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6 September 2018
Sells Gang Member Convicted by a Jury of Shotgun Slaying of a WomanRead the Press Release
TUCSON, Ariz. – Warren Miles, 26, of Sells, Ariz., was found guilty of involuntary manslaughter by a federal jury in Tucson on Sept. 5, 2018. The case was tried before U.S. District Judge Raner C. Collins from Aug. 29, 2018 through Sept. 5, 2018. Miles, a member of the Tohono O’odham Nation, is being held after trial. Sentencing is set before Judge Collins on Nov. 28, 2018.
The evidence at trial showed that on the day before Thanksgiving, on Nov. 22, 2017, in the early morning hours, a truck full of street-gang members accosted the victim and four other individuals, all of whom were also members of the Tohono O’odham Nation. They were in a wash area alongside a dirt road when the truck stopped and its occupants jumped out, brandishing firearms and yelling derogatory gang-related comments toward the group. A 12-gauge shotgun was used to fire two gunshots at close range, striking the victim in the face, neck, and chest area, which caused her death. The truck, with Miles as an occupant, fled the area and was later found at a residence east of Sells. Eyewitnesses identified Miles as the assailant. The incident occurred within the bounds of the Tohono O’odham Reservation.
A conviction for involuntary manslaughter carries a maximum penalty of eight years, a $250,000 fine, or both.
The investigation in this case was conducted by the Federal Bureau of Investigation, Homeland Security Investigations, and the Tohono O’odham Nation Police Department. The prosecution was handled by Jesse J. Figueroa and Raquel Arellano, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-18-300-TUC-RCC (BPV)
RELEASE NUMBER: 2018-118_Miles
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Second Defendant Sentenced to Federal Prison in Case Involving the Shooting of a U.S. Mail CarrierRead the Press Release
In San Antonio today, a federal judge sentenced 27-year-old Sarah Richford of San Antonio, to 20 years imprisonment in connection with the shooting of a U.S. Mail carrier last year in Spring Branch, TX, announced U.S. Attorney John F. Bash; Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service, Houston Division; and, San Antonio Police Chief William McManus.
In addition to the prison term, Chief U.S. District Judge Orlando Garcia ordered that Richford pay $175,405.92 restitution and be placed on supervised release for a period of five years after completing her prison term.
On February 23, 2018, Richford pleaded guilty to five charges including aiding and abetting carjacking; aiding and abetting use of a firearm during a crime of violence; aiding and abetting robbery of U.S. Mail; and, two counts of aiding and abetting assault on a federal officer.
According to court records, on February 11, 2017, Richford’s co-defendant, 24-year-old Bradley Ahearn, shot a female U.S. Mail carrier as she was delivering mail to a cluster of mailboxes in Spring Branch, TX. The victim is still recovering from the gunshot that pierced both of her legs. Ahearn fled the scene in the Mail carrier’s vehicle followed by Richford in a separate vehicle.
On February 14, 2017, employees of a local motel notified investigators of the presence of a large amount of U.S. Mail and a handgun case in one of the motel rooms. Much of the discovered mail, originating from locations across the country, was destined for addresses in the Spring Branch, TX area. Motel surveillance footage showed a third co-defendant, 41-year-old Piper Lee, picking up Ahearn and Richford and leaving the motel in Lee’s yellow Volkswagen. Investigators requested San Antonio police to initiate a stop of the vehicle. While failing to yield to SAPD officers, Ahearn began shooting at the police officers and another high-speed pursuit ensued. Ultimately, the defendants abandoned their vehicle inside a parking garage of a local mall and managed to elude capture by law enforcement.
On February 15, 2017, San Antonio police officers, acting on information provided to investigators, arrested Ahearn, Richford and Lee without incident in a parking lot of a different local motel.
On July 12, 2018, Ahearn was sentenced to 20 years in federal prison after pleading guilty to seven charges including aiding and abetting carjacking; aiding and abetting use of a firearm during a crime of violence; aiding and abetting robbery of U.S. Mail; and, four counts of aiding and abetting assault on a federal officer.
Lee, who remains in federal custody, faces up to 20 years in federal prison. Sentencing is scheduled for November 1, 2018, before Chief Judge Garcia.
The U.S. Postal Inspection Service together with the San Antonio Police Department, Texas Department of Public Safety, Texas Rangers, Comal County Sheriff’s Office, Bulverde Police Department, Federal Bureau of Investigation, U.S. Marshals Service and Homeland Security Investigations (HSI) investigated this case. Assistant U.S. Attorneys Bettina Richardson and Christina Playton are prosecuting this case on behalf of the Government.
Second Bank Robber Pleads GuiltyRead the Press Release
PITTSBURGH, PA - A resident of Allegheny County pleaded guilty in federal court to two counts of bank robbery, United States Attorney Scott W. Brady announced today.
Matthew David Stanley, formerly of Pittsburgh, PA, pleaded guilty to all charges before United States District Judge David Cercone.
In connection with the guilty plea, the court was advised that, on August 19, 2013, Stanley acted as the get-away driver while his co-defendant Raymond Zwibel went into the First Commonwealth Bank in New Alexandria with a demand note and stole $3700. The two switched roles four days later when, on August 23, 2013, Stanley entered the bank with a demand note and stole $2413 from the Citizens Bank in Latrobe, while Zwibel acted as the get-away driver. On January 30, 2014, Zwibel robbed the First Commonwealth Bank in West Mifflin without the assistance of Stanley. Zwibel previously pleaded guilty to all of his own charges and is scheduled to be sentenced by Judge Cercone on September 12, 2018, at 10 a.m.
Judge Cercone scheduled Stanley’s sentencing for Friday, February 1, 2019 at 11:30am. The law provides for a total sentence of up to 40 years in prison, a fine of up to $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of Stanley.
Pending sentencing, the court remanded Stanley back to state prison where he is serving a sentence on an unrelated drug offense.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation (FBI) conducted the investigation that led to the prosecution of both Matthew Stanley and Raymond Zwibel, with valuable assistance from the Latrobe Police Department and the Westmoreland County Bureau of Criminal Investigation.
Sacramento Woman Pleads Guilty to Stealing Social Security BenefitsRead the Press Release
SACRAMENTO, Calif. —Toni Teresi, 75, of Sacramento, pleaded guilty today to theft of government property, U.S. Attorney McGregor W. Scott announced.
According to court documents, Teresi’s mother received divorced-spouse Social Security benefits following the ex-husband’s death in 1963. Teresi and her mother held a joint bank account where the Social Security Administration (SSA) deposited the mother’s monthly benefits. The mother was entitled to these benefits until her death on February 24, 1987. Teresi did not report her mother’s death to SSA, and SSA continued to deposit the mother’s benefit funds to the joint account from February 1987 to March 2014. Over this 27-year period, SSA paid approximately $247,236 to the joint account. During this period, Teresi stole the Social Security benefits for her own use, knowing that she was not entitled to the benefits.
This case is the product of an investigation by the Office of the Inspector General, Social Security Administration. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Teresi is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on December 13, 2018. Teresi faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Rock Hill Gang Member Man Pleads to Federal Firearm ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that Kenterius Dyshae Hinton, age 24, of Rock Hill, plead guilty in federal court to being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). Chief United States District Judge Terry L. Wooten, of Columbia, accepted the guilty plea and will impose sentence after he has reviewed the presentence report, which will be prepared by the United States Probation Office.
Evidence presented in court established that on November 29, 2017, at approximately 11:21pm, officers with the Rock Hill Police Department were on patrol in an unmarked patrol car when they observed a car, using their high beam front headlights, coming towards them. A traffic stop was conducted and Hinton found to be the driver. Officers smelled marijuana as they approached the car and when they asked Hinton, a known gang member, and the passenger about it, they stated that they had smoked marijuana earlier and that the odor was on their clothes. A search of car revealed a loaded Taurus .45 caliber handgun underneath the center console, a loaded Smith and Wesson .45 caliber handgun underneath the passenger seat, and a marijuana grinder with marijuana residue. Both Hinton and the passenger were arrested on state charges of unlawful carrying of a firearm and advised of their rights. After waiving their rights, Hinton admitted that the “black gun was mine” [the Taurus .45 caliber] and the passenger admitted that the silver gun [the Smith and Wesson .45 caliber] was his gun.
Hinton, who was on state probation at the time of the instant offense, is prohibited under federal law from possessing firearms and ammunition based upon prior state convictions for burglary 2nd degree, possession of a weapon during a violent crime, and attempted armed robbery. The passenger was not a convicted felon, so his firearm charge remained in state court.
Hinton faces a maximum of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release on the felon in possession of a firearm and ammunition charge.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Rock Hill Police Department and was prosecuted as part of Project CeaseFire, a joint federal, state and local initiative focused upon aggressively prosecuting firearm cases in an effort to reduce violent crime and make our neighborhoods safer. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority and reinstituted PSN nationwide. Assistant United States Attorneys Stacey D. Haynes and Alyssa Richardson both of the Columbia office handled the case.
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Rochester Man Pleads Guilty to Visa FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Anjaneyulu Katam, of Rochester, NY, pleaded guilty to visa fraud before Chief U.S. District Judge Frank P. Geraci. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that between 2011 and 2017, Katam ran businesses in which he falsified immigration documents for Indian nationals to enter the U.S. and work in tech industries involving computer programming. The defendant manipulated the H-1B visa program, which allows U.S. employers temporarily to employ foreign workers in specialty occupations. Katam falsified visa applications, work experience documents, and work contracts, which he then submitted to the U.S. Department of Labor, Department of Homeland Security and Department of State, in order to secure illegal H-1B visas for Indian nationals. This resulted in the unlawful entry and employment of several Indian nationals within the United States.
As part of the investigation, federal agents identified multiple assets, including strip malls, and bank accounts, which were acquired by Katam utilizing proceeds of the visa fraud. The defendant will forfeit approximately $1,090,490.32 to the Government.
The plea is the result of an investigation by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Michael C. Mikulka, Special Agent-in-Charge of the New York Region, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Department of State’s Diplomatic Security Service, under the direction of the Special Agent-in-Charge of the New York Field Office, Charles Brandeis.
Sentencing is scheduled for September 6, 2018, at 10:30 a.m. before Chief Judge Geraci.
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.Rhode Island Men Arrested for Alien SmugglingRead the Press Release
ALBANY, NEW YORK – Nicolas Tamayo, age 19, and Francisco Santos-Luna, age 23, both of Providence, Rhode Island, were arrested on August 29 in Plattsburgh for alien smuggling.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Acting Chief Patrol Agent, United States Border Patrol, Swanton Sector.
The charges in the complaints are merely accusations. The defendants are presumed innocent unless and until proven guilty.
According to the criminal complaints, a Border Patrol Agent observed a vehicle travelling east on New York State Route 11 near Chateaugay, New York, close to the border, at approximately 5:10 a.m. on August 29. The agent followed the vehicle until it pulled into a gas station and parked alongside a gas pump on New York State Route 3 in Plattsburgh. A Border Patrol Agent then pulled into the station parking lot and made contact with the occupants of the vehicle. The agent quickly established that the driver and registered owner of the car was Tamayo and that the passengers were five illegal aliens who had illegally crossed the border, near Chateaugay, earlier that morning. A second smuggler, Francisco Santos-Luna, was found and arrested on August 29 at a Plattsburgh motel.
The charges filed against Tamayo and Santos-Luna carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a post imprisonment term of supervised release of up to 3 years. 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 illegal aliens, four Romanian citizens and one Irish citizen, are each charged with the misdemeanor crime of illegal entry.
This case is being investigated by Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Previously Deported Alien Sentenced to 108 Months for Possession of Military-Style Semiautomatic RifleRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Luis Cenobio Barrera, age 24, of Tamaulipas, Mexico, was sentenced to 108 months in prison after pleading guilty to being a felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g). Senior United States District Judge Henry M. Herlong, of Greenville, sentenced Barrera and imposed a three-year term of supervised release.
Evidence presented at the change of plea hearing established that on January 26, 2018, the Greenville Police Department (GPD) received multiple calls for assistance regarding a firearm-related disturbance that originated at a gas station located on S. Pleasantburg Drive, Greenville, S.C. The suspect in the incident was a Hispanic male, subsequently identified as Barrera, who possessed a handgun during the disturbance. The investigation identified Barrera as driving a dark Mazda sedan that was later located in a parking lot on Webster Road in Greenville.
Officers approached the black Mazda 6, which was backed into a handicap parking spot. The Mazda had dark window tint that precluded officers from seeing into the vehicle. As officers approached, Barrera jumped from the vehicle, ignored commands to stop, and fled the area. Officers then established a perimeter around the area and attempted to track and locate Barrera using a K-9, without success.
In the Mazda 6 from which Barrera fled, GPD officers observed an olive drab green and black in color, military style rifle wedged between the front passenger seat and center console of the vehicle.
Based on the information provided by GPD, the Department of Homeland Security identified Barrera as a citizen of Mexico who had been previously removed from the United States on multiple occasions. The prior crimes that led to his first removal were conspiracy robbery with a dangerous weapon, in violation of North Carolina General Statute § 14-87 and discharge of a weapon into an occupied property, in violation of North Carolina General Statute § 14-34.1(a). Following service of a state prison sentence, Barrera was removed to Mexico on May 28, 2013.
At some point, he returned to the United States without permission and on January 17, 2016, Barrera was arrested in Charlotte by local authorities for carrying a concealed weapon, possession of a firearm by a convicted felon, and hit and run. On October 21, 2016, Barrera was convicted of illegal reentry in the United States, served a sentence, and on March 2, 2017, Barrera was removed from the United States to Mexico afoot at Brownsville, Texas.
At some point, Barrera returned to the United States without permission and obtained a FEG Model SA 2000 7.62 mm rifle that he had in his possession when Greenville police officers encountered him in the Mazda. He was ultimately arrested on the weapons charges after fleeing to Charlotte, North Carolina, and was returned to Greenville where his case was adjudicated by Judge Herlong.
Assistant United States Attorney Bill Watkins of the Greenville office handled the case, which was investigated by the Department of Homeland Security/Office of Investigations, the bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Marshals Service, and the Greenville Police Department and prosecuted as part of the joint federal, state and local Operation “Real Time,” which seeks to fast track armed recidivists for federal prosecution. Operation “Real Time” is a part of the Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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Portland Man Sentenced to 63 Months in Federal Prison for Extorting Child PornographersRead the Press Release
PORTLAND, Ore. – Andre Eugene Shaw, 34, of Portland, was sentenced today to 63 months in federal prison followed by three years of supervised release for extorting child pornographers for money and services.
Shaw previously pleaded guilty to extortion, transmitting extortionate communications in interstate commerce, money laundering and possessing an unregistered short-barreled assault rifle in May 2018. The victims of the extortionate acts and communications were people who produced, traded in or collected child pornography.
According to court documents, the investigation began in July 2014 when an individual arrested for producing and distributing child pornography told investigators that he had been blackmailed by an individual known to him as "Blackhands" for the preceding three years. Blackhands hacked into the victim’s computer, discovered evidence of his illicit activities and sent an email demanding payment of $10,000, or the victim’s life would be "over."
The victim reached an agreement with the extortionist under which the victim would send $1,000 per month via Western Union money transfers to someone known to the victim as "Joe." Joe was later identified as Shaw, who was using the alias Joe Stanis.
Over time, Blackhands began making additional demands of the victim. He directed the victim to recruit people to skim credit cards at restaurants; to buy things for Joe, including firearms, ammunition, credit card skimming equipment, and a ballistic vest; and to pick up extortion payments sent by other victims and give the money to Joe. Joe furnished the victim with false identification documents to use when picking up extortion payments, many of which were sent to the fictitious names via money transfers.
Two years prior to the unnamed victim’s arrest, Blackhands began demanding photos of the victim’s juvenile daughter and later demanded the victim give his daughter to Joe. On two or three different occasions, the victim turned his daughter over to Joe, knowing that Joe or others would use his daughter to produce child pornography. The victim drugged his daughter each time. On the most recent occasion, Blackhands directed the victim to bring certain props
including costumes, make-up, sex toys and a camera. Investigators later found the box of props in the victim’s garage and identified Shaw’s palm print on the outside of the box.
On December 18, 2014, Shaw was arrested on an outstanding state misdemeanor warrant for failure to appear. That same day, FBI agents and task force officers executed a federal search warrant at the residence Shaw shared with his girlfriend in Southeast Portland. Agents seized numerous items including counterfeit driver’s licenses from multiple states; holographic overlays for multiple state driver licenses; a counterfeit "Foreign Sovereign Immunities Act Non-Resident National" identification card that purportedly bore the seal of the U.S. Department of State; supplies and equipment for manufacturing high-quality false identification documents; books on creating a new identity; encrypted compact discs labeled with the names of multiple state departments of motor vehicles as well as the Social Security Administration and U.S. Department of Defense; compact discs labeled with the initials of numerous known extortion victims; numerous firearms, magazines, ammunition, and homemade silencers; and cash and precious metals, including silver coins and bars, gold coins, and $13,344 in U.S. currency.
In total, Shaw extorted more than $100,000 from various victims. Often, the pattern of conduct was similar: Shaw would hack into the victims’ computer, find evidence of their illegal activity and threaten to expose them unless they paid. The full extent of Shaw’s criminal activities remains a mystery, however, because his computer equipment and the discs found in his residence were all heavily encrypted. To date, the government’s attempts to defeat the encryption have been unsuccessful and, as a result, investigators have been unable to definitively say whether Shaw was Blackhands.
At least two of Shaw’s victims are now dead, having taken their own lives after they were contacted by law enforcement officers. At least one young girl—the victim’s daughter—was victimized by Shaw or someone he knew.
This case was investigated by the FBI and prosecuted by Gary Y. Sussman and Julia E. Jarrett, Assistant U.S. Attorneys for the District of Oregon.
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. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The FBI’s Child Exploitation Task Force (CETF) conducts sexual exploitation investigations – many of them undercover – in coordination with other federal, state, and local law enforcement agencies. The Portland FBI’s CETF consists of agents and task force officers from the Beaverton Police Department, Portland Police Bureau, Tigard Police Department, Hillsboro Police Department, and the Clackamas County Sheriff’s Office. The FBI’s CETF is committed to locating and arresting those who prey on children as well as recovering underage victims of sex trafficking and child exploitation.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at www.fbi.gov/tips.
Perry County Man Pleads Guilty to Crimes Related to Illegal Sale of Moonshine, OpioidsRead the Press Release
COLUMBUS, Ohio –William D. Merckle, 57, of Corning, Ohio, pleaded guilty in U.S. District Court to violating the Federal Alcohol Administration Act and distributing hydrocodone.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and officials from the United States Treasury Department Alcohol and Tobacco Tax and Trade Bureau and Ohio Department of Safety Ohio Investigative Unit announced the plea offered today before U.S. Magistrate Judge Norah McCann King.
The Federal Alcohol Administration Act establishes national rules governing the distribution, production and importation of alcohol.
According to an affidavit filed in support of criminal charges, the Ohio Department of Public Safety Ohio Investigative Unit received a complaint in October 2015 that Merckle was selling illegal moonshine at the local flea market known as “Reinersville Trader Days.”
Investigators then witnessed Merckle selling moonshine from his camper at Reinersville Trader Days. At this time, Merckle stated he owned Straitsville Special Moonshine, LLC in New Straitsville, Ohio, but that this moonshine is made “on the side” at his house.
In his plea agreement, Merckle agreed that he had sold oxycodone or hydrocodone on three occasions in 2016 and 2017. He also agreed that he had unlawfully sold moonshine on eight occasions from 2015 through 2017.
Some of the moonshine purchased by the undercover agents was contaminated with copper, which is consistent with home distilling. At least one batch had an abv percentage of 71.8.
The spirits were typically sold to the agents in glass quart jars and were not properly sealed or labeled as required by the Federal Alcohol Administration Act.
Merckle pleaded guilty to one count of distributing controlled substances and one count of selling distilled spirits in an improper container.
U.S. Attorney Glassman commended the investigation of this case by law enforcement, and Assistant United States Attorney Peter K. Glenn-Applegate, who is prosecuting the case.
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Owner of Defense Firm Charged with Conspiracy to Defraud Department of Defense of $7 Million, Violate Arms Export Control ActRead the Press Release
NEWARK, N.J. – A Turkish man who owns a New Jersey defense contracting business has been charged in a scheme to fraudulently acquire lucrative manufacturing contracts with the U.S. Department of Defense (DoD), and for conspiring to export military technical drawings to Turkey without a license from the State Department, U.S. Attorney Craig Carpenito announced today.
Ferdi Murat Gul, a/k/a “Fred Gul,” 42, of Turkey, was indicted by a federal grand jury on Sept. 5, 2018, on one count of conspiracy to commit wire fraud, six counts of wire fraud, one count of conspiracy to violate the Arms Export Control Act, and one substantive count of violating the Act. He is believed to be currently at large in Turkey.
According to the indictment:
Gul is the principal owner, chief executive officer, and general manager of two companies located in the United States: Bright Machinery Manufacturing Group Inc. (BMM), a defense contracting company located in Paterson, New Jersey; and FMG Machinery Group (FMG), a purported manufacturing company in Paterson and Long Island City, New York. Gul also maintains an ownership interest in HFMG Insaat (HFMG), a manufacturing company in Turkey.
Over approximately five years, BMM fraudulently obtained hundreds of contracts with the DoD by falsely claiming that the military parts it contracted to produce would be manufactured in the United States. From October 2010 through June 2015, the value of the contracts fraudulently awarded to BMM was approximately $7 million.
Gul routinely submitted electronic bids for DoD contracts that contained false representations about BMM’s purported domestic manufacturing operations. He falsely submitted quotes claiming that BMM would provide military goods manufactured in the United States, when in fact the company relied almost exclusively on Gul’s Turkish-based production facilities. In acquiring contracts, Gul routinely and unlawfully exported drawings and technical data, some of which was subject to U.S. export control laws, in order to secretly manufacture military parts in Turkey. Gul and his conspirators then fraudulently supplied those foreign-made parts to unwitting DoD customers in the United States.
Gul and his conspirators concealed their illicit manufacturing activities and ongoing fraud by routinely submitting forged certifications and fabricated information by e-mail to DoD representatives in New Jersey. They falsely represented that BMM and its U.S.-based subcontractors performed necessary quality control procedures in their purported domestic manufacture of military parts. BMM fraudulently acquired 346 contracts from the DoD to domestically manufacture military parts, including parts for torpedoes for the U.S. Navy, bomb ejector racks and armament utilized in U.S. Air Force aircraft, and firearms and mine clearance systems used by U.S. military personnel abroad. Testing by the DoD revealed that some parts had numerous design flaws and non-conformities and were unusable.
The wire fraud counts each carry a maximum penalty of 20 years in prison and a fine of $250,000. The Arms Export Control Act violations each carry a maximum penalty of 20 years in prison and a $1 million fine.
The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of States.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the leadership of Special Agent in Charge Leigh-Alistair Barzey and special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Counter Proliferation Investigations, under the supervision of Special Agent in Charge Brian Michael, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit, along with assistance from the U.S. Department of Justice, National Security Division, in Washington, D.C.
The charges and allegations in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Orangeburg Man Pleads to Federal Firearm Charge Stemming from Shooting of OfficersRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that Eugene Jonathan James, age 20, of Orangeburg, plead guilty in federal court to being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). United States District Judge J. Michelle Childs, of Columbia, accepted the guilty plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the United States Probation Office.
Evidence presented in court established that at approximately 12:36am on May 27, 2017, officers with the Cayce Department of Public Safety were running radar on Knox Abbott Drive when they observed a car traveling 15-20 mph over the speed limit. After activating their blue lights and siren in an attempt to conduct a traffic stop, a chase ensued across the Blossom Street Bridge into Columbia. At one point, the driver of the car appeared to stop, but when officers approached, the car sped off again. Ultimately, the car stopped near the Riverwalk and the sole occupant/driver, later identified as James, fled on foot, disregarding officers’ commands for him to stop. James fled into the woodline off the Riverwalk and assumed a crouched position, which appeared to the officers to be lying in wait for them. After threatening to use his taser to get James to comply, one officer heard gunshots and felt pain. That officer, who was wearing a bulletproof vest, was shot in the chest and leg and the other officer was shot in his leg. Officers returned fire and called for backup assistance.
Responding officers located James in the woodline with a .40 caliber Smith and Wesson lying at his feet. James had also been shot. Further investigation revealed that the car driven by James had been stolen during a carjacking in Orangeburg on May 14, 2017. The serial number of the firearm had been burned in an attempt to obliterate it; however, law enforcement was able to restore the serial number and determined that it had been stolen during the theft of a car in Orangeburg on May 15, 2017. A ballistics examination of the firearm matched it to the fired bullet recovered from one of the officer’s bulletproof vest and to a May 16, 2017, shooting incident in Orangeburg.
James is prohibited under federal law from possessing firearms and ammunition based upon an April 2017 Orangeburg conviction for burglary 3rd degree for which he received a probationary sentence. At the time of the instant offense, James was on state probation and out on state bond for an unrelated Richland County state charge stemming from a March 2017 incident.
James faces a maximum of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release on the felon in possession of a firearm and ammunition charge.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Cayce Department of Public Safety, the Columbia Police Department, and the South Carolina State Law Enforcement Division (SLED) and was prosecuted as part of Project CeaseFire, a joint federal, state and local initiative focused upon aggressively prosecuting firearm cases in an effort to reduce violent crime and make our neighborhoods safer. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority and reinstituted PSN nationwide. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Ohio Man Charged with Child Pornography OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, today announced that a federal grand jury in Hartford has returned an indictment charging ROBERT DUDUKOVICH, 24, of Wakeman, Ohio, with five counts of distribution of child pornography and one count of aiding and abetting the transportation of child pornography.
The indictment was returned on August 30, 2018, and DUDUKOVICH was arrested yesterday in Berlin Heights, Ohio. He appeared in U.S. District Court for the Northern District of Ohio, in Toledo, and was ordered detained pending his removal to the District of Connecticut.
As alleged in the indictment, between July 10, 2017 and October 4, 2017, DUDUKOVICH managed a chat group on “Kik,” a smartphone messaging application, that provided a forum for group members to communicate about their sexual interest in young boys and to share and trade child pornography primarily depicting young boys engaged in sexually explicit conduct. DUDUKOVICH shared with the group members, including an individual in Connecticut, images and videos of child pornography. The child pornography included videos of a minor engaged in sexual acts with another minor, and a video of a minor engaged in a sexual act with an adult. DUDUKOVICH also shared with the group members a link to his Dropbox account, which contained additional images and videos of minors engaged in sexually explicit conduct.
If convicted, DUDUKOVICH faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years on each count.
The case has been assigned to U.S. District Judge Jeffrey A. Meyer in New Haven.
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 matter is being investigated by Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
U.S. Attorney Durham thanked the U.S. Attorney’s Office for the Northern District of Ohio for their assistance in this matter.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Oahu Tax Preparer Sentenced to 18 Months in Prison for Filing Fraudulent ReturnsRead the Press Release
HONOLULU – Guillermo Dahilig, of Waialua, Hawaii, was sentenced yesterday to 18 months in prison for aiding and assisting in the preparation and filing of false tax returns in violation of Title 26, United States Code, Section 7206(2). Following his incarceration, Dahilig will be on supervised release for 1 year. As part of his sentence, Dahilig has been ordered to pay $318,222.00 in restitution to the IRS for the taxes due from fraudulent tax returns filed between tax years 2010 and 2015 for himself and his clients.
U.S. Attorney for the District of Hawaii Kenji M. Price announced that, according to court documents and information presented in court, from 2009 to 2016, Dahilig was the owner and operator of Speedy Gill Services, an Oahu tax preparation business. He prepared between 750 and 1,000 tax returns per year for clients, and charged between $100 and $200 per return. Dahilig falsified his clients’ tax returns by claiming deductions for items such as medical expenses, personal property tax, job expenses, and charitable contributions that he knew were greater than the figures provided by his clients. He then filed the returns, knowing that they would generate refunds larger than his clients deserved. In addition, from at least 2010 through 2013, Dahilig underreported the income of Speedy Gill Services on the income tax returns he prepared and filed for himself and his wife.
At sentencing, U.S. District Judge Susan Oki Mollway remarked upon the significant loss to the IRS caused by Dahilig’s conduct, and emphasized that he had “violated the trust” of his clients.
The case was investigated by IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorney Amalia Fenton.
North Korean Regime-Backed Programmer Charged in Conspiracy to Conduct Multiple Cyberattacks and IntrusionsRead the Press Release
Park Jin Hyok - COMPLAINTLOS ANGELES – A criminal complaint made public today charges a North Korean citizen for his involvement in a conspiracy to conduct a series of destructive cyberattacks around the world, which resulted in damage to massive amounts of computer hardware and extensive loss of data, money and other resources.
The complaint alleges that Park Jin Hyok (박진혁) was a member of a hacking team sponsored by the Democratic People’s Republic of Korea and known to the private sector as the “Lazarus Group.” Park allegedly worked for a North Korean government front company, Chosun Expo Joint Venture, which was also known as Korea Expo Joint Venture, or KEJV, to support the DPRK government’s malicious cyber actions.
The conspiracy’s malicious activities included the creation of the malware used in the 2017 WannaCry ransomware attack; the 2016 theft of $81 million from Bangladesh Bank; the 2014 attack on Sony Pictures Entertainment; and numerous other attacks or intrusions on the entertainment, financial services, defense, technology and virtual currency industries, as well as academia and electric utilities.
“The complaint charges members of this North Korean-based conspiracy with being responsible for cyberattacks that caused unprecedented economic damage and disruption to businesses in the United States and around the globe,” said First Assistant United States Attorney Tracy Wilkison. “The scope of this scheme was exposed through the diligent efforts of FBI agents and federal prosecutors who were able to unmask these sophisticated crimes through sophisticated means. They traced the attacks back to the source and mapped their commonalities, including similarities among the various programs used to infect networks across the globe. These charges send a message that we will track down malicious actors no matter how or where they hide. We will continue to pursue justice for those responsible for the huge monetary losses and attempting to compromise the national security of the United States.”
“The scale and scope of the cyber-crimes alleged by the complaint is staggering and offensive to all who respect the rule of law and the cyber norms accepted by responsible nations,” said Assistant Attorney General for National Security John C. Demers. “The complaint alleges that the North Korean government, through a state-sponsored group, robbed a central bank and citizens of other nations, retaliated against free speech in order to chill it half a world away, and created disruptive malware that indiscriminately affected victims in more than 150 other countries, causing hundreds of millions, if not billions, of dollars’ worth of damage. The investigation, prosecution, and other disruption of malicious state-sponsored cyber activity remains among the highest priorities of the National Security Division and I thank the FBI agents, DOJ prosecutors, and international partners who have put years of effort into this investigation.”
“This complaint exposes a vast and audacious scheme by the North Korean government to utilize computer intrusions as a means to support the varied goals of their regime,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “From computer network attacks on private entertainment companies and financial institutions, to the development of malware which crippled thousands of victims’ computer systems, North Korean cyber aggressions were pursued – and revealed – thanks to the thorough technical and collaborative work of Los Angeles-based FBI agents, computer scientists, federal prosecutors and intelligence analysts. The criminal complaint details key findings of a complex, multi-year investigation based on evidence collected within the U.S. and internationally."
According to the allegations contained in the criminal complaint, which was filed on June 8 in United States District Court in Los Angeles and made public today, Park was a computer programmer who worked for over a decade for KEJV. The company had offices in China and the DPRK, and is affiliated with Lab 110, a component of DPRK military intelligence. In addition to the programming done by Park and his group for paying clients around the world, the conspiracy also engaged in malicious cyber activities. Security researchers that have independently investigated these activities referred to this hacking team as the “Lazarus Group.” The conspiracy’s methods included spear-phishing campaigns, destructive malware attacks, exfiltration of data, theft of funds from bank accounts, ransomware extortion, and propagating “worm” viruses to create botnets.
The complaint describes a broad array of malicious cyber activities, both successful and unsuccessful, in the United States and abroad, with a particular focus on four specific examples.
Targeting the Entertainment Industry
In November 2014, the conspirators launched a destructive attack on Sony Pictures Entertainment (SPE) in retaliation for the movie “The Interview,” a comedy that depicted the assassination of the DPRK’s leader. The conspirators gained access to SPE’s network by sending malware to SPE employees, and then stole confidential data, threatened SPE executives and employees, and damaged thousands of computers.
Around the same time, the group sent spear-phishing messages to other victims in the entertainment industry, including a movie theater chain and a U.K. company that was producing a fictional series involving a British nuclear scientist taken prisoner in DPRK.
Targeting Financial Services
In February 2016, the conspiracy stole $81 million from Bangladesh Bank. As part of the cyberheist, the conspiracy accessed the bank’s computer terminals that interfaced with the Society for Worldwide Interbank Financial Telecommunication (SWIFT) communication system after compromising the bank’s computer network with spear-phishing emails, then sent fraudulently authenticated SWIFT messages directing the Federal Reserve Bank of New York to transfer funds from Bangladesh to accounts in other Asian countries. The conspiracy attempted to and did gain access to several other banks in various countries from 2015 through 2018 using similar methods and “watering hole attacks,” attempting the theft of at least $1 billion through such operations.
Targeting of U.S. Defense Contractors
In 2016 and 2017, the conspiracy targeted a number of U.S. defense contractors, including Lockheed Martin, with spear-phishing emails. These malicious emails used some of the same aliases and accounts seen in the SPE attack, at times accessed from North Korean IP addresses, and contained malware with the same distinct data table found in the malware used against SPE and certain banks, the complaint alleges. The spear-phishing emails sent to the defense contractors were often sent from email accounts that purported to be from recruiters at competing defense contractors, and some of the malicious messages made reference to the Terminal High Altitude Area Defense (THAAD) missile defense system deployed in South Korea. The attempts to infiltrate the computer systems of Lockheed Martin, the prime contractor for the THAAD missile system, were not successful.
Creation of Wannacry
In May 2017, a ransomware known as WannaCry 2.0 infected hundreds of thousands of computers around the world, causing extensive damage, including significantly impacting the United Kingdom’s National Health Service. The conspiracy is connected to the development of WannaCry 2.0, as well as two prior versions of the ransomware, through similarities in form and function to other malware developed by the hackers, and by spreading versions of the ransomware through the same infrastructure used in other cyber-attacks.
Park and his co-conspirators were linked to these attacks, intrusions, and other malicious cyber-enabled activities through a thorough investigation that identified and traced email and social media accounts that connect to each other and were used to send spear-phishing messages; aliases, malware “collector accounts” used to store stolen credentials; common malware code libraries; proxy services used to mask locations; and North Korean, Chinese and other IP addresses. Some of this malicious infrastructure was used across multiple instances of the malicious activities described in the complaint. Taken together, these connections and signatures – revealed in charts attached to the criminal complaint – show that the attacks and intrusions were perpetrated by the same actors.
Accompanying Mitigation Efforts
Throughout the course of the investigation, the FBI and the Justice Department provided specific information to victims about how they had been targeted or compromised, as well as information about the tactics and techniques used by the conspiracy with the goals of remediating any intrusion and preventing future intrusions. That direct sharing of information took place in the United States and in foreign countries, often with the assistance of foreign law enforcement partners. The FBI also has collaborated with certain private cybersecurity companies by sharing and analyzing information about the intrusion patterns used by the members of the conspiracy. In connection with the unsealing of the criminal complaint, the FBI and prosecutors provided cybersecurity providers and other private sector partners detailed information on accounts used by the conspiracy in order to assist these partners in their own independent investigative activities and disruption efforts.
Park is charged with one count of conspiracy to commit computer fraud and abuse, which carries a maximum sentence of five years in prison, and one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendant will be determined by the assigned judge.
The charges contained in the criminal complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
In addition to the criminal charges, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) today designated Park and KEJV under Executive Order 13722 based on the malicious cyber and cyber-enabled activity outlined in the criminal complaint.
This matter is being prosecuted by Executive Assistant United States Attorney Stephanie S. Christensen, Assistant United States Attorney Anthony J. Lewis of the Terrorism and Export Crimes Section, Assistant United States Attorney Anil J. Antony of the Cyber and Intellectual Property Crimes Section, and DOJ Trial Attorneys David Aaron and Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section. The Criminal Division’s Office of International Affairs provided assistance throughout this investigation, as did many of the FBI’s Legal Attachés, and foreign authorities around the world.
North Korean Regime-Backed Programmer Charged with Conspiracy to Conduct Multiple Cyber Attacks and IntrusionsRead the Press Release
A criminal complaint was unsealed today charging Park Jin Hyok (박진혁; a/k/a Jin Hyok Park and Pak Jin Hek), a North Korean citizen, for his involvement in a conspiracy to conduct multiple destructive cyberattacks around the world resulting in damage to massive amounts of computer hardware, and the extensive loss of data, money and other resources (the “Conspiracy”).
The complaint alleges that Park was a member of a government-sponsored hacking team known to the private sector as the “Lazarus Group,” and worked for a North Korean government front company, Chosun Expo Joint Venture (a/k/a Korea Expo Joint Venture or “KEJV”), to support the DPRK government’s malicious cyber actions.
The Conspiracy’s malicious activities include the creation of the malware used in the 2017 WannaCry 2.0 global ransomware attack; the 2016 theft of $81 million from Bangladesh Bank; the 2014 attack on Sony Pictures Entertainment (SPE); and numerous other attacks or intrusions on the entertainment, financial services, defense, technology, and virtual currency industries, academia, and electric utilities.
The charges were announced by Attorney General Jeff Sessions, FBI Director Christopher A. Wray, Assistant Attorney General for National Security John C. Demers, First Assistant United States Attorney for the Central District of California Tracy Wilkison and Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Field Office.
In addition to these criminal charges, Treasury Secretary Steven Mnuchin announced today that the Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Park and KEJV under Executive Order 13722 based on the malicious cyber and cyber-enabled activity outlined in the criminal complaint.
“Today’s announcement demonstrates the FBI’s unceasing commitment to unmasking and stopping the malicious actors and countries behind the world’s cyberattacks,” said FBI Director Christopher Wray. “We stand with our partners to name the North Korean government as the force behind this destructive global cyber campaign. This group’s actions are particularly egregious as they targeted public and private industries worldwide – stealing millions of dollars, threatening to suppress free speech, and crippling hospital systems. We’ll continue to identify and illuminate those responsible for malicious cyberattacks and intrusions, no matter who or where they are.”
“The scale and scope of the cyber-crimes alleged by the Complaint is staggering and offensive to all who respect the rule of law and the cyber norms accepted by responsible nations,” said Assistant Attorney General Demers. “The Complaint alleges that the North Korean government, through a state-sponsored group, robbed a central bank and citizens of other nations, retaliated against free speech in order to chill it half a world away, and created disruptive malware that indiscriminately affected victims in more than 150 other countries, causing hundreds of millions, if not billions, of dollars’ worth of damage. The investigation, prosecution, and other disruption of malicious state-sponsored cyber activity remains among the highest priorities of the National Security Division and I thank the FBI agents, DOJ prosecutors, and international partners who have put years of effort into this investigation.”
“The complaint charges members of this North Korean-based conspiracy with being responsible for cyberattacks that caused unprecedented economic damage and disruption to businesses in the United States and around the globe,” said First Assistant United States Attorney Tracy Wilkison. “The scope of this scheme was exposed through the diligent efforts of FBI agents and federal prosecutors who were able to unmask these sophisticated crimes through sophisticated means. They traced the attacks back to the source and mapped their commonalities, including similarities among the various programs used to infect networks across the globe. These charges send a message that we will track down malicious actors no matter how or where they hide. We will continue to pursue justice for those responsible for the huge monetary losses and attempting to compromise the national security of the United States.”
“We will not allow North Korea to undermine global cybersecurity to advance its interests and generate illicit revenues in violation of our sanctions,” said Treasury Secretary Steven Mnuchin. “The United States is committed to holding the regime accountable for its cyber-attacks and other crimes and destabilizing activities.”
Park is charged with one count of conspiracy to commit computer fraud and abuse, which carries a maximum sentence of five years in prison, and one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison.
About the Defendant Park and Chosun Expo Joint Venture
According to the allegations contained in the criminal complaint, which was filed on June 8, 2018 in Los Angeles federal court, and posted today: Park Jin Hyok, was a computer programmer who worked for over a decade for Chosun Expo Joint Venture (a/k/a Korea Expo Joint Venture or “KEJV”). Chosun Expo Joint Venture had offices in China and the DPRK, and is affiliated with Lab 110, a component of DPRK military intelligence. In addition to the programming done by Park and his group for paying clients around the world, the Conspiracy also engaged in malicious cyber activities. Security researchers that have independently investigated these activities referred to this hacking team as the “Lazarus Group.” The Conspiracy’s methods included spear-phishing campaigns, destructive malware attacks, exfiltration of data, theft of funds from bank accounts, ransomware extortion, and propagating “worm” viruses to create botnets.
The Conspiracy’s Cyber Attacks, Heists, and Intrusions
The complaint describes a broad array of the Conspiracy’s alleged malicious cyber activities, both successful and unsuccessful, and in the United States and abroad, with a particular focus on four specific examples.
Targeting the Entertainment Industry
In November 2014, the conspirators launched a destructive attack on Sony Pictures Entertainment (SPE) in retaliation for the movie “The Interview,” a farcical comedy that depicted the assassination of the DPRK’s leader. The conspirators gained access to SPE’s network by sending malware to SPE employees, and then stole confidential data, threatened SPE executives and employees, and damaged thousands of computers. Around the same time, the group sent spear-phishing messages to other victims in the entertainment industry, including a movie theater chain and a U.K. company that was producing a fictional series involving a British nuclear scientist taken prisoner in DPRK.
Targeting Financial Services
In February 2016, the Conspiracy stole $81 million from Bangladesh Bank. As part of the cyber-heist, the Conspiracy accessed the bank’s computer terminals that interfaced with the Society for Worldwide Interbank Financial Telecommunication (SWIFT) communication system after compromising the bank’s computer network with spear-phishing emails, then sent fraudulently authenticated SWIFT messages directing the Federal Reserve Bank of NY to transfer funds from Bangladesh to accounts in other Asian countries. The Conspiracy attempted to and did gain access to several other banks in various countries from 2015 through 2018 using similar methods and “watering hole attacks,” attempting the theft of at least $1 billion through such operations.
Targeting of U.S. Defense Contractors
In 2016 and 2017, the Conspiracy targeted a number of U.S. defense contractors, including Lockheed Martin, with spear-phishing emails. These malicious emails used some of the same aliases and accounts seen in the SPE attack, at times accessed from North Korean IP addresses, and contained malware with the same distinct data table found in the malware used against SPE and certain banks, the complaint alleges. The spear-phishing emails sent to the defense contractors were often sent from email accounts that purported to be from recruiters at competing defense contractors, and some of the malicious messages made reference to the Terminal High Altitude Area Defense (THAAD) missile defense system deployed in South Korea. The attempts to infiltrate the computer systems of Lockheed Martin, the prime contractor for the THAAD missile system, were not successful.
Creation of Wannacry 2.0
In May 2017, a ransomware attack known as WannaCry 2.0 infected hundreds of thousands of computers around the world, causing extensive damage, including significantly impacting the United Kingdom’s National Health Service. The Conspiracy is connected to the development of WannaCry 2.0, as well as two prior versions of the ransomware, through similarities in form and function to other malware developed by the hackers, and by spreading versions of the ransomware through the same infrastructure used in other cyber-attacks.
Park and his co-conspirators were linked to these attacks, intrusions, and other malicious cyber-enabled activities through a thorough investigation that identified and traced: email and social media accounts that connect to each other and were used to send spear-phishing messages; aliases, malware “collector accounts” used to store stolen credentials; common malware code libraries; proxy services used to mask locations; and North Korean, Chinese, and other IP addresses. Some of this malicious infrastructure was used across multiple instances of the malicious activities described herein. Taken together, these connections and signatures—revealed in charts attached to the criminal complaint—show that the attacks and intrusions were perpetrated by the same actors.
Accompanying Mitigation Efforts
Throughout the course of the investigation, the FBI and the Department provided specific information to victims about how they had been targeted or compromised, as well as information about the tactics and techniques used by the conspiracy with the goals of remediating any intrusion and preventing future intrusions. That direct sharing of information took place in the United States and in foreign countries, often with the assistance of foreign law enforcement partners. The FBI also has collaborated with certain private cybersecurity companies by sharing and analyzing information about the intrusion patterns used by the members of the conspiracy.
In connection with the unsealing of the criminal complaint, the FBI and prosecutors provided cybersecurity providers and other private sector partners detailed information on accounts used by the Conspiracy in order to assist these partners in their own independent investigative activities and disruption efforts.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendant will be determined by the assigned judge.
This case is being prosecuted by Assistant United States Attorneys Stephanie S. Christensen, Anthony J. Lewis, and Anil J. Antony of the United States Attorney’s Office for the Central District of California, and DOJ Trial Attorneys David Aaron and Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section. The Criminal Division’s Office of International Affairs provided assistance throughout this investigation, as did many of the FBI’s Legal Attachés, and foreign authorities around the world.
The charges contained in the criminal complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
For the U.S. Department of Treasury’s press release announcing corresponding sanctions please visit www.treasury.gov.
Non-Indian Man Residing on Laguna Pueblo Sentenced for Federal Child Abuse ConvictionRead the Press Release
ALBUQUERQUE – Aris Jaramillo, 36, a non-Indian man residing in the Village of Encinal, in the Pueblo of Laguna, N.M., was sentenced today in federal court in Albuquerque, N.M., to one year of probation for his conviction on a child abuse charge.
Jaramillo was arrested in Aug. 2017, on a criminal complaint charging him with child abuse on Aug. 13, 2017, on the Laguna Pueblo in Cibola County, N.M. According to the complaint, Jaramillo struck a Laguna Pueblo child on the head repeatedly.
On March 27, 2018, Jaramillo pled guilty to an information charging him with child abuse. In entering the guilty plea, Jaramillo admitted that on Aug. 13, 2017, he became upset and hit the victim several times in the head and left red marks on the victim’s head.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Laguna Pueblo Tribal Police Department and was prosecuted by Assistant U.S. Attorney Nicholas J. Marshall.
Nine Members of a Violent Drug Crew Charged with Racketeering Conspiracy and Four MurdersRead the Press Release
A 19-count superseding indictment was unsealed today in federal court in Brooklyn charging five new defendants, and four previously charged defendants, for their participation in a drug-trafficking enterprise based in Brooklyn and Queens, referred to in the indictment as the “Bushwick Crew.” Eight defendants are charged with racketeering conspiracy, including predicate acts of murder, kidnapping, robbery, extortion conspiracy and heroin distribution conspiracy, and a ninth defendant is charged with murder in aid of racketeering.
Maurice Brown, Jaquan Cooper and Tyquan Griem were arrested yesterday and today and are scheduled to be arraigned this afternoon before United States Magistrate Judge Peggy Kuo at the Brooklyn federal courthouse. Norman Marrero was arraigned earlier today before United States Magistrate Judge Martin C. Carlson at the federal courthouse in Harrisburg, Pennsylvania, and ordered detained. Lance Goodwin was arrested today and is scheduled to be arraigned this afternoon before United States Magistrate Judge Dennis L. Howell at the federal courthouse in Asheville, North Carolina.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged, the defendants were part of a violent crew that beat, tortured and killed in furtherance of their heroin trafficking,” stated United States Attorney Donoghue. “These charges demonstrate the commitment by this Office and our law enforcement partners to rid our community of the extreme violence associated with drug dealing.” Mr. Donoghue expressed his appreciation to the New York Metropolitan Safe Streets Task Force, which is comprised of FBI special agents and NYPD detectives, for their participation and assistance in the investigation.
“Not only are these gang members pushing deadly drugs in our most vulnerable communities, they’re allegedly killing rivals and bystanders in their attempts to maintain power and control,” stated FBI Assistant Director-in-Charge Sweeney. “We’ve stated before the FBI Metro Safe Streets Task Force will continue our pursuit of the leadership in these gangs, and stop their violent and illegal trafficking enterprise before more and more people die from either addiction or at the hands of the gang members.”
“The behavior this crew engaged in will never be tolerated by New Yorkers, and I thank our federal partners at the FBI and the Eastern District for strengthening the NYPD’s efforts to rid our streets of these criminals,” stated NYPD Commissioner O’Neill. “We will remain relentless in our mission to dismantle groups like this by precisely focusing on the drivers of violence in our city, and we will see their cases through to appropriate and meaningful prison sentences – those who live and work in all of our neighborhoods deserve nothing less.”
As alleged in the superseding indictment and court filings by the government,
the Bushwick Crew was involved in a large-scale heroin trafficking organization with Mexican cartel connections. Various members of the crew served as enforcers to protect its interests by arming themselves to escort drug traffickers, forcibly collecting drug debts and committing acts of violence against anyone who interfered with the crew’s operations or offended its members. The crimes alleged include:
Murder of Donte Williams
On August 18, 2012, defendant Lance Goodwin and other members of the crew were involved in a street altercation in Bushwick. During the fight, Goodwin fatally shot Donte Williams in the stomach to advance his own standing within the crew. When arrested one week later, Goodwin was carrying the murder weapon.
Murders of Gary Lopez and Rudy Superville
On March 5, 2013, Gary Lopez and Rudy Superville attempted to rob one of the Bushwick Crew’s main heroin distributors at the distributor’s apartment. Lopez and Superville were shot and wounded by the distributor. Defendants Maurice Brown, Peter Vasquez, Luis Lopez, Jason Pantojas and his brother Miguel Pantojas were summoned by the distributor to the apartment where they beat and tortured Gary Lopez and Superville. Gary Lopez called 911 to plead for help and was shot dead by Brown. Superville attempted to flee the apartment and was fatally stabbed by Jason Pantojas. The bodies were doused with bleach and ammonia, wrapped in plastic and driven to a field in Queens by defendants Brown, Luis Lopez and Vasquez, as well as other crew members. At the field, the bodies were soaked with gasoline and ignited.
Murder of Kelvin Johnson
On September 20, 2014, defendant Tyquan Griem and the above-mentioned heroin distributor went to a nightclub in Queens where a fight broke out. Griem retrieved a handgun stashed in a secret trap in the distributor’s car and opened fire, killing Kelvin Johnson.
Other Violent Crimes
Defendant Norman Marrero is charged with participating in the shooting of a drug customer to extort him for a drug debt owed to the Bushwick Crew. Defendant Jaquan Cooper is charged with committing a gunpoint robbery at a barbershop in Queens as customers were getting their hair cut.
The charges in the superseding indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
If convicted of the murder charges, defendants Brown, Goodwin, Griem, Lopez, Jason Pantojas, Miguel Pantojas and Vasquez face mandatory life sentences. If convicted of the drug and gun-related charges, defendants Cooper and Marrero face mandatory minimum sentences of 17 years’ and 20 years’ imprisonment, respectively, and a maximum of life imprisonment.
The superseding indictment is the product of an ongoing investigation into gang and narcotics-related violence in Brooklyn and Queens, among other locations, which has resulted in the filing of federal narcotics-and weapons-related charges in this district against more than 25 individuals in the past three years.
This case is also the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Lindsay K. Gerdes, Jennifer M. Sasso and Andrey Spektor are in charge of the prosecution, with assistance provided by Assistant United States Attorney Brian D. Morris of the Office’s Asset Forfeiture Unit.
The New Defendants:
MAURICE BROWN (also known as “Spaz”)
Age: 27
Brooklyn, New YorkJAQUAN COOPER (also known as “J-Gunna”)
Age: 30
Brooklyn, New YorkLANCE GOODWIN (also known as “Ty Mucka”)
Age: 29
Brooklyn, New YorkTYQUAN GRIEM (also known as “Ty Goon”)
Age: 28
Brooklyn, New YorkNORMAN MARRERO (also known as “Tito”)
Age: 35
Harrisburg, PennsylvaniaPreviously Charged Defendants Facing New Charges:
LUIS LOPEZ (also known as “Lou”)
Age: 36
Brooklyn, New YorkJASON PANTOJAS (also known as “Tuli”)
Age: 30
Brooklyn, New YorkMIGUEL PANTOJAS (also known as “Miggs”)
Age: 31
Brooklyn, New YorkPETER VASQUEZ (also known as “Pete”)
Age: 31
Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-390 (S-3) (RJD)
Nicaraguan National Pleads Guilty to Illegal Reentry of a Removed AlienRead the Press Release
U.S. Attorney Duane A. Evans announced that PAULO EMILIO OSABAS-MUNGUIA, age 32, a citizen of Nicaragua, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a).
According to the court documents, OSABAS-MUNGUIA was found in the United States on or about April 18, 2018, after having been previously removed on August 12, 2009.
United States District Judge Jane Triche Milazzo sentenced OSABAS-MUNGUIA to a term of imprisonment of credit for time served and a mandatory $100 special assessment.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Michael M. Simpson is in charge of the prosecution.
New York Man Pleads Guilty to CyberstalkingRead the Press Release
ALEXANDRIA, Va. – A New York man pleaded guilty today to cyberstalking victims in the Eastern District of Virginia and Washington, D.C. and to frame them for crimes or workplace violations they had not committed.
According to court documents, over a period of one year, Anthony Caccamo, 27, of Flushing, used identity-masking internet applications to send harassing messages to one of his victims, posing as men with whom the victim had had a consensual sexual relationship. In those messages, Caccamo threatened to hack the victim’s online accounts, leak sensitive personal information, and frame her for crimes she had not committed. On at least one occasion, Caccamo made good on his threat to frame the victim for crimes she had not committed. For example, in June 2017, Caccamo sent a false tip to the Homeland Security Investigations Tipline, alleging that she was involved in narcotics smuggling. Caccamo also created false evidence to convince federal investigators that he, too, was a victim of harassment, and provided false information to federal investigators to make it appear as though a certain DHS employee with a cybersecurity background was responsible for the harassment. Federal investigators ultimately traced the harassing messages to Caccamo’s online accounts and personal devices.
Caccamo pleaded guilty to cyberstalking and faces a maximum penalty of five years in prison when sentenced on December 14. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and John V. Kelly, Acting Inspector General for the Department of Homeland Security (DHS), made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea. Assistant U.S. Attorneys Laura Fong and Jay V. Prabhu prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-327.
New York Attorney Pleads Guilty to Tax Fraud Related to Multimillion-Dollar Embezzlement from Deceased Client’s EstateRead the Press Release
A New York-licensed attorney and former partner at a New York law firm pleaded guilty today to conspiracy to defraud the United States and tax evasion arising from a scheme to embezzle millions of dollars from a deceased client’s estate, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Geoffrey S. Berman for the Southern District of New York.
“The fiduciary duty that a lawyer owes to a client is paramount to the practice of law,” said Principal Deputy Assistant Attorney General Zuckerman. “The Justice Department will prosecute and seek just punishment against any attorney who victimizes their clients for their own personal gain.”
“As he admitted in court today, Steven Etkind violated the law, the canons of his profession, and the trust of his client by stealing more than $3.5 million from the client’s estate,” said U.S. Attorney Berman. “Etkind now awaits sentencing for his crimes.”
According to court documents and statements made in court, Steven M. Etkind was a partner at a New York law firm’s tax, trusts and estates group and a Certified Public Accountant. Etkind performed legal work for a successful entrepreneur client, who passed away in 2008, naming Etkind as the co-executor of his $35 million estate.
The client’s will directed the creation of two charitable trust private foundations, funded with assets from the client’s estate, for the sole purpose of donating to 501(c)(3) charitable organizations, including those aimed at assisting Jewish-sponsored organizations. Etkind was named co-trustee of these trusts.
Beginning in 2009, Etkind and his co-conspirator set up a phony charitable organization, the United Jewish Education Foundation (UJEF), and used it to steal more than $3.5 million from these charitable trusts. As part of the conspiracy, Etkind directed that donations from the trusts be first made to legitimate Jewish charitable organizations in order to give the disbursements the appearance of legitimate donations. Etkind and his co-conspirator then redirected the funds to accounts of UJEF, the phony charity that his co-conspirator controlled.
Etkind subsequently directed his co-conspirator to write checks, totaling $327,500, to a bank account in the name of JE Capital Holding Corp., a nominee corporate entity that Etkind controlled exclusively. Etkind further directed more than $3 million to be used in 2010 to purchase a 6,300 square-foot home with a swimming pool in Southampton, New York. The Southampton property was purchased for the use and enjoyment of Etkind and his family. Etkind later transferred title of the property to JE Trust, a nominee trust he controlled.
To conceal his embezzlement, Etkind filed, and caused to be filed, fraudulent personal, corporate, and charitable trust returns with the Internal Revenue Service (IRS). During the course of a subsequent audit of UJEF by the IRS Tax Exempt & Government Entities Division, Etkind and his co-conspirator made several false and misleading statements, including about the true ownership of the Southampton Property.
United States District Judge John G. Koelt scheduled Etkind's sentencing for January 18, 2019. Etkind faces a statutory maximum sentence of five years in prison on the conspiracy charge and five years in prison for tax evasion. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Berman praised the outstanding efforts by special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Jorge Almonte and Jack A. Morgan of the Tax Division, who are prosecuting the case, as well as the IRS’s Tax Exempt & Government Entities Division for their assistance in the investigation.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New York Attorney Pleads Guilty to Tax Fraud Related to Multimillion-Dollar Embezzlement from Deceased Client’s EstateRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Richard E. Zuckerman, the Principal Deputy Assistant Attorney General for the Tax Division of the Department of Justice, announced that STEVEN M. ETKIND, a New York-licensed attorney and a Certified Public Accountant, pled guilty today to conspiracy to defraud the United States and tax evasion arising from a scheme to embezzle millions of dollars from a deceased client’s estate. ETKIND pled guilty before United States District Judge John G. Koeltl.
Manhattan U.S. Attorney Berman said: “As he admitted in court today, Steven Etkind violated the law, the canons of his profession, and the trust of his client by stealing more than $3.5 million from the client’s estate. Etkind now awaits sentencing for his crimes.”
Principal DAAG Zuckerman said: “The fiduciary duty that a lawyer owes to a client is paramount to the practice of law. The Justice Department will prosecute and seek just punishment against any attorney who victimizes their clients for their own personal gain.”
According to the allegations contained in the Indictment to which ETKIND pled guilty and statements made in court:
ETKIND was a partner at a New York law firm and served as head of the law firm’s Tax, Trusts, and Estates practice group. ETKIND performed legal work for a successful entrepreneur client who, prior to his death in 2008, named ETKIND as co-executor of his $35 million estate.
The client’s will directed the creation of two charitable trust private foundations, funded with assets from the client’s estate, for the sole purpose of donating to 501(c)(3) charitable organizations, including those aimed at assisting Jewish-sponsored organizations. ETKIND was named co-trustee of these trusts.
Beginning in 2009, ETKIND and his co-conspirator set up a phony charitable organization, the United Jewish Education Foundation (“UJEF”), and used it to steal more than $3.5 million from these charitable trusts. As part of the conspiracy, ETKIND directed that donations from the trusts be first made to legitimate Jewish charitable organizations in order to give the disbursements the appearance of legitimate donations. ETKIND and his co-conspirator then redirected the funds to accounts of UJEF, the phony charity that his co-conspirator controlled.
ETKIND subsequently directed his co-conspirator to write checks, totaling $327,500, to a bank account in the name of JE Capital Holding Corp., a nominee corporate entity that ETKIND controlled exclusively. ETKIND further directed more than $3 million to be used in 2010 to purchase a 6,300 square-foot home with a swimming pool in Southampton, New York. The Southampton property was purchased for the use and enjoyment of ETKIND and his family. ETKIND later transferred title of the property to JE Trust, a nominee trust he controlled.
To conceal his embezzlement, ETKIND filed, and caused to be filed, fraudulent personal, corporate, and charitable trust returns with the Internal Revenue Service (“IRS”). During the course of a subsequent audit of UJEF by the IRS Tax Exempt & Government Entities Division, ETKIND and his co-conspirator made several false and misleading statements, including about the true ownership of the Southampton Property.
* * *
ETKIND, 56, of New York, New York, pled guilty to one count of conspiracy to defraud the United States and one count of tax evasion, each of which carries a maximum sentence of five years in prison. As part of the plea agreement, ETKIND agreed to pay restitution in the amount of $1,208,245 to the IRS, which represents the additional tax due and owing as a result of ETKIND’s filing of false individual income tax returns for the 2009 and 2010 calendar years. Sentencing is scheduled for January 18, 2019, before Judge Koeltl.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by Judge Koeltl.
Mr. Berman and Mr. Zuckerman praised the outstanding efforts by special agents of IRS Criminal Investigation. Mr. Berman also thanked the U.S. Department of Justice’s Tax Division and the IRS’s Tax Exempt & Government Entities Division for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Special Assistant United States Attorneys Jorge Almonte and Jack A. Morgan (of the Tax Division) are in charge of the prosecution.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website, https://www.justice.gov/tax.
New London Drug Dealer Sentenced to 5 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that BASHON WHITLEY, 28, of New London, was sentenced yesterday by U.S. District Judge Jeffrey A. Meyer in New Haven to 60 months of imprisonment, followed by four years of supervised release, for trafficking narcotics.
According to court documents and statements made in court, on March 3, 2017, a court-authorized search of a New London apartment connected to Whitely and his uncle, Anthony Whitley, revealed approximately 14 grams of heroin, approximately 27 grams of cocaine, approximately 150 grams of crack cocaine, items used to process and package narcotics for street sale, a .380 caliber semiautomatic handgun, ammunition and $9,180 in cash. Bashon and Anthony Whitley were arrested on state charges at that time.
Bashon Whitley has been detained since his federal arrest on January 24, 2018. On May 30, 2018, he pleaded guilty to one count of conspiracy to possess with intent to distribute heroin, cocaine and 28 grams or more of cocaine base (“crack”).
Anthony Whitley has been detained since his arrest on March 3, 2017. He pleaded guilty to the same charge on July 31, 2018, and awaits sentencing.
This matter has been investigated by the Drug Enforcement Administration, Connecticut State Police Statewide Narcotics Task Force East, and New London Police Department. The case is being prosecuted by Assistant U.S. Attorney Natasha M. Freismuth.
Nashville Woman Sentenced to 42 Months for Drug ConspiracyRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge James C. Dever III sentenced sade shana holland, also known as “SHARDE RICHARDSON,” 27, of Nashville, North Carolina to 42 months imprisonment, followed by 5 years of supervised release.
HOLLAND was named in a six-count Indictment filed on April 3, 2018 charging her with conspiracy to distribute and possess with the intent to distribute twenty-eight (28) grams or more of cocaine base (crack); possession with the intent to distribute and distribution of a quantity of cocaine base (crack); and possession with the intent to distribute and distribution of twenty-eight (28) grams or more of cocaine base (crack). On June 4, 2018, HOLLAND pled guilty to the conspiracy charge.
According to the investigation, between June 20, 2017 and August 14, 2017, officers utilized a cooperating witness to make six purchases of crack cocaine from HOLLAND. HOLLAND arranged each of the drug purchases and contacted her drug supplier, Equan Dunston, who provided the crack cocaine to HOLLAND for the drug purchases. HOLLAND sold approximately 280 grams of cocaine base (crack) in Spring Hope, NC and Rocky Mount, NC.
Dunston was named in a Criminal Information filed on January 10, 2018 charging him with conspiracy to distribute twenty-eight grams or more of cocaine base (crack) between June 20, 2017 and August 17, 2017 for his role in the conspiracy with HOLLAND. On March 5, 2018, Dunston pled guilty to the single count Criminal Information. On June 4, 2018, Dunston was sentenced to 114 months imprisonment followed by 5 years supervised release.
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the vioent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the Nash County Sheriff’s Office. Assistant United States Attorney Dena King represented the government.
Minnesota Man Pleads Guilty to Stalking and Interstate CommunicationsRead the Press Release
DENVER – Eric Ronald Bolduan, age 43, of Rochester, Minnesota, pled guilty today before U.S. District Court Judge Christine M. Arguello to stalking and interstate communications, U.S. Attorney Bob Troyer and FBI Denver Division Special Agent in Charge Calvin Shivers announced. Bolduan, who appeared at the hearing in custody, was remanded at its conclusion. He is scheduled to be sentenced by Judge Arguello on November 29, 2018.
Bolduan was first charged by Criminal Complaint on October 2, 2017. He was indicted by a federal grand jury in Denver on October 24, 2017. He pled guilty today, September 6, 2018.
According to court documents, Bolduan would download images of the victims, mainly current or former university women athletes from various public internet and social networking sites. He would then find online pornographic images of women who resembled the victim. He would upload the victim’s actual, non-pornographic images alongside the pornographic images of the similar looking female to various pornographic websites. He would include the victim’s name, school and contact information. The purpose was to portray the victim as involved in pornography and promiscuous behavior.
The defendant would then email links of those pornographic postings to the victim herself, and to people the victim was associated with, including professors, teammates and family members. Bolduan would then send threatening emails to the victim, discussing how he was stalking her with the ultimate plan to rape, torture and kill her.
This case was investigated by the FBI. The defendant was prosecuted by Assistant U.S. Attorney Valeria Spencer.
Mexican National Indicted in Southeast Texas KidnappingRead the Press Release
BEAUMONT, Texas – A 21-year-old Mexican national living in Liberty, Texas, has been indicted and charged with federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Juan Carlos Saucedo-Meza was indicted by a federal grand jury today and charged with kidnapping.
According to information presented in court, beginning on Aug. 24, to Aug. 25, 2018, Saucedo-Meza is alleged to have kidnapped a woman from Liberty, Texas and transported her to Lake Charles, LA, against her will. In connection with this incident, Saucedo-Meza is facing charges of aggravated sexual assault and aggravated kidnapping in Jefferson County, Texas; aggravated kidnapping in Liberty County, Texas; and 2nd degree kidnapping in Calcasieu Parish, Louisiana.
If convicted, Saucedo-Meza faces up to life in federal prison.
This case is being investigated by the Jefferson County Sheriff’s Office, the Liberty County Sheriff’s Office, the Lake Charles Police Department, and the Jefferson County District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
McKees Rocks Man Sentenced to 8 Years in Prison for Supplying Fentanyl that Caused a Woman’s DeathRead the Press Release
PITTSBURGH, PA – A former Allegheny County resident has been sentenced in federal court to a term of imprisonment of 96 months to be followed by six years of supervised release on his conviction of possession with intent to distribute controlled substances, United States Attorney Scott W. Brady announced today.
United States District Court Judge Cathy Bissoon imposed the sentence on Michael Smith, age 30, formerly McKees Rocks, Pennsylvania.
According to the information presented to the court, in November of 2016, the Pittsburgh Bureau of Police was investigating the fatal overdose death of a 31-year-old woman that had been caused by fentanyl. Smith was identified as the individual who supplied the fentanyl that caused the young woman’s death. A search warrant was later executed on Smith’s residence and he was found to be in possession of fentanyl, crack cocaine and heroin. Smith admitted to selling the drugs that caused the victim’s death.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The Pittsburgh Bureau of Police and the Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
Massachusetts State Trooper Indicted in Overtime Abuse InvestigationRead the Press Release
BOSTON – A retired Massachusetts State Police Trooper was indicted today by a federal grand jury in connection with the ongoing investigation of overtime abuse at the Massachusetts State Police (MSP).
Daren DeJong, 56, of Uxbridge, was indicted on one count of with embezzlement from an agency receiving federal funds. DeJong was previously charged by a criminal complaint and arrested on July 25, 2018.
According to court documents, DeJong, who is currently retired, was a Trooper assigned to Troop E, which is responsible for enforcing criminal law and traffic regulations along the Massachusetts Turnpike, Interstate I-90. DeJong allegedly received overtime pay for hours that he either did not actually work at all, or shifts in which he departed one to seven hours early.
The alleged conduct involves overtime pay for selective enforcement initiatives, including the Accident and Injury Reduction Effort program (AIRE) and the “X-Team” initiative. Both initiatives are intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers and targeting vehicles traveling at excessive speeds. DeJong was required to work the entire duration of the shifts – either four or eight hours – and truthfully report the date, time and sector of deployment on the citations issued during the shift. As alleged, DeJong concealed the fraud by submitting citations that were issued prior to the overtime shift, altered the citations to create the appearance that citations were issued during the overtime shift, and/or submitted citations that were never issued and never took place.
Trooper DeJong earned $200,416 in 2016, which included approximately $68,394 in overtime, of which more than $14,000 was attributable to AIRE and X-Team shifts that DeJong either left early or did not show up for.
In 2015 and 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants.
On June 27, 2018, former Lieutenant David Wilson, 57, of Charlton; suspended Trooper Gary Herman, 45, of Chester; and former Trooper Paul Cesan, 50, of Southwick, were arrested and charged with the same crime. On July 2, 2018, former Trooper Gregory Raftery, 47, of Westwood pleaded guilty and on Aug. 17, 2018, suspended Trooper Kevin Sweeney, 40, of Braintree, was charged and agreed to plead guilty.
The charge of theft of government funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General made the announcement today. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Lelling’s Public Corruption Unit and Neil Gallagher of Lelling’s Economic Crimes Unit are prosecuting the case.
Maryland Man Sentenced to Prison Term on Manslaughter Charge in 2015 KillingRead the Press Release
WASHINGTON – Milkiyas Bayisa, 27, of Silver Spring, Md., was sentenced today to a 66-month prison term on an involuntary manslaughter charge stemming from the killing of a man in Northwest Washington, U.S. Attorney Jessie K. Liu announced.
Bayisa was found guilty of the charge in May 2018, following a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Judith Bartnoff. Following his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, in the early morning hours of Aug. 22, 2015, both Bayisa and the victim, Kassahun Edo, were with their respective friends at the Peace Lounge, in the 2600 block of Georgia Avenue NW. Bayisa frequented the lounge; Mr. Edo, 35, was visiting the Washington, D.C. area from Texas to attend a wedding. At approximately 3 a.m., as Peace Lounge was closing, patrons were spilling out of the club onto Georgia Avenue. As Mr. Edo and two of his friends walked down nearby Fairmont Street, Bayisa was acting aggressively towards a group of young women. Mr. Edo approached him. Suddenly, without warning or provocation, Bayisa aggressively cocked his right arm back, made a fist and viciously punched Mr. Edo once in the left jaw/head area. Mr. Edo’s body immediately crumpled, and he fell backwards onto the pavement. He never regained consciousness and died the next day. Bayisa was arrested on Aug. 27, 2015.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Kelly Blakeney, Deborah Joyner, Lashone Samuels, and Ethel Noble; Victim/Witness Advocate Jennifer Clark; Victim/Witness Service Coordinators La June Thames and Katina Adams-Washington; Investigative Analyst Zachary McMenamin and Litigation Technology Specialists Anisha Bhatia, Leif Hickling, and Kimberly Smith. Finally, she expressed appreciation for the work of Assistant U.S. Attorney Silvia Gonzalez Roman who investigated and indicted the case, and Assistant U.S. Attorneys Nebiyu Feleke and Charles Willoughby, Jr., who prosecuted the case at trial.
Managing Director of A Broker-Dealer Pleads Guilty to Participating in a $86 Million Market Manipulation SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Michael Morris, a registered broker and managing director of Halcyon Cabot Partners, Ltd. (“Halcyon”), pleaded guilty to one count of conspiracy to commit securities fraud for his participation in an $86 million market manipulation scheme involving the publicly traded company CodeSmart Holdings, Inc. (“CodeSmart”), which traded under the ticker symbol ITEN. The proceeding was before United States District Judge Eric N. Vitaliano.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
In early May 2013, Morris’s co-conspirators engineered a reverse merger of CodeSmart, a private company, with a public shell company. After gaining control of CodeSmart’s three million purportedly unrestricted shares, Morris and his co-conspirators fraudulently inflated CodeSmart’s share price and trading volume, and then sold their shares at a profit when the price reached desirable levels—a scheme commonly referred to as a “pump and dump.” The first pump and dump occurred between approximately May 13, 2013 and August 21, 2013. During this period, Morris’s co-conspirators manipulated CodeSmart’s stock price by raising it from $1.77 to a high of $6.94, before causing it to drop to $2.19. The second pump and dump occurred between approximately August 21, 2013 and September 20, 2013. During this period, Morris and his co-conspirators manipulated CodeSmart’s stock price by raising it from $2.19 to a high of $4.60, before causing it to drop to $2.13.
On July 12, 2013, when CodeSmart’s inflated share price was at its highest, CodeSmart’s market capitalization was $86,347,800. However, that same day, CodeSmart filed with the U.S. Securities and Exchange Commission an amended Form 10-K, in which it listed only $6,000 in total assets, $7,600 in revenue, and a net loss of $103,141. By December 30, 2013, CodeSmart’s stock was trading at merely $0.66 per share and, on July 9, 2014, its stock closed at $0.01 per share.
When sentenced, Morris faces a maximum of five years in prison.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Shannon C. Jones, Patrick T. Hein and Mark Bini are in charge of the prosecution with assistance provided by Assistant United States Attorney Claire Kedeshian of the Office’s Civil Division, which is responsible for the forfeiture of assets.
The Defendant:
MICHAEL MORRIS
Age: 65
Residence: Merrick, New YorkE.D.N.Y. Docket No. 14-CR-399 (S-2) (ENV)
MS-13 Member Sentenced to 23 Years in Prison for Role in 2015 MurderRead the Press Release
BOSTON – An MS-13 member was sentenced today in federal court in Boston on charges of racketeering conspiracy involving murder.
Oscar Noe Recinos Garcia, a/k/a “Psycho,” 24, a Salvadoran national, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 23 years in prison and five years of supervised release. Recinos Garcia will be subject to deportation upon the completion of his sentence. In March 2018, Recinos Garcia pleaded guilty to RICO conspiracy and being an alien in possession of a firearm and ammunition.
Recinos Garcia was a member of the Everett Locos Salvatrucha, or ELS clique, of MS-13. On behalf of MS-13, Recinos Garcia engaged in racketeering activity, which included involvement in the murder of a teenager who was associated with MS-13 and wrongly suspected by the gang of cooperating with law enforcement. On July 5, 2015, the victim was murdered in Lawrence by Josue Alexis De Paz, a/k/a “Gato,” and Manuel Diaz Granados, a/k/a “Perverso.” Evidence showed that Recinos Garcia and others were involved in planning the murder and shared the intent to have the victim killed.
Recinos Garcia, De Paz, and Diaz Granados were arrested on July 8, 2015, in Somerville in a raid that resulted in the recovery of a firearm, several large knives, photographs of MS-13 members flashing gang signs, and a large volume of MS-13 paraphernalia, including blue and white hats, bandanas and rosary beads. Recinos Garcia was also charged with possession of the firearm seized on that day.
Recinos Garcia is one of 49 defendants who have been convicted as part of this ongoing prosecution. Sixteen of those defendants have been held responsible for murder. 40 of the 49 convictions, including Vasquez, were the result of guilty pleas prior to trial. Nine other defendants were convicted after trial.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Gross; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement today.
Lawrence Man Charged with Identity TheftRead the Press Release
BOSTON – A Lawrence man was arrested yesterday and charged in federal court in Boston with one count of passport fraud and one count of aggravated identity theft.
According to court documents, “John Doe,” whose true identity and age are presently unknown, applied for a passport at a Lawrence Post Office in November 2014, purporting to be a U.S. citizen. On the application, he represented that the name, Social Security number, and date of birth of a Puerto Rican man were his. The defendant supported the application with a Puerto Rican birth certificate and Massachusetts driver’s license in the name of the U.S. citizen. It is further alleged that the defendant committed aggravated identity theft in connection with the passport application.
The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, to be served consecutive to any other sentence imposed, up to one year of supervised release and a fine of up to $250,000. The charge of passport fraud provides for no greater than 10 years in prison, three years of supervised released, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office, made the announcement today. Assistant U.S. Attorney Elianna Nuzum of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Las Vegas Man Charged with Interfering with Flight Crew and AttendantsRead the Press Release
United States Attorney Joe Kelly announced an initial appearance before Magistrate Judge Cheryl R. Zwart was held today for Maurice J. Paola, age 23, of Las Vegas, Nevada. Paola was recently charged by criminal complaint with one count of interfering with flight crew members and attendants which occurred on or about September 3, 2018. The penalty for the charged offense is a maximum of 20 years’ imprisonment, a $250,000 fine, and three years of supervised release. Paola will next appear before Magistrate Judge Zwart at 2:00 p.m. on Monday, September 10, 2018, for a detention hearing.
The case was investigated by the Federal Bureau of Investigation.
Kansas Man Arrested and Charged with Murdering Girlfriend on Board Cruise ShipRead the Press Release
A Topeka, Kansas man made his initial appearance earlier today on an indictment charging him with murdering a woman on board a cruise ship in January 2018. Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Stephen R. McAllister of the District of Kansas and Special Agent in Charge Charles P. Spencer of the FBI Jacksonville, Florida Field Office made the announcement.
Eric Newman, 53, was charged with murder in the second degree. The initial appearance was held before U.S. Magistrate Judge Ross A. Walters.
The indictment alleges that on or about Jan. 19, Newman was travelling on board the Carnival Elation, a foreign vessel registered in Panama, on a voyage with both a scheduled departure from and arrival in Jacksonville, Florida. During the voyage, Newman is alleged to have killed Tamara Tucker, 50, of Lawson, Missouri.
A detention hearing is scheduled for Sept. 12.
An indictment is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by the FBI Jacksonville Field Office with the assistance of the FBI Topeka Field Office. The case is being prosecuted by Trial Attorney Rami S. Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Christine E. Kenney of the District of Kansas.
Jury Returns Carjacking ConvictionRead the Press Release
OKLAHOMA CITY – Today a jury convicted RUFUS LOU NELSON, JR., 34, of four felonies: being a felon in possession of ammunition, carjacking, kidnapping, and using and discharging a firearm during a crime of violence.
On August 7, 2018, a federal grand jury returned a four-count superseding indictment against Nelson, also known as Rufus H. Nelson and Ruffies Harold Nelson, Jr. The indictment concerns events on July 5, 2016, when Nelson was alleged to have used force, violence, and intimidation to take a 2012 Ford Taurus from a woman who suffered serious bodily injury.
Nelson’s jury trial began on Tuesday, September 4. The evidence showed that Nelson forced a woman at gunpoint to drive from Edmond to the south side of Oklahoma City. While she was driving on Interstate 240 between May Avenue and Pennsylvania Avenue, Nelson shot her in the head. She survived but is now permanently blind. After she got out of the car and onto the median, two Good Samaritans stopped to provide medical assistance and called 911. Oklahoma Highway Patrol officers found Nelson approximately one hour later under the overpass at I-240 and Pennsylvania Avenue.
At sentencing, Nelson could be sentenced to life in prison for kidnapping. The carjacking conviction could result in up to twenty-five years in prison. The conviction for being a felon in possession of ammunition could lead to a ten-year sentence. And the conviction for using and discharging a firearm during a crime of violence triggers a sentence of at least ten years and up to life, in addition to five years of supervised release. The last sentence would be in addition to any sentence imposed on the other three counts. Each count also carries a maximum fine of $250,000.
Nelson remains in custody and will be sentenced in approximately 90 days.
This case is the result of an investigation by the Oklahoma City Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Oklahoma Highway Patrol, with assistance from the Oklahoma County District Attorney’s Office and the Oklahoma State Bureau of Investigation. Prosecuted by Assistant U.S. Attorneys Mark R. Stoneman and Brandon T. Hale, the case is part of Project Safe Neighborhoods, a Department of Justice program to reduce violent crime. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of Project Safe Neighborhoods and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001.
Reference is made to court filings for further information.
Jackson Man Sentenced to over Four Years in Federal Prison under Project EJECTRead the Press Release
Jackson, Mississippi – Jeremy Jerome Fletcher, 28, of Jackson, was sentenced today by United States District Judge Tom S. Lee, to 51 months in federal prison, followed by three years of supervised release, for possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation (FBI).
On or about December 13, 2017, officers of the Jackson Police Department conducted a traffic stop on Highway 80 near Valley Street in Jackson, Mississippi, of a vehicle occupied by three (3) individuals. The front seat passenger was Jeremy Jerome Fletcher. Upon running a check, it was determined that the driver had active warrants out of Carroll County and both Fletcher and the rear passenger had warrants for traffic violations. All were arrested and an inventory of the vehicle revealed a loaded .22 caliber revolver inside a yellow towel underneath the front passenger seat. Fletcher gave a confession that the .22 caliber revolver was his. He further stated he purchased it approximately one month prior for $65.00.
Fletcher was previously convicted of robbery in 2017 in the Circuit Court of Rankin County, Mississippi. He was on probation at the time of this offense.
This case was investigated by the Federal Bureau of Investigation with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Keesha D. Middleton.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is 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. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Heroin and Crack Cocaine Trafficker Pleads Guilty to ConspiracyRead the Press Release
NORFOLK, Va. – A Chesapeake man pleaded guilty today to conspiring to manufacture and deal heroin and crack cocaine throughout Hampton Roads.
“Armed drug traffickers pose serious threats to the safety of our communities,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This investigation and prosecution would not have been possible absent the critical partnerships we have formed with our local and federal law enforcement partners. My thanks to the Norfolk Police Department and the ATF for their outstanding work on this case.”
According to court documents, Anthony Covil, 33, was a member of a drug-trafficking organization based in Chesapeake and in the past few years was responsible for distributing at least 700 grams of heroin, at least two kilograms of crack cocaine, and at least four kilograms of powder cocaine. According to witnesses, Covil carried guns during some of those drug deals. Norfolk police officers arrested him during a March 2018 and recovered two bags of heroin, two bags of cocaine, 10 bags of MDMA, one bag of marijuana, and $300. During a recorded post-arrest interview, Covil confessed to dealing drugs and to serving as a heroin source of supply.
“This individual had little to no regard for the safety and welfare of others,” said Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “ATF and its partners work tirelessly to protect our citizens and remove these violent offenders from our streets. We are committed to this task and will continue to pursue those who would disrupt our communities and harm our citizens.”
Covil pleaded guilty to conspiracy to manufacture, distribute, and possess with intent to distribute 100 grams or more of heroin and 28 grams or more of crack cocaine. He faces a mandatory minimum of five years and a maximum of 40 years in prison when sentenced on December 10. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea. Assistant U.S. Attorneys William B. Jackson and Kevin M. Comstock are prosecuting the case.
The Norfolk Police Department provided significant assistance in this investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-133.
Henderson Man Sentenced for Felon in Possession of Firearm ChargeRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, HYKEEM HENDERSON, 27, of Henderson, North Carolina, was sentenced by Chief United States District Judge James C. Dever III to 42 months imprisonment followed by 3 years of supervised release.
HENDERSON was named in a one-count Indictment on December 20, 2017. On May 29, 2018, HENDERSON pled guilty to felon in possession of a firearm.
On June 1, 2017, officers with the Henderson Police Department conducted a traffic stop on a vehicle due to expired registration. Officers were told by one occupant that he had smoked marijuana prior to the stop. During the search of the vehicle, officers located a firearm along with a holster under the passenger seat. HENDERSON claimed ownership of the firearm. During further investigation, HENDERSON was found to be a convicted felon.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is part of the Take Back North Carolina Initiative of the United States Attorney’s Office. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Henderson Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney S. Katherine Burnette handled the prosecution of this case for the government.
Guatemalan National Sentenced with Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that PEDRO BRITO-MARCOS age 22, a citizen of Guatemala, was sentenced by United States District Court Judge Susie Morgan after previously pleading guilty to a one-count Bill of Information for illegally re-entering the United States in violation of Title 8, United States Code, Section 1326(a).
According to the Bill of Information, PEDRO BRITO-MARCOS was found in the United States on or about March 8, 2018, after having been previously removed therefrom on or about January 19, 2018.
PEDRO BRITO-MARCOS was sentenced to time served and a $100.00 special assessment.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Guatemalan National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national was sentenced yesterday in federal court in Boston for illegally reentering the United States after being deported.
Ariel Humberto Diaz, 27, a Guatemalan national formerly residing in Framingham, was sentenced by U.S. District Court Judge William G. Young to eight months in prison and three years of supervised release. Humberto Diaz will be subject to deportation upon completion of his sentence. In May 2018, Humberto Diaz pleaded guilty to one count of illegal reentry of a deported alien.
On Feb. 4, 2018, law enforcement officers encountered Humberto Diaz and determined him to be illegally present in the United States. Humberto Diaz was previously deported on April 13, 2016.
United States Attorney Andrew E. Lelling and Todd Lyons, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Major Crimes Unit prosecuted the case.
Guard at Federal Transfer Center Charged with Taking Bribes to Smuggle DrugsRead the Press Release
OKLAHOMA CITY – GABRIEL ORTIZ, 36, of Oklahoma City, has been charged with taking bribes while serving as a Correctional Officer at the Federal Transfer Center.
According to an affidavit in support of a criminal complaint filed in federal court on September 5, 2018, the Department of Justice Office of the Inspector General (DOJ-OIG) learned on August 23, 2018, that Ortiz may have been smuggling marijuana and tobacco into the Federal Transfer Center, a Bureau of Prisons facility in Oklahoma City. The affidavit alleges that emails between inmates and their associates referenced sending Western Union wire transfers to an individual associated with Ortiz.
The affidavit further explains that undercover investigators with DOJ-OIG and the Fort Worth Police Department contacted Ortiz and confirmed his willingness to deliver contraband to a Federal Transfer Center inmate. On September 3, 2018, according to the criminal complaint, Ortiz delivered to that inmate 20 strips that later tested positive for amphetamines in exchange for $1,000 via Walmart-to-Walmart transfer. According to the complaint, the next day, when Ortiz had not received payment for delivering contraband to the inmate, he texted an undercover officer that "if things don’t get squared away by this evening I’m gonna have to put the word out that he has a debt and it won’t be good for him."
Federal law enforcement arrested Ortiz on September 4, 2018. He made his initial appearance on September 5 before U.S. Magistrate Judge Gary M. Purcell.
If Ortiz were to be convicted of bribery, he could be imprisoned for up to fifteen years, followed by up to three years of supervised release, and fined up to $250,000.
These charges are the result of an investigation by the Department of Justice Office of the Inspector General, the FBI, and the Fort Worth Police Department. Assistant U.S. Attorney Jessica L. Perry is prosecuting the case.
The public is reminded that this charge is merely an allegation and that Ortiz is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for further information.
Greenville Man Sentenced for Felon in Possession of Firearm OffenseRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, PRESTON BULLOCK, 40, of Greenville, North Carolina, was sentenced by Chief United States District Judge James C. Dever III to a total of 84 months imprisonment followed by 3 years of supervised release.
BULLOCK was named in a one-count Indictment on January 10, 2018. On May 29, 2018, BULLOCK pled guilty to felon in possession of a firearm.
On June 11, 2017, officers with the Pinetops Police Department in Pinetops, North Carolina received a call regarding a domestic dispute with a female and BULLOCK. The female said BULLOCK had threatened her with a firearm. When officers arrived at the home, BULLOCK was observed running down the street and hiding next to an occupied car. Officers approached the vehicle, spoke with the occupants in the vehicle, instructed them to exit. BULLOCK placed a handgun inside his waistband. BULLOCK was then arrested.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Pinetops Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney S. Katherine Burnette handled the prosecution of this case for the government.
Glastonbury Man Sentenced to Prison for Conspiracy and Tax Offenses Related to Kickback SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JAVED CHOUDHRY, 60, of Glastonbury, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to eight months of imprisonment, followed by four months of home confinement and three years of supervised release, for conspiracy and tax offenses related to a kickback scheme.
According to court documents and statements made in court, CHOUDHRY was employed by a construction company based in Stamford. Between 2011 and 2014, CHOUDHRY received between $250,000 and $500,000 in cash kickbacks from construction contractors in exchange for steering them millions of dollars in contracts on construction projects in Stamford.
In addition, CHOUDHRY failed to report to the Internal Revenue Service most of the income he received through the kickback scheme.
As part of his sentence, CHOUDHRY is required to pay back taxes of approximately $47,500, plus interest and penalties.
On May 16, 2017, CHOUDHRY pleaded guilty to one count of conspiracy to commit wire fraud and one count of filing a false tax return.
This investigation is being conducted by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Four-Time Baltimore Felon Sentenced to 19 Years in Federal Prison for Series of Armed RobberiesRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced William McFadden, age 33, of Baltimore, to 19 years in prison, followed by three years of supervised release, for robbing a gas station in Greenbelt, Maryland, and for using, carrying, and brandishing a firearm during the robbery. McFadden pleaded guilty to those charges on July 9, 2018, just before his trial was scheduled to begin.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation.
According to the indictment and information presented to the Court, during October and November 2015, McFadden and two other men, either together or in pairs, robbed seven businesses in Maryland and Virginia, including five gas stations, a food store, and a check cashing store. In each of the robberies either McFadden or one of the other men brandished a handgun and took cash from the business. In the robbery of the food store, McFadden dropped a mask that contained both his and a co-conspirator’s DNA profile. Furthermore, McFadden is seen on video holding a handgun that was similar to a handgun recovered from McFadden’s car after the robbery on November 22nd.
Specifically, McFadden admitted that on November 22, 2015 he drove a co-conspirator to a gas station in Greenbelt in order to rob the gas station. The co-conspirator entered the store wearing a black jacket and a ski mask, pointed a gun at the clerk and demanded money. The cashier placed approximately $400 in the bag provided by the co-conspirator. McFadden and the co-conspirator drove away from the gas station and were stopped by law enforcement in Baltimore City. Officers recovered the cash, ski mask and other identifying clothing, as well as a loaded.45-caliber automatic pistol.
McFadden is prohibited from possessing a firearm or ammunition as a result of convictions for three previous armed robberies and another robbery. He was also convicted of assaulting a correctional officer while in prison.
Co-defendants Marcus Cureton, age 34, and Taeqwon Prater, age 25, both of Baltimore, previously pleaded guilty to their roles in the robbery conspiracy and were each sentenced to 15 years in prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Patricia C. McLane and Lauren E. Perry, who prosecuted the case.
Former YWCA Childcare Director Sentenced to 15 Months in Prison for Stealing from Non-profit EmployerRead the Press Release
BIRMINGHAM – A federal judge today sentenced a former YWCA childcare director to 15 months in prison for stealing nearly $200,000 from the non-profit over several years, announced U.S. Attorney Jay E. Town and U.S. Secret Service Special Agent in Charge Michael Williams.
U.S. District Judge Abdul K. Kallon sentenced RIKKI ROSS, 38, of Hoover, on one count of federal program fraud for stealing from an agency that received more than $10,000 in federal benefits annually between 2012 and 2017 through grants or other assistance. Ross pleaded guilty to the charge in April. She must report to prison Nov. 6.
The judge also ordered Ross to forfeit $198,597 to the government as proceeds of illegal activity, and to pay that same amount in restitution to the Young Women’s Christian Association of Central Alabama. Ross will remain on supervised release for three years following completion of her prison term.
“For 115 years, the YWCA has provided services to our community, including much needed childcare services for families in need. The parents trusted this defendant to provide a safe environment for their children,” Town said. “Ms. Ross betrayed the trust of the parents and the YWCA. Her deliberate theft from low-income working families and from a non-profit agency dedicated to helping young women and families in need is reprehensible. A federal prison cell awaits her.”
“The defendant in this case was self-centered and egotistical to take advantage of the most vulnerable in our society,” Williams said. “It’s gratifying for law enforcement when we are able to investigate white-collar criminals and bring individuals like Ms. Ross to justice.”
The YWCA of Central Alabama is a non-profit organization headquartered in Birmingham. The YWCA focuses on providing quality child development programs for children of homeless and working poor families, affordable housing, domestic violence services and social justice programming.
Ross worked as director of the YWCA Child Development Center from August 2010 until she resigned in 2017, according her plea agreement with the government.
As part of Ross’ job as the YWCA’s childcare director, she was responsible for processing credit and debit card payments from parents for childcare services. The YWCA CDC uses Square to process debit and credit card payments. Square is a point-of-sale provider that works in conjunction with the user’s smartphone or tablet device. The Square reader is a small removable magnetic stripe reader that plugs into the headset jack or Lightning port of a smartphone or tablet.
The YWCA CDC utilized a Square account named “YWCA Child Development Center.” The YWCA authorized Ross to use that account to process payments for childcare services provided at the YWCA. In April 2012, Ross created a Square account of her own and named it “YWCA CDC,” according to her plea. She linked the YWCA CDC account to her personal Regions Bank account.
Ross used the fraudulent Square account to charge parents and guardians for childcare services at the YWCA center, according to her plea. Between April 2012 and August 2017, Ross stole more than $190,000 intended as payment for childcare services at the YWCA.
The Secret Service investigated the case in conjunction with the Birmingham Police Department. Assistant U.S. Attorney Robin Beardsley Mark prosecuted the case.
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Former State Senator Sentenced on Conspiracy and Theft ChargesRead the Press Release
Former state senator Bertram C. Johnson, 44, of Highland Park, was sentenced today to 90 days in prison, followed by two years of supervised release with 90 days of home confinement and 480 hours of community service, and over $23,000 in restitution, after having pleaded guilty to conspiracy to commit theft from a federally funded program, announced United States Attorney Matthew Schneider.
Joining Schneider in the announcement were Timothy R. Slater, Special Agent in Charge, Detroit Division of the FBI and Manny Muriel, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation.
Johnson had previously pled guilty in March 2018 before United States District Judge Matthew F. Leitman. During his guilty plea, Johnson admitted that from March 2014 through January 2, 2015, he employed an unnamed co-conspirator as a community liaison, certifying her bi-weekly timesheets thereby causing the State of Michigan to pay the individual for work she did not actually complete. The indictment alleges that Johnson borrowed thousands of dollars in cash from the unnamed co-conspirator, and placed this “ghost employee” on the public payroll solely to pay off Johnson’s personal loan debt, and that the ghost employee was paid over $23,000 in taxpayer money.
“Public officials, especially those elected by the people, cannot treat the people’s money as their own,” stated United States Attorney Schneider. “The defendant in this case treated taxpayer money as his own, to repay his personal debt. Such an egregious abuse of power will not be tolerated.”
“The FBI, along with our law enforcement partners, will continue to aggressively pursue public officials who engage in criminal conduct at taxpayer expense,” stated Timothy R. Slater, Special Agent in Charge of the FBI Detroit Field Office. “As demonstrated by the criminal actions in this case, the defendant put his own selfish interests above those he served. We ask that anyone with information regarding similar actions by any public official contact the FBI or FBI Detroit.”
“Senator Johnson made a conscious decision to violate the trust and confidence of the constituents that he was elected to represent,” stated Special Agent in Charge Manny J. Muriel, IRS Criminal Investigation. “As today’s sentencing shows, IRS-CI, along with our law enforcement partners will continue to hold those who use fraud and deceit to line their pockets by stealing from our nation’s taxpayers accountable.”
This case was investigated by agents of the FBI and IRS-CI. This case is being prosecuted by Assistant United States Attorneys J. Michael Buckley and Frances Lee Carlson.
Former Senior Living Facility Resident Sentenced to 5 Years of Probation and a $10,000 Fine for Possession of RicinRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Betty Miller, 71, formerly of Shelburne, Vermont, was sentenced today by the Honorable Christina Reiss to a term of five years of probation, including extensive mental health treatment, following her plea to knowingly possessing ricin in violation of 18 U.S.C. §175b(c). The Court also imposed a $10,000.00 fine. Miller pled guilty in May 2018 pursuant to an agreement between the parties. Under that agreement, Miller acknowledged producing, storing and attempting to use ricin at her former senior living facility in the fall of 2017.
U.S. Attorney Christina Nolan offered thanks to the F.B.I., Shelburne Police Department, Shelburne Fire Department, Vermont State Police, Vermont Hazardous Material Response Team, and Vermont National Guard 15 Civil Support Team for their swift and tireless efforts to ensure the safety of the community following the discovery of the ricin at issue in this case.
AUSA Eugenia A. P. Cowles appeared for the government. Ms. Miller was represented by Paul S. Volk, Esq.
Former High-Ranking Louisiana Army National Guardsman Sentenced to Probation After Previously Pleading Guilty to Making False StatementsRead the Press Release
U.S. Attorney Duane A. Evans announced today that RANDY M. KILEY, SR., 64, of Baton Rouge, Louisiana, a former Sergeant Major in the Louisiana Army National Guard, was sentenced today to one year probation and restitution in the amount of $23,703.00 by United States District Court Judge Jane Triche Milazzo, after previously pleading guilty to Count 3 of the Indictment charging him with making a false statement to federal government.
According to court documents, KILEY misrepresented his marital status to the Louisiana Army National Guard to receive increased Basic Allowance for Housing and Family Separation Allowance pay. Specifically, KILEY knowingly submitted false documents to receive pay to which he was not entitled.
In or about July 2005, KILEY and his former spouse divorced, and KILEY failed to immediately notify officials at the Louisiana Army National Guard of the change in his marital status as required. In or about November 2012, KILEY submitted forms requesting Basic Allowance for Housing and Family Separation Allowance pay and falsely claimed that he was either married or not divorced. Based on these misrepresentations, which KILEY knew to be false at the time, he received more Basic Allowance for Housing and Family Separation Allowance pay than he was entitled.
U.S. Attorney Duane A. Evans praised the work of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service in investigating this matter. Assistant U.S. Attorney Julia K. Evans is in charge of the prosecution.
Former CFO of Long Island Real Estate Company Arrested for Multi-Million Dollar Embezzlement SchemeRead the Press Release
A criminal complaint was unsealed today in federal court in Central Islip charging Kwesi T. Bovell with wire fraud during his tenure as chief financial officer of The Mulholland Group, a real estate company located in Manhasset, Long Island (hereinafter Mulholland). The complaint alleges that Bovell stole over $3.5 million from Mulholland during his three years there. Bovell was arrested today, and his initial appearance is scheduled for this afternoon before United States Magistrate Judge A. Kathleen Tomlinson.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
As alleged in court filings, Bovell had signature authority over multiple bank accounts of Mullholland, and since December 2015, fraudulently transferred more than $3.5 million from those accounts to his own corporate entity, Southgate Holding L.L.C. Bovell used the stolen funds to purchase two homes, including an apartment in Manhattan, and luxury goods. The government’s investigation was prompted, in part, by complaints from Mulholland that between January 2018 and August 2018, Bovell spent approximately $145,000 on unauthorized personal expenditures using Mulholland’s Platinum American Express Card.
“As alleged in the complaint, Bovell abused his authority as a CFO, using the company like an ATM machine to fund a lavish lifestyle,” stated United States Attorney Donoghue. “Today’s arrest should put fraudsters like the defendant on notice that this Office will hold them accountable for such criminal conduct.”
“We all want to win the lottery and live lavish lifestyles. However, Mr. Bovell allegedly decided he would rather just take millions of dollars that wasn’t his, and buy the lifestyle he wanted,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI works tirelessly to track down criminals regardless of how high up the thief sits in a company, and to serve justice on those who believe no one is watching.”
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Charles P. Kelly is in charge of the prosecution.
The Defendant:
KWESI T. BOVELL
Age: 35
Valley Stream, New York,E.D.N.Y. Docket No. MJ-18-813
Former Arkansas State Senator Sentenced to 220 Months in Federal Prison for Wire Fraud, Mail Fraud and MoneyRead the Press Release
Fayetteville, Arkansas – Former Arkansas State Senator Johnathan Woods was sentenced today to 220 months in prison for organizing and leading a bribery scheme in which state funds were directed to non-profit entities in exchange for kickbacks, many of which were funneled through a consultant’s business, announced U.S. Attorney Duane “DAK” Kees for the Western District of Arkansas, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, FBI Special Agent in Charge Diane Upchurch and IRS Special Agent in Charge Tamera Cantu.
On May 3 2018, a jury found Jonathan E. Woods, 41, of Springdale, Arkansas, guilty of 15 counts, including conspiracy, honest services wire and mail fraud, and money laundering. In addition to his prison sentence, U.S. District Judge Timothy L. Brooks of the Western District of Arkansas sentenced Woods to serve three years of supervised release and ordered Woods to pay $1,621,500.00 in restitution.
“Today’s sentence is the result of very hard work by the assigned Assistant United States Attorneys and the special agents from the IRS and the FBI”, said United States Attorney DAK Kees. “We both respect and appreciate the judgment of the Court and the sentence that Judge Brooks ordered today. This sentence should send a message to the people who would abuse the trust of Arkansas voters and citizens. It should serve as a serious warning to those who would intentionally steal money from taxpayers and use their elected office to both commit and conceal their crimes. As I stated after the jury trial concluded, my office, along with the Criminal Division from the Department of Justice, will continue to investigate, pursue and prosecute public corruption cases in Arkansas in order to ensure the fairness and justice that the people of Arkansas deserve.”
“Jonathan Woods abused his position as an Arkansas State Senator and betrayed the public trust by taking bribes and kickbacks,” said Assistant Attorney General Benczkowski. “This conviction demonstrates the commitment of the Department of Justice and our federal partners to investigate and prosecute public officials who misuse their authority to benefit themselves at the expense of the citizens they pledged to serve.”
"Jonathan Woods violated the public's trust and misused his authority for the purpose of lining his own pockets," said Special Agent in Charge Diane Upchurch with the Little Rock FBI Field Office, "We are proud of the commitment of our partners at the United States Attorney's Office of the Western Division, the IRS, and the Criminal Division's Public Integrity Section."
According to the evidence presented at trial, Woods served as an Arkansas State Senator from 2013 to 2017. Between approximately 2013 and approximately 2015, Woods used his official position as a senator to appropriate and direct government money, known as General Improvement Funds (GIF), to two non-profit entities by, among other things, directly authorizing GIF disbursements and advising other Arkansas legislators – including former State Representative Micah Neal, 43, of Springdale, Arkansas – to contribute GIF to the non-profits. Specifically, Woods and Neal authorized and directed the Northwest Arkansas Economic Development District, which was responsible for disbursing the GIF, to award a total of approximately $600,000 in GIF money to the two non-profit entities. The evidence further showed that Woods and Neal received bribes from officials at both non-profits, including Oren Paris III, 50, of Springdale, Arkansas, who was the president of a college. Woods initially facilitated $200,000 of GIF money to the college and later, together with Neal, directed another $200,000 to the college, all in exchange for kickbacks. To pay and conceal the kickbacks to Woods and Neal, Paris paid a portion of the GIF to a consulting company controlled by Randell G. Shelton Jr., 39, of Alma, Arkansas. Shelton then kept a portion of the money and paid the other portion to Woods and Neal. Paris also bribed Woods by hiring Woods’s friend to an administrative position at the college.
Shelton also was found guilty by a jury on May 3. He was convicted of 12 counts, including conspiracy and honest services wire and mail fraud, and is scheduled to be sentenced on Sept. 6. Paris pleaded guilty on April 5, before Judge Brooks to one count of honest services wire fraud, and he is scheduled to be sentenced on Sept. 12. Neal pleaded guilty on Jan. 4, 2017, before Judge Brooks to one count of conspiracy to commit honest services fraud, and he is scheduled to be sentenced on Sept. 13.
The FBI and IRS Criminal Investigation investigated the case. Trial Attorney Sean F. Mulryne of the Criminal Division’s Public Integrity Section and First Assistant U.S. Attorney Kenneth Elser and Assistant U.S. Attorneys Kyra Jenner and Aaron Jennen of the Western District of Arkansas prosecuted the case.