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Monday 24 February 2025
OKX Pleads Guilty to Violating U.S. Anti-Money Laundering Laws and Agrees to Pay Penalties Totaling More Than $500 MillionRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that Aux Cayes Fintech Co. Ltd, d/b/a “OKEx,” d/b/a “OKX” (“OKX”), a Seychelles-based entity, that since at least 2017 has operated OKX, one of the largest cryptocurrency exchanges in the world, pled guilty today to one count of operating an unlicensed money transmitting business. In connection with today’s guilty plea and sentencing, OKX agreed to pay monetary penalties totaling more than $504 million. The case was assigned to U.S. District Judge Katherine Polk Failla, who presided over today’s guilty plea and sentencing.
Acting U.S. Attorney Matthew Podolsky said: “For over seven years, OKX knowingly violated anti-money laundering laws and avoided implementing required policies to prevent criminals from abusing our financial system. As a result, OKX was used to facilitate over five billion dollars’ worth of suspicious transactions and criminal proceeds. Today’s guilty plea and penalties emphasize that there will be consequences for financial institutions that avail themselves of U.S. markets but violate the law by allowing criminal activity to continue.”
FBI Assistant Director in Charge James E. Dennehy said: “For years, OKX flagrantly violated U.S. law, actively seeking customers in the United States—including here in New York—and even going so far as to advise individuals to provide false information to circumvent requisite procedures. Furthermore, in their failure to adhere to U.S. law, significant illicit transactions which furthered other criminal activity went undetected on their platform. Blatant disregard for the rule of law will not be tolerated, and the FBI is committed to working with our partners across government to ensure that corporations that engage in this type of conduct are held accountable for their actions.”
According to court documents and admissions:
OKX is one of the world’s largest cryptocurrency exchange platforms, with billions of dollars’ worth of cryptocurrency transactions occurring daily on its platform. OKX allows registered users to place orders for spot trades in over three hundred cryptocurrencies, including Bitcoin and Ethereum. OKX users can also place orders for derivative products, including futures contracts, tied to the value of Bitcoin and other cryptocurrencies.
Financial institutions that operate wholly or in substantial part in the United States must register with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) as a money services business (“MSB”) and comply with federal anti-money laundering (“AML”) laws, including the Bank Secrecy Act. These laws require the filing of suspicious activity reports and the maintenance of an adequate AML program, including an effective know-your-customer (“KYC”) program. AML programs are critical to ensure that entry-points into the U.S. financial system do not become tools criminals can use to profit from illicit activity.
Since 2017, OKX has had an official policy preventing U.S. persons from transacting on its exchange. But contrary to this official policy, OKX sought out customers in the United States, including in the Southern District of New York.
From in or about 2018 through in or about at least early 2024, OKX served U.S. retail and institutional customers that engaged in over one trillion dollars’ worth of transactions through OKX. Transactions from those U.S. customers generated hundreds of millions of dollars in trading fees and profits for OKX.
Because OKX served U.S. retail and institutional customers, OKX knew it was required by U.S. law to register as a money services business with FinCEN, but OKX chose not to do so.[1] In fact, despite OKX’s official policy prohibiting U.S. persons from transacting on the exchange, OKX was fully aware that individuals in the United States could, and did, easily create and use OKX trading accounts. From OKX’s founding in approximately 2017 through approximately November 2022, OKX allowed retail customers the option to create an account, receive and transfer funds, and place trades without completing a KYC process. This meant that OKX, a large financial institution, facilitated transactions on behalf of customers that it could not identify. Further, while OKX implemented a policy blocking customers with U.S.-located IP addresses from trading or depositing assets onto OKX (the “IP Ban”), OKX knew that the IP Ban could be circumvented through cheap, widely available VPN technology. Also, through at least early 2023, OKX allowed existing accounts to continue to receive and transfer funds, and place trades, all without completing a KYC process. And until approximately early 2024, OKX also allowed customers to place trades on the exchange through third-party entities known as “non-disclosure brokers” without the third-party entity disclosing any identifying information to OKX about the customers on whose behalf the trades were placed.
Even after OKX began requiring all customers to provide some KYC information to trade, OKX employees on certain occasions advised customers how to provide false information to circumvent the company’s KYC process and official policy prohibiting U.S. customers. For example, in April 2023, an OKX employee encouraged a potential U.S. customer to open an account by providing false information about the customer’s nationality during the KYC processing, writing “I know you’re in the US, but you could just put a random country and it should go through. You just need to put Name, nationality, and ID number. You could just put United Arab Emirates and random numbers for the ID number.” At that time, OKX did not verify the information that customers provided to open an account to trade. In January 2024, the same employee wrote to another potential U.S. customer and asked if the individual had “any workaround on KYC outside of the US to make it potentially work.”
During the relevant period, OKX advertised in the United States, sponsoring the Tribeca Film Festival, for example, and used affiliate marketers based in the United States to promote the exchange. OKX also allowed existing customers to promote the exchange, and provided such customers benefits for recruiting additional users. At least one such OKX customer produced a publicly-available, step-by-step instructional video educating U.S. customers about how to register with OKX using a VPN to conceal their U.S. presence.
OKX also focused its efforts on attracting and retaining certain U.S. institutional customers, including large institutions who could provide liquidity and help OKX become one of the world’s largest cryptocurrency exchanges by making a broad range of cryptocurrencies available at competitive rates. OKX’s U.S. institutional customers were some of OKX’s largest customers, with one such firm alone generating more than a trillion dollars in spot and derivatives transactions on OKX during the relevant period. They provided significant liquidity, volume and trading fees for the platform, despite OKX’s knowing failure to register as an MSB and OKX’s “official” policy banning U.S. customers.
Until approximately May 2023, OKX did not adequately or consistently use commercially available software to monitor and detect suspicious activity, including money laundering, and OKX did not have adequate controls to determine whether either party to transactions on the exchange was potentially subject to sanctions imposed by the U.S. Treasury Department. As a result, through at least early 2024, OKX was used by numerous customers as a vehicle for laundering the proceeds of suspicious and criminal activities, including more than five billion dollars of suspicious transactions and illicit proceeds, based on a review of third-party transaction data.
In early 2024, OKX retained an external compliance consultant (the “Consultant”) to advise OKX on policies and controls reasonably designed to prevent U.S. persons from engaging in transactions on OKX’s platform through accounts held at OKX. As part of the plea agreement, OKX is continuing to retain the Consultant, at its own cost, through February 2027, and has agreed to continue to cooperate with the United States Attorney’s Office.
* * *
In addition to the guilty plea, OKX, a Seychelles-based entity, also agreed to criminally forfeit $420.3 million and pay a criminal fine of approximately $84.4 million. OKX received credit for its cooperation with the investigation and timely engaging in remedial measures, resulting in a 25% reduction off the bottom of the otherwise applicable recommended fine range.
Mr. Podolsky praised the outstanding investigative work of the FBI New York Field Office.
This matter is being handled by the Office’s Illicit Finance & Money Laundering Unit. Assistant U.S. Attorneys Christopher D. Brumwell, Eli J. Mark, and Vladislav Vainberg are in charge of the prosecution.
u.s._v._okx_information.pdf u.s._v._okx_plea_agreement_and_attachments.pdf[1] OKX has an affiliate U.S.-based cryptocurrency exchange named OKCoin USA, Inc. (“OKCoin”) which, in contrast with OKX, has registered with FinCEN as a MSB. OKCoin serves customers globally, including in the United States, and offers retail and institutional customers the ability to spot trade, including purchasing cryptocurrency using U.S. dollars. The conduct described herein that gives rise to the charge in the Information, and to which OKX pled guilty, is solely that of the unregistered MSB, Aux Cayes Fintech Co. Ltd., d/b/a “OKEx,” d/b/a “OKX,” the defendant.
Northwest Arkansas Man Sentenced to More Than 4 Years in Prison for Operating an Illegal Money Transmitting Business Using Pandemic FundsRead the Press Release
FAYETTEVILLE - A Northwest Arkansas man was sentenced on February 20, to 51 months in Federal Prison, followed by three years of supervised release. Additionally, he was ordered to pay restitution of $725,558.00 on one count of operating an Illegal Money Transmitting Business. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing, which took place in the United States District Court in Fayetteville.
According to court documents, Richard Harold Stone, age 77, waived indictment by a grand jury and pleaded guilty to a criminal information charging him with conducting an unlicensed money transmitting business in the State of Arkansas. Stone was the President or Chief Officer of numerous businesses registered with the Arkansas Secretary of State, including: Partex Oman Corp., Renewable Energy Campus Arkansas, Inc., Stonetek Global Corp., and Tires 2 Energy, LLC. Stone also was associated with Environmental Energy & Finance Corp., a Delaware corporation. The advertised purpose of these businesses was developing technology and facilities to repurpose waste materials, such as tires, into useable fuel sources. None of these businesses were registered with the State of Arkansas as a money transmitting business, as required by Arkansas law (Arkansas Code, Section 23-55-806(b)&(c)).
Between November 2020 and March 2021, Stone received through various bank accounts associated with the above entities and other accounts under his control, deposits of funds from applications made on behalf of unwitting victims for Paycheck Protection Program (PPP) loans, Economic Impact Disaster Loans (EIDL), and Pandemic Unemployment Assistance (PUA), totaling more than $600,000. After receiving these funds, Stone immediately transferred most of the funds by wire transfer to parties in locations including Berne, Switzerland; London, England; New York, NY; Chennai, India; and Mumbai, India.
At the conclusion of Thursday’s sentencing hearing, Stone was immediately remanded to the custody of the U.S. Marshals Service.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Internal Revenue Service-Criminal Investigation, Federal Bureau of Investigation, and Department of Labor Office of the Inspector General investigated the case.
Assistant U.S. Attorney Hunter Bridges is prosecuting the case.
Related court documents may be found on the Public Access to Electronic Records website at www.pacer.gov.
North Haven Counselor Sentenced to More Than 3 Years in Federal Prison for Defrauding Medicaid of More Than $1.6 MillionRead the Press Release
Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that RACHEL COLLINS, 44, of Hamden, was sentenced today by U.S. District Judge Sarala V. Nagala in Hartford to 37 months of imprisonment, followed by three years of supervised release, for defrauding Medicaid of more than $1.6 million.
According to court documents and statements made in court, Collins was a state-licensed professional counselor and owner of Rachel Collins, LPC Counseling Services LLC, located in North Haven. Collins provided psychotherapy to children, adolescents, and adults, but particularly children and adolescents with a variety of behavioral and mental health issues. She was enrolled individually as a Behavioral Health Clinician provider in the Connecticut Medicaid Program (“Medicaid”).
Between January 2018 and March 2024, Collins submitted and caused to be submitted fraudulent claims to Medicaid for psychotherapy services that were purportedly provided to her Medicaid clients. Specifically, Collins submitted claims under her own billing and performing provider identification number for dates of service when no services of any kind had been provided to the Medicaid clients identified in the claims. Collins submitted claims for purported dates of service when she was purportedly working as a full-time clinician for another provider; billed for 12 hours of purported services in a day and, in some cases, 24 or more hours in a day; submitted false claims for dates when she was traveling out of state, during national holidays, and on weekends; and submitted claims after she had stopped treating the claimed client, had never treated the claimed client, or the claimed client was in the hospital.
For example, during the week of March 9 to March 16, 2023, Collins submitted 96 claims to Medicaid representing that she provided approximately 12 hours of in-person psychotherapy per day. Medicaid paid Collins $9,349.90 for these claims. In truth, Collins did not treat a single patient that week and, as displayed by multiple posts and photos on her public Facebook account, was vacationing at Disney World.
During the scheme, Collins took several other trips around the U.S.; purchased expensive tickets to more than 30 concerts, shows, and sporting events; and, with others, spent more than $150,000 for food delivery services, including Uber Eats, DoorDash, and GrubHub.
Through this scheme, Collins submitted more than 17,000 false claims that defrauded Medicaid of $1,647,031.51.
Judge Nagala ordered Collins to pay full restitution. Collins previously agreed to forfeit $114,085.55 that was seized from a bank account during the investigation.
From January 2020 through May 2023, Collins was the highest paid behavioral health clinician in Connecticut enrolled in Medicaid. The investigation also revealed that from approximately November 2020 and September 2021, during which Collins made $826,355.91 in taxpayer-funded Medicaid reimbursements, she also received $41,182 in unemployment benefits from the state of Connecticut. Collins submitted weekly certifications that she had not performed any work and denied that she was self-employed.
On August 6, 2024, Collins pleaded guilty to one count of health care fraud.
Collins, who is released on a $100,000 bond, is required to report to prison on April 28.
This investigation was conducted by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), with the assistance of the Connecticut Department of Social Services.
This case was prosecuted by Assistant U.S. Attorney David T. Huang.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
New York Woman Charged with Fraudulently Obtaining More Than $1,000,000Read the Press Release
NEWARK, N.J. – A New York woman has been charged with fraudulently obtaining more than $1,000,000, Acting U.S. Attorney Vikas Khanna announced.
Raena Fuller, 28, of Yaphank, New York, had her initial appearance today before U.S. Magistrate Judge José R. Almonte in Newark.
According to the Complaint:
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in or around March 2020 that was designed to provide emergency financial assistance to Americans suffering the economic effects of the COVID-19 pandemic. The CARES Act enabled the Small Business Association (“SBA”) to offer funding through the Economic Injury Disaster Loan (“EIDL”) program to business owners negatively affected by the COVID-19 pandemic.
In or around September 2021, an application was made to the SBA for an EIDL on behalf of a business. In total, the SBA provided approximately $1,200,000 in response to the application. According to a representative of the business, the business did not make the application. Fuller eventually received a portion of SBA funds. In addition, Fuller was involved in additional criminal activity concerning fraudulent checks and received additional proceeds from her criminal acts.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits or twice the gross loss suffered to the victims of his offense.
Acting U.S. Attorney Khanna credited special agents of the Federal Bureau of Investigation, Franklin Township Resident Agency, under the direction of Acting Special Agent in Charge Terence G. Reilly, and special agents of the Internal Revenue Service – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark with the investigation leading to today’s arrest.
The government is represented by Senior Trial Counsel Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
25-054 ###
Defense counsel: A. Charles Peruto, Jr., Philadelphia, PA
fuller.complaint.pdfMuskogee Resident Plead Guilty to Federal Drug ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Christian Deion Larance Smith, age 27, and Kaleel Montrel Smith, age 26, both of Muskogee, Oklahoma, entered a guilty plea to one count of Possession with Intent to Distribute Methamphetamine, and one count of Possession with Intent to Distribute Cocaine.
The Indictment alleged that on July 25, 2024, the defendants knowingly and intentionally possessed with intent to distribute substances containing detectable amounts of methamphetamine and substances containing detectable amounts of cocaine, Schedule II controlled substances.
The charges arose from an investigation by the Oklahoma Bureau of Narcotics, the Muskogee Police Department, the Muskogee County Sheriff’s Department, and the Muscogee (Creek) Nation Lighthorse Police Department.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Kaleel Smith was remanded into the custody of the United States Marshals Service pending sentencing. Christian Smith will remain out on bond pending sentencing.
Assistant U.S. Attorney Jordan Howanitz represented the United States.
Mexican National Charged with Transporting Illegal AliensRead the Press Release
KANSAS CITY, Mo. – A Mexican national who was arrested while transporting five other illegal immigrants through Missouri has been charged in a federal criminal complaint for his role in a conspiracy to transport illegal aliens.
Lisandro Garcia Ramirez, 22, was charged in a seven-count criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Saturday, Feb. 22. Ramirez will have his initial court appearance today. The federal criminal complaint charges Ramirez with one count of conspiracy to transport illegal aliens, five counts of transporting illegal aliens, and one count of illegally entering the United States.
According to an affidavit filed in support of the criminal complaint, troopers with the Missouri Highway Patrol stopped the Honda Pilot Ramirez was driving on the night of Friday, Feb. 22, on Interstate 70 in Mayview, Mo., just south of Marshall, Mo. Ramirez and five passengers told the trooper they were illegally in the United States.
Ramirez told federal investigators that he had been transporting people for approximately six months, twice a month, with three to five people each trip. During the six-month period, Ramirez transported people from Arizona to several locations, including New York, Tennessee, and Chicago. Ramirez stated he was paid approximately $600 per trip with additional payments of up to $3,000.
Each of the five passengers transported by Ramirez told investigators they paid to be smuggled illegally into the United States, where they were picked up by Ramirez.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ken Borgnino. It was investigated by Homeland Security Investigations.
McAllen man enters plea to illegally pointing laser at law enforcement aircraftRead the Press Release
McALLEN, Texas – A 35-year-old local resident has admitted he pointed a laser at a Customs and Border Protection (CBP) helicopter, announced U.S. Attorney Nicholas J. Ganjei.
George Anthony Garza pointed the laser multiple times on the evening of Dec. 29, 2024.
On that date, a CBP aircrew in an official Air and Marine Operations helicopter observed a green laser beam being pointed at the helicopter multiple times during flight, impeding the vision of a pilot. Authorities were able to determine the source originated from Garza’s backyard.
Law enforcement approached Garza at his residence, at which time he surrendered the laser pointer and admitted to aiming the beam at the aircraft that night.
U.S. District Judge Drew B. Tipton will impose sentencing June 3. At that time, Garza faces up to five years in federal prison as well as a possible $250,000 maximum fine.
He was permitted to remain on bond pending sentencing.
The FBI, CBP and Border Patrol conducted the investigation with the assistance of the Federal Aviation Administration and the McAllen Police Department. Assistant U.S. Attorney Amanda McColgan is prosecuting the case.
Man Sentenced After Setting Off Explosive Devices in a MailboxRead the Press Release
TULSA, Okla. – Today, U.S. District Judge Raul M. Arias-Marxuach sentenced Patrick Nile Starkey, 57, for Possession of an Unregistered Destructive Device and Felon in Possession of Ammunition. Judge Arias-Marxuach ordered Starkey to 108 months imprisonment, followed by three years of supervised release.
“With the help of the FLOCK camera system, agents were able to identify the defendant,” said U.S. Attorney Clint Johnson. “Starkey was a threat to public safety, and I commend law enforcement for working together swiftly to detain him.”
According to court documents, on June 12, 2024, the Osage County Sheriff’s Office was investigating a device that exploded in a U.S. Postal Service mailbox. The investigation revealed that Starkey placed two explosive devices and notes inside a mailbox on the private property of an innocent third-party, in an attempt to harass his ex-wife. FLOCK cameras located within the area helped aided law enforcement in initially identifying Starkey as the subject. A search warrant executed on Starkey’s home revealed ammunition and several homemade explosive devices that matched the devices used on the mailbox.
When agents spoke with Starkey, he admitted to setting off the devices and unlawfully possessing ammunition. He will remain in custody pending transfer to the U.S. Bureau of Prisons.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Postal Inspection Service, Osage County Sheriff’s Office, Tulsa Police Department, and the Oklahoma Highway Patrol investigated the case. Assistant U.S. Attorneys Nathan E. Michel and Joshua M. Carmel prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about PSN, please visit Justice.gov/PSN.
Man in Prison for Rape Sentenced to Additional 235 Months for Federal Child Exploitation CrimesRead the Press Release
MIAMI – A federal district judge in Fort Pierce has sentenced a Georgia inmate who engaged in online child solicitation while serving time on a state rape conviction to 19.5 years in federal prison.
During the summer of 2023, Robert Francis Gilbert, 59, was an inmate at the Rutledge State Prison in Columbus, Georgia. He was serving a life-sentence for rape and was eligible for parole. That summer, Gilbert began communicating online with someone he believed was a 14-year-old girl. Gilbert used threats to solicit the creation of pornographic videos and arrange a sexual encounter once Gilbert got out of state prison. Law enforcement learned of Gilbert’s acts and alerted the state prison warden. Further investigation revealed that Gilbert possessed a cell phone with evidence of the crimes.
During a hearing before United States District Judge Robin L. Rosenberg on August 23, 2023, Gilbert pleaded guilty to attempted enticement of a minor and attempted transfer of obscene material to a minor. Judge Rosenberg imposed yesterday’s sentence.
United States Attorney Hayden P. O’Byrne for the Southern District of Florida, Acting Special Agent in Charge Jose Figueroa of Homeland Security Investigations (HSI), Miami Field Division, and Martin County Sheriff John Budensiek announced the sentence.
HSI Fort Pierce and the Martin County Sheriff’s Office investigated the case. Assistant U.S. Attorney Justin Hoover prosecuted it.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at https://www.justice.gov/usao-sdfl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 24-cr-14002.
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Leader of the H-2 Drug Cartel Extradited from Mexico to Face Narcotics Trafficking, Firearms and Money Laundering Charges in Brooklyn Federal CourtRead the Press Release
Jesus Ricardo Patron Sanchez, also known as “H-3,” “Diabolic,” “Vela,” “James Bond” and “Xmen,” was arraigned on February 22, 2025 at the federal courthouse in Brooklyn on an indictment charging him with leading a continuing criminal enterprise, participating in a large-scale narcotics distribution conspiracy and using one or more firearms in connection with narcotic offenses. Sanchez, a Mexican citizen, was arrested in Mexico in February 2019 on a provisional arrest warrant issued based upon charges in the Eastern District of New York and subsequently extradited from Mexico to the United States on February 21, 2025. The arraignment was held before United States Magistrate Judge Peggy Kuo. Sanchez was ordered detained pending trial.
John J. Durham, United States Attorney for the Eastern District of New York, and Matthew Allen, Special Agent in Charge, U.S. Drug Enforcement Administration, Los Angeles Field Division which oversees the Las Vegas District Office (DEA), announced the extradition and arraignment.
“As alleged in the indictment and court filings, Sanchez was one of the principal leaders of the H-2 Drug Trafficking Organization, a brutally violent transnational criminal organization that flooded American streets with dangerous drugs and protected its operations through murder and corruption,” stated United States Attorney Durham. “This Office is committed to working with its federal and international partners to bring leaders of cartels and transnational criminal organizations to justice in the United States and to hold them accountable for the death and destruction they have unleashed here and abroad.”
Mr. Durham extended his appreciation to the DEA’s offices in Las Vegas and Mexico City, Mexico, the United States Marshals Service, the United States Department of State, the Department of Justice’s Office of International Affairs and the Government of Mexico. The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Sanchez.
“Our country is facing an unprecedented drug crisis. Violent drug trafficking organizations, like H-2, fueled by unrelenting and callous greed have been saturating our communities with poison, death, and chronic devastation,” stated DEA Special Agent in Charge Allen. “The DEA continues its unwavering determination to mitigate this evil and eradicate their terror and corruption from our streets.”
According to the indictment and court filings, Sanchez was a leader of the H-2 Drug Trafficking Organization (the H-2 DTO), a violent Mexican drug trafficking organization based in Nayarit and Sinaloa, Mexico. Sanchez’s alias “H-3” is a reference to his status as a successor to Hector Beltran-Leyva, the original “H” and one of the principal leaders of the Beltran Leyva Cartel that was previously part of the Sinaloa Cartel. The H-2 DTO was previously led by the defendant’s brother, Juan Francisco Patron Sanchez, also known as “H-2.” Based on public reporting, after Juan Francisco Patron Sanchez was killed in 2017, the defendant assumed principal leadership over the H-2 DTO. The H-2 DTO had numerous distribution cells in the United States, including in Los Angeles, Las Vegas, Ohio, Minnesota, North Carolina and New York. The DEA estimates that between January 2013 and February 2017, the H-2 DTO distributed, on a monthly basis, hundreds of kilograms of heroin, cocaine and methamphetamine, and thousands of kilograms of marijuana into the United States and earned millions of dollars in illegal proceeds in return. In furtherance of its drug trafficking operation, the H-2 DTO used firearms and physical violence and is associated with numerous homicides.
Between June 2013 and December 2016, the defendant was one of the principal leaders of the H-2 DTO and directed the distribution of large quantities of cocaine, heroin, methamphetamine and marijuana from Mexico into various parts of the United States, including the Eastern District of New York. The defendant also coordinated the money laundering activities of other members of the H-2 DTO to ensure the proceeds of their drug trafficking were transferred back to Mexico. In addition, he conspired with other leaders and members of the H-2 DTO to kill members of rival drug trafficking organizations and other individuals perceived as threats to the H-2 DTO.
The extradition of Sanchez is the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York and the DEA. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the continuing criminal enterprise count, the defendant faces a mandatory life sentence; the defendant faces up to a life sentence on the other counts of the indictment.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Andrew D. Wang and Raffaela S. Belizaire are in charge of the prosecution.
The Defendant:
JESUS RICARDO PATRON SANCHEZ (also known as “H-3,” “Diabolic,” “Vela,” “James Bond” and “Xmen”)
Age: 39
MexicoE.D.N.Y. Docket No. 16-CR-241 (S-2) (CBA)
Jury Convicts St. Louis Man of Drug Trafficking and Charges Connected to Nine MurdersRead the Press Release
ST. LOUIS – A jury in U.S. District Court in St. Louis on Monday found a St. Louis man guilty of a cocaine trafficking charge and charges related to the death of nine people during a nearly six-year period.
Evidence and testimony presented at trial showed that Anthony “TT” Jordan, 38, was the leader of a cocaine trafficking ring. Jordan committed murders to protect that organization and hinder any investigation by law enforcement. He later committed additional murders to retaliate against a St. Louis gang he held responsible for the murder of a friend, gathering information and targeting gang members with the help of associates. Jordan and his co-conspirators also killed several bystanders, to include Clara Walker, a 51-year-old mother of nine, and Keairrah Johnson. Among those who testified were direct witnesses to the murders.
Jordan was convicted of one count of conspiracy to distribute cocaine, one count of possession of firearms in furtherance of a drug trafficking crime and nine counts of use of a firearm in furtherance of a drug-trafficking crime resulting in death. Those counts relate to the following fatal shootings, with details according to trial testimony:
• The April 19, 2008, deaths of Al Walters, Linnie Jackson, and Keith Burks. Walters was Jordan’s target.
• The Feb. 3, 2010, deaths of Marquis Jones and Keairrah Johnson. Jones was the target.
• The June 25, 2013, death of Anthony “Blinky” Clark.
• The Dec. 29, 2013, deaths of Robert “Parker G” Parker and Clara Walker. Parker was the target.
• The Jan. 21, 2014, death of Michail “Yellow Mack” Gridiron.Jordan was also convicted of a nonfatal shooting on Dec. 23, 2013.
“I would like to thank the jury for their service over the last few weeks and commend all of our law enforcement partners, the Assistant United States Attorneys, and the support staff who worked tirelessly over the years to investigate and prosecute this case,” said U.S. Attorney Sayler A. Fleming. “With today’s guilty verdict, justice was served. The evidence proved without a doubt that Anthony Jordan is a violent drug-trafficker and serial murderer who needed to be removed from the streets of St. Louis. Our office remains dedicated to working with our local, state, and federal counterparts to bring at least some measure of comfort and resolution to the families of the victims of such violence, as they deserve nothing less.”
“These murders were committed to benefit a large-scale drug trafficking organization that flooded our communities with poison directly sourced from cartels in Mexico. Anthony Jordan is not only a drug trafficker, but a serial murderer whose job was to eliminate competition from other drug dealers,” said Special Agent in Charge Ashley Johnson of the FBI St. Louis Division. “St. Louis is a safer place with Jordan and his associates off the streets.”
“Today’s verdict is the culmination of countless hours of investigative work,” DEA St. Louis Division Special Agent in Charge Michael Davis said. “Over a span of several years, we uncovered the extent of Anthony Jordan’s reach into our St. Louis neighborhoods. His acts of violence instilled fear in our communities, while the drugs he pushed destroyed lives. Let this serve as a reminder that no one is above the law. The DEA, in partnership with our fellow law enforcement agencies, will go to great lengths to bring justice to the families impacted by those who inflict pain and suffering in our neighborhoods.”
The trial began with jury selection on January 31. Jordan is scheduled to be sentenced on May 29, and faces up to life in prison.
Jordan’s cocaine was supplied by Adrian Lemons, who obtained cocaine in bulk from representatives of a Mexican cartel. Lemons, now 46, of St. Louis, was sentenced in 2020 to 20 years in prison. Lemons, Jordan and 32 others were indicted as part of a long-running investigation by the FBI and the Drug Enforcement Administration, with assistance from Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Louis Metropolitan Police Department and the St. Louis County Police Department. Assistant U.S. Attorneys Erin Granger and Donald Boyce are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Iron River Man Sentenced to 84 Months in Federal Prison for Drug Possession and Drug TraffickingRead the Press Release
GRAND RAPIDS – Acting U.S. Attorney for the Western District of Michigan Andrew Birge today announced that Matthew Joseph Sheehan, 45, of Iron River, was sentenced to 84 months in federal prison for possessing methamphetamine with intent to distribute.
According to court records, investigators received information that Sheehan was traveling out of state to obtain illicit drugs for distribution in the Upper Peninsula, including methamphetamine, MDMA, and cocaine. In June 2023, Sheehan was pulled over in Iron County for a traffic infraction. During the traffic stop, officers found nearly a pound of methamphetamine, a smaller quantity of cocaine, and more than $6,000 in cash. A subsequent search of Sheehan’s residence recovered additional drugs and over $37,000.
The Michigan State Police, Upper Peninsula Substance Enforcement Team (UPSET), Drug Enforcement Administration, Department of Homeland Security Investigations, Iron River Police Department, and Iron County Sheriff’s Office investigated this case.
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Helena man admits unlawful possession of firearm in school zoneRead the Press Release
HELENA — A Helena man accused of carrying a firearm on the campus of the Jim Darcy Elementary School in Helena admitted to a firearm charge today, Acting U.S. Attorney Timothy J. Racicot said.
The defendant, Bryant Nicholas Espinoza, 37, pleaded guilty to unlawful possession of a firearm in a school zone. Espinoza faces a maximum of five years in prison, consecutive to any other count of conviction, a $100,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for June 9. Espinoza was released pending further proceedings.
The government alleged in court documents that on Feb. 7, 2024, the principal of Jim Darcy Elementary School contacted the Lewis and Clark Sheriff’s Office and advised the responding deputy that a staff member had notified her that the day prior, the parent of a student was on campus and was carrying a firearm. The staff member observed Espinoza standing in front of the school with a small dog. The staffer approached to assist Espinoza, and he informed the staffer he was there to pick up his daughter, who was a student. During the conversation, the staffer observed Espinoza was carrying a firearm. The staffer identified Espinoza in a photo, and surveillance video showed Espinoza on school property with a small dog and what appeared to be a pistol in a holster on his hip. On April 9, 2024, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the sheriff’s office executed a federal search warrant at Espinoza’s residence and seized a 9mm pistol, two rifles and ammunition. In an interview, Espinoza identified himself in still photos taken from the surveillance video and said that the item on his hip looked like a firearm. Espinoza told agents where the pistol was located at his residence. Agents asked if there was a reason he had the gun at the school, and Espinoza responded that Montana was an “open carry state.”
The U.S. Attorney’s Office is prosecuting the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Lewis and Clark County Sheriff’s Office conducted the investigation.
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 gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
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Hartford Man Admits Fraudulently Collecting Social Security, Unemployment, and Food Stamp BenefitsRead the Press Release
Marc. H. Silverman, Acting United States Attorney for the District of Connecticut, announced that RICARDO SANTIAGO, 59, of Hartford, pleaded guilty today before U.S. District Judge Vernon D. Oliver in Hartford to a fraud offense related to a scheme to fraudulently obtain Social Security, unemployment, and Food Stamp benefits.
According to court documents and statements made in court, between 2002 and 2024, Santiago held jobs with more than 20 employers and earned income totaling more than $580,000. Santiago concealed his income from federal and state government agencies by providing to employers false identification, including a Social Security number and card belonging to another individual, and, in at least one instance, a false Social Security card.
In 2002, Santiago applied for Retirement Survivors Disability Insurance (RSDI) benefits, representing to the Social Security Administration that he was unable to work due to disability. As a result, he began receiving RSDI payments in September 2002. In 2017, Santiago completed paperwork to maintain his benefits in which he asserted that he remained disabled and had not worked for the past two years. Santiago ultimately collected more than $316,000 in RSDI payments to which he was not entitled.
In February 2017, Santiago submitted to the Connecticut Department of Social Services (CT-DSS) an application for Supplemental Nutrition Assistance Program (SNAP) benefits (“Food Stamps”), representing to the CT-DSS and the U.S. Department of Agriculture that he earned no income from employment. He began receiving SNAP benefits in March 2017 and subsequently completed forms to renew his SNAP benefits on which he again represented that he had no change in his income and that he earned no money from employment. Santiago made more than $18,000 in purchases with SNAP benefits to which he was not entitled.
In April 2020, Santiago applied to the Connecticut Department of Labor (CT-DOL) for Unemployment Insurance benefits. On the application, Santiago used a Social Security number belonging to another individual, and he represented to the CT-DOL and U.S. Department of Labor that he was unemployed but available for work and physically able to work. He subsequently completed weekly certifications making the same representations. From April 2020 through February 2021, Santiago received more than $36,000 in payments to which he was not entitled.
Santiago has agreed to pay restitution of $371,686.
Santiago pleaded guilty to one count of wire fraud, an offense that carries a maximum term of imprisonment of 20 years. He is released on a $25,000 bond pending sentencing, which is scheduled for May 22.
Santiago was arrested on May 7, 2024.
This matter is being investigated by the Social Security Administration Office of the Inspector General, the U.S. Department of Agriculture Office of the Inspector General, the U.S. Department of Labor Office of the Inspector General, and the U.S. Department of Transportation Office of the Inspector General. The case is being prosecuted by Assistant U.S. Attorney Nathan J. Guevremont.
Hard Money Lender Pleads Guilty to Defrauding Investors Out of $20 Million in Loans Made to Failed Fresno Company Bitwise IndustriesRead the Press Release
FRESNO, Calif. — Andrew Adler, 31, of Greenwich, Connecticut, pleaded guilty today to conspiracy to commit wire fraud when he defrauded investors out of $20 million in loans made to the failed Fresno-based, start-up company Bitwise Industries, Acting U.S. Attorney Michele Beckwith announced.
According to court records, between December 2022 and May 2023, Adler and his business partner, David Hardcastle, 61, of Fresno, gave Bitwise approximately $20 million in hard money loans through their special purpose entity Startop Investments LLC. Adler and Hardcastle used a syndicate of investors to fund the loans. In order to mislead the investors, Adler and Hardcastle altered the original loan documents to make it appear as though Bitwise was obligated to pay significantly less interest on the loans than was true. They also forged the signature of Bitwise’s Co-CEO, Jake Soberal, on the altered documents. This made the loans appear less risky and, therefore, more appealing to the investors.
Adler and Hardcastle received tens of thousands of dollars in origination fees for the loans and stood to make millions more in secret profits from the higher, undisclosed interest rates had the loans been fully repaid. Bitwise, however, did not repay the loans before collapsing, and the investors in the loans lost nearly all of their money. On Feb. 3, 2025, Hardcastle was arrested and arraigned on an indictment charging him with conspiracy to commit wire fraud and wire fraud.
This case is the product of an investigation by the FBI. Assistant U.S. Attorneys Joseph D. Barton and Cody S. Chapple are prosecuting the case.
Adler is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on June 2, 2025. Adler faces maximum statutory penalties of 20 years in prison and a $250,000 fine for the conspiracy to commit wire fraud charge. If convicted, Hardcastle faces a maximum of 20 years in prison and a $250,000 fine for conspiracy to commit wire fraud and for each of the substantive wire fraud charges. Sentences are 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.
Hardcastle is charged in a separate indictment and those charges remain pending. Those charges are only allegations, and he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Guatemalan national sentenced for illegal reentry in Eastern District of TexasRead the Press Release
BEAUMONT, Texas –A Guatemalan national has been sentenced to federal prison for illegally reentering the United States, announced Eastern District of Texas Acting U.S. Attorney Abe McGlothin, Jr.
Luis Tomas Dionicio-Coche, 43, pleaded guilty to unlawful reentry by deported alien and was sentenced to 12 months in federal prison by U.S. District Judge Michael Truncale on February 24, 2025.
According to information presented in court, on August 30, 2024, Dionicio-Coche was stopped and arrested on Roberts Avenue in Beaumont. Dionicio-Coche is a Guatemalan national illegally present in the United States. Further investigation revealed Dionicio-Coche had been previously deported or removed to Guatemala on November 29, 2012; February 22, 2013; and April 11, 2019. Dionicio-Coche had also been previously convicted of multiple offenses including driving while intoxicated; driving under the influence; hit and run; and driving while license suspended.
This case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney John Ross.
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Fresno Man Sentenced to 3 Years in Prison for a Series of Vehicle Pipe-BombingsRead the Press Release
FRESNO, Calif. — Paul New, 57, of Fresno, was sentenced today to three years in prison for conspiracy to destroy property and malicious destruction by means of an explosive device, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, between November 2022 and February 2023, New committed a series of pipe-bombings on unoccupied vehicles and property in Fresno. The bombings damaged vehicles belonging to two auto-related businesses on Clinton Avenue. On Feb. 19, 2023, a bomb heavily damaged a vehicle used by a home health care business on Fallbrook Avenue.
On October 9, 2024, co-defendant Scott Eric Anderson was sentenced to three years in prison.
This case was the product of an investigation by the Fresno Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Michael G. Tierney prosecuted the case.
Fresno County Man Pleads Guilty to Conspiring to Distribute FentanylRead the Press Release
FRESNO, Calif. — Lakota Tehya Wakley, 21, of Clovis, pleaded guilty today to conspiracy to distribute and possess with intent to distribute fentanyl, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, between Nov. 18, 2024, and Dec. 9, 2024, Wakley conspired with Austin Lloyd Kerns, 53, of Fresno, and others to distribute fentanyl. The investigation began after a fentanyl‑overdose death in Fresno. On Nov. 23, 2024, Wakley connected the overdose victim with Kerns to buy fentanyl pills. Over the next 48 hours, the victim bought fentanyl pills multiple times from Kerns and died soon after of a fentanyl overdose. Wakley received fees for connecting the victim with Kerns.
This case is the product of an investigation by the Fentanyl Overdose Resolution Team (FORT), a multi-agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fresno and Clovis Police Departments. Assistant U.S. Attorneys Calvin Lee and Arin C. Heinz are prosecuting the case.
Charges are pending against Kerns. He is scheduled for a status conference on March 26, 2025, before Magistrate Judge Barbara A. McAuliffe. The charges are only allegations; Kerns is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Wakley is scheduled to be sentenced by U.S. District Judge Kirk E. Sherriff on June 23, 2025. Wakley faces a maximum sentence of 20 years in prison. 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.
This case is part of Operation Synthetic Opioid Surge (S.O.S.), a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Fourteen Members of Extensive Alien Smuggling Organization Charged and Eight Arrested for Smuggling Hundreds of Illegal Aliens into the United StatesRead the Press Release
Note: View the indictment here.
Fourteen alleged members of a prolific alien smuggling organization were charged for their roles smuggling aliens from South and Central America into the United States via the southern border.
A grand jury in Las Cruces, New Mexico, returned an indictment on Feb. 19 against 14 individuals for conspiracy to transport, harbor, and bring in illegal aliens to the United States. Eight of those charged were arrested on Feb. 20 and 21.
“Today’s indictment alleges that the defendants engaged in a sophisticated conspiracy to smuggle aliens into and throughout the United States at great danger to the aliens, resulting in the death of one person,” said Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division. “The Justice Department worked with our partners at the Department of Homeland Security (DHS) to dismantle an alien smuggling organization based in Mexico that has allegedly smuggled hundreds of illegal aliens, including unaccompanied children, through New Mexico and South Texas. We are committed to eliminating transnational alien smuggling organizations that exploit migrants purely for profit and undermine our national security.”
According to the indictment unsealed today, the defendants participated in a conspiracy to illegally bring undocumented aliens from Mexico into the United States via the U.S. southern border. The indictment alleges that the defendants were also responsible for transporting the aliens within the United States and concealing them in “stash houses” along the way. During some of the smuggling events, the defendants allegedly evaded law enforcement by travelling at high rates of speed on the road and instructing aliens how to flee U.S. Border Patrol and evade checkpoints. Additionally, the indictment alleges that one undocumented alien died from heat exposure during a smuggling event and was abandoned in the desert.
“Human smuggling organizations threaten our national security and exploit vulnerable individuals for profit, putting their lives at risk and undermining public safety,” said Acting U.S. Attorney Holland S. Kastrin for the District of New Mexico. “The U.S. Attorney’s Office in the District of New Mexico is committed to continuing to work with our federal, state and local partners to dismantle transnational human smuggling organizations, hold their leaders accountable, and seize the illicit proceeds generated by these exploitative enterprises.”
“We are appreciative of our brave law enforcement partners for their continued vigilance in investigating and apprehending members of transnational criminal organizations who conspire to undermine our nation’s immigration laws for their profit, with a callous and reckless disregard for the sanctity of life,” said U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) El Paso Special Agent in Charge Jason T. Stevens. “As this case sadly demonstrates, human smuggling is a crime that takes lives and puts the public at risk. ICE HSI is passionately devoted to using its abundant authority to identify, investigate, and arrest criminals who prey on the vulnerabilities of people they treat as human cargo.”
Michelle Martinez, 29, of El Paso, Texas; Jesus Calvillo, 44, of El Paso; Jorge Calvillo, 25, of El Paso; Abel Aguilar-Cano, 53, of Albuquerque, New Mexico; and Jose Palomino, 27, of El Paso, made their initial court appearances today in the District of New Mexico and remain in U.S. custody. Edna Valdez-China, 48, of El Paso; Leslie Nicole Calvillo, also known as Leslie Jaramillo, 24, of El Paso; and Melissa Vargas, 22, of El Paso, are in U.S. custody and will make their initial appearances on Feb. 25 in the District of New Mexico. Jorge Alberto De La Cruz-Dominguez, also known as Guero, 54, of Juarez, Mexico; Jorge Valdez China, also known as Lolo, 23, of El Paso; Jonathan Valdez-China, also known as China and Dior, 24, of Juarez; and Alma Guadalupe Valdez-China, 41, of Juarez, are also charged in the indictment.
Each defendant is charged with conspiracy to bring to, transport, and harbor illegal aliens in the United States. If convicted, they each face a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
ICE HSI El Paso and the U.S. Border Patrol investigated the case. U.S. Customs and Border Protection’s National Targeting Center, the Drug Enforcement Administration (DEA), ICE HSI’s Human Smuggling Unit in Washington, D.C., and the Texas Department of Public Safety provided substantial assistance with the investigation.
Assistant U.S. Attorney Alyson R. Hehr for the District of New Mexico and Trial Attorney Jenna Reed of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) are prosecuting the case.
These actions are the result of the coordinated efforts of Joint Task Force Alpha (JTFA). JTFA was established in June 2021 to marshal the investigative and prosecutorial resources of the Justice Department, in partnership with DHS, to combat the rise in prolific and dangerous alien smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, Honduras, Panama, and Colombia. JTFA comprises detailees from U.S. Attorneys’ Offices along the southwest border, including the Southern District of California, District of Arizona, District of New Mexico, and Western and Southern Districts of Texas. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by HRSP and supported by the Office of Prosecutorial Development, Assistance and Training; Narcotic and Dangerous Drug Section; Money Laundering and Asset Recovery Section; Office of Enforcement Operations; Office of International Affairs; and Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, DEA, and other partners. To date, JTFA’s work has resulted in more than 355 domestic and international arrests of leaders, organizers, and significant facilitators of alien smuggling; more than 300 U.S. convictions; more than 245 significant jail sentences imposed; and forfeitures of substantial assets.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Tribal Officer Sentenced to 30 Years in Federal Prison for Aggravated Sexual Abuse and Abusive Sexual ContactRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Camela C. Theeler has sentenced an Oglala, South Dakota, man convicted of Aggravated Sexual Abuse of a Child and Abusive Sexual Contact of a Child. The sentencing took place on February 20, 2025.
Oscar Hudspeth, Sr., age 54, was sentenced to 30 years in federal prison for each count to run concurrently, followed by five years of supervised release on each count to run concurrently, and a special assessment to the Federal Crime Victims Fund in the amount of $200. Upon Hudspeth’s release from federal prison, he must register as a sex offender.
Hudspeth was indicted by a federal grand jury in December 2023. He was found guilty following a federal jury trial in October 2024.
The conviction stemmed from disclosures in 2023 by a female juvenile who reported that Hudspeth had sexually abused her while her mother was married to him in the early to mid-2000s. The child was forensically interviewed and disclosed that Hudspeth touched her in a sexual manner on more than one occasion while he was her stepfather. The abuse occurred at their home in Oglala and while the child’s mother was working. At the time, Hudspeth worked as a law enforcement officer for the Oglala Sioux Tribe Department of Public Safety.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This matter is being prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in federal court as opposed to State court.
This case was investigated by the FBI. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Hudspeth was immediately remanded to the custody of the U.S. Marshals Service.
Former Stanford Research Coordinator Convicted for Unlawfully Accessing and Altering Breast Cancer Study Database Hours After She Was FiredRead the Press Release
SAN JOSE – A federal jury convicted Naheed Mangi, 66, a former employee of Stanford University, of accessing a clinical research database for a multisite breast cancer study after her authorization was revoked and altering patient records in the database. The jury reached its verdict late afternoon on Friday, Feb. 21, 2025, following a two-week trial before Senior U.S. District Judge Edward J. Davila.
According to court documents and evidence presented at trial, Mangi was employed as a clinical research coordinator in the Cancer Clinical Trials Office at Stanford’s National Cancer Institute from September 2012 until August 2013. Mangi worked with doctors and patients in the clinical research program, reporting significant patient events, monitoring research, assisting with scheduling patient appointments, and entering data into clinical dataset.
Mangi was assigned to a Genentech-sponsored study being conducted at Stanford for breast cancer patients that was referred to as the “Velvet Breast Cancer MO27782 Study.” The study sought to determine the safety and efficacy of a new, experimental pharmaceutical treatment for patients with metastatic or locally advanced breast cancer. Among other duties, Mangi was responsible for reporting any serious adverse events that a patient may experience during the course of the study and accurately entering patient medical data into the study database.
On Aug. 19, 2013, Mangi was terminated from her employment with Stanford and Mangi’s supervisor attempted to revoke her Stanford-related computer access and privileges. The supervisor emailed Genentech to terminate Mangi’s access to the clinical database, but Mangi’s credentials were not disabled until the following day.
The jury found that later in the evening on Aug. 19, after Stanford had revoked her access, Mangi logged into the clinical database and altered data in the Velvet Breast Cancer MO27782 Study, replacing patient medical data with erroneous information and insults about her former supervisor. As a result of Mangi’s unauthorized actions, Stanford undertook an internal investigation, reentered all of the data about its participants in the study from source documents into the study database, and reported the incident to local and federal regulatory authorities, including the FDA. In addition, Mangi’s criminal conduct caused thousands of dollars in financial loss to Stanford University and the Stanford School of Medicine.
“Naheed Mangi intentionally tampered with a breast cancer research database by entering false information and personal insults. Her senseless actions undermined a study into the safety and efficacy of a new treatment for breast cancer patients,” said Acting United States Attorney Patrick D. Robbins. “The jury’s verdict holds the defendant accountable for her crimes.”
“Naheed Mangi’s actions jeopardized important cancer research and caused thousands in financial loss to Stanford University. The U.S. Secret Service continues to work diligently to investigate these types of crimes to ensure those responsible are held accountable,” said U.S. Secret Service Special Agent in Charge Shawn Bradstreet.
Mangi, who was convicted of two counts of Intentional Damage to a Protected Computer in violation of 18 U.S.C. § 1030(a)(5)(A) and one count of Accessing a Protected Computer Without Authorization in violation of 18 U.S.C. § 1030(a)(2)(C), will be sentenced on July 21, 2025. She faces a maximum penalty of 10 years in prison as to each conviction for Intentional Damage to a Protected Computer and one year in prison as to the conviction for Accessing a Protected Computer Without Authorization. Any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Nikhil Bhagat and Matthew Chang are prosecuting the case with the assistance of Nina Burney, Mimi Lam, Susan Kreider, Sahib Kaur, Fernanda Gonzalez, Maureen French, and Bella Schou. The prosecution is the result of an investigation by the Secret Service.
Former Fort Campbell Soldier Sentenced to over Five Years in Federal Prison for Child Exploitation OffensesRead the Press Release
Paducah, KY – A former Fort Campbell soldier was sentenced last week to 5 years and 4 months in federal prison for receiving and distributing child pornography.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Michael E. Stansbury of the Federal Bureau of Investigation Louisville Field Office made the announcement.
According to court documents, Brett Nicolas Ellison, 24, was sentenced to 5 years and 4 months in prison, followed by 5 years of supervised release, for one count of receipt of child pornography and one count of possession of child pornography. Between November 2019 and June 2022, Ellison received and possessed child sexual abuse material while he was a soldier stationed at the Fort Campbell Army Post, possessing over 90 images and 70 videos containing child sexual abuse material.
Ellison was also ordered to pay $57,000 in restitution to victims.
There is no parole in the federal system.
This case was investigated by the FBI Hopkinsville Satellite Office and Army CID.
Assistant U.S. Attorney Raymond McGee, of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Former Employee Admits Embezzling at Least $300,000 from St. Louis County CompanyRead the Press Release
ST. LOUIS – A man from Charlotte, North Carolina has admitted embezzling at least $300,000 from a St. Louis County company, U.S. Attorney Sayler A. Fleming announced Monday.
Scott H. Foster, 48, pleaded guilty Friday to one count of wire fraud. He admitted as part of his plea that he committed the crime from January 2018 to December 2022, while employed as a mid-level executive of the company. Foster manipulated the human resources systems to create an employee account for his paramour, triggering wages and benefits totaling more than $273,000.00 to be paid to his paramour over nearly five years, despite this individual performing little or no actual work for the company. Foster also used a corporate American Express card to pay for more than $33,000 in personal travel for himself, his paramour and other friends and acquaintances.
Foster is scheduled to be sentenced May 22.
The FBI investigated the case. Assistant U.S. Attorney Jonathan Clow prosecuted the case.
Federal inmate imprisoned for punching and injuring deputy U.S. marshalRead the Press Release
HOUSTON – A 43-year-old man with ties to the Humble area has been sentenced for the assault of federal officer resulting in bodily injury, announced U.S. Attorney Nicholas J. Ganjei.
A federal jury deliberated for approximately two hours before convicting Cedric Tyrone Walker Aug. 20, 2024, following a two-day trial.
U.S. District Judge George C. Hanks has now ordered Walker to serve 97 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court considered the nature and extent of the injuries which caused permanent disfigurement. In handing down the sentence, the court noted that the federal law enforcement officer just showed up for work and then landed in the hospital as a result of Walker’s violent behavior.
“The Southern District of Texas (SDTX) has zero tolerance for violence against law enforcement,” said Ganjei. “They are heroes who put themselves in harm’s way every day. Today’s sentence demonstrates how SDTX will always have their backs.”
On Dec. 27, 2022, authorities learned that on two occasions Walker failed to return in a timely manner to the residential reentry center (RRC), also referred to as a halfway house, where he was serving a federal prison sentence for armed bank robbery.
Law enforcement told the RRC Walker needed to be transported back to a federal detention center. However, Walker was reluctant to comply with instructions from authorities and struck a deputy U.S. marshal (DUSM) in the mouth with a closed fist.
A struggle ensued on the ground, and authorities restrained Walker after two taser deployments. Law enforcement then took Walker to a federal detention center and he refused medical attention.
The injured DUSM arrived at the emergency room where he received treatment for a laceration on his lip which required 12 stitches. As a result of the assault, he also sustained two chipped teeth.
At the time of the trial, the defense attempted to convince the jury Walker did not cause the injury. They did not believe those claims and found him guilty as charged.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney Carrie Wirsing prosecuted the case.
Eureka Chiropractor Convicted of Defrauding Medicare, Insurance Companies Out of More Than $1.5 MillionRead the Press Release
PEORIA, Ill. – A federal jury returned a guilty verdict late Friday evening against Carrie Musselman, 48, of Eureka, Illinois, for defrauding Medicare and other insurance companies out of more than $1.5 million dollars and for five counts of wire fraud in furtherance of her scheme to defraud. Sentencing for Musselman has been scheduled for June 24, 2025, at the U.S. Courthouse in Peoria, Illinois.
Over 13 days of testimony, the government presented evidence establishing that Musselman, a chiropractor in Eureka, engaged in a scheme to defraud Medicare and other insurance companies. As part of the scheme, Musselman disguised the identity of the people providing services and misrepresented the nature of the services that had actually been provided.
For instance, Musselman falsely claimed services were being provided by physicians when they were actually being provided by nurse practitioners and physician’s assistants. This resulted in an automatic pay increase for Musselman and her practice. In addition, one of Musselman’s highest reimbursement services, the placement of an electroacupuncture (which she was falsely billing as a surgically implanted neurostimulator), would not have qualified for any payment but for her deception. Musselman also billed for services that were not actually rendered. This included not only billing for neurostimulators that were never provided, but also for purportedly providing patients with allergy injections when, in reality, no such injections were given. Instead, patients were sent home with oral drops that had not been approved by the Food and Drug Administration, were considered “experimental,” and had not been proven to be effective.
Musselman remains released on bond. At sentencing, Musselman faces statutory penalties of up to 10 years’ imprisonment for the healthcare fraud charge and up to 20 years’ imprisonment for each of the wire fraud charges, to be followed by up to three years of supervised release on each of the counts. Each of the six convictions could also incur up to a $250,000 fine.
The case investigation was conducted by the Federal Bureau of Investigation, Springfield Field Office, and the Department of Health and Human Services, Office of Inspector General, Office of Investigations. Assistant U.S. Attorneys Douglas F. McMeyer, Bryan D. Freres, and Grace J. Hitzeman represented the government at trial.
Eldon Sex Offender Sentenced to 20 Years for Child PornographyRead the Press Release
JEFFERSON CITY, Mo. – An Eldon, Mo., man who is a registered sex offender was sentenced in federal court today for possessing child pornography.
David Arabie, 59, was sentenced by U.S. District Judge Brian C. Wimes to 20 years in federal prison without parole, the statutory maximum sentence for this offense. The court also sentenced Arabie to 25 years of supervised release following incarceration.
Arabie is a registered sex offender with prior felony convictions for statutory sodomy involving a 6-year-old victim and criminal sexual conduct involving the sexual abuse of three children ages 7 to 12.
On Oct. 26, 2023, Arabie pleaded guilty to possessing child pornography. The court found him in breach of his plea agreement at today’s hearing, however, after Arabie filed a motion to withdraw his guilty plea and recanted his previous statements made under oath during the change of plea hearing, claiming to be innocent of the charged conduct. On Dec. 20, 2024, the court denied Arabie’s motion to withdraw his guilty plea.
Arabie admitted that, while visiting his in-laws, he used a peer-to-peer file-sharing network on his computer to share images of child sexual abuse material with an undercover law enforcement officer. Arabie shared a video of the sexual abuse of a child victim approximately 3 to 6 years old.
Arabie also admitted that he possessed more than 600 images of child sexual abuse material on his computer.
This case was prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Missouri State Highway Patrol.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Defendant Pleads Guilty to Selling Fentanyl that Caused Fatal OverdoseRead the Press Release
SAN DIEGO – Danny Nunez pleaded guilty in federal court today, admitting that he supplied the fentanyl that caused the death of a 25-year-old San Diego woman identified in court records as “L.P.” on September 11, 2024.
According to the plea agreement, on September 12, 2024, the young woman’s parents found her deceased in her bedroom. Cell phone evidence and witness statements show that the victim purchased fentanyl from the defendant on September 11, 2024, which she later consumed, resulting in her death.
On October 3, 2024, members of the Homeland Security Investigations (HSI) San Diego – Fentanyl Abatement and Suppression Team (FAST), in conjunction with the Escondido Police Department, conducted an enforcement operation resulting in the arrest of the defendant after he attempted to sell two baggies of fentanyl, weighing 7.67 grams and 1.23 grams, to undercover agents.
Nunez is scheduled to be sentenced on May 19, 2025, at 9:30 a.m. before U.S. District Court Judge Thomas J. Whelan.
This case is being prosecuted by Assistant U.S. Attorney Sean Van Demark.
HSI San Diego FAST is a multiagency task force comprising state, local, and federal partners and was first established in August 2022 focusing on the disruption and dismantlement of criminal organizations that smuggle and distribute fentanyl within San Diego County. HSI’s FAST targets fentanyl smuggling and distribution networks to counter the rising overdose rate and decrease the availability and accessibility of fentanyl.
DEFENDANT Case Number 24-CR-2295-W
Danny Nunez Age: 25 San Diego, CA
SUMMARY OF CHARGES
Attempted Distribution of Fentanyl
21 U.S.C. § 841(a)(1)
Maximum penalty: Twenty years in prison (per count)
INVESTIGATING AGENCIES
Homeland Security Investigations
Escondido Police Department
San Diego Imperial Valley High Intensity Drug Trafficking Areas
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Crofton, Kentucky Man Sentenced to over 6 Years in Federal Prison for Being a Felon in Possession of a FirearmRead the Press Release
Paducah, KY – A Crofton, Kentucky, man was sentenced last week to 6 years and 5 months in federal prison for illegally possessing a firearm after having previously been convicted of a felony offense.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Acting Special Agent in Charge A.J. Gibes of the ATF Louisville Field Division, and Sheriff Tyler DeArmond of the Christian County Sheriff’s Office made the announcement.
According to court documents, Earl Ray Cook, Jr., 27, of Crofton, Kentucky, was sentenced to 6 years and 5 months in prison, followed by 3 years of supervised release, for illegally possessing a Taurus model G3C 9mm handgun, and ammunition, on January 29, 2024, in Christian County, Kentucky. Cook was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses.
On June 8, 2016, in Christian Circuit Court, Cook was convicted of first-degree possession of a controlled substance, methamphetamine, first offense and possession of drug paraphernalia while armed.
On February 12, 2018, in Daviess Circuit Court, Cook was convicted of theft of identity of another without consent, theft of a motor vehicle registration plate or renewal decal, and first-degree possession of a controlled substance, methamphetamine, first offense.
On July 28, 2022, in Daviess Circuit Court, Cook was convicted of third-degree assault and first-degree fleeing or evading police.
There is no parole in the federal system.
This case was investigated by the ATF Bowling Green Field Office and Christian County Sheriff’s Office.
Assistant U.S. Attorney Seth A. Hancock, Chief of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Couple Returned from Puerto Vallarta for Outstanding Warrants in OklahomaRead the Press Release
TULSA, Okla. – Today, Aaron Wilkie Murphy, 51, and Hong Thoa Thi Nguyen, 33, appeared before a Judge in Texas before being returned to the Northern District of Oklahoma for prosecution. The couple fled before being indicted, but Federal Law Enforcement worked in coordination with the Mexican Marines and Police to arrest the couple residing in Puerto Vallarta, Mexico.
In June 2023, Murphy was indicted for Possession of Fentanyl with Intent to Distribute; Possession of Methamphetamine with Intent to Distribute; and Maintaining a Drug-Involved Premises. In December 2023, Nguyen was indicted separately for Drug Conspiracy and Maintaining a Drug-Involved Premises.
“Murphy and Nguyen have avoided prosecution for over two years,” said U.S. Attorney Clint Johnson. “I want to thank our law enforcement partners in Mexico for working diligently with federal agencies on this arrest so that Murphy and Nguyen will face prosecution for their conduct.”
“The successful arrest and expulsion of Mr. Murphy and Mrs. Nguyen were possible because of the cooperation of our national and international partners in both the United States and Mexico,” said Eduardo A. Chavez, Special Agent in Charge of the DEA Dallas Division overseeing Oklahoma. “These arrests have undoubtedly made our communities safer and prevented further destruction that fentanyl and methamphetamine in the Tulsa, Oklahoma. The DEA will continue to work hand in hand with our law enforcement partners in the Tulsa area and across the state to ensure justice is served in this case.”
Beginning in March 2022, it is alleged that Murphy possessed fentanyl and methamphetamine with intent to distribute. Additionally, he was charged with maintaining a residence in Tulsa for drug distribution.
In November 2023, court documents alleged that Nguyen conspired with others to distribute cocaine and maintain a residence in Tulsa for drug distribution. Her three co-defendants, indicted in December 2023, have either pled guilty and are awaiting sentencing or have already been sentenced.
If convicted, Murphy faces 360 months to life imprisonment. Nguyen faces 120 months to life imprisonment.
The Drug Enforcement Administration Tulsa Resident Office, the U.S. Marshal Service Tulsa Field Office, and the Tulsa Police Department are investigating the case. The DEA Mexico City Country Office, along with the Hermosillo Mexico Resident Office, the U.S. Marshal Service Mexico City Field Office, Mexican Marines, and the Mexico Federal Police, assisted in the arrest and return. Assistant U.S. Attorney Adam Bailey is prosecuting both cases.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Both cases are investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Companies That Own and Operate Bulk Carrier Guilty, Sentenced for Environmental CrimesRead the Press Release
NEW ORLEANS, LOUISIANA – Acting United States Attorney Michael M. Simpson announced that two companies that owned and operated the bulk carrier M/V ASL Singapore—ASL Singapore Shipping Limited and Jia Feng Shipping (Fuzhou) Limited — pled guilty on February 20, 2025 to knowingly violating the Act to Prevent Pollution from Ships (APPS), and obstruction of justice related to the falsification of the vessel’s Oil Record Book, a required log.
The guilty pleas occurred before U.S. District Judge Jay C. Zainey. The companies were sentenced during the same proceeding. Pursuant to the court approved plea agreement, the companies were fined a total of $1.85 million and are banned from operating in the United States in the future. Separate charges were filed against Fei Wang, a Chinese national who was the ship’s Chief Engineer. Wang pled guilty and was sentenced on January 24, 2025.
The criminal case stems from a routine U.S. Coast Guard inspection, which revealed that the crew had been using a portable pump and flexible hose—a so-called magic pipe—to dispose of oily bilge water. This action constituted a violation of MARPOL, the International Convention for the Prevention of Pollution from Ships, coupled with the vessel’s failure to use the appropriate pollution prevention equipment and monitoring. Crew members presented the vessel’s Oil Record Books to the Coast Guard knowing they contained fraudulent entries and omitted information about discharging oily bilge water directly overboard before arriving in the United States. The falsified logs were intended to conceal that since at least June 2023, the crew had dumped oily bilge water overboard directly from the bilge holding tank and was non- compliant with international treaties regulating oil pollution from ships.
ASL Singapore Shipping Limited is based in The Republic of the Marshall Islands, and Jia Feng is based in China. The corporations were each charged with two felonies: an APPS violation and obstruction of justice.
The Coast Guard Investigative Service and the EPA Criminal Investigations Division investigated the case with assistance from U.S. Coast Guard Sector New Orleans. Assistant U.S. Attorneys Christine M. Calogero and G. Dall Kammer of the General Crimes Unit are prosecuting the case.
Child Predator Sentenced to 20 Years in Federal Prison after Transporting 14-Year-Old Michigan Girl Across State Lines for Sex and Impregnating HerRead the Press Release
INDIANAPOLIS— Larry Goldsmith., 26, of Indianapolis, has been sentenced to 20 years in federal prison, followed by a lifetime of supervised release after pleading guilty to transportation of a minor with intent to engage in sexual activity.
According to court documents, in 2020, Goldsmith began messaging a 14-year-old girl living in Michigan through the social media applications Spot-a-Friend and Snapchat. Goldsmith knew of the child’s age at the time yet engaged in sexually explicit conversations with her.
At the end of August 2020, the child got into a verbal argument with her mother and expressed to Goldsmith that she wanted to run away from home. Goldsmith drove over four hours to Michigan and picked her up at a business near her home. Goldsmith was 21 years old at the time.
On the way back to Indiana, Goldsmith engaged in sexually explicit conduct with the child at a rest stop in Michigan and then transported her across state lines to a home he rented in Indianapolis. During their time living together, Goldsmith had sex with the child numerous times and impregnated her.
After committing these offenses, Goldsmith continued his sexual abuse of minors by committing essentially the same conduct with another child in Georgia – where he drugged and raped a 13-year-old. In 2022, Goldsmith pleaded guilty to those crimes in Georgia and was sentenced to 15 years in federal prison, which he is currently serving.
“Goldsmith is no longer a danger to children and families in our community,” said John E. Childress, Acting United States Attorney for the Southern District of Indiana. “He is a manipulative, child predator who used the tools of social media to abuse a vulnerable child over and over again. I commend the outstanding work of local law enforcement agencies in Indiana and Georgia, along with the FBI, to bring the victim home safely.”
"The FBI is unwavering in our mission to protect the most vulnerable members of our society – our children. This case highlights the disturbing reality of sexual exploitation, and the sentence ensures this predator will remain behind bars and unable to continue to perpetrate such atrocities,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI and our law enforcement partners remain steadfast in our commitment to work together to ensure no child is victimized in this way.”
“This sentence sends a clear message—those who harm children will be held accountable," said IMPD Chief Chris Bailey. "The dedication and diligence of our IMPD officers, along with law enforcement agencies across the country, played a critical role in getting this predator behind bars.”
The Federal Bureau of Investigation and IMPD investigated this case. The sentence was imposed by U.S. District Judge Matthew P. Brookman. Under federal law, Goldsmith must register as a sex offender wherever he lives, works, or goes to school for life.
Acting U.S. Attorney Childress thanked Assistant U.S. Attorney MaryAnn T. Mindrum, who prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
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Charlotte Sex Trafficker and Co-Conspirator Are Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – A Charlotte man and his co-conspirator were sentenced to prison today for sex trafficking a minor, announced Lawrence J. Cameron, Acting U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina joins Acting U.S. Attorney Cameron in making today’s announcement.
Tawaan Batten, 34, also known as “Slicc,” was sentenced to 34 years in prison followed by 30 years of supervised release. In December 2023, Batten was convicted at trial of conspiracy to commit sex trafficking of a minor, sex trafficking of a minor, and transportation of a minor with the intent to engage in commercial sexual activity. Batten’s co-conspirator, Kristi Heather King, 34, of Locust, N.C., was sentenced to 42 months in prison and a period of supervised release, after pleading guilty to conspiracy to commit sex trafficking of a minor.
“Batten and his then-girlfriend preyed on a vulnerable child and repeatedly subjected her to physical and psychological harm for their profit,” said Acting U.S. Attorney Cameron. “Today’s sentence sends a clear message: federal prosecutors and law enforcement are committed to ensuring that sex traffickers will face the full force of justice.”
“It is difficult to fathom that someone would sell a child for sex. But that is exactly what Batten and King did and now both of them will do federal prison for their crimes,” said Special Agent in Charge DeWitt. “The FBI works tirelessly to hold accountable those who carry out crimes against children, and we devote significant resources to help sex trafficking victims recover from the trauma they suffer.”
According to evidence presented at Batten’s trial, witness testimony, and court documents, from July 2021 to December 2021, Batten, at times assisted by King, sex trafficked a 15-year-old minor victim. Batten met the minor victim, who had run away from her home, in a hotel parking lot in Charlotte. Batten then introduced the minor victim to King, who was Batten’s girlfriend at the time. The minor victim began engaging in commercial sex transactions shortly after meeting Batten.
Trial evidence showed that Batten, at times assisted by King, created and posted advertisements of the minor victim on commercial sex websites and arranged for the minor victim to engage in sexual encounters with customers, usually multiple times a day. Most of these encounters took place in hotel rooms booked by Batten in North Carolina and South Carolina. Other times, Batten and King drove the minor victim to a customer’s location to engage in commercial sex. Batten kept the money the victim earned from these commercial sexual encounters and continued to have the victim work even when she was not feeling well.
According to testimony and evidence at Batten’s trial, Batten gave the minor victim drugs. Batten also controlled the minor victim through intimidation and manipulation, including branding the minor victim with tattoos. Batten also physically assaulted King multiple times.
Batten remains in federal custody pending placement to a Federal Bureau of Prisons facility.
In making today’s announcement, Acting U.S. Attorney Cameron commended the FBI for leading this investigation and thanked the Charlotte-Mecklenburg Police Department for their invaluable assistance.
Assistant U.S. Attorneys Stephanie Spaugh and Daniel Cervantes of the U.S. Attorney’s Office in Charlotte prosecuted the case.
If you are the victim of human trafficking or may have information about a potential trafficking situation, please call the FBI, local law enforcement, or the National Human Trafficking Resource Center (NHTRC) at 1-888-373-7888. NHTRC is a national, toll-free hotline, with specialists available to answer calls from anywhere in the country, 24 hours a day, seven days a week, every day of the year related to potential trafficking victims, suspicious behaviors, and/or locations where trafficking is suspected to occur. To submit a tip to the NHTRC online please visit https://humantraffickinghotline.org/report-trafficking.
Charleston Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Edgar Warren Willis Jr., 39, of Charleston, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on February 27, 2024, law enforcement officers executed a search warrant at a Red Oak Street residence in Charleston where Willis was staying. Officers found a backpack in a bedroom containing a Lorcin Engineering Model L380 .380-caliber pistol during the search. Willis admitted to possessing the seized firearm.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Willis knew he was prohibited from possessing a firearm because of his prior felony convictions for possession with intent to deliver a controlled substance, to-wit heroin, on January 21, 2022, and for wanton endangerment and conspiracy to possess with intent to deliver a controlled substance, to-wit heroin, on August 10, 2015, all in Kanawha County Circuit Court.
Willis is scheduled to be sentenced on June 12, 2025, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department-Street Crimes Unit.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Samuel D. Marsh is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-89.
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Business Owner Agrees to Pay $1,731,200 to Resolve Allegations He Misappropriated COVID-19 Loan ProceedsRead the Press Release
Bowling Green, KY- Ryan Turtle, of Memphis, TN, has agreed to pay the United States $1,731,200 to resolve allegations that he unjustly enriched himself by misappropriating COVID-19 Economic Injury Disaster Loan (“EIDL”) funds obtained from the Small Business Administration (SBA) during the COVID-19 pandemic.
The civil settlement was announced by Michael A. Bennett, United States Attorney for the Western District of Kentucky.
“COVID-19 EIDL funds were intended to help small business owners during difficult economic times and taking advantage of this program will not be tolerated,” said U.S. Attorney Bennett. “Our office is committed to investigating and recovering taxpayer monies that have been diverted or misused.”
During the COVID-19 pandemic, the SBA provided COVID-19 EIDLs to small businesses to be used for “working capital.” Turtle owned the Turtle Company, a Kentucky corporation, which operated Little Caesars franchises in Western Kentucky. On October 27, 2021, Turtle submitted an Amended Loan Authorization and Agreement with the SBA, in which he certified and promised that he would use the loan proceeds as “working capital” for his business as required by the Agreement.
Instead of using the loan proceeds as “working capital” for his business as required, the United States alleges that Turtle transferred the loan proceeds into various cryptocurrency accounts shortly after receiving them from the SBA. By failing to use the loan proceeds as required by the Agreement, the United States contends that Turtle unjustly enriched himself.
The claims resolved by this settlement are allegations.
Assistant U.S. Attorney, Matt Weyand, handled this matter for the United States.
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Barrio Azteca Gang Leader and Member Extradited from Mexico to the United States to Face Charges Related to 2010 U.S. Consulate Murders in JuarezRead the Press Release
Two alleged members of the Barrio Azteca (BA), a transnational criminal organization allied with the Juarez Cartel, were extradited from Mexico to the United States to face charges related to the March 2010 murders of U.S. Consulate employees in Juarez, Mexico. Eduardo Ravelo, also known as Tablas, Tablero, and T-Blas, and Enrique Guajardo Lopez, also known as Kiki, arrived in the United States on Feb. 20 and made their initial appearances today in the Western District of Texas. Ravelo, a former FBI Top 10 Most Wanted Fugitive, and Guajardo were charged in a 12-count third superseding indictment unsealed in March 2011.
“The defendants allegedly participated in the murder of three U.S. Consulate employees in Mexico in March 2010, along with many other acts of senseless violence,” said Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division. “No U.S. citizen, on either side of our border with Mexico, should have to live in fear of Barrio Azteca, any other violent border gang, or any drug cartel. The defendants’ extradition to the United States is an example of the Department’s unwavering commitment to eliminating transnational criminal organizations and the pursuit of justice for the victims of those tragic murders in Juarez, Mexico.”
“The extradition and U.S. custody of these two defendants, who are both alleged to be members of Barrio Azteca operating along the border, is essential to our mission of disrupting and dismantling these dangerous criminal organizations,” said Acting U.S. Attorney Margaret Leachman for the Western District of Texas. “With the help of our federal, state and local law enforcement partners, this U.S. Attorney’s Office will aggressively prosecute Ravelo and Guajardo throughout this case for their alleged participation in the 2010 Consulate murders and other gang related activity.”
“These extraditions demonstrate the FBI’s commitment to holding violent criminals accountable, no matter where they flee,” said Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division. “The FBI and our partners will continue to aggressively pursue the Barrio Azteca and other transnational gangs wherever they operate and seek justice for the victims affected by their violent actions.”
“The extradition of these two members of the Barrio Azteca transnational criminal organization brings us another step closer to justice for the victims of the 2010 U.S. Consulate murders in Juarez,” said Acting Administrator Derek S. Maltz of the Drug Enforcement Administration (DEA). “DEA never forgets and we never give up. Our commitment to pursue the members of violent criminal organizations threatening American lives is as strong as ever, and our message is clear — DEA will use every resource we have to get justice for American lives lost as a result of these violent networks.”
A total of 35 BA members and associates based in the United States and Mexico were charged in the third superseding indictment for allegedly committing various criminal acts, including racketeering, narcotics distribution and importation, retaliation against persons providing information to U.S. law enforcement, extortion, money laundering, obstruction of justice, and murder. Of the 35 defendants, 10 Mexican nationals, including Ravelo and Guajardo, were charged with the March 13, 2010, murders in Juarez of U.S. Consulate employee Leslie Ann Enriquez Catton; her husband, Arthur Redelfs; and Jorge Alberto Salcido Ceniceros, the husband of another U.S. Consulate employee. All the defendants have been apprehended, and 28 have pleaded guilty. Three defendants have been convicted at trial, one committed suicide before the conclusion of his trial, and one is awaiting extradition from Mexico.
According to court documents and evidence presented at co-defendant trials, the BA is a violent street and prison gang that began in the late 1980s and expanded into a transnational criminal organization. In the 2000s, the BA formed an alliance in Mexico with “La Linea,” which is part of the Juarez Drug Cartel (also known as the Vincente Carrillo Fuentes Drug Cartel or VCF). The purpose of the BA-La Linea alliance was to battle the Chapo Guzman Cartel and its allies for control of the drug trafficking routes through Juarez and Chihuahua. The drug routes through Juarez, known as the Juarez Plaza, are important to drug trafficking organizations because they are a principal illicit drug trafficking conduit into the United States.
The gang has a militaristic command structure and includes captains, lieutenants, sergeants, and soldiers — all with the purpose of maintaining power and enriching its members and associates through drug trafficking, money laundering, extortion, intimidation, violence, threats of violence, and murder.
According to court documents, Ravelo and Guajardo participated in BA activities, including narcotics trafficking and acts of violence by BA members, both in Mexico and the United States. If convicted, Ravelo and Guajardo each face a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Ravelo’s and Guajardo’s extraditions are the result of close coordination between U.S. law enforcement and the government of Mexico in the investigation and prosecution of this case. The cooperation and assistance of the government of Mexico was essential to achieving the successful extraditions.
The FBI El Paso Field Office; FBI Albuquerque Field Office, Las Cruces Resident Agency; DEA Juarez Division; and DEA El Paso Division investigated the case. Special assistance was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement; U.S. Marshals Service; U.S. Customs and Border Protection; Federal Bureau of Prisons; U.S. Diplomatic Security Service; Texas Department of Public Safety; Texas Department of Criminal Justice; El Paso Police Department; El Paso County Sheriff’s Office; El Paso Independent School District Police Department; Texas Alcohol and Beverage Commission; New Mexico State Police; Dona Ana County, New Mexico Sheriff’s Office; Las Cruces, New Mexico Police Department; Southern New Mexico Correctional Facility and Otero County Prison Facility New Mexico.
Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney Christina Taylor of the Criminal Division’s Violent Crime and Racketeering Section, and Assistant U.S. Attorney Steven Spitzer for the Western District of Texas are prosecuting the case.
The U.S. Attorney’s Office for the District of New Mexico, the Justice Department’s Office of International Affairs, and the Criminal Division’s Office of Enforcement Operations provided significant assistance in this case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Saturday 22 February 2025
New Orleans Man Guilty of Machinegun PossessionRead the Press Release
NEW ORLEANS, LOUISIANA – LADONTE RICHARDSON (“RICHARDSON”), age 22, a resident of New Orleans, pled guilty on February 13, 2025, to possession of a machinegun, announced Acting U. S. Attorney Michael M. Simpson.
RICHARDSON faces a maximum term of 10 years of imprisonment, and/or a fine up to $250,000, up to 3 years of supervised release, and $100 mandatory special assessment fee.
According to court records, on August 29, 2023, RICHARDSON posted a photo on his Instagram page with three train emojis, along with an emoji of a cellphone. Investigators believed this to be an advertisement for selling Tapentadol pills, which are commonly referred to as “trains.” On September 7, 2023, RICHARDSON posted another advertisement for drugs. Based upon these posts, on September 8, 2023, a Federal Bureau Investigation (“FBI”) Task Force Officer (“TFO”) obtained a search warrant for RICHARDSON’s Instagram account that showed RICHARDSON possessing firearms. Specifically, on September 17, 2023, RICHARDSON live streamed himself on a video brandishing a firearm with a laser sight. On September 21, 2023, an arrest warrant was issued for RICHARDSON for two counts of second-degree murder that occurred on December 7, 2022. U.S. Marshals located and arrested RICHARSON in New Orleans. A search of his residence revealed the same firearm brandished by RICHARDSON on his Instagram page, in a bedroom dresser. The firearm was equipped with a switch. The firearm was also stolen.
RICHARDSON admits possessing and knowing it was a machine gun.
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 gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. The case is being prosecuted by Assistant U. S. Attorney Mike Trummel of the Violent Crime Unit.
New Orleans Man Guilty of Federal Controlled Substances and Federal Gun Control Acts ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – ARMOND BURNETTE (“BURNETTE”), age 35, of New Orleans, pled guilty on February 11, 2025 to a three-count indictment charging him with possession with intent to distribute controlled substances, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), and possession of a firearm by a convicted felon, in violation of Title 21, United States Code, Sections 922(g)(1) and 924(a)(8).
BURNETTE faces a maximum penalty of (20) years imprisonment, at least three (3) years of supervised release and a fine of up to $1,000,000, for possession with the intent to distribute controlled substances; and a maximum penalty of fifteen (15) years imprisonment, up to three (3) years of supervised release, and a fine of up to $250,000.00 for the possession of a firearm by a convicted felon. BURNETTE also faces payment of a $100 mandatory special assessment fee per count.
According to court documents, on June 23, 2023, New Orleans Police Department (NOPD) officers observed BURNETTE who was wanted for multiple attachments, walking in the French Quarter. NOPD officers approached BURNETTE but he fled and was arrested a short time later. BURNETTE was found in possession of a plastic bag with twenty-one (21) individually wrapped baggies containing fentanyl, and 3.39 grams of cocaine. On April 25, 2024, NOPD officers conducting a drug investigation, observed BURNETTE exit a silver BMW in the 600 block of Iberville and enter a bar wearing a backpack. Officers met BURNETTE as he was exiting the bar without the backpack. Officers located the bag, that contained a firearm, near a poker machine inside the bar.
Officers opened the bag and found a firearm. Thereafter, officers searched the silver BMW and recovered one bag containing seven bags of fentanyl, a digital scale, and a small amount of methamphetamine.
After searching the backpack , officers also recovered six dosages of Tapentadol, ecstasy pills, approximately 4 grams of cocaine, and a stolen .40 caliber Smith & Wesson firearm.
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 gun track violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, and Firearms. Assistant United States Attorney Michael E. Trummel of the Violent Crimes Unit is in charge of the prosecution.
Kenner Man Enters Guilty of Possession of Child Sexual Abuse MaterialRead the Press Release
NEW ORLEANS, LOUISIANA – NOAH TORRES (“TORRES”), age 47, of Kenner, pled guilty on February 20, 2025, to Possession of Materials Involving the Sexual Abuse of Minors, in violation of Title 18, United States Code, Sections 2252(a)(4)(B), announced Acting U.S. Attorney Michael M. Simpson.
TORRES faces a maximum sentence of twenty (20) years imprisonment, and/or a fine of up to $250,000.00, a term of supervised release of no less than five (5) years and up to life, after release from prison, and a mandatory $100 special assessment fee.
According to court documents, on Monday, July 24, 2023, TORRES was arrested at his Kenner residence by Special Agents with the U.S. Department of Homeland Security, Homeland Security Investigations, after the execution of a federal search warrant. TORRES admitted to possessing 219 images and 340 videos depicting prepubescent minors engaging in sexually explicit conduct.
Sentencing in this matter is scheduled for May 22, 2025, before United States District Judge Eldon E. Fallon.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Acting U.S. Attorney Simpson praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations, including the Portland, Oregon and New Orleans, Louisiana offices; the Kenner Police Department; and the Louisiana Bureau of Investigation. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Project Safe Childhood Coordinator and Chief of Financial Crimes Unit.
Honduran Guilty of Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA – Acting United States Attorney Michael M. Simpson announced that CESAR ALVAREZ-ESPINAL (“ALVAREZ-ESPINAL”), a native of Honduras, pleaded guilty on February 20, 2025 to illegally using a social security number to qualify for employment, in violation of Title 42, United States Code, Section 408(a)(7)(B).
ALVAREZ-ESPINAL faces a maximum term of imprisonment of five (5) years, up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory special assessment fee of $100.00.
According to court documents, in November 2024, Homeland Security Investigations received information that certain individuals had used fraudulent Social Security cards in an initial application to obtain employment. Prior to finalizing employment with their prospective company, the individuals were required to report to the Gulf Coast Safety Council. The Gulf Coast Safety Council provides safety courses to applicants applying for work with companies that service petrochemical processing plants. On November 13, 2024, ALVAREZ-ESPINAL arrived at the Gulf Coast Safety Council office in St. Rose, Louisiana to complete the safety course. On that day, ALVAREZ-ESPINAL presented a fraudulent United States Social Security card bearing the name and United States Social Security number of a United States citizen, that he represented to be his own in order to obtain employment.
Acting U.S. Attorney Simpson praised the work of Homeland Security Investigations in investigating this matter. Assistant United States Attorney Jon M. Maestri of the General Crimes Unit is in charge of the prosecution.
Former Army Reservist Sentenced for Conspiracy to Steal Government FundsRead the Press Release
NEW ORLEANS – CODY FRANCIS (“FRANCIS”), age 34, of New Orleans, was sentenced on February 13, 2025, by Chief United States District Judge Nannette Jolivette Brown. FRANCIS previously pled guilty to conspiracy to commit theft of government funds, having stolen $11,378.27 from the United States Department of the Army by claiming reimbursement for the performance of military funeral honors ceremonies that never happened.
The National Defense Authorization Act of 2000 authorizes military funeral honors for active-duty soldiers, retirees, and veterans. At a family’s request, eligible persons can receive military funeral honors, including the folding and presenting of the United States flag and the playing of “Taps.”
Chief Judge Brown sentenced FRANCIS to one year probation, 100 hours of unpaid community service, the payment of $11,378.27 in restitution to the Department of the Army, and a $100 mandatory special assessment fee.
Acting U.S. Attorney Simpson praised the work of the United States Army Criminal Investigation Command. Assistant United States Attorney Andre J. Lagarde of the Public Integrity Unit is in charge of the prosecution.
Bogalusa Man Indicted for Federal Drug and Gun ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – FERNANDO BRISTER (“BRISTER”), age 35, and resident of Bogalusa, Louisiana was indicted on January 31, 2025, announced Acting United States Attorney Michael M. Simpson. Count One of the indictment charged him with distribution of Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). Count Two charged him with being a felon in possession of firearm, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(8), and 942(e).
If convicted, BRISTER faces up to 20 years’ imprisonment, up to a $1,000,000 fine, and at least 3 years of supervised release for Count One. For Count Two, BRISTER faces not less than 15 years imprisonment, up to a $250,000 fine, and up to 3 years of supervised release. BRISTER also faces payment of a $100 mandatory special assessment fee as to both counts.
According to court documents, on January 31, 2023, BRISTER knowingly and intentionally distributed methamphetamine, a Schedule II controlled substance, to an undisclosed person. On February 6, 2023, BRISTER was a felon and knowingly possessed a Glock Model 43, nine--millimeter caliber pistol and ammunition.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Acting United States Attorney Michael M. Simpson reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Washington Parish Police Department. It is being prosecuted by Assistant United States Attorney Troy Bell of the Violent Crime Unit.
Friday 21 February 2025
“La Empresa” Member Sentenced in El Paso to Nearly 20 Years in Federal PrisonRead the Press Release
EL PASO, Texas – An El Paso transnational criminal organization (TCO) member was sentenced in federal court Thursday to 235 months in prison for his role in a hostage taking conspiracy.
According to court documents, a man was forcefully kidnapped at gunpoint from his motel room in Juarez, Mexico, on Aug. 24, 2023, and was held hostage until Sept. 5, 2023. During that time, the victim’s family received threatening phone calls from multiple unknown subjects demanding payment. Ultimately, the family paid approximated $9,000 to the TCO for safe travel and release of the victim.
Luis Edward Castro, 28, worked for the TCO, “La Empresa.” Armed with a handgun, he recorded and sent proof-of-life videos to the victim’s family. In the videos, the victim appeared visibly scared and stated he was in El Paso. An investigation led law enforcement to Castro’s address, where they searched the residence and found six undocumented noncitizens and multiple firearms.
Castro was arrested Sept. 5, 2023 and charged with six counts pertaining to harboring and transporting undocumented noncitizens for financial gain, hostage taking, and the possession of a firearm with an obliterated serial number. He pleaded guilty to the hostage taking charge on Sept. 26, 2024.
“This case highlights some of the many dangers posed by TCOs on both sides of our southern border, and Castro’s sentencing of two decades in federal prison is a significant penalty,” said Acting U.S. Attorney Margaret Leachman for the Western District of Texas. “I am thankful for our partners at the FBI, HSI and the U.S. Border Patrol, whose investigative skill and expertise led to the recovery of these kidnapping victims and the outcome of this case.”
“TCOs such as La Empresa will find no refuge whatsoever in our communities," said Special Agent in Charge John Morales for FBI’s El Paso Field Office. "These ruthless networks exploit the vulnerable through human smuggling, drug trafficking, and violent extortion, as seen in Castro’s crimes where innocent people were held hostage to extract more money from their families. This sentencing serves as a clear warning: the FBI and our partners at the U.S. Border Patrol are relentless in our pursuit of those who seek to profit from suffering. We will dismantle these criminal enterprises, protect our communities, and bring every perpetrator to justice—because we will never tolerate those who threaten the safety and dignity of our people.”
"This criminal was recognized as both a stash house operator and enforcer for a transnational criminal organization, thanks to our diligent collaboration with law enforcement partners." said Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) El Paso Special Agent in Charge Jason T. Stevens. “This prison sentence delivers a powerful message to human smugglers who engage in holding hostage and exploiting vulnerable individuals: we are fully committed to collaboration and the protection of our communities, and we will relentlessly hold these ruthless transnational criminal organizations accountable.”
“Criminal organizations like ‘La Empresa’ and other TCOs are not in the business of helping people. Their sole motive is profit, with no regard for human life,” said El Paso Sector Chief Walter N. Slosar. “The U.S. Border Patrol remains committed to working alongside our law enforcement partners to dismantle these criminal networks. Those who put innocent lives at risk will be identified, apprehended, and prosecuted to the fullest extent of the law.”
The FBI, ICE HSI, and USBP investigated the case.
Assistant U.S. Attorneys Mathew Engelbaum and Kyle Myers prosecuted the case.
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Woman Sentenced to 70 Months in Prison for Burning Down Local BusinessRead the Press Release
SAN DIEGO – Carey Alice Hernandez was sentenced in federal court today to 70 months in prison for intentionally setting fire to Off Road Warehouse to cover up the disappearance of more than $700,000 while she was in charge of company finances.
In April 2024, after a four-day trial, jurors found Hernandez guilty of malicious destruction of a building by means of fire, witness tampering and making false statements.
In late 2018, the owner of Off Road Warehouse, also known as ORW, which sold and installed automotive parts and gear for off-roading, decided to sell the business located at 7915 Balboa Avenue. The prospective purchaser conducted an audit of ORW, which revealed that between January 2015 and March 2019, while Hernandez was serving as bookkeeper and controller in charge of the company books and records, $744,621 had gone missing from the company.
The jury found that in the early morning hours of March 28, 2019, Hernandez started the fire at Off Road Warehouse, causing the building to burn to the ground.
“This defendant intentionally set a dangerous inferno in what appears to have been an attempt to conceal a massive theft. And then she leaned on her minor daughter to try and cover up her crimes,” said Acting U.S. Attorney Andrew Haden. “Fortunately, no one was physically hurt, but this devastating loss for ORW, and the extraordinary danger of intentionally setting a fire, demanded accountability. And today, justice was served.”
At today’s hearing, U.S. District Judge Jinsook Ohta described the defendant’s actions as “wanton, deliberate and destructive” and “a very dangerous crime” that put firefighters at risk. She noted the crime was made even worse when she asked her daughter to lie for her.
According to evidence presented at trial, surveillance footage showed the defendant driving an SUV with dark rims near her home and the fire scene. The following day, she lied to federal agents and ORW employees, claiming her SUV had light rims. Video footage from the area contradicted her claims about the vehicles rims, leading to convictions for witness tampering and false statements.
ATF’s National Response Team (NRT) investigated this case in conjunction with San Diego’s Metro Arson Strike Team (MAST). The NRT is ATF’s mobile, rapid response team which investigates the cause and origin of large fires, explosions and bombings at the request of local public safety agencies.
“Arson crimes are not victimless,” said Acting ATF Los Angeles Field Division Special Agent in Charge Jose Medina. “These criminal acts destroy lives, property, and businesses. In this case, the motive was greed—fire was used as a cover-up for criminal activity. ATF remains steadfast in its mission to bring arsonists to justice and ensure safer communities. We will relentlessly pursue and remove these offenders from society. I want to acknowledge the dedication of our National Response Team and San Diego’s Metro Arson Strike Team (MAST) for their work in determining the fire’s origin and cause.”
A hearing to determine the restitution that Hernandez owes the victims of her crimes is scheduled for March 14, 2025, at 2:30 p.m. before Judge Ohta.
This case is being prosecuted by Assistant U.S. Attorneys Matthew Brehm and Carl Brooker.
DEFENDANT Case Number 22cr145-JO
Carey Alice Hernandez Age: 46 Rathdrum, Idaho
SUMMARY OF CHARGES
Malicious Destruction of Building by Means of Fire – Title 18, U.S.C., Section 844(i)
Maximum penalty: No less than five years in prison and no more than 20 years and $250,000 fine
Witness Tampering – Title 18, U.S.C., Section 1512(b)(3)
Maximum penalty: Twenty years in prison and $250,000 fine
False Statements – Title 18, U.S.C., Section 1001(a)(2)
Maximum penalty: Five years in prison and $250,000 fine
INVESTIGATING AGENCY
Bureau of Alcohol, Tobacco, Firearms and Explosives
Wolcott Man Pleads Guilty to Federal Firearm OffenseRead the Press Release
Marc H. Silverman, Acting United States Attorney for the District of Connecticut, today announced that JOSE COLON, 37, of Wolcott, pleaded guilty yesterday before U.S. District Judge Vernon D. Oliver in Hartford to unlawful possession of ammunition by a felon.
According to court documents and statements made in court, on March 13, 2024, Waterbury Police arrested Colon after he discarded a privately made 9mm handgun (“ghost gun”) loaded with six rounds of ammunition during a foot pursuit.
Colon’s criminal history includes felony convictions in Connecticut for assault, weapon, and risk of injury offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Oliver scheduled sentencing for May 13, at which time Colon faces a maximum term of imprisonment of 15 years.
Colon has been detained since his arrest.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorney Kenneth L. Gresham.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn.
Wenatchee Sex Offender Sentenced to Federal Prison for Receipt of Child Sexual Abuse MaterialRead the Press Release
Spokane, Washington – Acting United States Attorney Richard R. Barker announced that Chief United States District Judge Stanley A. Bastian sentenced Justin Boyd Renteria, age 34, of Wenatchee, Washington, to 15 years in federal prison for Receipt of Child Pornography. Chief Judge Bastian also imposed a lifetime of supervised release.
According to court documents and information presented at the sentencing hearing, in summer 2023, the Chelan County Sheriff’s Department learned Renteria was in possession of several videos depicting young children being sexually abused by adults. At the time, Renteria was on supervised release for his federal conviction for possession of child sexual abuse material.
On October 13, 2023, United States Probation executed a supervised release search of Renteria’s property. Officers seized a knife, drug paraphernalia, and multiple electronic devices. On a phone seized in the search, the FBI located more than 200 images and videos of adults sexually abusing young children.
“Mr. Renteria’s case highlights the serious consequences of repeat criminal behavior and U.S. Attorney’s Office’s commitment to holding accountable those who repeatedly possess or receive child sex material,” stated Acting U.S. Attorney Richard Barker. “I am grateful for the prosecutors and law enforcement agents, who devote their careers to protecting the most vulnerable members of our community.”
“Tragically, Mr. Renteria did not learn his lesson from his previous conviction and continued to possess harmful child sexual abuse material,” said W. Mike Herrington, Special Agent in Charge of the FBI Seattle field office. “These photos and videos are extremely damaging to vulnerable minors, now more than ever because digital copies are so difficult to completely eliminate in the internet age. We hope this sentence sends a message to would-be predators that the FBI and our law enforcement partners take these crimes seriously, and engaging in them can have serious consequences.”
This case was investigated by the FBI. It was prosecuted by Assistant United States Attorneys Alison L. Gregoire and Rebecca R. Perez.
2:24-cr-00023-SAB
Vero Beach Meth Dealer Found Guilty at TrialRead the Press Release
MIAMI – A South Florida federal jury has found Denzil Olajuwon Stewart, 30, guilty of narcotics distribution crimes for selling 276.7 grams of pure methamphetamine.
On Dec. 28, 2023, law enforcement officers observed Stewart drive away from his Vero Beach home in a white Porsche SUV, arrive at another residence about 30 minutes away, and sell what they later discovered was 276.7 grams of pure methamphetamine to a buyer. The buyer resold the methamphetamine, which was inside a plastic shopping bag, to a confidential informant. Stewart’s fingerprints were on the bag.
The jury found Stewart guilty of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine actual, and distribution of 50 grams or more of methamphetamine actual. He faces between 10 years and life in prison.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida; Special Agent in Charge Deanne L. Reuter of the DEA, Miami Field Division, and Indian River County Sheriff Eric Flowers made the announcement.
DEA Port Saint Lucie and the Indian River County Sheriff’s Office investigated the case. Assistant U.S. Attorneys Christopher Hudock and Michael Porter prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-14058.
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Two Rock Hill Men Sentenced to Federal Prison for Their Role in Drug ConspiracyRead the Press Release
COLUMBIA, S.C. — Emmanuel Deon Foster, 36, and Bobby Antoinios Hall, 41, both of Rock Hill, have been sentenced for their involvement in a conspiracy to distribute quantities of fentanyl, crack cocaine, cocaine, methamphetamine, and heroin.
Evidence obtained in the investigation revealed that Foster and Hall had a close relationship with the leader of the conspiracy. Based upon law enforcement efforts, they learned both Foster and Hall purchased fentanyl-lased pills during the time of the conspiracy from the leader. These pills were then sold to other dealers in the Rock Hill area. Foster also purchased and sold cocaine, crack cocaine, heroin, marijuana, and methamphetamine. These drugs were purchased from other members of the conspiracy and sold to other dealers. This operation has been responsible for the arrest and conviction of more than 20 individuals during its existence.
United States District Mary Geiger Lewis sentenced Foster to a total of 120 months imprisonment, to be followed by a five-year term of court-ordered supervision. Hall was sentenced to 84 months imprisonment to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This joint law enforcement activity and prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the FBI Columbia Field Office, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Drug Enforcement Administration, York County Multijurisdictional Drug Enforcement Unit, South Carolina Law Enforcement Division, and the Richland County Sheriff’s Department. Assistant U.S. Attorney William K. Witherspoon is prosecuting the case.
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Tri-Cities Based Drug Traffickers Caught with More Than 100,000 Fentanyl Pills, 50 Pounds of Methamphetamine, and a Kilo of Cocaine Sentenced to Federal PrisonRead the Press Release
Richland, Washington – Acting United States Attorney Richard R. Barker announced today that two men responsible for trafficking large amounts of drugs across Eastern Washington have been sentenced to federal prison. Chief United States District Judge Stanley A. Bastian sentenced Angel Ramon Barajas-Zarate, age 26, from Colima, Mexico, to 132 months in prison and 5 years of supervised release. Hector Sanchez-Mendez, age 42, of Oaxaca, Mexico, was sentenced to 72 months in prison and 5 years of supervised release.
According to court documents and information presented at the sentencing hearings, in February 2022, Investigators developed information that Barajas-Zarate was using the United State Postal Service to ship multiple-pound quantities of dangerous controlled substances, including thousands of fentanyl-laced pills and methamphetamine. Sanchez-Mendez also operated a drug stash house for Barajas-Zarate.
On December 14, 2022, investigators executed several search warrants in Richland, Washington, involving three homes as well as several vehicles identified during the investigation. In the attic of the stash house operated by Sanchez-Mendez, investigators found 45 pounds of methamphetamine in the process of being packaged for sale. Investigators also located 13 firearms around the house. Investigators then searched Barajas-Zarate’s truck and located several large bags of methamphetamine and several thousand fentanyl-laced pills packaged for distribution.
In total, the FBI and its local law enforcement partners seized more than 100,000 fentanyl-laced pills (to include pink and rainbow-colored pills), more than 50 pounds of methamphetamine, and approximately 1 kilogram of cocaine, making it one of the larger drug seizures in Eastern Washington history. The FBI and its local partners also seized approximately $15,000 in U.S. Currency and several money counters, which typically are used by banks to count large amounts of U.S. Currency. More than 20 firearms were seized, along with a significant amount of ammunition.
“This case serves as a powerful reminder that those who engage in trafficking dangerous drugs, including fentanyl, will be held accountable for the harm they cause in our communities. The FBI and our law enforcement partners have demonstrated tremendous skill and dedication in dismantling these criminal operations. This case also highlights the unwavering commitment of our team of dedicated prosecutors, who has have dedicated their careers to combating the opioid crisis and the dangerous drug trade that threatens the safety and well-being of Eastern Washington,” stated Acting United States Attorney Richard Barker. “Our office will continue to work tirelessly to protect our district from individuals who profit from the devastation caused to Eastern Washington communities and families.”
“Putting a stop to these two men’s crimes may have saved countless lives,” said W. Mike Herrington, Special Agent in Charge of the FBI’s Seattle field office. “This is an extraordinary amount of dangerous drugs and firearms taken off our streets. When investigating these kinds of complex cases, partnerships are absolutely crucial, and I would like to thank our federal, state, and local partners on the Southeast Washington Safe Streets Task Force for their work on this case and safeguarding our communities.”
This case was investigated by the FBI Southeast Washington Safe Streets Task Force, along with the United States Postal Inspection Service. The FBI Southeast Washington Safe Streets Task Force was assisted by multiple local law enforcement entities, including the Benton County Sheriff’s Office, Richland Police Department, Kennewick Police Department, Pasco Police Department, West Richland Police Department, Franklin County Sheriff’s Office, the METRO Drug Task Force, and the Washington State Department of Corrections. The Drug Enforcement Administration and the United States Border Patrol also provided assistance. This case was prosecuted by Assistant United States Attorney Stephanie Van Marter.
4:22-cr-06052-SAB
Three New Haven Men Guilty of Charges Related to Counterfeit Pill Production, Narcotics TraffickingRead the Press Release
Marc H. Silverman, Acting United States Attorney for the District of Connecticut, today announced that a jury in Hartford has found AQUARIUS GUMBS, also known as “Q,” “Ice,” and “Diamond,” 50; GORDON LAURIA, 54; and MARKOS PAPPAS, also known as “Speedy,” 51; all of New Haven, guilty of offenses related to the large-scale trafficking of fentanyl and methamphetamine pills disguised as legitimate prescription medication, as well as other controlled substances.
According to court documents and the evidence presented during the trial, this matter stems from an investigation by the DEA New Haven’s Tactical Diversion Squad and the FBI’s New Haven Safe Streets/Gang Task Force targeting the manufacture and distribution of counterfeit oxycodone tablets containing fentanyl and counterfeit Adderall tablets containing methamphetamine, and the distribution of heroin and cocaine, in the New Haven area. The investigation revealed that Willis Taylor, with the assistance of Lauria, Pappas, Gumbs, and others, coordinated the manufacture and distribution of counterfeit narcotic pills. Taylor distributed the pills to others and arranged counterfeit pill transactions between second and third parties, sometimes using Gumbs as a source of supply. Gumbs also distributed controlled substances to his own customers. After Taylor’s arrest in November 2022, Pappas conspired with others, including Lisa Fausel, of New Haven, to distribute controlled substances.
During the investigation, investigators seized more than two kilograms of fentanyl, including thousands of counterfeit Oxycodone tablets; approximately two kilograms of methamphetamine, including thousands of counterfeit Adderall pills; three kilograms of cocaine and other drugs; four pill-press machines; one industrial mixer; five firearms; and more than $200,000 in cash. Two of the firearms and $13,250 in cash were seized from Gumbs, a previously convicted felon, on November 18, 2022.
Fourteen individuals were charged as a result of this investigation.
Today, the jury found Lauria and Gumbs guilty of one count, and Pappas guilty of two counts, of conspiracy to possess with intent to distribute, and to distribute, controlled substances. Gumbs was also found guilty of one count of possession with intent to distribute, and distribution of cocaine; one count of possession with intent to distribute marijuana; one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of unlawful possession of a firearm by a felon.
The jury found a fourth defendant, Julio Echevarria, of New Haven, not guilty of conspiracy to possess with intent to distribute, and to distribute, controlled substances.
Gumbs, Lauria, and Pappas are detained pending sentencing, which is not scheduled.
Taylor previously pleaded guilty and awaits sentencing. On October 21, 2024, Fausel was sentenced to 42 months of imprisonment.
This matter is being investigated by the DEA New Haven’s Tactical Diversion Squad, the FBI’s New Haven Safe Streets/Gang Task Force, Homeland Security Investigations (HSI), and the U.S. Marshals Service. The DEA Tactical Diversion Squad is composed of personnel from the DEA, the Connecticut State Police, and the West Haven, Hamden, Manchester, Bristol, Fairfield, and Seymour Police Departments. The FBI Task Force includes participants from the FBI, the Connecticut State Police, the Connecticut Department of Correction, and the New Haven, Milford, East Haven, West Haven, and Wallingford Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Ross Weingarten, John T. Pierpont, Jr., Konstantin Lantsman, and Katherine Boyles through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Texan extradited to face multiple firearms chargesRead the Press Release
LAREDO, Texas – A 39-year-old resident of Laredo is back on U.S. soil on charges of aiding and abetting straw purchasing, being a felon in possession of a firearm and transferring a firearm to a prohibited person, announced U.S. Attorney Nicholas J. Ganjei.
Jesus Guadalupe Covarrubias had previously fled to Mexico. He is expected to make his initial appearance Feb. 24 before U.S. Magistrate Judge Diana Song at 9:30 a.m.
A federal grand jury returned an indictment against him and others Oct. 5, 2021.
In August 2021, authorities had been conducted surveillance at a house in Laredo, according to the charges. During the operation, they allegedly observed Covarrubias and others as they exited and entered the house or garage and appeared to be placing items into nearby vehicles. The charges allege Covarrubias eventually left the house with two others and went to a second home.
There, law enforcement observed the movement of three rifles from a truck into the house and took Covarrubias and others into custody.
The charges allege they had been involved in fraudulently purchasing firearms since Dec. 4, 2019.
Covarrubias is a convicted felon, according to the charges. As such, he is prohibited from possessing firearms or ammunition per federal law.
After his arrest, he was permitted release on bond and fled to Mexico where he was ultimately arrested and later returned to United States authorities.
If convicted, Covarrubias faces up to 10 years in federal prison and a possible $250,000 maximum fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosive conducted the investigation with assistance from the Webb County Sheriff’s Office and Laredo Police Department. The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Covarrubias. U.S. Marshals Service completed the removal of Covarrubias from Mexico to the Southern District of Texas. Assistant U.S. Attorney Brian Bajew is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.