally with the expectation of provoking physical conflict with counter-protestors that would lead to riots,” Special Agent Archey said today. “The FBI will continue to work with the Virginia State Police and the United States Attorney's Office (WDVA) to investigate and prosecute these violations. We are grateful to the Charlottesville community and the Commonwealth of Virginia for their cooperation during these investigations.”
“Pursuing and bringing these violent individuals to justice have been of priority for the Virginia State Police Bureau of Criminal Investigation since that fateful day in August 2017 in the city of Charlottesville,” said Colonel Settle, Virginia State Police Superintendent. “Those from the Virginia State Police, FBI and U.S. Attorney's Office assigned to this case are to be commended. Because of their dedicated, investigative efforts, no other communities, from Virginia to California, are at risk of being terrorized by the hate and violence spawned by this now-defunct, white-supremacist organization.”
According to plea documents filed during today’s hearing, Daley, 26, of Redondo Beach, Calif., and Miselis, 30, of Lawndale, Calif., were members of RAM, a now-defunct, California-based, combat-ready, militant group that represented itself as part of the new nationalist and white supremacy movement. They are the final two RAM members to plead guilty to federal riot act charges. Cole White and Thomas Gillen each previously pleaded guilty to conspiracy to riot.
From March 2017 to August 2017, RAM and its members, including Daley and Miselis, traveled to multiple political rallies and organized demonstrations in Virginia and California where they prepared to, and engaged in, acts of violence. RAM regularly held hand-to-hand and other combat training for members and associates to prepare to engage in violent confrontations with protestors and other individuals at purported political rallies. They attended these rallies with the intention of provoking physical conflict with counter-protestors, which they believed would justify their use of force against the counter-protestors and shield them from prosecution for their acts of violence. Daley and Miselis attended several such training events and rallies.
On March 25, 2017, Daley and Miselis attended a political rally in Huntington Beach, Calif., with several RAM members. At that event, several RAM members pursued and assaulted groups of protestors and other individuals. Following the rally, photographs depicting RAM members assaulting protestors and other individuals were covered on local news stations and on the “front page” of various Neo-Nazi and white-supremacist websites. RAM members celebrated this coverage and used the internet to post statements, photographs, and videos of the assaults committed by RAM members at this rally in order to recruit members to engage in violent confrontations at future events.
On April 15, 2017, Daley, Miselis and other RAM members attended a rally in Berkeley, Calif., Daley, Miselis and other RAM members were dressed in gray clothing, goggles, and black scarfs or masks to cover the lower half of their faces. Throughout the day, there were violent clashes between some rally attendees and individuals protesting the rally. At one point, RAM members, including Daley and Miselis, crossed a barrier separating the attendees and the protestors, and assaulted protestors and other individuals.
In August 2017, Daley and Miselis, along with defendants Gillen and White, planned to travel to Charlottesville to attend the Unite the Right Rally. Daley and Miselis expected the event would become a riot and that their experience in riots at Huntington Beach and Berkeley would be valuable.
On August 11, 2017, the evening prior to the scheduled Unite the Right Rally, Daley, Miselis and other members of RAM, joined hundreds of individuals in a torch-lit march on the grounds of the University of Virginia in Charlottesville. Throughout the march, participants chanted, “Blood and Soil!” and “Jews will not replace us!” The march culminated near a statue of Thomas Jefferson where a small group of students gathered to protest white supremacy. Violence erupted among the crowd, with some punching, kicking, spraying chemical irritants and swinging torches. During and in furtherance of this riot, RAM members, struck multiple individuals with torches. As part of their plea, the defendants admitted these actions were not in self-defense.
On the morning of August 12, 2017, Daley, Miselis and other members of RAM, with hands wrapped in white athletic tape, were part of a large group of over 40 individuals seeking entry into Emancipation Park by way of Second Street when they were told by law enforcement to enter at a different location. The group, including Daley, Miselis and other RAM members, turned, lined up, and began to make their way through a group of over 20 individuals who had come to the rally to protest against discrimination. As they made their way through the group of protestors, the RAM members collectively pushed, punched, kicked, chocked, head-butted, and otherwise assaulted several individuals, resulting in a riot. As part of their pleas, the defendants admitted these actions were not in self-defense.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Virginia State Police. United States Attorney Thomas T. Cullen, Assistant United States Attorney Christopher Kavanaugh, and Assistant United States Attorney Justin Lugar are prosecuting the case for the United States.
Randolph County woman sentenced for drug distributionRead the Press Release
WHEELING, WEST VIRGINIA – Crystal Key Hensley, of Elkins, West Virginia, was sentenced this week to 30 months incarceration for operating a drug house, United States Attorney Bill Powell announced.
Hensley, age 39, pled guilty to one count of “Maintaining Drug-Involved Premises” in January 2019. Hensley admitted to using a place in Elkins to distribute methamphetamine, also known as “crystal” and “ice,” in August 2017.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives; the Mountain Region Drug & Violent Crimes Task Force; and the Elkins Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge John Preston Bailey presided.
President and Chief Executive Officer of Now-Defunct Code Green Solar LLC Admits Wire Fraud SchemeRead the Press Release
CAMDEN, N.J. – A former Camden County, New Jersey, man today admitted perpetrating a long-running scheme to defraud the U.S. Treasury Department of millions of dollars by falsely claiming federal rebates for solar panels his company never installed, U.S. Attorney Craig Carpenito announced.
Charles E. Kartsaklis, 41, formerly of Erial, New Jersey, and now living in Davenport, Florida, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of wire fraud. Kartsaklis was released on bail.
According to documents filed in this case and statements made in court:
Since 2009, Kartsaklis has been the president and chief executive officer of Code Green Solar LLC, a now-defunct New Jersey solar panel installation business. In 2011 and 2012, Kartsaklis submitted proposals on behalf of Code Green Solar to install solar panels at several businesses in New Jersey, identified in court papers as Businesses 1 through 5. Businesses 1 through 5 rejected the proposals. Nevertheless, Kartsaklis applied for and obtained federally funded rebates totaling more than $3 million by falsely claiming that Code Green Solar had installed solar panels on each of those businesses. He manufactured fraudulent documents and electronically transmitted them to the U.S. Treasury Department, including:
• applications for funds pursuant to the American Recovery and Reinvestment Act;
• phony “Solar Power Purchase Agreements,” which purported to reflect agreements pertaining to the purchase of electricity between Code Green Solar and Businesses 1 through 5;
• fraudulent emails to purporting to be from a utility company verifying that the utility company had installed electric meters at Businesses 1 through 5; and
• annual reports for years 2013, 2014, 2015, 2016 and 2017, which falsely certified that the panels at Businesses 1 through 5 were still generating electricity, and which Code Green Solar was required to send for five years in order to keep the rebate money.The wire fraud charge to which Kartsaklis pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Kartsaklis has agreed to make full restitution in the amount of $3,081,938. Sentencing is scheduled for Aug. 23, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster, and special agents of the U.S. Treasury Department, Office of Inspector General, under the direction of Special Agent in Charge Anthony Scott, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office’s Criminal Division in Camden.
Defense counsel: Justin R. White Esq. and Michael L. Testa Sr. Esq., Vineland, New Jersey
Precious Metals Broker in Brooklyn Sentenced to Prison for Tax EvasionRead the Press Release
A resident of Dania Beach, Florida, was sentenced to prison today for evading income tax and aiding and assisting the preparation of false tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
Christopher Wolf was sentenced to 24 months in prison by U.S. District Court Judge Raymond J. Dearie. On October 4, 2018, following a trial in the U.S. District Court for the Eastern District of New York, a federal jury convicted Wolf of two counts of tax evasion and two counts of aiding and assisting the preparation of false tax returns.
According to court documents and evidence presented at trial, in 2010 and 2011, Christopher Wolf operated Rothchild & Associates LLC (“Rothchild”), in Brooklyn, New York. Rothchild was in the business of selling precious metals to investors over the telephone. Although Wolf controlled all aspects of Rothchild’s operations, it was technically owned by a third party. Wolf concealed the income he earned from Rothchild by instructing the third party owner to pay Wolf’s commissions to two shell corporations.
Wolf filed a false 2010 individual income tax return that did not report any of the commissions he earned selling precious metals. For 2011, he did not file an individual tax return. He also caused corporate income tax returns to be filed for the companies where he deposited his commissions, but included phony deductions on those returns to avoid paying the taxes he owed. Wolf’s conduct caused a tax loss of approximately $240,000 to the Internal Revenue Service (IRS).
In 2000, in an unrelated case, Wolf was convicted of securities fraud, money laundering, and conspiracy to commit wire fraud and was sentenced to prison for over ten years.
In addition to the term of imprisonment imposed, U.S. District Court Judge Dearie ordered Wolf to serve three years of supervised release and to pay $237,550 in restitution.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Sean Green and Mark Kotila of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Political Consultant and Attorney Sentenced to 18 Months for Role in Two Campaign Finance SchemesRead the Press Release
PHILADELPHIA – William M. McSwain, U.S. Attorney for the Eastern District of Pennsylvania, and Brian A. Benczkowski, the Assistant Attorney General of the Criminal Division of the United States Department of Justice, announced that Kenneth Smukler, 58, a long-time Philadelphia-area political consultant and attorney, was sentenced today by the Honorable Jan E. DuBois to 18 months in prison, one year supervised release and a $75,000 fine for his role in two separate criminal schemes to violate federal campaign finance laws.
The first scheme involved the 2012 Democratic primary election for Pennsylvania’s First Congressional District. Jimmie Moore, a former Philadelphia Municipal Court Judge, ran against the incumbent, Congressman Bob Brady. Moore struck a corrupt deal by which he agreed to withdraw from the race in exchange for funds from the Bob Brady for Congress campaign (the “Brady campaign”) to be used to pay off Moore’s campaign debts. Those debts included money that Jimmie Moore for Congress (the “Moore campaign”) owed to several vendors, to Moore himself, and to Moore’s campaign manager, Carolyn Cavaness.
On February 29, 2012, Moore withdrew from the race. Moore and Cavaness had prepared a list of debts owed by the Moore campaign which was subsequently provided to Smukler, a campaign consultant for the Brady campaign. Smukler arranged for the Moore campaign to receive $90,000 from the Brady campaign through false documents and a series of illegal pass-throughs, including the consulting firm of another Brady associate and co-conspirator, D.A. Jones. None of the payments, which exceeded the applicable contribution limits, was reported to the Federal Election Commission (“FEC”). Per the arrangement, the three installments were illegally disguised as payments for a poll and consulting services.
The second scheme involved the 2014 Democratic primary election for Pennsylvania’s Thirteenth Congressional District. Marjorie Margolies, a former member of the U.S. House of Representatives, was running in the primary and Smukler, a veteran of prior Margolies political campaigns, was running the Margolies campaign. By early April 2014, the primary race was close, and the Margolies campaign was running out of money that the campaign could legally spend in the primary. Smukler caused the Margolies campaign to illegally spend general election funds in his attempt to win the primary election for his candidate, then lied about it to the campaign’s lawyer. That lawyer, in turn, unwittingly reported the lies to the FEC in response to a complaint filed by one of Margolies’ opponents. Additionally, Smukler caused excessive campaign contributions and illegal conduit contributions, all of which were hidden in FEC filings.
On December 3, 2018, a jury found Smukler guilty of one count of conspiracy to defraud the United States; two counts of causing unlawful campaign contributions; one count of causing false campaign expenditure reports; two counts of causing false statements; two counts of making contributions in the name of another; and one count of obstruction.
“In order to win at all costs, Smukler knowingly and purposefully undermined our democratic process by misusing campaign funds and lying about it,” said U.S. Attorney McSwain. “My Office will continue to prosecute public corruption wherever and whenever we uncover it. Now Smukler is headed to jail, and I am grateful that the Court imposed a just sentence reinforcing the fact that this kind of corruption will never be tolerated.”
“Campaign finance laws exist to ensure transparency and fairness in the electoral process,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “When corruption weakens the public's trust in that process, our democracy itself is dealt a blow. Kenneth Smukler played fast and loose with the system to try to give his candidates a leg up. He broke the law repeatedly and now is being held accountable.”
The case was investigated by the Federal Bureau of Investigation, and the case is being prosecuted by Assistant United States Attorney Eric Gibson and Trial Attorneys Richard Pilger and Rebecca Moses of the Criminal Division’s Public Integrity Section. It was previously investigated by former Public Integrity Section Trial Attorney Jonathan I. Kravis.
Philadelphia-Area Political Consultant and Attorney Sentenced After Conviction in Two Campaign Finance SchemesRead the Press Release
A long-time Philadelphia-area political consultant and attorney was sentenced today for his role in two criminal schemes to violate federal campaign finance laws announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania.
Kenneth Smukler, 57, of Villanova, Pennsylvania, was sentenced to 18 months in prison followed by one year of supervised release by the Honorable Jan E. DuBois. In the 2012 Democratic primary election for Pennsylvania’s First Congressional District, Jimmie Moore, a former Philadelphia Municipal Court Judge, ran against the incumbent Congressman Bob Brady. Assisted and directed by Smukler, Moore executed a corrupt deal in which he agreed to withdraw from the race in exchange for funds from the Bob Brady for Congress campaign (the Brady campaign) to be used to pay off Moore’s campaign debts. Those debts included money that Jimmie Moore for Congress (the Moore campaign) owed to several vendors, to Moore himself and to Moore’s campaign manager, Carolyn Cavaness. On Feb. 29, 2012, Moore withdrew from the race and Cavaness had prepared a list of debts owed by the Moore campaign, which they provided to Smukler, a campaign consultant for the Brady campaign. Smukler arranged for the Moore campaign to receive $90,000 from the Brady campaign through false documents and a series of concealing pass-throughs, including the consulting firm of another Brady associate and co-conspirator, D.A. Jones. Smukler ensured that the Brady campaign reported none of the concealed payments, which exceeded the federal contribution limits, to the Federal Election Commission (FEC). Rather, he executed the scheme by ensuring that the three installments were falsely and illegally disguised from the FEC and the public as payments for poll and consulting services.
Later, during the 2014 Democratic primary election for Pennsylvania’s Thirteenth Congressional District, Smukler again committed federal campaign finance offenses, this time for the benefit of another client, Marjorie Margolies, a former Member of the U.S. House of Representatives. Smukler, a veteran of prior Margolies political campaigns, ran the Margolies campaign in 2014.
In April 2014, during a close primary race, the Margolies campaign was running out of money that it could legally spend in the primary. Smukler then caused the Margolies campaign to illegally spend general election funds in his attempt to win the primary election for his client. He further lied about his illegal spending to the campaign’s lawyer. That lawyer, in turn, unwittingly reported Smukler’s lies to the FEC in response to a complaint filed by another candidate. Additionally, Smukler caused excessive campaign contributions and illegal conduit contributions to the Margolies campaign, all of which were hidden or disguised from the campaign’s FEC filings.
“When political operatives like Kenneth Smukler engage in hidden illegal campaign finance schemes, they undermine the integrity of the electoral process,” said Assistant Attorney General Benczkowski. “This is a just sentence that reflects the seriousness of these crimes.”
“In order to win at all costs, Smukler knowingly and purposefully undermined our democratic process by misusing campaign funds and lying about it,” said U.S. Attorney McSwain. “My Office will continue to prosecute public corruption wherever and whenever we uncover it. Now Smukler is headed to jail, and I am grateful that the Court imposed a just sentence reinforcing the fact that this kind of corruption will never be tolerated.”
On Dec. 3, 2018, a jury found Smukler guilty of one count of conspiracy, two counts of excessive campaign contributions, two counts of false statements, two counts of conduit contributions, one count of willfully causing a false statement to the FEC and one count of obstruction of justice.
Former Public Integrity Section Trial Attorney Jonathan I. Kravis and the FBI investigated the case. Richard C. Pilger, Director of the Election Crimes Branch of the Public Integrity Section, Trial Attorney Rebecca Moses of the Public Integrity Section and Assistant U.S. Attorney Eric L. Gibson of the Eastern District of Pennsylvania prosecuted the case.
Paris, Texas Man Pleads Guilty to Theft from Indian Gaming EstablishmentRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jason Lyle Mooneyham, age 48, of Paris, Texas, entered a guilty plea to Theft from Indian Gaming Establishments, in violation of Title 18, United States Code, Section 1167(b), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that on or about December 3, 2018, in the Eastern District of Oklahoma, the defendant, did abstract willfully and take and carry away with the intent to steal money, funds, and other property of a value in excess of $1,000.00 belonging to the Choctaw Nation Casino and Resort, an Indian gaming establishment operated by the Choctaw Nation of Oklahoma, pursuant to an ordinance or resolution approved by the National Indian Gaming Commission. The defendant also admitted that he did willfully and take and carry away with the intent to steal money, funds, and other property of a value in excess of $1,000.00 belonging to the Chickasaw Nation Winstar World Casino and Resort.
The charges arose from an investigation by the Choctaw Nation Tribal Police and the Bureau of Indian Affairs.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney Courtney Jordan represented the United States.
Niagara Falls Man Pleads Guilty for His Role in Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Joseph Jones, a/k/a Tio, 55, of Niagara Falls, NY, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine before U.S. District Judge Lawrence J. Vilardo. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison, and a $5,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that between October 2016 and September 29, 2017, the defendant distributed cocaine with various co-conspirators in the Buffalo/Niagara Falls area.
On three occasions in August of 2017, defendant received a combined total of two and one-half kilograms of cocaine from his co-conspirators for the purpose of distributing it. During the course of the conspiracy, Jones regularly distributed at least one kilogram of cocaine per month on behalf of the organization for which he distributed. To date, two of Jones’ co-conspirators have been convicted, while charges remain pending against four others. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Federal Bureau of Investigations, under the direction of Special Agent-in-Charge Gary Loeffert.
Jones is scheduled to be sentenced on September 11, 2019, before Judge Vilardo.
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Newton Man Pleads Guilty to Business Loan SchemeRead the Press Release
BOSTON – A Newton man pleaded guilty today in federal court in Boston in connection with illegally using the identity of another individual to apply for two business loans.
Igor Mosieev, 59, pleaded guilty to two counts of bank fraud and one count of aggravated identity theft. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Aug. 6, 2019. In June 2018, Mosieev was arrested and charged with co-defendant Alexander Grinis, 47, of Jamaica Plain.
As alleged in the indictment, Grinis was the manager of Eastern Bank in Auburndale. Among his responsibilities were assisting customers with opening and closing accounts and applying for loans and lines of credit. In approximately February 2015, Grinis assisted Mosieev in opening a checking and savings account at Eastern Bank with the license and Social Security card of another individual, without the knowledge or consent of that person. Later that year, Grinis allegedly assisted Mosieev in adding the individual to a business account in the name of TFC Enterprises, LLC. Thereafter, Moiseev forged the individual’s name on applications for two purported business loans. On each loan application, Grinis falsely certified that he had complied with all bank procedures and, as a result, the loans were approved. The proceeds of the two loans were subsequently distributed to the business checking account and Moiseev forged the individual’s name on checks and withdrew money from the account to pay for his own personal expenses. In addition, Moiseev, with Grinis’ assistance, caused proceeds from the business checking account to be wire transferred to Russia, Canada, and elsewhere overseas using the individual’s name. Both loans defaulted and were never paid back to Eastern Bank, resulting in a loss of over $90,000.
The charge of bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of up to $1 million. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, to be served consecutively to any other sentence imposed, up to three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
The details contained in the indictment are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Navajo Man from Newcomb, N.m., Sentenced to Life for Conviction on Federal Child Sexual Abuse ChargesRead the Press Release
ALBUQUERQUE –Brian Adrian Sloan, 33, an enrolled member of the Navajo Nation from Newcomb, N.M., was sentenced yesterday in Albuquerque federal court to life imprisonment for his conviction on aggravated child sexual abuse charges, announced U.S. Attorney John C. Anderson and Special Agent in Charge James C. Langenberg of the FBI’s Albuquerque Division.
The FBI arrested Sloan, in Aug. 2016, on an indictment alleging child sexual abuse offenses. The indictment was superseded in Jan. 2017, and charged Sloan with sexually abusing two children under the age of 12 years. The four-count superseding indictment charged Sloan with violating one child on three occasions in 2007 and 2008, and another child in 2003, on the Navajo Indian Reservation in McKinley County, N.M. Sloan was convicted on all four-counts of the superseding indictment by a jury in Nov. 2018, after a five-day trial.
This case was investigated by the Gallup office of the FBI. Assistant U.S. Attorneys Novaline D. Wilson and Elisa C. Dimas prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s 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 http://www.justice.gov/psc/.
Murfreesboro Man Sentenced to Federal Prison for Embezzling More Than $1 Million from Lasko ProductsRead the Press Release
NASHVILLE, Tenn. – May 3, 2019 –Randall Griffin, 46, of Murfreesboro, Tennessee, was sentenced today to 27 months in federal prison, for operating an embezzlement scheme, during which he stole more than $1 million from his former employer, Lasko Products, LLC., announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Griffin was charged in October 2018 with mail fraud, after an investigation determined that he had embezzled $1,006,293.58 through a scheme that began in 2009 and continued until August 2017, while he was employed as a maintenance technician for Lasko Products, a home appliance manufacturing and distribution company located in Franklin, Tennessee. Griffin pleaded guilty in November 2018.
According to the court documents, Griffin carried out the scheme by creating and falsifying purchase orders and invoices for equipment parts, causing Lasko checks to be sent to a series of post office boxes that he opened under various false business names. Griffin created fake business names that closely resembled legitimate vendors with whom Lasko conducted business. Griffin also created bank accounts for each business and ultimately deposited the funds sent to these accounts into his personal bank account.
In sentencing Griffin, U.S. District Judge Eli Richardson noted the seriousness of the offense and that Griffin deserved a long term of incarceration. Judge Richardson also remarked that this sentence should serve as a deterrent to others.
This case was investigated by the FBI and the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorney Sara Beth Myers.
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Multi-Convicted Felon Charged with Federal Firearm and Drug Law ViolationsRead the Press Release
PITTSBURGH, Pa. -- A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug and firearms laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment, returned on April 30 and unsealed yesterday, named William Bennett, aka Bucks, age 40, as the sole defendant.
According to the Indictment, on October 15, 2018, Bennett possessed with intent to distribute fentanyl and heroin. The Indictment further alleges that Bennett unlawfully possessed a Smith & Wesson model CS9 pistol in furtherance of the drug offense, after having been convicted of multiple crimes punishable by more than one year in prison. Those convictions include two convictions for firearms violations, and one conviction for receiving stolen property. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
The law provides for a maximum total sentence of not less than five years and up to life in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosive, along with the Wilkinsburg Police Department, conducted the investigation leading to the Indictment in this Project Safe Neighborhoods (PSN) case. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Monongalia County woman sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tara Nicole Shock, of Rosedale, West Virginia, was sentenced this week to 12 months incarceration for a firearms violation, United States Attorney Bill Powell announced.
Shock, age 28, pled guilty to one count of “Unlawful Possession of a Firearm.” Shock, a person prohibited from having firearms, admitted to having a .40 caliber pistol and a .45 caliber pistol in August 2018 in Monongalia County.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Morgantown Police Department, and the Williamstown Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Moldovan National Pleaded Guilty to Faking His Death for $2 Million Insurance PayoutRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of IGOR VOROTINOV, 54, for faking his death in order to collect a $2 million life insurance payment. VOROTINOV pleaded guilty earlier today before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota. VOROTINOV’s co-defendants, IRINA VOROTINOV and ALKON VOROTINOV, have been convicted and sentenced for their roles in the scheme. VOROTINOV is scheduled to be sentenced on July 29, 2019.
According to the defendant’s guilty plea and documents filed in court, in March 2010, IGOR VOROTINOV obtained a $2 million life insurance policy on his own life from Mutual of Omaha Insurance Company (Mutual of Omaha), and designated his wife, IRINA VOROTINOV, as the primary beneficiary.
According to the defendant’s guilty plea and documents filed in court, On October 1, 2011, the Moldovan police discovered the corpse of an adult male decedent by the side of a road near the Moldovan village of Cojusna. Based upon the dead body and the defendant’s identification documents in its clothing, the Moldovan police and a Moldovan morgue official purported to determine that Igor Vorotinov had died of a heart attack on October 1, 2011. After his purported death, VOROTINOV began using the name “Nikoly Patoka” and lived in Transnistria, a small Russian-controlled region of Moldova, from approximately 2012 until approximately November 2018.
According to the defendant’s guilty plea and documents filed in court, on November 7, 2011, IRINA VOROTINOV submitted a claim for death benefits against the Mutual of Omaha life insurance policy, claiming that VOROTINOV had died in the Republic of Moldova on October 1, 2011. VOROTINOV was aware of his former wife’s filing of the fraudulent death claim, and therefore continued living and doing business as “Nikoly Patoka.” On March 23, 2012, Mutual of Omaha mailed a check payable to IRINA VOROTINOV in the amount of $2,048,414.09 to her home in Maple Grove, Minnesota.
According to documents filed in court, IRINA recruited a third party to open an account at a local branch of U.S. Bank and to deposit the insurance check into the account. She then caused the third party to transfer $1.5 million to another account at U.S. Bank in the name of her son, ALKON VOROTINOV. Between March 29, 2012 and January 2015, more than $1.5 million of the life insurance proceeds were transferred to accounts located in Switzerland and Moldova.
According to documents filed in court, on November 27, 2013, ALKON VOROTINOV was stopped by Customs and Border Protection (CBP) in Detroit, Michigan upon returning from a trip to Moldova. A computer seized by CBP agents contained digital photographs of IGOR VOROTINOV taken on April 19, 2013 and on May 12, 2013, in which IGOR is alive.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The Justice Department’s Office of International Affairs handled the extradition in this matter.
Assistant U.S. Attorneys David J. MacLaughlin and Matthew Ebert are prosecuting the case.
Defendant Information:
IGOR VOROTINOV, 54
No known address
Convicted:
- Mail Fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Missouri Man Charged with Enticing an Illinois Minor, Traveling to Engage in Illicit Sexual ConductRead the Press Release
Joseph L. Hughes, a/k/a "Joe King," 27, was arraigned today in federal court on a three-count indictment charging him with enticement of a minor and two counts of travel with intent to engage in illicit sexual conduct. According to the indictment, between November 21 and December 8, 2018, Hughes knowingly used a facility of interstate commerce to persuade, induce, entice and coerce a minor to engage in unlawful sexual activity, namely aggravated criminal sexual abuse. The indictment further accuses Hughes of traveling from Missouri to Illinois on two separate occasions to engage in illicit sexual conduct with the minor – once on November 24 and a second time on December 8.
Hughes is also currently facing related state charges in St. Clair County, Illinois.
An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge beyond a reasonable doubt to the satisfaction of a jury.
If convicted of enticement, Hughes faces a penalty of 10 years to life in prison, a fine of up to $250,000, and a possible lifetime term of supervised release. On each of the travel counts, Hughes could receive as much as 30 years imprisonment, a $250,000 fine, and supervised release for life. Trial is presently scheduled for July 2, 2019, in East St. Louis.
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 https://www.justice.gov/psc. For more information about internet safety education, please visit https://www.justice.gov/psc and click on the tab "resources."
The case was investigated by the Belleville Police Department, the St. Clair County Sheriff’s Department, the St. Louis County Police Department and the FBI and is being prosecuted by Assistant U.S. Attorney Angela Scott.
Mexican National Charged with Alien SmugglingRead the Press Release
The United States Attorney’s Office and the Swanton Sector of the United States Border Patrol announce that Francisco Alejo-Medrano, 27, a citizen of Mexico who has no legal status in the United States, appeared yesterday in United States District Court in Burlington on a charge that he unlawfully transported aliens within the United States. U.S. District Judge Christina Reiss ordered that Alejo-Medrano be detained pending further proceedings.
According to the criminal complaint, on the evening of May 1, agents at the Newport Border Patrol station learned that a group of persons was entering the United States from Canada on foot, near an area known as Goodall Farm in Derby Line. Agents dispatched to the area observed six individuals huddled together in a wooded area near a road near the border. Shortly thereafter, agents saw an SUV drive up to the group. The vehicle stopped and the six individuals got in. A short time later, agents stopped the vehicle. Alejo-Medrano was the driver. The other six passengers were all determined to be undocumented Mexican citizens All seven occupants were arrested. The six passengers are being charged with unlawfully entering the United States.
The United States Attorney emphasizes that the charge in the complaint is merely an accusation, and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Alejo-Medrano faces up to five years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.
For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
Alejo-Medrano is represented by Lisa Shelkrot. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Mexican Man Sentenced to Prison for Illegally Reentering the United States After Prior DeportationRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to almost three months in federal prison.
Juan Gerardo Rodriguez, age 22, a citizen of Mexico illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after a March 1, 2019, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Rodriguez admitted he had previously been deported from the United States in December 2015 and illegally reentered the United States without the permission of the United States government. Rodriguez was found by immigration agents in January 2019 after he was charged in Linn County, Iowa, with domestic abuse assault with injury. That case is still pending.
Rodriguez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Rodriguez was sentenced to 85 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Rodriguez is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-13.
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Mexican Man Charged with Being Illegal Alien in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that JUAN SANTOS PEREZ-ZAVALA, age 24, a native of Mexico, was charged yesterday in a one-count indictment with illegal alien in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(5)(A).
According to the indictment, ZAVALA was an illegal alien in possession of a firearm on April 16, 2019 found in the Eastern District of Louisiana. He is an illegal alien from Mexico and has never been deported. The indictment alleges he illegally possessed a KelTec model P11 9 millimeter pistol.
If convicted, ZAVALA faces a maximum term of imprisonment of 10 years, a fine of $250,000, and three years of supervised release.
U.S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
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Men from Akron, Youngstown and Sandusky indicted on firearms chargesRead the Press Release
Four people were indicted in federal court for firearms offenses.
Daemonte D. Sims, 27, of Akron, was charged with being a felon in possession of a firearm and ammunition. Sims possessed a Kel-Tec 9 mm pistol and ammunition on January 6, despite previous convictions for robbery, according to the indictment.
Lester Walker, Jr., 27, of Youngstown, was charged with being a felon in possession of a firearm. Walker possessed a Professional Ordnance 5.56-caliber pistol on October 10, 2018, despite a previous conviction for assault, according to the indictment.
Davontiere D. Hollinshed, 27, of Akron, was charged with being a felon in possession of a firearm. Hollinshed possessed a Smith & Wesson 9 mm pistol and ammunition on March 29, despite a previous conviction for felonious assault, according to the indictment.
Dean Lamont Swain, 36, of Sandusky, was charged with being a felon in possession of a firearm and possession with intent to distribute narcotics. Swain possessed 56 grams of fentanyl, 226 grams of cocaine and a Ruger .45-caliber handgun on December 7, 2018, despite a previous conviction for robbery, according to the indictment
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique
to this case, including the defendant’s prior criminal record, 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.
These cases were investigated by the the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Akron Police Department (Sims) and the Norton Police Department (Hollinshed). They are being prosecuted by Assistant U.S. Attorneys Damoun Delaviz, Christopher J. Joyce and Jason M. Katz.
They are part of Project Safe Neighborhoods, 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 program was reinvigorated 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.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Marcus Hutchins Pleads Guilty to Creating and Distributing the Kronos Banking Trojan and UPAS Kit MalwareRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that on May 2, 2019, Marcus Hutchins, aka “MalwareTech,” pleaded guilty to two counts relating to his creation and distribution of the Kronos banking Trojan and UPAS Kit malware. This includes one count of conspiracy to commit computer fraud in violation of Title 18, United States Code, Section 371, and one count of advertising a device used to intercept electronic communications, in violation of Title 18, United States Code, 2512(1)(c)(i).
According to admissions made in connection with his plea, Hutchins, age 24, developed UPAS Kit and Kronos and then worked with an accomplice to sell the malware programs for profit. Both UPAS Kit and Kronos were designed to be deployed secretly on victim computers, and then to intercept communications and transmit personal information, including usernames, passwords, email addresses, and financial data to the person controlling malware program. The malware was specially tailored to target victims’ banking information. Since 2014, Kronos has been used to infect numerous computers around the world and steal banking information.
Hutchins and his accomplice, “Vinny,” advertised Kronos and UPAS on various websites, including the AlphaBay market and Darkode forum. The advertisements highlighted the ability of the malware to steal information and avoid antivirus programs. Hutchins updated the malware code as needed, and Vinny and Hutchins shared profits from the sales.
“Vigorous prosecution of cybercrimes is vitally important because the stakes are so high: The proliferation of malware poses serious threats to our nation’s infrastructure, our businesses, and our personal information,” said U.S. Attorney Krueger. “We commend the FBI’s Cyber Division for its excellent work in investigating this sophisticated and dangerous crime.”
Hutchins faces a maximum term of 5 years imprisonment and up to one year of supervised release on each count. His sentencing hearing is set for July 26, 2019, at 11:30 a.m before U.S. District Judge J.P. Stadtmueller.
This case was investigated by the Federal Bureau of Investigation Cyber Crime Task in Milwaukee. The case is being prosecuted by Assistant United States Attorneys Benjamin Proctor and Benjamin Taibleson.
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Man Pleads Guilty Following Bank Robbing Spree Across GeorgiaRead the Press Release
MACON – A defendant linked to bank robberies in three Middle and Southwest Georgia cities during September 2017 entered a guilty plea in Macon federal court Thursday, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Clifford Terrell, 44, of Barnesville, GA pleaded guilty to one count of Bank Robbery on May 2, 2019 before the Honorable Marc Treadwell. Mr. Terrell will be sentenced on August 7, 2019 by Judge Treadwell in federal court in Macon.
According to his signed plea agreement, Mr. Terrell admitted to committing three bank robberies in the Middle District of Georgia. The first occurred on September 5, 2017 at the BB&T on North Lee Street in Forsyth. The second happened ten days later, on September 10, 2017, at the CB&T on Milgen Road in Columbus, and the third bank robbery was on September 22, 2017, at the SB&T on Zebulon Road in Macon. During all three robberies, the defendant entered the bank and slid a note to the teller demanding $2500 cash. During the third robbery in Macon, the SB&T teller did not realize at first that the bank was being robbed, and communicated to Mr. Terrell that he had filled out the wrong slip for a withdrawal. After a brief exchange, Mr. Terrell said to the teller, “I’m not teasing, I want you to give me $2500… I don’t want to hurt anybody and I don’t want to see any police.” The teller handed over the cash in a small bag containing a dye explosive. Mr. Terrell was identified as the suspect following the Macon robbery after witnesses told the investigator the tag number to his vehicle. A search warrant was obtained, and agents found dye stains in Mr. Terrell’s car matching the dye explosive. Agents also found clothes in his home matching the clothes worn during the bank robberies as captured by security footage. The defendant was arrested at his Barnesville residence.
“I want to thank our local and federal law enforcement partners who worked quickly to identify and arrest a serial bank robber,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “The safety and well-being of our citizens is our highest priority, and we are committed to making sure people who commit violent crime and disrupt the peace are held accountable.”
The case was investigated by the Forsyth Police Department, the Bibb County Sheriff’s Office, the Monroe County Sheriff’s Office, the Lamar County Sheriff’s Office, the U.S. Marshals Southeast Regional Fugitive Task Force, and the FBI. Assistant U.S. Attorney Will R. Keyes is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Man Found Guilty of Murder of 15-Year-Old BoyRead the Press Release
WASHINGTON – Derryck Decuir, 26, of Washington, D.C., was found guilty yesterday of murder and other charges stemming from the June 2015 slaying of Ballou High School student Malek Mercer, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
On May 2, 2019, Decuir was found guilty following a jury trial in the Superior Court of the District of Columbia of Second Degree Murder while Armed with an enhancement for committing a crime against a minor, and related firearms offenses. Decuir, who will be sentenced by the Honorable Craig Iscoe on July 23, 2019, faces a maximum sentence of sixty years in prison.
According to the government’s evidence, on June 16, 2015, at approximately 12:20 a.m., Decuir and Mr. Mercer, who did not know one another, found themselves at the same bus stop at L’Enfant Square. One of Decuir’s friends teased Decuir for looking at and commenting on Mr. Mercer’s belt, and Mr. Mercer snickered at Decuir. After riding the bus together for about 10 minutes, Decuir followed Mr. Mercer off the bus and, without saying anything, shot him once in the back of the neck. Decuir then fled from the area. MPD officers responding to a 911 call, found Mr. Mercer lying in the grass on the corner of 28th Street and Naylor Road, SE. Mr. Mercer suffered a gunshot wound to the neck and was bleeding profusely. He was transported to Washington Hospital Center, where he died on June 19, 2015. Decuir was arrested pursuant to a warrant on that same day and has been held in custody ever since.
This was the third trial, following two mistrials after prior juries could not reach a decision on the murder count. At the first trial in 2017, Decuir was convicted of being a Felon in Possession of a Firearm and Obstruction of Justice. The obstruction charge was based on Decuir making phone calls from the jail to ask his friend to relocate the murder weapon out of his backyard so that the police would not find it. Despite those efforts, MPD officers located the murder weapon about a year later, and analysts with the D.C. Department of Forensic Sciences linked that weapon to the shooting of Mr. Mercer.
In announcing the verdict, U.S. Attorney Liu and Chief Newsham commended the work of those investigating the case from the Metropolitan Police Department (MPD). They also expressed appreciation for the assistance provided by the Metro Transit Police Department, the District of Columbia Department of Forensic Sciences, the U.S. Marshals Service, and the District of Columbia Department of Corrections. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys David Misler and Nicholas Coleman; Supervisory Victim/Witness Services Coordinator Katina Adams-Washington; Victim/Witness Services Coordinator La June Thames; Victim/Witness Program Specialist Lesley Slade; Supervisory Security Specialist Laverne Perry; Contract Specialist Sallie Rynas; Administrative Services Specialist Karen Lee-Putt; Supervisory Paralegal Sharon Newman; Paralegals Kelly Blakeney and Debra Joyner; Criminal Investigators Durrand Odom and Melissa Matthews; Victim Advocate Marcia Rinker; Supervisory IT Specialist Leif Hickling; and Investigative Analyst Zach McMenamin.
Finally, they commended the work of Assistant U.S. Attorneys Jeffrey Nestler and Anwar Graves, who investigated and prosecuted the case.
Maine and New York Residents Arrested and Charged with Drug TraffickingRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Robert McKenna, 48, of Indian Township, Maine; Renita Honea, 57, of Jonesport, Maine; Chandra Hanscom, 44, of Cutler, Maine; Barry McCarthy, 43, of Columbia, Maine; Cody Look, 30, of Cutler; William Smeal, 32, of Hancock, Maine; Ralph Sawtelle, 27, of Lubec, Maine; Vestin Drisko, 40, of Beals Island, Maine; Cinque Grasette, 42, of New York, New York; Mujahedeen Hasan, 28, of Bronx, New York; Miquel Angel Franco, 22, of Bronx; Milo Danell Germany, 21, of Bronx; Julian Lloyd, 24, of Bronx; and Jordy Collado, 18, of New York, New York were arrested yesterday and charged by criminal complaint in U.S. District Court with distribution of cocaine base, commonly known as “crack,” heroin, fentanyl or cocaine and/or maintaining a drug-involved premises. Kevin Leroy Barner, 53, of Bronx, was also arrested yesterday, having been charged by indictment on March 28 with possession with intent to distribute 28 grams or more of crack. Christopher Cruz, 30, of Bronx; and Christopher Martinez, 29, of Bronx, were charged today by criminal complaint in U.S. District Court with possession with intent to distribute cocaine base. Timothy Cates, 40, of Cutler was charged today by criminal complaint in U.S. District Court with maintaining a drug-involved premises.
McKenna and Hasan were charged with distributing crack. Honea and Drisko were charged with distributing crack and heroin and maintaining a drug-involved premises. Hanscom was charged with distributing heroin. Look, Collado, Cruz, and Martinez were charged with possession with intent to distribute crack. Smeal and Lloyd were charged with possession with intent to distribute fentanyl. McCarthy, Sawtelle, and Cates were charged with maintaining a drug-involved premises. Grasette was charged with distributing crack and heroin. Franco and Germany were charged with possession with intent to distribute cocaine.
According to the complaints and indictment, the charges arose from an investigation into the acquisition of crack, cocaine, heroin and fentanyl in New York City and its distribution in Washington and Hancock Counties, in Maine. The investigation resulted in the execution of seven search warrants yesterday that resulted in the seizure of several firearms, including, but not limited to, a sawed-off shotgun, and large quantities of crack and fentanyl.
If convicted, Barner faces between five and 40 years in prison and up to a $5,000,000 fine. The other defendants charged with drug trafficking face up to 20 years in prison and a $1,000,000 fine. Defendants charged with maintaining a drug-involved premises face up to 20 years in prison and a $500,000 fine. The charges in the complaints and indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation is being conducted by the Maine Drug Enforcement Agency, Maine State Police, FBI, U.S. Drug Enforcement Administration; Washington County Sheriff’s Office, and Hancock County Sheriff’s Office, with assistance provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; U.S. Border Patrol; U.S. Secret Service; U.S. Marshals Service; and Maine Marine Patrol.
The prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) Program, a partnership between federal, state, and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state, and local law enforcement.
MEDIA ADVISORY: United States Attorney Mike Stuart and Law Enforcement Officials to Hold Press ConferenceRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart, along with federal and state law enforcement officials, will hold a press conference on Monday, May 6, 2019, at 9:30a.m., to discuss a significant civil settlement.
Where: United States Attorney’s Office, SDWV
300 Virginia Street East, Room 4000
Charleston, WV
When: Monday, May 6, 2019 @ 9:30am
Follow us on Twitter: SDWVNews
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Lewis County man sentenced to nearly 18 years for drug distributionRead the Press Release
WHEELING, WEST VIRGINIA – Trenton Farnsworth, of Weston, West Virginia, was sentenced this week to 215 months incarceration for methamphetamine distribution, United States Attorney Bill Powell announced.
Farnsworth, age 30, pled guilty to one count of “Possession With the Intent to Distribute Methamphetamine” in December 2018. Farnsworth admitted to possessing more than five grams of methamphetamine in Barbour County in April 2018.
Farnsworth was also ordered to forfeit $5,997.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; and the Barbour County Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.
Lewis County man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA –Clarence Russell Foster, III, of Jane Lew, West Virginia, has admitted to a drug charge, United States Attorney Bill Powell announced.
Foster, age 42, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine.” Foster admitted to distributing methamphetamine in May 2018 in Lewis County.
Foster faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The United States Marshal Service and the Lewis County Sheriff’s Office investigated.
U.S. Magistrate Michael John Aloi presided.
Leader of Mail Theft Conspiracy, Former Ravn Alaska Supervisor Sentenced to Federal PrisonRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a former Ravn Alaska supervisor has been sentenced for his lead role in a mail theft conspiracy, which involved stealing 60 Apple computers and over $100,000 worth of phones and tobacco products from the United States mail.
Congress Lepou, 30, of Anchorage, was sentenced today by U.S. District Judge Sharon L. Gleason to serve 12 months in prison, followed by three years of supervised release. In addition to his sentence, Lepou was ordered $199,143 in restitution. In December 2018, Lepou pleaded guilty to one count of conspiracy, one count of mail theft, and one count of possession of stolen mail.
According to court documents, Lepou was the leader of the mail theft conspiracy involving a total of six former Ravn employees. Lepou and his co-defendant, Breadoflife Faiupu, abused their positions as supervisors at Ravn Alaska to steal computers from the mail, and then recruited those they supervised to help find buyers for the stolen computers. The investigation further revealed that Faiupu and Lepou would then share the proceeds from the sales with those they were tasked to supervise, thus ensuring their silence.
Specifically, from March 2015 to April 2017, Lepou and Faiupu used Ravn Alaska’s supervisor truck – intended for the transportation of mail from the U.S. Postal Service facility to Ravn airplanes for delivery to Alaska villages – to take articles stolen from the mail and drive them to the Ravn employee parking lot to load into their personal vehicles. The stolen computers were intended for village schools. Lepou and Faiupu recruited ramp agents Hubert Barte, Paulo Maae, Rogelio Daquis, as well as former ramp agent Harold Velicaria, to help find buyers for the stolen Apple computers. The proceeds from the stolen computers were shared among the co-conspirators.
During the course of the conspiracy, Lepou and Faiupu stole approximately 60 Apple computers from mail. The total approximate retail value of stolen Apple computers attributable to the conspiracy is $90,000. The majority of those computers were intended for delivery to school districts in Alaska villages. Lepou also stole over $100,000 worth of phones and tobacco products from the mail intended for rural stores in addition to the computers.
At the sentencing hearing, Judge Gleason noted the serious impact to village school districts and communities as a result of the defendant’s thefts.
The U.S. Postal Service Office of Inspector General (USPS-OIG), with the assistance of the U.S. Postal Inspection Service (USPIS), conducted the investigation leading to the successful prosecution of this case. The Alaska State Trooper Technical Crimes Unit also assisted in the investigation. This case was prosecuted by Assistant U.S. Attorney Aunnie Steward.
Lauderdale CountyMan Sentenced to 100 Months for Illegally Possessing Firearms in Furtherance of Drug TraffickingRead the Press Release
Memphis, TN – A Lauderdale Countyman has been sentenced to 100 months in federal prison for illegally possessing firearms in furtherance of drug trafficking. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, Derriyl DeAndre Maben, 34, was known as the "go to person" for anyone in need of firearms in Ripley, Tennessee.
On July 26, 2017, law enforcement from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Ripley Police Department, Tennessee Bureau of Investigation (TBI), and Tennessee Department of Correction (TDOC) conducted a search of Maben’s residence. Several loaded firearms were seized along with marijuana, methamphetamine (ICE) and drug paraphernalia.
Additionally, on September 30, 2017, evidence proved that Maben discharged a firearm during a physical altercation at the L & M Market on Eastland Street, Ripley, TN.
On July 16, 2018, Maben pleaded guilty to possession with intent to distribute methamphetamine, possession of a firearm in furtherance of drug trafficking, being a convicted felon in possession of a firearm and being a convicted felon in possession of ammunition.
On April 26, 2019, United States District Court Judge Thomas L. Parker sentenced Maben to 100 months in federal prison followed by three years supervised release.
U.S. Attorney D, Michael Dunavant said, "This defendant has a long criminal history of felony and misdemeanor convictions involving violence, drug possession, and property damage, and was on felony probation when he was found in possession of multiple firearms in furtherance of drug trafficking. Mr. Maben has devoted his adult life to a career of criminal conduct in Lauderdale County, and that prior history has finally caught up with him. This sentence removing him from the community for more than 8 years will make Lauderdale County and West Tennessee a safer place."
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Ripley Police Department; Tennessee Bureau of Investigation and the Tennessee Department of Correction.
Assistant U.S. Attorney Raney Irwin prosecuted this case on behalf of the government.
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La Crosse Man Sentenced to 4 Years for Possessing Child PornographyRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Kyle Olson, 33, of La Crosse, Wisconsin, was sentenced today by U.S. District Judge William Conley to four years in federal prison for possessing child pornography. This term of imprisonment is to be followed by 25 years of supervised release. Olson pleaded guilty to this charge on February 22, 2019.
On July 18, 2018, law enforcement officers executed a search warrant at the defendant’s home in La Crosse and seized numerous electronic items, which were later found to contain child pornography.
The defendant was previously convicted of possessing child pornography in 2012, while he was in the military. In sentencing the defendant, Judge Conley noted that Olson engaged in a “secret life of collecting and trading online child pornography” and was concerned Olson had begun engaging in online conversations with minors.
The charge against Olson was the result of an investigation conducted by the Federal Bureau of Investigation, the La Crosse area Internet Crimes Against Children Task Force, the La Crosse County Sheriff’s Department, and the West Salem, Onalaska, Holmen, Town of Campbell, and La Crosse Police Departments. The prosecution of the case has been handled by Assistant U.S. Attorney Elizabeth Altman.
Jury Convicts Pinon Man for Rape of 11 Year-Old VictimRead the Press Release
PHOENIX – Today, Murphy Alex Begay, 41, of Pinon, Ariz., was convicted by a jury of aggravated sexual abuse of a child. Begay will be sentenced by U.S. District Judge Steven P. Logan in July.
In March 2012, Begay lured the 11 year-old victim outside the mother’s house during the night, where he forcibly raped the victim in a dirt field. Both Begay and the victim are members of the Navajo Nation, and the crime was committed on the Navajo Nation Indian Reservation.
Begay is a convicted felon. At the time he raped the victim, he was serving a term of supervised release for previously shooting an unarmed man.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorneys William G. Voit and Dimitra H. Sampson, District of Arizona, Phoenix.
CASE NUMBER: CR-18-08107-SPL
RELEASE NUMBER: 2019-059_Begay
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Jury Convicts Binghamton Man of False IRS FilingsRead the Press Release
BINGHAMTON, NEW YORK – Kareem Young, age 40, of Binghamton, was convicted today of filing a fraudulent claim with the Internal Revenue Service, following a 4-day trial.
The announcement was made by United States Attorney Grant C. Jaquith and Jonathan D. Larsen, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), New York Field Division.
Young is scheduled to be sentenced on September 24, 2019 by Senior United States Judge Thomas J. McAvoy, and faces up to 5 years in prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The trial evidence showed that Young filed a 2013 U.S. Individual Tax Return claiming income of $6,125,000 and federal tax withholdings of $6,125,000. Young’s return also sought a refund of $6,125,000. Young’s actual income for 2013 was $3,127.36.
To further his claims, Young fabricated withholdings on a Form 1099 OID claiming false withholding credits from the Broome County District Attorney. Young’s return was reviewed and the IRS sent Young correspondence telling him to file a corrected return immediately. Young failed to do so and persisted in his efforts to get a refund of $6,125,000. The IRS never issued a refund.
The trial evidence showed that Young learned of this scheme while in state prison, and that the scheme involved falsely claiming credits from the District Attorney’s Office that prosecuted the prisoner.
This case was investigated by IRS-CI, with the assistance of the Inspector General’s Office of the New York State Department of Corrections and Community Supervision. The case was prosecuted by Assistant United States Attorney Tamara Thomson.
International “Malvertiser” Extradited from the Netherlands to Face Hacking Charges in New JerseyRead the Press Release
A Ukrainian national charged with participating in a years-long, international scheme to infect computers with malware through online advertisements – so-called “malvertising” – will appear in Newark, New Jersey federal court today after being extradited from the Netherlands, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Craig Carpenito for the District of New Jersey announced.
Oleksii Petrovich Ivanov, 31, is charged by indictment with one count of conspiracy to commit wire fraud, four counts of wire fraud, and one count of computer fraud. The indictment was returned on Dec. 3, 2018, and unsealed upon his arrival in the United States on May 2, 2019. Ivanov is scheduled to appear today before U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained without bail.
“Cyber criminals who harm victims in the United States and around the world cannot rely on fake identities and international borders to evade justice,” said Assistant Attorney General Benczkowski. “This case and today’s extradition demonstrate that the United States and its international partners will find cyber fugitives and bring them to face justice in the United States, no matter where they commit their crimes.”
“This defendant engaged in an extraordinary and far-reaching scheme to infect and hack computers throughout the United States and the world,” said U.S. Attorney Carpenito. “This ‘malvertising’ scheme is especially dangerous because it uses online ads to target millions of unsuspecting Internet users engaged in activities as routine as booking their next vacation.”
Ivanov was arrested on Oct. 19, 2018, following an international investigation led by the U.S. Secret Service and in coordination with Dutch law enforcement. He had been detained by the Dutch authorities pending the resolution of the extradition proceedings.
According to the indictment, unsealed in Newark federal court on May 2, 2019, and other court filings, between around October 2013 through May 2018, Ivanov conspired to defraud millions of internet users around the world by launching malicious online advertising campaigns that appeared legitimate, but attempted to direct the internet browsers of victim computers towards malicious computer programs (“malware”), unwanted advertisements, and other computers that could install malware. As a result of the scheme, Ivanov and others caused unsuspecting internet users to view or access malicious advertisements on more than one hundred million occasions.
Online advertising companies work with companies and individuals to publish their online advertisements on the internet. These companies place advertisements on third-party websites, such as shopping, news, entertainment, or sports websites. These advertisements include web banners, frame ads, and other graphical advertisements and are delivered through websites that are accessed by computer users.
To carry out the scheme, Ivanov and co-conspirators are alleged to have used fake online personas and fake companies to pose as legitimate advertisers seeking to purchase online advertisements. According to the indictment, Ivanov and his co-conspirators told the advertising companies they were distributing ads for real products and services, and even created false banners and websites showing purported advertisements. But, in reality, the advertisements they purchased were used to push malware out to the computers of victims who viewed or clicked on the advertisements.
For instance, in June and July 2014, the defendant allegedly posed as “Dmitrij Zaleskis,” CEO of a fake United Kingdom company called “Veldex Limited” to submit a series of malicious advertisements to a U.S.-based internet advertising company for distribution, including two campaigns submitted on July 15, 2014 that were viewed or accessed approximately 17,328,129 times in a matter of days. The internet advertising company repeatedly told Ivanov that his advertisements were being flagged as malware threats, but Ivanov denied any wrongdoing and persuaded the company to continue running his malicious advertisements for months.
After online advertisers and advertising server platforms flagged many of the co-conspirators’ advertisements as malicious, Ivanov and others are alleged to have lied and denied that their advertisements were malicious. When their advertisements were banned as malicious, they switched to new online advertising companies and used new fake identities to buy more advertisements.
Ivanov and co-conspirators also allegedly used false identities to register internet domains that hosted malicious advertisements, and launch purported advertising campaigns. Ivanov and others also allegedly attempted to enrich themselves by offering to sell access to networks of infected devices or “botnets. Ivanov is alleged to have successfully infected or aided and abetted the infection of computers with malware that he controlled, including botnet malware that infected more than one hundred devices in the District of New Jersey.
The investigation was conducted by the U.S. Secret Service Criminal Investigations, under the direction of Director Director James M. Murray, and the Newark Field Office under the direction of Special Agent in Charge Mark McKevitt. Substantial support was also provided by the Secret Service’s Attaché Office in The Hague and the Justice Department’s Office of International Affairs in coordinating the extradition of Ivanov. The Department thanks the public prosecutors of the Dutch National Public Prosecution Service, the National High Tech Crime Unit of the Dutch National Police, and the National Crime Agency (UK) for their tremendous assistance with this case.
Trial Attorney Aarash Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), Chief Justin S. Herring of the U.S. Attorney’s Office Cybercrimes Unit and Assistant U.S. Attorneys Melissa Wangenheim and Dara Govan of the District of New Jersey are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
International ‘Malvertiser’ Extradited from Netherlands to Face Hacking Charges in New JerseyRead the Press Release
NEWARK, N.J. – A Ukrainian national charged with participating in a years-long, international scheme to infect computers with malware through online advertisements – so-called “malvertising” – will appear in Newark federal court today after being extradited from the Netherlands, U.S. Attorney Craig Carpenito for the District of New Jersey and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced.
Oleksii Petrovich Ivanov, 31, is charged by indictment with one count of conspiracy to commit wire fraud, four counts of wire fraud, and one count of computer fraud. The indictment was returned on Dec. 3, 2018, and unsealed upon his arrival in the United States on May 2, 2019. Ivanov appeared today before U.S. Magistrate Judge U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained without bail.
“This defendant engaged in an extraordinary and far-reaching scheme to infect and hack computers throughout the United States and the world,” U.S. Attorney Carpenito said. “This ‘malvertising’ scheme is especially dangerous because it uses online ads to target millions of unsuspecting Internet users engaged in activities as routine as booking their next vacation.”
“Cyber criminals who harm victims in the United States and around the world cannot rely on fake identities and international borders to evade justice,” said Assistant Attorney General Benczkowski. “This case and today's extradition demonstrates that, through international cooperation, we are able to bring cyber thieves to justice in the United States, wherever they may commit their crimes.”
Ivanov was arrested Oct. 19, 2018, following an international investigation led by the U.S. Secret Service in coordination with Dutch law enforcement. He had been detained by Dutch authorities pending the resolution of the extradition proceedings.
According to documents filed in this case and statements made in court:
From October 2013 through May 2018, Ivanov conspired to defraud millions of internet users around the world by launching malicious online advertising campaigns that appeared legitimate, but attempted to direct victims’ browsers to malicious computer programs (malware), unwanted advertisements, and other computers that could install malware. Ivanov and others caused unsuspecting users to view or access malicious advertisements on more than 100 million occasions.
Ivanov and his conspirators used fake online personas and fake companies to pose as legitimate advertisers seeking to purchase online advertisements. They told the advertising companies they were distributing ads for real products and services, and even created false banners and websites showing purported advertisements. The advertisements they purchased were used instead to push malware out victims.
For example, in June and July 2014, Ivanov posed as “Dmitrij Zaleskis,” CEO of a fake United Kingdom company called “Veldex Limited,” to submit a series of malicious advertisements to a United States-based internet advertising company for distribution, including two campaigns submitted on July 15, 2014, that were viewed or accessed 17,328,129 times in a matter of days. The internet advertising company repeatedly told Ivanov that his advertisements were being flagged as malware threats, but Ivanov denied any wrongdoing and persuaded the company to continue running his malicious advertisements for months.
After online advertisers and advertising server platforms flagged many of the conspirators’ advertisements as malicious, Ivanov and others lied and denied that their advertisements were malicious. When their advertisements were banned as malicious, they switched to new online advertising companies and used new fake identities to buy more advertisements.
Ivanov and his conspirators also used false identities to register internet domains that hosted malicious advertisements, and launch purported advertising campaigns. Ivanov and others also attempted to enrich themselves by offering to sell access to networks of infected devices or “botnets.” Ivanov successfully infected or aided and abetted the infection of computers with malware that he controlled, including botnet malware that infected more than 100 devices in New Jersey.
U.S. Attorney Carpenito and Assistant Attorney General Benczkowski credited special agents of the U.S. Secret Service, Criminal Investigations, under the direction of Director James M. Murray, and the Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, for the investigation leading to the indictment. Substantial support was also provide by the Secret Service’s Attaché Office in The Hague and the Justice Department’s Office of International Affairs in coordinating the extradition of Ivanov. The Department also thanks the public prosecutors of the Dutch Ministry of Security and Justice, the National High Tech Crime Unit of the Dutch National Police, and the National Crime Agency (UK) for their assistance with this case.
The wire fraud conspiracy and substantive wire fraud counts with which Ivanov is charged carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or victim loss from the offense. Ivanov is also charged with a computer fraud count that carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense.
The government is represented by Justin S. Herring, Chief of the U.S. Attorney’s Office Cybercrimes Unit, and Assistant U.S. Attorneys Melissa Wangenheim and Dara Govan, District of New Jersey, and Aarash Haghighat, Trial Attorney with the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).
The charges and allegations contained in the indictment are merely accusations and the defendant is considered innocent unless and until proven guilty.
Indictment Charges Waterbury Man with Unlawful Firearm PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a grand jury in Hartford has returned an indictment charging RAEKWON OVERSTREET, 23, of Waterbury, with possession of a firearm by a convicted felon.
The indictment was returned on April 10, 2019. Overstreet appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and pleaded not guilty to the charge. He has been detained since February 19, 2019, when he was arrested on related state charges.
The indictment alleges that, on February 19, 2019, Overstreet possessed a Springfield 9mm firearm. Prior to that date, Overstreet was convicted in state court of conspiracy to commit robbery in the first degree.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm that has moved in interstate or foreign commerce.
If convicted of the charge, Overstreet faces a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Waterbury Police Department. The case is being prosecuted by Assistant United States Attorney Michael J. Gustafson.
This prosecution has been brought through 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.
Illegal Alien from Mexico Pleads Guilty to Human Smuggling ConspiracyRead the Press Release
Gulfport, Miss. – Javier Tellez-Lopez, 38, an illegal alien from Mexico living in South Carolina, pled guilty yesterday before Senior U.S. District Judge Louis Guirola, Jr. to conspiracy to transport illegal aliens within the United States, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of U.S. Immigration & Customs Enforcement's (ICE) Homeland Security Investigations (HSI) in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
Tellez-Lopez will be sentenced by Judge Guirola on July 31, 2019, at 10:00 a.m. He faces a potential maximum penalty of 10 years in prison, followed by three years of supervised release, a maximum $250,000 fine, and special assessments that could total $5,100. He will also be subject to immigration removal proceedings.
On January 28, 2019, an interdiction agent with the South Mississippi Metro Enforcement Team conducted a traffic stop on a GMC Yukon XL with South Carolina license plates at or about the 62-mile marker on interstate I-10 eastbound in Jackson County. The agent observed eight occupants of the vehicle, which was being driven by Javier Tellez-Lopez.
Border Patrol Agents arrived on the scene shortly thereafter, and interviewed the occupants of the vehicle as to their citizenships, determining none had proper documents and all were illegally present in the United States. Of the eight total vehicle occupants (two drivers and six passengers), all were illegal aliens from Mexico. All occupants were arrested and transported to the Border Patrol Station in Gulfport. HSI and Border Patrol agents determined the six passengers were being smuggled within the United States. Further investigation determined that five of the six passengers had unlawfully returned after being formally removed from the United States. Each of these five passengers were separately prosecuted by the U.S. Attorney’s Office.
U.S. Attorney Hurst praised the cooperation exhibited by Homeland Security Investigations, the United States Border Patrol, the South Mississippi Metro Enforcement Team, the Jackson County Sheriff’s Department and the City of Gautier Police Department. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Honduran Man Charged with Illegal Re-EntryRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that SANTOS EVELIO NOLAZCO, age 48, a native of Honduras, was charged yesterday in a one-count indictment with illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to the indictment, EVELIO NOLAZCO was previously removed from the United States on August 17, 2016. He was later found in the Eastern District of Louisiana on March 28, 2019 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
If convicted, EVELIO NOLAZCO faces a maximum term of imprisonment of 2 years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee.
U.S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
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Harvey Man Indicted for Conspiracy to Commit Bank and Wire Fraud and Aggravated Identity TheftRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that CHRISTOPHER WATSON, age 28, was indicted yesterday by a federal grand jury for charges stemming from his arrest in Jefferson Parish last summer. WATSON was charged with one count of conspiracy to commit bank fraud and wire fraud, three counts of bank fraud, three counts of wire fraud, and four counts of aggravated identity theft.
According to today’s indictment, the investigation was initiated by the Jefferson Parish Sheriff’s Office after determining that WATSON was using stolen or fraudulent identities to obtain vehicle financing. The investigation revealed that WATSON, who previously worked as a used car salesman, submitted numerous fraudulent loan applications to financial institutions and automobile lenders, sometimes using the personal identifying information of his customers. WATSON was also charged with aggravated identity theft for stealing the identities of several current/former military members or their families and submitting fraudulent loan applications to USAA Financial on their behalf.
U.S. Attorney Peter G. Strasser reiterated that the Indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted of conspiracy to commit bank fraud and wire fraud, in violation of Title 18, United States Code, Section 371, WATSON faces a maximum penalty of five years imprisonment, followed by up to five years supervised release, and a $250,000 fine. If convicted of bank fraud, in violation of Title 18, United States Code, Section 1344, WATSON faces a maximum penalty of 30 years imprisonment, followed by up to five years supervised release, and a $250,000 fine. If convicted of wire fraud, in violation of Title 18, United States Code, Section 1343, he faces a maximum of 20 years imprisonment, followed by up to three years supervised release, and a $250,000 fine. The aggravated identity theft charges carry a sentence of two years consecutive to any other sentence imposed, followed by one year of supervised release, and a $250,000 fine.
U.S. Attorney Peter G. Strasser praised the work of the Jefferson Parish Sheriff’s Office and the United States Secret Service Financial Crimes Taskforce in investigating this matter. Assistant United States Attorney Shirin Hakimzadeh is in charge of the prosecution.
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Guatemalan Man Sentenced to Prison Following Deportation and Document FraudRead the Press Release
A Guatemalan man who had been deported twice, illegally returned to the United States, and then used false identification documents to obtain a job was sentenced today to eight months in federal prison.
Cesar Solovi-Valle, age 33, a citizen of Guatemala illegally present in the United States and residing in Decorah, Iowa, received the prison term after a January 28, 2019, guilty plea to one count of unlawful use of identification documents and one count of illegal reentry into the United States.
In a plea agreement, Solovi-Valle admitted he had previously been deported two times from the United States and that he illegally reentered the United States without the permission of the United States government. Solovi-Valle was deported in September 2004 following a conviction in the Southern District of Texas for illegal entry into the United States. Solovi-Valle was deported in August 2008 following convictions in June 2008 in Allamakee County, Iowa, for operating a motor vehicle under the influence (OWI), and in July 2008 in Clayton County, Iowa, for third degree criminal mischief.
Solovi-Valle also admitted he used a fraudulent Social Security card and a fraudulent permanent resident card, also known as a “green card,” when he completed an employment form using an alias name in November 2016, at a business in Waukon, Iowa. The Social Security account number on the card used by Solovi-Valle belonged to another person. The Alien Registration number on the “green card” was issued to another person. On November 30, 2016, Solovi-Valle was arrested by immigration agents at the business in Waukon where Solovi-Valle was working under the alias name.
Solovi-Valle was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Solovi-Valle was sentenced to eight months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Solovi-Valle 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 Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1047.
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Grant County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Carmen Liseno, of Cabins, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Liseno, age 36, pled guilty to one count of “Unlawful Possession of a Firearm.” Liseno, having been previously convicted of two felonies, admitted to having a .40 caliber pistol in December 2017 in Grant County.
Liseno faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Grant County Sheriff’s Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Grand Jury Indicts Inmate for Mailing Threats to Former Ohio Attorney General & Prisons Director, Judges, NewspapersRead the Press Release
COLUMBUS, Ohio – An Ohio inmate has been charged federally for writing at least 15 threatening letters containing powder. In some of the letters, he allegedly claimed the powder was anthrax or fentanyl or threatened the use of explosive devices.
Sean Heisa, 35, was indicted by a grand jury yesterday on two counts of making false information or hoaxes and 13 counts of mailing threatening communications.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges.
According to the indictment, from July 2017 to July 2018, Heisa mailed threatening letters to various officials throughout the state of Ohio.
Heisa mailed a letter to the city manager of Painesville, Ohio and claimed powder contained within the envelope was anthrax. Likewise, Heisa mailed a second letter that month to a magistrate judge in Whitehall, Ohio, again claiming the powder contained within the letter was anthrax.
Heisa also allegedly threatened via letter officials within the Coshocton Municipal Courthouse, Franklin County Common Pleas Court and then Ohio Attorney General Mike DeWine through threatened exposure to anthrax and the use of explosive devices.
Other letters threatened to injure recipients – including the former Ohio prisons director, the Columbus Dispatch, the Circleville Herald and The Ohio State University – by exposure to fentanyl.
Heisa was charged by criminal complaint in December 2018 and arrested in January 2019.
Creating false information/hoaxes and mailing threatening communications are each federal crimes punishable by up to five years in prison
U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorney Jessica W. Knight, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Gang member sentenced to federal prison for possessing drugs and a firearm while on probationRead the Press Release
ATLANTA - Enrique Fuentes has been sentenced for possessing with the intent to distribute methamphetamine and possessing a firearm in furtherance of a drug trafficking crime. Fuentes is a member of the “18th Street” gang.
“This gang member, while on probation, sat outside of a restaurant in broad daylight with a gun as well as methamphetamine packaged for sale,” said U.S. Attorney Byung J. “BJay” Pak. “Fuentes will be off our streets as a result of the outstanding efforts of the Chamblee Police Department and Homeland Security Investigations. We are strategically and aggressively working to make our communities safer and this case is another example of the positive impact of Project Safe Neighborhoods.”
“HSI is committed to combatting transnational gang members who threaten public safety with criminal activities in our neighborhoods,” said Nick S. Annan, Special Agent in Charge of HSI Atlanta. “Violent street gangs and their transnational contacts are a priority focus for HSI and this case illustrates the importance of collaborative relationships between HSI and local law enforcement across Georgia to keep our communities safe.”
“We are very appreciative of the outstanding partnership between state, local, and federal agencies which has proven to be effective in keeping our communities safe. In this case, it has taken a dangerous gang member and drug dealer off the streets. The successful prosecution of cases like this reduces crime and the fear of crime in our communities,” said Assistant Chief of Police Michael Beller, Chamblee Police Department.
According to U.S. Attorney Pak, the charges and other information presented in court: On the morning of April 25, 2018, officers with the Chamblee Police Department were on patrol when they observed Fuentes and a female sitting in front of a restaurant. One of the officers then witnessed him hand something to the female, so they approached and discovered that both Fuentes and the female had been smoking marijuana. The officers then learned that Fuentes had an outstanding warrant for a probation violation.
After Fuentes was secured, officers searched a brown paper bag next to him and found 11 smaller plastic baggies, each containing methamphetamine, which weighed a total of 289 grams. In addition to the drugs, officers found inside of the bag a .38 caliber revolver and a small scale used for weighing narcotics for distribution and sale. At the time he possessed these narcotics and firearm, Fuentes was on probation for a 2016 felony conviction.
Enrique Fuentes, a/k/a Grumpy, 32, of Chamblee, Georgia, was sentenced by U.S. District Judge Mark H. Cohen to eight years, eight months in prison to be followed by three years of supervised release. Fuentes was convicted on these charges on February 7, 2019, after he pleaded guilty.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Chamblee Police Department.
Assistant U.S. Attorney Michael Herskowitz, Chief of the Cyber and Intellectual Property Crime Section, prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Gang Leader Sentenced to Prison for Marijuana Trafficking ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Washington, D.C. man was sentenced today to six and a half years in prison for in prison for his role in a marijuana conspiracy.
“This case illustrates certain dangers posed by organized criminal gangs: They have a built in distribution network, a division of labor and development of expertise by tasking their membership, and as a result they have the ability to move large quantities of narcotics,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Here, the distribution of marijuana resulted in the generation of thousands of dollars of illicit profit—cash—which generally serves as a dinner bell for armed robbers and can easily result in violent conflict and collateral injury to innocent bystanders. Thank you to our law enforcement partners who bravely continue to assist in our efforts in thwart drug trafficking and bring those perpetrators to justice.”
According to court documents, Cuong Huynh, 31, was the leader of a marijuana trafficking ring and leader of a criminal street gang known as the Asian Dragon Family. Under Huynh’s leadership, the Washington, D.C. area marijuana trafficking ring distributed over 100 kilograms of marijuana over a two-year period.
“This sentencing demonstrates the commitment of the FBI and our task force partners who work each day to identify individuals who are injecting drugs into our communities and leading criminal organizations.,” said Matthew J. DeSarno, Special Agent in Charge of the FBI’s Washington Field Office’s Criminal Division. “Thank you to our partners for their continued support in tackling organized crime and bringing those responsible to justice.”
Huynh operated at the center of the conspiracy, maintaining multiple wholesale sources of supply for marijuana while also maintaining a distribution network in the Washington, D.C. region. Huynh’s girlfriend, Victoria Nguyen, stored tens of thousands of dollars in cash proceeds at a time from the sale of marijuana and safeguarded those earnings for the next wholesale purchase. Nikco Nguyen and Michael Ngo, who were also members of the Asian Dragon Family, distributed marijuana for Huynh, picked up cash proceeds from customers and re-packaged larger quantities of marijuana into redistribution amounts.
Nikco Nguyen was sentenced to 30 months in prison and Michael Ngo was sentenced to 24 months in prison on April 12 for their roles in the conspiracy. Victoria Nguyen was sentenced to two years in prison on April 5 for her role in the conspiracy.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Special Assistant U.S. Attorney Lena Munasifi and Assistant U.S. Attorney Dennis M. Fitzpatrick prosecuted the case.
This matter was investigated by the FBI Washington Field Office’s Transnational Organized Crime Task Force which consists of FBI Agents, task force officers from multiple other federal agencies, local, state and international law enforcement partners.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-12.