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Thursday 6 February 2025
Luzerne County Man Sentenced to 188 Months in Prison for Conspiring to Distribute Fentanyl and MethamphetamineRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Anthony Jordan Vega, age 29, of Hazleton, Pennsylvania, was sentenced on February 4, 2025, by United States District Court Judge Robert D. Mariani to 188 months’ imprisonment to be followed by five years of supervised release for conspiring to distribute, and distribution of fentanyl and other controlled substances.
According to Acting United States Attorney John C. Gurganus, Vega was involved in a conspiracy to distribute fentanyl and other controlled substances throughout Lackawanna and Luzerne Counties beginning in January 2022 until the time of his arrest on April 20, 2023. The investigation revealed that Vega managed a network of drug traffickers and utilized co-conspirators to facilitate drug orders and drug distributions. After a series of undercover purchases of controlled substances from Vega and others beginning in February through March 2023, Vega was arrested on April 20, 2023. At the time of his arrest, Vega attempted to obstruct justice by directing the concealment of approximately 5,000 bags of fentanyl and other contraband located in a stash house in Hazleton. The obstruction attempt and managerial role were taken into consideration at sentencing.
Vega was indicted by a grand jury in Scranton on April 18, 2023, along with Alex Hernandez, age 25, also from Hazleton and a member of Vega’s conspiracy. Vega appeared in federal court in Scranton on July 19, 2024, and plead guilty to conspiracy to distribute and distribution of fentanyl and methamphetamine. Hernandez was previously sentenced to 10 years’ imprisonment for his role in the conspiracy.
The charges stem from a joint investigation involving the Federal Bureau of Investigation (FBI) in Scranton - Safe Streets Task Force, and the Pennsylvania State Police. Assistant United States Attorney Michelle Olshefski prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and fentanyl. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is also 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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Louisville Man Sentenced to over 8 Years in Federal Prison for Cocaine Distribution and Firearm OffenseRead the Press Release
Louisville, KY – A local man was sentenced this week to 8 years and 1 month for conspiracy to possess cocaine with intent to distribute, possession of cocaine with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Chief Paul Humphrey of the Louisville Metro Police Department made the announcement.
According to court documents, Roger Bailey, 42, was sentenced to 8 years and 1 month in prison, followed by 3 years of supervised release, for conspiracy to possess cocaine with intent to distribute, possession of cocaine with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. Between April 9, 2024, and May 29, 2024, Bailey conspired with other persons to possess with intent to distribute cocaine by selling cocaine on four occasions. On May 29, 2024, a residential search warrant was executed on Bailey’s residence located at 441 South 29th Street, Louisville, Kentucky. During the search, cocaine, a Mossberg, Model MMR, 5.56 caliber rifle, a Glock, Model 19, 9-millimeter pistol, an American Tactical Imports, Model Omni Hybrid, multi-caliber pistol, and ammunition were found and seized.
There is no parole in the federal system.
This case was investigated by the ATF with assistance from the Louisville Metro Police Department.
Assistant U.S. Attorney Erwin Roberts 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.
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Louisville Man Sentenced to 3 Months Federal Incarceration and 3 Months Home Incarceration for Aiming a Laser at Police HelicopterRead the Press Release
LOUISVILLE, KY – A Louisville man was sentenced this week to 3 months incarceration to be followed by 3 months home incarceration aiming the beam of laser at a Louisville Metropolitan Police Department.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office, and Chief Paul Humphrey of the Louisville Metro Police Department made the announcement.
“This senseless act could easily have resulted in tragedy for the crew of the helicopter, other aircraft, and citizens on the ground,” said U.S. Attorney Bennett. “We will continue to work with our law enforcement partners to aggressively identify and charge anyone who engages in this type of criminal conduct. I commend the FBI and LMPD for their prompt investigative work in identifying and apprehending Mr. Freeman.”
According to court documents, Justin E. Freeman, 33, of Louisville, Kentucky, was sentenced 3 months incarceration and 3 months home incarceration, followed by 2 years of supervised release, for aiming the beam of a laser at an aircraft. On or about September 30, 2023, Freeman directed the beam of a laser at an LMPD helicopter operating in Louisville, Kentucky.
Assistant U.S. Attorney Joshua Judd prosecuted the case.
This case was investigated by the FBI and the Louisville Metro Police Department with assistance from the Federal Aviation Administration.
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Louisiana Doctor Sentenced for Illegally Distributing over 1.8M Doses of Opioids in $5.4M Health Care Fraud SchemeRead the Press Release
A Louisiana physician was sentenced yesterday to 87 months in prison for conspiring to illegally distribute over 1.8 million doses of Schedule II controlled substances, including oxycodone, hydrocodone, and morphine, and for defrauding health care benefit programs of more than $5.4 million.
According to court documents and evidence presented at trial, Adrian Dexter Talbot M.D., 59, of Slidell, owned and operated Medex Clinical Consultants (Medex), located in Slidell. Medex was a medical clinic that accepted cash payments from individuals seeking prescriptions for Schedule II controlled substances. Talbot routinely ignored signs that individuals frequenting Medex were drug-seeking or abusing the drugs prescribed. In 2015, Talbot took a full-time job in Pineville, Louisiana, and although he was no longer physically present at the Slidell clinic, he pre-signed prescriptions, including for opioids and other controlled substances, to be distributed to individuals there whom he did not see or examine. In 2016, Talbot hired another practitioner who, at Talbot’s direction, also pre-signed prescriptions to be distributed to individuals in exchange for cash deposited into a Medex bank account. The evidence also demonstrated that Talbot falsified patient records to cover up the scheme and to make it appear as though he was routinely examining the patients. With Talbot’s knowledge, these individuals filled their prescriptions using their insurance benefits, thereby causing health care benefit programs, including Medicare, Medicaid, and Blue Cross Blue Shield of Louisiana, to be fraudulently billed for controlled substances that were prescribed without an appropriate patient examination or determination of medical necessity.
On July 22, 2024, Talbot was convicted by a jury in the Eastern District of Louisiana of one count of conspiracy to unlawfully distribute and dispense controlled substances, four counts of unlawfully distributing and dispensing controlled substances, one count of maintaining a drug-involved premises, and one count of conspiracy to commit health care fraud.
Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, the U.S. Attorney’s Office for the Eastern District of Louisiana, Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Special Agent in Charge Kris Raper of the Department of Veterans Affairs Office of Inspector General (VA-OIG)’s South Central Field Office, Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division, Acting Special Agent in Charge Stephen A. Cyrus of the FBI New Orleans Field Office, and Louisiana Attorney General Liz Murrill made the announcement.
HHS-OIG, VA-OIG, FBI, and the Louisiana Medicaid Fraud Control Unit investigated the case.
Trial Attorneys Sara E. Porter and Gary A. Crosby II, Assistant Chief Justin Woodard, and Deputy Chief Kate Payerle of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Louisiana Doctor Sentenced for Illegally Distributing over 1.8M Doses of Opioids in $5.4M Health Care Fraud SchemeRead the Press Release
A Louisiana physician was sentenced yesterday to 87 months in prison for conspiring to illegally distribute over 1.8 million doses of Schedule II controlled substances, including oxycodone, hydrocodone, and morphine, and for defrauding health care benefit programs of more than $5.4 million.
According to court documents and evidence presented at trial, Adrian Dexter Talbot M.D., 59, of Slidell, owned and operated Medex Clinical Consultants (Medex), located in Slidell. Medex was a medical clinic that accepted cash payments from individuals seeking prescriptions for Schedule II controlled substances. Talbot routinely ignored signs that individuals frequenting Medex were drug-seeking or abusing the drugs prescribed. In 2015, Talbot took a full-time job in Pineville, Louisiana, and although he was no longer physically present at the Slidell clinic, he pre-signed prescriptions, including for opioids and other controlled substances, to be distributed to individuals there whom he did not see or examine. In 2016, Talbot hired another practitioner who, at Talbot’s direction, also pre-signed prescriptions to be distributed to individuals in exchange for cash deposited into a Medex bank account. The evidence also demonstrated that Talbot falsified patient records to cover up the scheme and to make it appear as though he was routinely examining the patients. With Talbot’s knowledge, these individuals filled their prescriptions using their insurance benefits, thereby causing health care benefit programs, including Medicare, Medicaid, and Blue Cross Blue Shield of Louisiana, to be fraudulently billed for controlled substances that were prescribed without an appropriate patient examination or determination of medical necessity.
On July 22, 2024, Talbot was convicted by a jury in the Eastern District of Louisiana of one count of conspiracy to unlawfully distribute and dispense controlled substances, four counts of unlawfully distributing and dispensing controlled substances, one count of maintaining a drug-involved premises, and one count of conspiracy to commit health care fraud.
Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, the U.S. Attorney’s Office for the Eastern District of Louisiana, Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Special Agent in Charge Kris Raper of the Department of Veterans Affairs Office of Inspector General (VA-OIG)’s South Central Field Office, Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division, Acting Special Agent in Charge Stephen A. Cyrus of the FBI New Orleans Field Office, and Louisiana Attorney General Liz Murrill made the announcement.
HHS-OIG, VA-OIG, FBI, and the Louisiana Medicaid Fraud Control Unit investigated the case.
Trial Attorneys Sara E. Porter and Gary A. Crosby II, Assistant Chief Justin Woodard, and Deputy Chief Kate Payerle of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Los Angeles County Sheriff’s Deputy Found Guilty of Federal Civil Rights Violation for Using Excessive Force Against WomanRead the Press Release
LOS ANGELES – A Los Angeles County Sheriff’s deputy was found guilty by a jury today of using excessive force when he assaulted and pepper-sprayed a woman outside a supermarket in Lancaster in June 2023.
Trevor James Kirk, 32, of Santa Clarita, was found guilty of one felony count of deprivation of rights under color of law.
According to evidence presented at a three-day trial, on June 24, 2023, Kirk and another deputy were responding to a possible robbery at a WinCo Foods supermarket by a man and a woman. Kirk and the other deputy arrived on scene and handcuffed and detained a man matching the description of the male suspect, while the victim, identified in court documents as “J.H.” – who matched the description of the female suspect – recorded the deputies on her cellphone. While recording, J.H. told Kirk that he had a legal obligation to inform the man of the basis for his detention and that she was broadcasting his actions on social media.
Kirk then approached J.H. and, without giving any commands, attempted to grab her phone. J.H. turned away, at which point Kirk grabbed J.H. by her arm, hooked his left hand behind her neck, and violently threw her face first to the ground. While on the ground, Kirk yelled at J.H. to “get on the ground,” and she told him that “It’s already on YouTube Live,” implying her video of Kirk and the other deputy handcuffing D.B. had already been shared on social media.
Kirk then placed his knee on J.H.’s shoulder and, when J.H. yelled for Kirk to “stop,” Kirk cocked his right arm back with a clenched fist and said, “Stop or you’re gonna get punched in the face.” Kirk then pressed his knee into J.H.’s neck, and she said, “Get your neck [sic] off my… off my… I can’t breathe.” While on top of J.H., Kirk used his LASD radio to give a misleading report that he was in a “fight.”
Without giving any additional commands to J.H., Kirk pepper-sprayed her twice in the face. While Kirk pepper sprayed J.H., her hands were holding only prescription sunglasses and a cloth surgical mask. J.H. received medical attention for her injuries sustained from the pepper spray and from being thrown to the ground. J.H. was treated for blunt-force head trauma and injuries to her head, arms, and wrist.
United States District Judge Stephen V. Wilson scheduled an April 21, sentencing hearing, at which point Kirk will face a statutory maximum sentence of 10 years in federal prison.
The FBI investigated this matter. The Los Angeles County Sheriff’s Department assisted in the investigation.
Assistant United States Attorneys Eli A. Alcaraz, Brian R. Faerstein and Michael J. Morse of the Public Corruption and Civil Rights Section prosecuted this case.
Long Island-Based Bloods Gang Members Charged with Attempted Murders, Armed Robberies, Firearms Trafficking and Fraud in Second Superseding IndictmentRead the Press Release
Earlier today in federal court in Central Islip, three Bloods gang members, Dwayne Murray, Kendrick Seymore and Lavalle Wilson, were arraigned on new charges in a 46-count second superseding indictment before United States District Judge Joan M. Azrack. That indictment also charges an additional defendant, high-ranking Bloods gang member Sheim Tevin Ramsey-Davis (Ramsey-Davis), with racketeering and racketeering conspiracy, violent crimes in-aid-of racketeering, brandishing and discharging a firearm during a crime of violence, robbery, fraud and narcotics trafficking. Ramsey-Davis was arrested on January 30, 2025, in Augusta, Georgia and will be arraigned in the Eastern District of New York at a later date.
The second superseding indictment includes the following new charges against Murray, Seymore and Wilson for crimes they allegedly committed in Suffolk County between 2016 and 2022:
- Murray is charged with a September 26, 2016 attempted murder; a May 28, 2020 attempted murder; a May 2020 gunpoint robbery; and firearms trafficking. Murray was previously charged with the June 12, 2020 murder of Wayne Cherry and Seymore was previously charged with the July 23, 2021 execution-style murders of Nyasia Knox, Diamond Schick and Richard Castano.
- Seymore is charged with a May 2020 gunpoint robbery; an October 23, 2020 armed home invasion robbery; a September 25, 2021 armed home invasion robbery; and an October 1, 2021 attempted armed home invasion robbery.
- Murray and Wilson are charged with conspiring with other members of the gang to defraud victims of significant amounts of money between 2020 and 2022.
John J. Durham, United States Attorney for the Eastern District of New York; Raymond A. Tierney, Suffolk County District Attorney; James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); Bryan Miller, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Office (ATF NY); and Kevin Catalina, Commissioner, Suffolk County Police Department (SCPD), announced the arrest and charges.
“With these new and very serious charges, law enforcement continues its objective of dismantling the Bloods on Long Island, and of prosecuting gang members who are drivers of gun violence and numerous other crimes in Suffolk County,” stated United States Attorney Durham. “My Office and our federal and local partners will not relent in our efforts to remove this threat in order to make our communities safer.”
Mr. Durham expressed his appreciation to the U.S. Attorney’s Office for the Southern District of Georgia and FBI’s Resident Agency in Augusta, Georgia, for their assistance with the case.
“The crimes alleged here strike at the very fabric of our community through violence, intimidation and corruption. Each count in this indictment, from murder to firearms trafficking, represents not just a crime, but a family traumatized, a neighborhood living in fear, or young people pulled into a cycle of violence,” stated Suffolk County District Attorney Tierney. “My office will continue working alongside our federal and local partners to dismantle all such criminal enterprises and restore safety to the communities they have terrorized.”
FBI Assistant Director in Charge Dennehy stated: “These three gang members allegedly engaged in an array of criminal activity –murders, armed robberies, and narcotics trafficking – designed to bolster their financial and internal social statuses as well as punish rival entities. This series of new charges emphasizes the various extreme measures the defendants will allegedly implement to support their gang’s operations. Alongside our law enforcement partners, the FBI remains steadfast in its mission to eradicate the gang violence and criminality polluting our communities.”
“This indictment underscores the collective commitment with ATF NY and our law enforcement partners,” stated ATF NY Special Agent in Charge Miller. “Dismantling violent gangs that terrorize our communities and threaten public safety remain a top priority. It is our obligation to bring every resource to bear in the face of brazen acts of violence. We remain fully committed to enhancing public safety through identifying and eliminating the key drivers of violence. Thank you to the efforts of the men and women of ATF NY Long Island Joint Firearms Task Force, FBI, Suffolk County Police Department and EDNY.”
“These defendants have terrorized the community for years, committing a spree of violent crimes,” stated SCPD Commissioner Catalina. “It is through the diligent work of investigators from multiple agencies that we are able to levy new charges. The department along with our law enforcement partners remains committed to working together to fight the brutality of gang members.”
As alleged in court filings, the defendants engaged in numerous acts of violence on behalf of the Bloods gang, including robberies, home invasions, numerous shootings and four murders. The defendants are members of a Bloods set known as the Gorilla Stone Bloods (GSB), which have “kaves” located in various towns on Long Island. Murray and Ramsey-Davis were the leaders of the “Money Gang Kave.” The second superseding indictment adds charges stemming from the defendants’ years-long use of violence to target their rivals and armed robberies to enrich the members of the gang.
Specifically, on September 26, 2016, Murray, who was the leader of a set of the Bloods, shot a victim multiple times to increase his own status within the Bloods. On May 28, 2020, Ramsey-Davis, at Murray’s direction, fired numerous shots at two individuals believed to be associated with a rival gang who were seated in a parked car in front of a residence in Bellport. Murray, Seymore and Ramsey-Davis, along with other gang members, also routinely scouted lucrative robbery targets and committed several armed robberies and home invasions in Suffolk County in 2020 and 2021. In addition, Ramsey-Davis and his co-conspirators sold large amounts of narcotics, including fentanyl. They also engaged in numerous fraud schemes, including identity theft, credit card and bank fraud and defrauding state unemployment systems. Ramsey-Davis also purchased and sold firearms, and supplied lower-level members of the gang with guns.
Previously, Murray and Seymore were charged with racketeering, murder, attempted murder, firearms offenses and narcotics trafficking, and Wilson was charged with attempted murder, firearms offenses and narcotics trafficking.
The charges in the second superseding indictment are allegations, and the defendants are presumed to be innocent unless and until proven guilty.
The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorneys Mark E. Misorek and Andrew P. Wenzel and Special Assistant United States Attorneys Donald N. Barclay and Dena C. Rizopoulos are in charge of the prosecution, along with Paralegal Specialist Dejah Turla.
The Defendants:
DWAYNE MURRAY (also known as “Wayno”)
Age: 33
Residence: Coram, Long IslandSHEIM TEVIN RAMSEY-DAVIS (also known as “KG”)
Age: 26
Residence: Augusta, GeorgiaKENDRICK SEYMORE (also known as “KR”)
Age: 22
Residence: Coram, Long IslandLAVALLE WILSON (also known as “Val,” Skip,” “Flip” and “Wes”)
Age: 30
Residence: Shirley, Long IslandE.D.N.Y. Docket No. 22-CR-401 (S-2) (JMA)
Lockheed Martin Corporation Agrees to Settle False Claims Act Allegations of Defective PricingRead the Press Release
Lockheed Martin Corporation (LMC) has agreed to pay $29.74 million to resolve False Claims Act allegations of defective pricing on contracts for F-35 military aircraft. This payment is in addition to $11.3 million that LMC previously paid to the Department of Defense (DOD) for the same undisclosed cost and pricing data on some of the same contracts. LMC, headquartered in Bethesda, Maryland, is one of the world’s largest defense contractors.
According to court documents, between 2013 and 2015, LMC inflated pricing proposals it submitted to obtain contracts for the F-35 by failing to provide to DOD’s F-35 Joint Program Office (JPO) accurate, complete, and current cost and pricing data during the negotiations leading to the award of five contracts for the production or sustainment of the F-35. The United States alleged that LMC had knowledge of suppliers’ cost or pricing data that it did not disclose to the JPO in violation of the Truth in Negotiations Act (TINA). Congress enacted TINA in 1962 to help level the playing field in sole source contracts — where there is no price competition — by making sure that government negotiators have access to the cost or pricing data that the offeror used when developing its proposal. The United States alleged that had LMC provided accurate, complete, and current cost and pricing data, JPO would have awarded the contracts in lower amounts.
“Those who do business with the government must do so fairly and honestly,” said Acting Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “We will pursue contractors that knowingly misuse taxpayer funds.”
“The United States relies on contractors such as Lockheed Martin to provide accurate, complete, and current information, including pricing data, when negotiating contracts with the government,” said Acting U.S. Attorney Abe McGlothin, Jr, for the Eastern District of Texas. “If a contractor fails to do so, and that failure affects the value of its contract with the government, the Eastern District of Texas will take steps to ensure that the contractor is held accountable.”
“The F-35 program is at the heart of our nation’s defense,” said Air Force Lt. Gen. Mike Schmidt, Director and Program Executive Officer, F-35 Joint Program Office. “The F-35 Joint Program Office will continue to insist on integrity and honesty in all business transactions. We demand 100% accountability for every dollar spent on this program on behalf of U.S. taxpayers and international customers and taxpayers.”
“The Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS) will methodically pursue all alleged violations of the False Claims Act and Truth in Negotiations Act,” said Principal Deputy Director James R. Ives of DCIS. “Today’s outcome reflects the unwavering commitment of DCIS and our investigative partners to hold accountable those who bilk the American taxpayer by perpetrating fraud against the DOD.”
“Overinflation of production and sustainment costs for an aircraft critical to our national defense undermines operational readiness and erodes the trust placed in the Department of Defense by the American people,” said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS and our investigative partners remain steadfast in our commitment to investigating entities that compromise the integrity of government contracts.”
The settlement derives from allegations originally brought in a lawsuit filed in the Eastern District of Texas by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties, known as relators, to bring suit on behalf of the government and to share in any recovery. The qui tam case is captioned U.S. ex rel. Patrick Girard v. Lockheed Martin Corp., No. 4:17-CV-147 (EDTX). The relator’s share of the settlement has not yet been determined.
This settlement was the result of a coordinated effort between the Civil Division, Commercial Litigation Branch, Fraud Section of the Department of Justice, and the U.S. Attorney’s Office for the Eastern District of Texas with assistance from JPO, DCIS, NCIS, and the Defense Contract Audit Agency.
Trial Attorney Arnold M. Auerhan of the Justice Department’s Civil Division and Assistant U.S. Attorney James Gillingham for the Eastern District of Texas handled the matter.
The claims resolved by the settlement are allegations only, and there has been no determination of liability
Laredo felon guilty in conspiracy to smuggle hundreds of aliensRead the Press Release
LAREDO, Texas – A 34-year-old Laredo man has admitted guilt in a multi-year conspiracy to smuggle aliens for financial gain, announced U.S. Attorney Nicholas J. Ganjei.
Since March 2023, Danny Nunez operated and coordinated an organization in Laredo that smuggled and harbored hundreds of aliens.
The investigation tied Nunez to coordinating numerous smuggling events such as one involving over 100 aliens Dec. 2, 2023. On that date, law enforcement observed several people being loading into a white trailer in a warehouse parking lot. A subsequent search resulted in the discovery of 101 aliens locked inside the trailer, including 12 unaccompanied children. Multiple people reported they had difficulty breathing and feared for their life due to the conditions in the trailer.
Juan Manuel Aguirre, 49, Laredo, pleaded guilty to conspiracy to smuggle aliens in the United States, admitting his role in the transportation and smuggling of this group.
At the time of Nunez’s arrest, authorities also conducted a search of his residence resulting in the seizure of cell phones and ledgers documenting the aliens Nunez and others had smuggled over the course of the conspiracy. They also found over $36,000 in resulting proceeds and two illegal aliens on the premises.
“The road to a secure border runs through the Southern District of Texas,” said Ganjei. “Human smuggling is a terrible practice, one that the Department is focused on eradicating. My advice to those in the human smuggling business is to find a new line of work.”
Both Nunez and Aguirre face up to 10 years in prison for conspiracy to smuggle aliens in the United States. They could also be ordered to pay up to $250,000 in fines.
They will remain in custody pending sentencing.
Homeland Security Investigations, FBI, Texas Department of Public Safety. and Border Patrol conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of Customs and Border Protection, the Laredo Police Department, Drug Enforcement Administration and Webb County Sheriff’s Office. 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 on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorney Brandon Scott Bowling is prosecuting the case.
Jasper County felon guilty of federal firearms and drug trafficking crimesRead the Press Release
BEAUMONT, Texas – A Buna man has been convicted of federal firearms and drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Abe McGlothin, Jr.
Leotis Cornelius McMahon, 48, was convicted of being a felon in possession of a firearm and possession of methamphetamine with intent to distribute following a three-day trial before U.S. District Judge Marcia A. Crone on February 5, 2025.
According to information presented in court, in 2023, law enforcement was investigating McMahon for distributing narcotics within Southeast Texas. After a prolonged surveillance operation, a traffic stop was conducted on McMahon where he was found to be transporting large amounts of marijuana, cocaine, and nearly a kilogram of “actual” methamphetamine. After the traffic stop, a search warrant for McMahon’s residence in Buna was obtained and executed. Law enforcement discovered materials used in the distribution of narcotics as well as four separate firearms, one being an AR style pistol. One of the firearms seized from McMahon’s residence was stolen.
McMahon was operating what was described as a mobile illegal drug shop. The amounts of controlled substances, along with the tools used in trafficking such as scales and bags used for distribution, seized from McMahon indicated that he was dealing significant quantities of drugs for profit.
Further investigation revealed McMahon is a convicted felon and prohibited by federal law from owning or possessing firearms or ammunition.
McMahon was indicted by a federal grand jury on July 10, 2024. He faces up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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.
This case was investigated by the Texas Department of Public Safety – Criminal Investigations; Lumberton Police Department; Jasper County Sheriff’s Office; Beaumont Police Department; U.S. Drug Enforcement Administration; and Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case is being prosecuted by Assistant U.S. Attorneys Jonathan Lee and John B. Ross.
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Janesville Man Sentenced to 7 Years for Cocaine TraffickingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Taiwan Edwards, 29, Janesville, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 7 years in federal prison for possessing 500 grams or more of cocaine intended for distribution. Edwards pleaded guilty to this charge on October 28, 2024.
In October 2023, law enforcement executed a search warrant at a storage unit connected to Edwards. Officers recovered more than a kilogram of cocaine and $72,573. Officers also found six firearms, including two “ghost guns,” and ammunition. A “ghost gun” is a privately made firearm that does not have a serial number.
At sentencing, Judge Peterson described the storage unit as a “mini armory,” and noted that Edwards had engaged in a “very substantial” amount of drug trafficking.
The charge against Edwards was the result of an investigation conducted by the Janesville Police Department and the Wisconsin Department of Criminal Investigation. Assistant U.S. Attorney Megan R. Stelljes prosecuted this case.
Indian National Sentenced for Making False Statements in an Application for a U.S. Passport and to Federal AgentsRead the Press Release
BOSTON – An Indian national living in Chelsea, Mass. was sentenced yesterday in federal court in Boston for making false statements in an application for a U.S. passport and making false statements to federal agents.
Sharn Parzival, 25, was sentenced by U.S. District Judge Richard G. Stearns to time served (approximately five months) and one year of supervised release. Parzival is subject to deportation. In December 2024, Parzival pleaded guilty to an Information.
On Jan. 31, 2023, Parzival submitted an application for a U.S. passport at a post office in Somerville, Mass. In the application he claimed to have been born in Maryland and declared under penalty of perjury that he was a citizen or national of the United States. As proof of identity and citizenship, Parzival submitted copies of a Massachusetts driver’s license and a purported Maryland birth certificate. The investigation revealed, however, that Parzival had entered the country in 2021 from India on a non-immigrant student Visa but had thereafter been expelled by the school he was attending. Further investigation revealed that the birth certificate was fraudulent and that Maryland had never issued a birth certificate in Parzival’s name.
On April 26, 2023, Parzival went to the office of the U.S. Department of State (DOS) in Boston to inquire about the status of his passport application. He agreed to be interviewed by DOS agents and made a number of false statements, including that he had been born in Maryland, that he had no affiliation with India and that he had never applied for a Visa. A fingerprint analyst subsequently compared Parzival’s fingerprints to fingerprints that he provided when he applied for the Visa in India and concluded that they matched.
United States Attorney Leah B. Foley and Matthew O’Brien, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office made the announcement. Assistant U.S. Attorney Robert E. Richardson of the Major Crimes Unit prosecuted the case.
Houston Man Indicted for Coercing, Enticing Minors and Sexually Exploiting a Minor to Produce Child Sexual Abuse MaterialRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment charging Dazhon Darien, 32, of Houston, Texas, with five counts of sexual exploitation of a child, two counts of coercion and enticement of a child, one count of receipt of child sexual abuse material, and four counts of possession of child sexual abuse material.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the charges with Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office, and Chief Robert McCullough, Baltimore County Police Department.
According to the indictment, between July 2023 and July 2024, the defendant persuaded, induced, enticed, and coerced a minor male to engage in sexually explicit conduct for the purpose of producing and transmitting child sexual abuse material. Additionally, the indictment alleges that the defendant enticed two minor males to engage in prohibited sexual conduct and Darien possessed child sexual abuse material in internet-based accounts and on one digital device.
If convicted, Darien faces a mandatory minimum sentence of 15 years and up to a maximum sentence of 30 years in federal prison for each of the five counts of sexual exploitation of a minor; a mandatory minimum sentence of 10 years and up to a maximum sentence of life imprisonment for each of the two counts of coercion and enticement of a child; a mandatory minimum of five years and up to a maximum of 20 years in federal prison for the single count of receipt of child sexual abuse material, and a maximum of 20 years in federal prison for each of the four counts of possession of child sexual abuse material.
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. Individuals charged by indictment are presumed innocent until proven guilty at a later criminal proceeding.
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 Attorney’s 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, visit www.justice.gov/psc. For more information about Internet safety education, click on the “Resources” tab on the left of the page.
U.S. Attorney Barron commended the Baltimore FBI Field Office and the Baltimore County Police Department, for their work in the investigation. Mr. Barron also thanked Assistant U.S. Attorneys Christine O. Goo and Paul E. Budlow who are prosecuting the federal case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Hagerstown Man Faces Federal Indictment for Sexually Exploiting a Minor and Producing Child Sexual Abuse MaterialRead the Press Release
Baltimore, Maryland – A federal grand jury indicted William Foster Alger, 75, of Hagerstown, Maryland, charging him with seven counts of sexual exploitation of a child, three counts of coercion and enticement of a child, and five counts of possession of child sexual abuse material.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the indictment with Special Agent in Charge Michael S. McCarthy, Homeland Security Investigations (HSI); Colonel Paul Joey Kifer, Chief of Police of the Hagerstown Police Department (HPD); and Washington County State’s Attorney Gina Cirincion.
According to the indictment, between November 2023 and December 2024, the defendant persuaded, induced, enticed, and coerced three minor females to engage in sexually explicit conduct for the purpose of producing and transmitting child sexual abuse material. Additionally, Alger allegedly enticed the minors to engage in prohibited sexual conduct. He also possessed child sexual abuse material in an internet-based account and on four digital devices.
If convicted, Alger faces a mandatory minimum sentence of 15 years and up to a maximum sentence of 30 years in federal prison for each of the seven counts of sexual exploitation of a minor; a mandatory minimum sentence of 10 years and up to a maximum of life imprisonment for each of the three counts of coercion and enticement of a child; and a maximum of 20 years in federal prison for each of the four counts of possession of child sexual abuse material.
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. Individuals charged by indictment are presumed innocent until proven guilty at a later criminal proceeding.
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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, click on the “Resources” tab on the left of the page.
U.S. Attorney Barron commended HSI, HPD, and the Washington County State’s Attorney’s Office for their work in the investigation. Mr. Barron also thanked Assistant U.S. Attorney Paul E. Budlow who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Guatemalan National Previously Removed from the United States on Nine Prior Occasions Pleads Guilty to Illegal ReentryRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Dimas Obispo Yuman-Parada (62, Guatemala) has pleaded guilty to illegal reentry by a previously deported alien. Yuman-Parada faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to court documents, Yuman-Parada was previously removed from the United States on nine prior occasions—1986, 1999, 2004, 2008, 2009, 2011, 2012, 2013, and 2015. Following his removal from the United States in 2015, Yuman-Parada did not receive the consent of the Attorney General or the Secretary of Homeland Security to reapply for admission to the United States. Yuman-Parada was found to be voluntarily back in the United States in October 2024, when he was arrested in the Middle District of Florida on a state charge of domestic battery. Yuman-Parada was previously convicted in the Southern District of Texas of illegal reentry in 2014.
This case was investigated by Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO). It is being prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
Guam Man Sentenced to 10 Years in Federal Prison for Enticement of a MinorRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Ricky Junior O. Quichocho, age 37, from Dededo, Guam, was sentenced by the U.S. District Court of Guam on February 4, 2025 to 10 years imprisonment for Attempted Enticement of a Minor, in violation of 18 U.S.C. § 2422(b). The Court also ordered five years of supervised release following imprisonment and a mandatory $100.00 special assessment fee. Quichocho was ordered to register with the Sex Offender Registry anywhere he resides, is employed, or is in school.
In May of 2024, Air Force Office of Special Investigation and Homeland Security Investigations conducted a joint undercover operation to identify and target individuals who were seeking to contact and engage in sexual activity with minor children. Agents created multiple personas on several social networking applications and posted in online forums.
On May 7, 2024, Ricky Junior O. Quichocho, a civilian employee of a military contractor, initiated contact with the undercover persona. Even though the undercover persona said she was 13 years old, Quichocho continued communication and stated he was interested in “sexual fun.” Throughout the month, Quichocho continued text messages of a sexual nature, indicating various sex acts he wanted to do with the undercover persona. On June 10, 2024, after an agreement to meet with the minor at the Anderson Air Force Base Visitor Control Center parking lot, Quichocho instead was met by Air Force Office of Special Investigations Special Agents. In a subsequent interview, Quichocho admitted to his conduct. A forensic analysis of Quichocho’s cellphone confirmed text messages and photographs sent to the undercover persona.
“Interagency partnerships are the key to fighting child exploitation,” stated United States Attorney Anderson. “This case is another reminder of the dangers faced by children during online activity. We will continue to target offenders who prey on this vulnerable segment of our communities. I applaud HSI and AFOSI in bringing Quichocho to justice.”
“HSI utilizes partnerships with agencies including AFOSI to protect our communities from child predators. By working together, HSI ensures resources are utilized most effectively to seek out and apprehend those who intend to harm our most vulnerable community members,” said Special Agent in Charge Lucy Cabral-DeArmas.
“AFOSI will continue to work alongside our law enforcement partners to root out criminal behavior that threatens the mission, equipment and people of the Department of the Air Force,” said Special Agent Eric Beebe, Commander of AFOSI Detachment 602. “We are dedicated to protecting our Airmen, their families, and the broader Guam community, as Operation Island Fever showcased.”
The case was investigated by Homeland Security Investigations and Air Force Office of Special Investigations Detachment 602.
Assistant United States Attorney Devarup Rastogi prosecuted the case in the District of Guam.
This was a Project Safe Childhood (PSC) case, 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 U.S. Attorneys' Offices and CEOS, PSC 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 PSC, please visit Justice.gov/PSC.
Gang Member Sentenced to 144 Months in Prison for Racketeering and Drug ChargesRead the Press Release
NEWARK, N.J. – A member of the Rollin’ 60s Neighborhood Crips gang was sentenced on Wednesday to 144 months in prison for his role in a racketeering conspiracy and the sale of cocaine, Acting U.S. Attorney Vikas Khanna announced.
Kareem Green, a/k/a “Try Me”(“Green”), 32, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to a superseding indictment that charged him with Racketeer Influenced and Corrupt Organizations (“RICO”) conspiracy and a separate indictment charging him with distribution of cocaine. Judge Wigenton imposed the sentence on February 5, 2025 in Newark federal court.
According to documents filed in this case and statements made in court:
From 2015 through Sept. 22, 2022, Green was a member of the Rollin’ 60s Neighborhood Crips, a criminal enterprise responsible for acts of violence and the distribution of controlled substances in the District of New Jersey and elsewhere. On April 5, 2021, Green worked with other members of the gang to shoot a victim. On April 11, 2021, Green worked with other members of the gang to shoot another victim. On March 5, 2021, Green worked with another member of the gang to distribute cocaine.
In addition to the prison term, Judge Wigenton sentenced Green to three years of supervised release.
Acting U.S. Attorney Khanna credited special agents of the DEA, under the direction of Special Agent in Charge Cheryl Ortiz; the Internal Revenue Service, Criminal Investigation (IRS-CI), under the direction of Special Agent in Charge Jenifer Piovesan, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), under the direction of Special Agent in Charge L.C. Cheeks, Jr., as well as investigators of the U.S. Marshals Service, under Marshal Juan Mattos’ direction; the Irvington Police Department, under the direction of Police Division Director Tracy Bowers, the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly, the Newark Police Department, under the direction of Public Safety Director Emanuel Miranda, Sr., the Bloomfield Police Department, under the direction of Director of Public Safety Samuel A. DeMaio, the Essex County Sheriff’s Office, under Sheriff Amir D. Jones’ direction, the East Orange Police Department, under the direction of Chief Phyllis L. Bindi, the Elizabeth Police Department, under the direction of Police Director Earl J. Graves, the Edison Police Department, under the direction of Chief of Police Tom Bryan, the New Jersey State Police, under the direction of Colonel Patrick J. Callahan, the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel, the Spotswood Police Department, under the direction of Chief Philip Corbisiero, and the North Carolina State Bureau of Investigation Fugitive and Missing Person Task Force, which includes members of the FBI, for the investigations leading to the charges in the Rollin 60’s Neighborhood Crips investigation.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. 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.
The investigation was conducted as part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the Department of Homeland Security – Homeland Security Investigations, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Special Prosecutions Division and Assistant U.S. Attorney Jake A. Nasar of the Health Care Fraud Unit.
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Defense Counsel:
William Strazza, Esq., Chester, NJ
Four Pharmacists Sentenced for Roles in $13M Medicare, Medicaid, and Private Insurer Fraud ConspiracyRead the Press Release
Four pharmacy owners have been sentenced for their roles in a conspiracy to commit health care fraud and wire fraud.
Pharmacist Raef Hamaed, of Maricopa County, Arizona, was sentenced on Jan. 8 to 10 years in prison; pharmacist Tarek Fakhuri, of Windsor, Ontario, Canada, was sentenced on Jan. 13 to seven years in prison; pharmacist Ali Abdelrazzaq, of Macomb County, Michigan, was sentenced on Jan. 15 to two years in prison; and pharmacist Kindy Ghussin, of Greene County, Ohio, was sentenced today to five years and five months in prison.
According to court documents and evidence presented at trial, Hamaed, Fakhuri, Ghussin, and Abdelrazzaq billed Medicare, Medicaid, and Blue Cross Blue Shield of Michigan for prescription medications that they did not dispense at five pharmacies they owned and operated: Eastside Pharmacy, Harper Drugs, and Wayne Campus Pharmacy in Michigan, and Heartland Pharmacy and Heartland Pharmacy 2 in Ohio. The defendants collectively caused over $13 million of loss to Medicare, Medicaid, and Blue Cross Blue Shield of Michigan.
On Sept. 5, 2024, a federal jury convicted Hamaed, Fakhuri, Ghussin, and Abdelrazzaq of conspiracy to commit health care fraud and wire fraud. The jury also convicted Fakhuri of one count of health care fraud. Hamaed was sentenced for his role in the conspiracy at all five pharmacies; Fakhuri was sentenced for his role in the conspiracy at Harper Drugs, Wayne Campus Pharmacy, and Heartland Pharmacy; Ghussin was sentenced for his role in the conspiracy at Wayne Campus Pharmacy and both Heartland pharmacies; and Abdelrazzaq was sentenced for his role in the conspiracy at Wayne Campus Pharmacy.
Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office, and Special Agent in Charge Mario Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI Detroit Field Office and HHS-OIG investigated the case.
Trial Attorneys Claire Sobczak Pacelli, Kelly M. Warner, and S. Babu Kaza of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Four Defendants Charged with Cyberstalking, Kidnapping, and Murder in Parking Lot of Bronx Shopping CenterRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York; Frank A. Tarentino, the Special Agent in Charge for the New York Division of the Drug Enforcement Administration (“DEA”); and Jessica S. Tisch, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a Superseding Indictment in Manhattan federal court charging IVAN COLLADO; PATRICIA VILLALBA, a/k/a “Patty,” a/k/a “Sweetz”; ARECIO COLLADO; and JERRY VARGAS, a/k/a “Peligro,” with, among other things, cyberstalking resulting in death, murder through the use of a firearm, conspiracy to commit kidnapping resulting in death, and narcotics conspiracy in connection with the stalking and murder of Raymond Resto, a/k/a “Sugar Hill Tone” on November 26, 2023, in the Bronx, New York. IVAN COLLADO was previously arrested and charged with kidnapping conspiracy and attempted kidnapping resulting in death on February 15, 2024, when he was ordered detained. VILLALBA, ARECIO COLLADO, and VARGAS were arrested yesterday and will be presented today before U.S. Magistrate Judge Ona T. Wang. The case is assigned to U.S. District Judge J. Paul Oetken.
U.S. Attorney Danielle R. Sassoon said: “As alleged, these defendants carried out a sophisticated and brazen scheme to stalk, kidnap, and kill Raymond Resto over a drug debt. They murdered Resto in front of his wife in the parking lot of the Throggs Neck Shopping Center in the Bronx. This Office’s commitment to investigate such callous violence is unwavering and we will not relent in our aggressive pursuit of justice against violent criminals.”
DEA Special Agent in Charge Frank A. Tarentino said: “Drug trafficking is a dangerous and illegal business, often entangled with violent and deadly consequences. These individuals, who participated in the cyberstalking, attempted kidnapping, and murder of Mr. Resto, chose to use violence and intimidation to further their criminal enterprise. The unsealing of this Superseding Indictment is a result of the partnership DEA New York has with our law enforcement partners in keeping our communities safe and making sure those responsible for these types of violent crimes face consequences for their actions.”
As alleged in the charging documents in the case and in court documents:[1]
Between at least in or around November 2023 through at least in or about February 2024, IVAN COLLADO, VILLALBA, and ARECIO COLLADO participated in a conspiracy to distribute large quantities of powder cocaine in New York City and elsewhere. As part of this conspiracy, a particular drug dealer (“CC-1”) who was assisted by Resto, obtained kilograms of cocaine on consignment from IVAN COLLADO, VILLALBA, and ARECIO COLLADO, but CC-1 was unable to repay the debt owed for the cocaine.
In response, IVAN COLLADO, together with ARECIO COLLADO and VILLALBA, harassed and intimidated CC-1, including through threats of violence, in an attempt to secure repayment and identify Resto and CC-1’s customers. IVAN COLLADO, VILLALBA, ARECIO COLLADO, and VARGAS also took steps to locate and place Resto under surveillance in advance of his murder, including through the use of a GPS tracking device installed on Resto’s car.
On or about November 26, 2023, Resto was in the parking lot of the Throggs Neck Shopping Center in the Bronx with his wife when a BMW pulled in front of Resto and his wife, blocking their path to exit. Three gunmen attempted to force Resto into the BMW. During the kidnapping, one of the gunmen began shooting at Resto at close range. Resto struggled to escape while another kidnapper also opened fire. Resto was shot at least four times and was later pronounced dead at a local hospital. Resto was 49 years old.
Following the murder, IVAN COLLADO, ARECIO COLLADO, and VILLALBA redoubled their efforts to stalk, intimidate, and harass CC-1 and CC-1’s family.
If you believe that you have additional information about this murder, please contact the U.S. Attorney’s Office for the Southern District of New York at 1-866-874-8900, and reference this case.
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A chart containing the names of the defendants, the charges against them, and the associated penalties is set forth below.
The statutory maximum and minimum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentence of the defendant will be determined by the judge.
Ms. Sassoon praised the outstanding investigative work of the DEA Task Force, which is comprised of members of the DEA, NYPD, and New York State Police, as well as the NYPD’s Bronx Homicide Squad. Ms. Sassoon also thanked the New York/New Jersey High Intensity Drug Trafficking Area Intelligence Analysts for their support and assistance in this matter.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Ashley C. Nicolas, Joseph H. Rosenberg, and Courtney L. Heavey are in charge of the prosecution, with assistance from investigative analyst Koren Augustin and paralegal specialist Chanel-Ashley Foster.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1Narcotics Conspiracy
21 U.S.C. § 846
IVAN COLLADO,
PATRICIA VILLALBA,
a/k/a “Patty,”
a/k/a “Sweetz,”
ARECIO COLLADO
Life in prison
Mandatory minimum 10 years in prison
2Cyberstalking Resulting in Death
18 U.S.C. §§ 2261A(2)(A) and (B), 2261(b)(1), and 2
IVAN COLLADO,
PATRICIA VILLALBA,
a/k/a “Sweetz,”
ARECIO COLLADO,
JERRY VARGAS,
a/k/a “Peligro”
Life in prison3Conspiracy to Commit Kidnapping Resulting in Death
18 U.S.C. § 1201(c)
IVAN COLLADO,
PATRICIA VILLALBA,
a/k/a “Patty,”
a/k/a “Sweetz,”
ARECIO COLLADO,
JERRY VARGAS,
a/k/a “Peligro”
Life in prison4Firearms Use, Carrying, and Possession
18 U.S.C. § 924(c) and 2
IVAN COLLADO,
PATRICIA VILLALBA,
a/k/a “Patty,”
a/k/a “Sweetz,”
ARECIO COLLADO,
JERRY VARGAS,
a/k/a “Peligro”
Life in prison
Mandatory minimum consecutive sentence of 10 years in prison
5Murder Through the Use of a Firearm
18 U.S.C. § 924(j)
IVAN COLLADO,
PATRICIA VILLALBA,
a/k/a “Patty,”
a/k/a “Sweetz,”
ARECIO COLLADO,
JERRY VARGAS,
a/k/a “Peligro”
Life in prison or death6Cyberstalking With Use of a Dangerous Weapon
18 U.S.C. §§ 2261A(2)(A) and (B), 2261(b)(3), and 2
IVAN COLLADO,
PATRICIA VILLALBA,
a/k/a “Patty,”
a/k/a “Sweetz,”
ARECIO COLLADO,
JERRY VARGAS,
a/k/a “Peligro”
10 years in prison7False Statements
18 U.S.C. § 1001
PATRICIA VILLALBA,
a/k/a “Patty,”
a/k/a “Sweetz,”
Five years in prison8False Statements
18 U.S.C. § 1001
PATRICIA VILLALBA,
a/k/a “Patty,”
a/k/a “Sweetz”
Five years in prison9False Statements
18 U.S.C. § 1001
IVAN COLLADOFive years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact descried therein should be treated as an allegation.
Fort Dodge Man Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
Michael Turner, 35, from Fort Dodge, Iowa pled guilty February 5, 2025, in federal court in Sioux City, to felony possession of a firearm by a prohibited person.
At the plea hearing, Turner admitted that between March 1, 2024 and March 29, 2024, he possessed a Glock .45 caliber semi-automatic pistol, knowing that he was then previously convicted of robbery/no firearm in Cook County, Illinois in March of 2011, and introduction of drugs into a detention facility in Webster County, Iowa, in 2017, each a felony crime punishable of a term of imprisonment for more than one year. On March 8, 2024, a shooting occurred in Fort Dodge, Iowa. On March 29, 2024, law enforcement stopped a vehicle in which Turner was a passenger and located a .45 caliber Glock pistol under Turner’s seat. Officers found that Turner was wearing a holster that fit the pistol, and upon inquiry admitted that he had possessed the firearm at various times in March 2024.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Turner remains in custody of the United States Marshal pending sentencing. Turner faces a possible maximum sentence of 15 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
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 is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Fort Dodge Police Department, Iowa Division of Criminal Investigation, Iowa Division of Narcotics Enforcement, Iowa State Patrol, Webster County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-3023. Follow us on X @USAO_NDIA.
Former credit union manager imprisoned for embezzling over $200,000 from elderly clientsRead the Press Release
HOUSTON – A 58-year-old Prairie View woman has been sentenced for embezzlement by a federal credit union employee, announced U.S. Attorney Nicholas J. Ganjei.
Gloria Hall pleaded guilty April 23, 2024.
U.S. District Judge Charles Eskridge has now ordered Hall to serve 24 months in federal prison to be immediately followed by five years of supervised release. Additionally, Hall will be required to make full restitution of $211,563.12 to her victims who were all clients of the Prairie View Federal Credit Union. At the hearing, the court heard additional forensic accounting evidence that detailed the depth and length of her fraudulent scheme. In handing down the sentence, the court noted the cultural and historical significance of the Prairie View Federal Credit Union that Hall destroyed with her theft.
“Protecting our most senior and vulnerable citizens from fraud is a vital mission of this office,” said Ganjei. “We cannot and will not let their life’s work fall prey to the greed and deceit of criminals.”
“Gloria Hall’s crimes upended more than just her victims,” said Special Agent in Charge Douglas Williams of the FBI Houston Field Office. “Not only did Hall take advantage of her position to rob elderly bank customers of their life savings to enrich herself, but she also robbed the credit union of its 80-plus-years history when it was forced to merge with another institution as a direct result of her stealing. The small community she ingratiated herself in too was robbed of their life-long trust in the only bank they knew to safekeep their money.”
Hall was employed at Prairie View Federal Credit Union (PVFCU). From 2017 through 2019, while acting as manager, she purposefully maintained an antiquated business practice which would not allow customers to access their accounts online. Hall admitted she was able to and did access at least two elderly customer accounts and misappropriated $211,563.12 of their funds for her own personal gain.
PVFCU was one of the oldest continually operational federal credit unions a historically black college or university had established in the United States. It did not survive Hall’s embezzlement. PVFCU existed for approximately 85 years prior to its failure and merger with the Cy-Fair Federal Credit Union in early 2022.
Hall was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI – Bryan Resident Agency conducted the investigation. Assistant U.S. Attorney Thomas Carter prosecuted the case.
Former Utah Gymnastics Coach Admits to Having a Hidden Camera to Produce Child Sexual Abuse MaterialsRead the Press Release
SALT LAKE CITY, Utah – A Utah gymnastics coach and owner of USA Gymnastics World pleaded guilty to transportation of a minor with intent to engage in criminal sexual activity.
Adam Richard Jacobs, 34, of Woods Cross, Utah, was charged by indictment in April 2023. See press release: Utah Gymnastics Coach Arrested on Child Exploitation Charges
According to court documents and admissions made at the change of plea hearing, Jacobs, beginning on a date unknown and continuing until March 2023, transported a minor from Utah to other states including Florida and Texas as his gymnastics coach. During this time, he placed a hidden camera in the minor’s hotel room and bathroom to produce child sexual abuse materials. Jacobs further admitted that all electronic devices seized pursuant to a search warrant served in March 2023 were used to further participate in the production of child sexual abuse materials.
As stated in court documents, a USA Gymnastics World employee discovered a hidden camera twice in a unisex restroom at the facility and contacted police. A subsequent investigation recovered approximately 120 video files of victims in the restroom. Approximately 40 videos showed Jacobs setting up the cameras in his home and at USA Gymnastics World.
Jacobs is scheduled to be sentenced August 14, 2025, at 3:00 p.m. before a U.S. District Court Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is being investigated jointly by Homeland Security Investigations (HSI), Woods Cross Police Department, the Utah Attorney General’s Office Internet Crimes Against Children Task Force, Kaysville Police Department, Clearfield Police Department, the United States Secret Service, and the Davis County Attorney’s Office.
Special Assistant United States Attorney Carl Hollan and Assistant United States Attorney Carol Dain of the U.S. Attorney’s Office for the District of Utah are prosecuting the case.
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 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, please visit https://www.justice.gov/psc.
Former Sarpy County Employee Sentenced for Obtaining Information from a Protected ComputerRead the Press Release
United States Attorney Susan Lehr announced that Jeffrey Shafer, age 38, of Omaha, Nebraska, was sentenced on February 6, 2025, in federal court in Omaha for obtaining information from a protected computer. United States Magistrate Judge Michael D. Nelson sentenced Shafer to one year of probation. Shafer paid restitution in the amount of $26,950 prior to today’s sentencing.
On or about January 16, 2023, Shafer, an Information Systems employee of Sarpy County, was placed on administrative leave. Shafer was informed the same day that he was prohibited from accessing Sarpy County property, physically or via computer. Shafer’s Sarpy County computer network login and credentials were disabled the same day.
On January 25, 2023, a Sarpy County IT Manager observed suspicious logins to the Sarpy County computer network that occurred on January 24, 2023. It was determined Shafer reenabled his account and accessed several accounts on the Sarpy County computer network, including the email accounts of county employees.
FBI agents executed a search warrant at Shafer’s residence and conducted forensic examinations of Shafer’s electronic devices. The devices contained attribution evidence related to the unauthorized access into the Sarpy County computer network.
This case was investigated by the Federal Bureau of Investigation.
Former Sanger Police Officer Indicted for Illegal Firearms Dealing, Obstruction ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Daniel Battenfield, 40, of Visalia, alleging the unlawful dealing of firearms without a license, making materially false statements to a federal agent, and lying on a federal firearms form.
According to court documents, Battenfield has purchased and resold hundreds of firearms since at least 2016, purchasing the firearms below market price because of his law enforcement status and then reselling them for a profit. On at least one occasion, he placed an order directly for a customer, lying on a federal firearms form about purchasing the firearm for himself. When confronted by federal agents, he made false statements to them about his activities. Battenfield was placed on leave by the Sanger Police Department because of these activities in July 2024.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Sanger Police Department. Assistant U.S. Attorney Robert Veneman-Hughes is prosecuting the case.
If convicted of unlawful dealing in firearms or making false statement to a government agency, Battenfield faces a maximum statutory penalty of five years in prison and a $250,000 fine. If convicted of making materially false statement in purchase of firearms, he faces a maximum of 10 years in prison and a fine up to $250,000. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 U.S. Department of Justice 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.
Former Reno Police Officer Indicted for Civil Rights ViolationsRead the Press Release
RENO – A former Reno Police Department officer made his initial court appearance today for allegedly depriving two individuals of their civil rights under color of law by violating their right to be free from unreasonable search and seizure.
A federal grand jury returned an indictment charging Tyler Michael Baehr, 30, of Reno, with two counts of depravation of rights under color of law. Baehr appeared before United States Magistrate Judge Craig S. Denney who scheduled a jury trial to begin April 8, 2025, before United States District Judge Miranda M. Du.
According to allegations contained in the indictment and statements made in court, on December 31, 2023, Baehr willfully deprived an individual of the right to be free from unreasonable search and seizure by taking her cellular phone during a routine traffic stop and unlawfully seizing sexually explicit photos of her from her phone. On August 12, 2024, Baehr willfully deprived another individual of the right to be free from unreasonable search and seizure by taking her cellular phone during a routine traffic stop and unlawfully searching through her private photos and messages.
If convicted, Baehr faces the maximum statutory penalty of 2 years in prison. A federal district court judge will determine any sentence based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Sue Fahami and Acting Special Agent in Charge Jeremy N. Schwartz for the FBI made the announcement.
This case was investigated by the FBI and Sparks Police Department. Assistant United States Attorney Andolyn Johnson is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Former Professor Sentenced to 97 Months in Prison in Connection with Human Smuggling and Sex CrimesRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York, announced that JORGE ALBERTO RAMOS was sentenced today to 97 months in prison for smuggling three female victims from El Salvador to the U.S., where he sexually abused them, and possession of child pornography. RAMOS’s sentence was imposed by U.S. District Judge John G. Koeltl, who also presided over his guilty plea.
U.S. Attorney Danielle R. Sassoon said: “Today, Jorge Alberto Ramos was held to account for his horrific exploitation of women he smuggled into the United States and sexually abused over the course of a decade. We thank and commend the courageous women who came forward to law enforcement. Ramos’s sentencing is a reminder that the Southern District of New York will work tirelessly to protect vulnerable victims from abuse.”
According to the Indictment, the Information, and statements made in related court proceedings:
From at least in or about 2013 and in or about 2023, RAMOS smuggled three victims from El Salvador to the Bronx, New York, where he raped, sexually assaulted, and sexually abused them. RAMOS groomed at least three women (“Victim-1,” “Victim-2,” and “Victim-3,” and together, the “Victims”) by, among other things, expressing concern for them and their families and by sending them gifts and money. RAMOS then arranged for each of the Victims to be smuggled from El Salvador into the U.S., including by paying fees for smugglers (or “coyotes”) to transport the Victims across the southern U.S. border.
Over the course of a decade, each of the Victims was smuggled into the U.S. and transported to New York. RAMOS then brought each of the Victims, respectively and at different times, to his residence in the Bronx (the “Ramos Residence”). Once at the Ramos Residence, RAMOS raped and sexually assaulted the Victims. In or about 2016, RAMOS raped and sexually assaulted Victim-1 on the first day he brought Victim-1 to the Ramos Residence and then continued to do so for several weeks until Victim-1 fled from RAMOS. In or about 2017, RAMOS raped and sexually assaulted Victim-2 on the first day he brought Victim-2 to the Ramos Residence and continued to do so for approximately one month until Victim-2 fled from RAMOS. Between in or about 2013 and in or about 2014, RAMOS raped and sexually assaulted Victim-3 on at least three occasions after bringing Victim-3 to the Ramos Residence. While the Victims stayed at the Ramos Residence, RAMOS attempted to control the Victims by, among other things, ordering the Victims to stay inside the Ramos Residence, attempting to isolate the Victims from other people, and threatening to report the Victims to immigration officials for deportation back to El Salvador.
After RAMOS was arrested, law enforcement agents seized a desktop computer from the Ramos Residence that was powered on at the time of the search. A forensic analysis of the computer led to the discovery of multiple photographs and videos containing known child pornography.
* * *
In addition to the prison term, RAMOS, 45, of the Bronx, New York, was sentenced to five years of supervised release.
Ms. Sassoon praised the outstanding investigative work of U.S. Department of Homeland Security – Homeland Security Investigations and the New York City Police Department.
This case is being handled by the Office’s Civil Rights Unit in the Criminal Division and the Violent and Organized Crime Unit. Assistant U.S. Attorneys Elizabeth A. Espinosa, Emily A. Johnson, and Jane Kim are in charge of the prosecution.
Former Labor Union Financial Secretary Pleads Guilty to Embezzling Union AssetsRead the Press Release
PITTSBURGH, Pa. – A resident of Freedom, Pennsylvania, has pleaded guilty in federal court to a charge of embezzlement of labor union assets, Acting United States Attorney Troy Rivetti announced today.
Vincent Wolf, 57, pleaded guilty to one count before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the Court was advised that, from approximately April 2013 through April 2021, Wolf served as the financial secretary for the United Steelworkers Local Union 623 in Freedom. As financial secretary, Wolf was responsible for maintaining all financial records, preparing annual reports, and issuing payments on behalf of Local 623 related to union officers’ salaries and expenses. An audit of the union’s finances following Wolf’s re-election loss revealed that Wolf omitted from those records disbursements that he made to himself in the form of writing union checks to himself, ATM withdrawals, and using the union debit card to buy lunch and alcohol. The audit determined that Wolf embezzled a total of $14,695.
Judge Horan scheduled sentencing for June 4, 2025. The law provides for a total sentence of up to five years in prison, a fine of up to $10,000 or twice the gross pecuniary gain to Wolf, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The U.S. Department of Labor’s Office of Labor-Management Standards conducted the investigation that led to the prosecution of Wolf.
Former Interpreter Sentenced to Nearly 5 Years in Prison for Illegally Transferring Nearly $17 Million from Baseball Star’s Bank AccountRead the Press Release
SANTA ANA, California – A former Japanese-language interpreter was sentenced today to 57 months in federal prison for illegally – and without authorization – transferring nearly $17 million from the bank account of Major League Baseball (MLB) star Shohei Ohtani to pay off his own substantial gambling debts incurred with an illegal bookmaking operation and for signing a false tax return.
Ippei Mizuhara, 40, of Newport Beach, was sentenced by United States District Judge John W. Holcomb, who also ordered him to pay $16,975,010 in restitution to Ohtani and $1,149,400 in restitution to the IRS.
Mizuhara pleaded guilty in June 2024 to one count of bank fraud and one count of subscribing to a false tax return. He is free on $25,000 bond and was ordered to surrender to federal authorities by March 24.
“Mr. Mizuhara had a unique position of trust that gave him power, brought him fame, and paid him well,” said Acting United States Attorney Joseph T. McNally. “Unfortunately, he exploited this dream job to steal millions of dollars from his friend and confidant. This is a sad tale of an American success story gone wrong – so wrong that Mr. Mizuhara will be spending years inside a prison cell.”
“Mr. Mizuhara exploited his position of trust as an advisor to steal from Mr. Ohtani to cover debts incurred through illegal and irresponsible gambling,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Furthermore, Mr. Mizuhara failed to report his ill-gotten gains as taxable income. This sentencing should serve as a warning to those who neglect to report all income during tax season. We are proud to have partnered with Homeland Security Investigations to bring closure to Mr. Ohtani and justice to Mr. Mizuhara.”
“Mr. Mizuhara is yet another example of how those in a position of trust can take advantage of a relationship and defraud the government,” said Homeland Security Investigations Los Angeles Acting Special Agent in Charge John Pasciucco. “The HSI-led El Camino Real Financial Crimes Task Force will leverage all partnerships to locate and bring to justice those who commit financial crimes, especially those who think they can hide in plain sight.”
Mizuhara was the translator and de facto manager of a professional baseball player identified in court documents as “Victim A,” but who in fact was MLB star Shohei Ohtani. As part of his job duties, Mizuhara regularly interacted with Ohtani’s sports agents and financial advisors – who did not speak Japanese – on behalf of Ohtani, who did not speak English. Although Mizuhara was an employee of the Los Angeles Angels MLB team, for whom Ohtani played from 2018 to 2023, and, later, the Los Angeles Dodgers, for whom Ohtani has played since 2024, Ohtani paid him separately for the additional work of driving him to meetings and interpreting for non-baseball-related activities.
In March 2018, Mizuhara accompanied Ohtani to a bank in Phoenix to help him open a bank account to deposit his MLB salary. Inside the bank branch, Mizuhara interpreted for Ohtani when the bank employee provided Ohtani the login information for this bank account.
Beginning in September 2021, Mizuhara began placing sports bets with an illegal bookmaker. Shortly thereafter, Mizuhara began to lose bets and quickly became indebted to the bookmaker. Unable to pay his gambling debts, Mizuhara orchestrated a scheme to deceive and cheat the bank to fraudulently obtain money from the account.
From no later than November 2021 to March 2024, Mizuhara used Ohtani’s password to successfully sign into the bank account and then changed the account’s security protocols without Ohtani’s knowledge or permission. Specifically, Mizuhara changed the registered email address and telephone number on the account so bank employees would call him – not Ohtani – when attempting to verify wire transfers from the account.
Mizuhara impersonated Ohtani and used Ohtani’s personal identifying information to deceive the bank’s employees into authorizing wire transfers from the bank account. In total, Mizuhara called the bank and impersonated Ohtani on approximately 24 occasions.
In addition, in September 2023, Mizuhara needed $60,000 worth of dental work and Ohtani agreed to pay for it via a check drawn on a business account at a different bank. However, Mizuhara provided his dentist Ohtani’s debit card number for the bank account Ohtani had opened in Phoenix, charged $60,000 to that account, then deposited the $60,000 check into Mizuhara’s personal bank account.
From January 2024 to March 2024, Mizuhara purchased approximately $325,000 worth of baseball cards from online resellers such as eBay from Ohtani’s bank account with the intent to resell them later and for his own personal benefit.
When Ohtani’s sports agent and financial advisors asked Mizuhara for access to the bank account, Mizuhara lied and said Ohtani did not want them to access the account because it was private. In fact, Mizuhara did not want them to know that he had been stealing from Ohtani and had fraudulently obtained more than $16,975,010 from him.
In February 2024, he willfully made and subscribed to a false individual federal income tax return for the tax year 2022. On that tax return, Mizuhara falsely claimed that his total taxable income for that year was $136,865 when in fact he knew the amount was substantially higher and he knowingly failed to report additional income of $4.1 million.
Mizuhara, under penalty of perjury, signed the false income tax return and owes approximately $1,149,400 in additional taxes for the tax year 2022, plus additional interest and penalties.
IRS Criminal Investigation and Homeland Security Investigations are investigating this matter.
Assistant United States Attorneys Jeff Mitchell of the Major Frauds Section and Jonathan Galatzan of the Asset Forfeiture and Recovery Section prosecuted this case.
Former Government Employee and Wife Plead Guilty to Defrauding the Department of Veterans AffairsRead the Press Release
SAN DIEGO – Rafael Castro, a veteran of the U.S. Navy and a former employee of the Veterans Health Administration and the Internal Revenue Service, and his wife, Miriam Castro, pleaded guilty in federal court today to defrauding the Department of Veterans Affairs (VA) out of more than $130,000.
According to their plea agreements, between September 2018 and April 2024, the Castros lied to obtain caregiver benefits from the Caregiver Support Program, a VA program that provides caregiver support for injured veterans. Rafael Castro admitted that he lied about needing high-level assistance for daily activities, including dressing and undressing himself, personal hygiene, and grooming.
According to plea documents, Rafael Castro defrauded the VA into awarding him assistance that paid the primary caregiver—his wife—an amount equivalent to a full-time home health aide’s 40-hour per-week payment.
According to plea documents, for years, Miriam Castro received monthly payments to be a full-time caregiver for Rafael Castro while her husband worked as a full-time federal employee. From July 2015 to June 2023, Rafael Castro worked for the Veterans Health Administration, and from June 2023 to April 2024, he worked for the Internal Revenue Service. Even though he was employed by the federal government, Rafael Castro falsely told VA representatives at least six times that he was unemployed.
For example, during a 2023 interview, Rafael Castro falsely claimed that he had last worked in 2018 and that his wife was his full-time caregiver. According to their plea agreements, while Rafael Castro was engaged in the fraud scheme, he received several promotions, all while he continued to claim he was unemployed. In their respective plea agreements, Rafael Castro and Miriam Castro admitted that they participated in the multi-year scheme to defraud the VA.
“This case is an excellent example of the importance of internal inspections within government programs,” said U.S. Attorney Tara McGrath. “Without the intervention from the Inspector General’s Office, this fraud might have continued indefinitely.”
“These guilty pleas demonstrate that those involved in defrauding VA, including government employees, will be held accountable,” said Special Agent in Charge Anthony Heddell with the Department of Veterans Affairs Office of Inspector General’s Western Field Office. “The VA OIG will continue to work with our law enforcement partners to ensure the integrity of VA’s benefits programs and services.”
“Violations of federal law, particularly those committed by IRS employees will not be tolerated and will be prosecuted to the fullest extent of the law,” Acting Special Agent in Charge Brandon Knarr stated. “TIGTA will continue to work closely with the United States Attorney’s Office and our law enforcement partners to identify, investigate and hold those individuals responsible for their illegal activities.”
Sentencing is scheduled for April 25, 2025, at 9 a.m. before U.S. District Judge James E. Simmons, Jr.
This case is being prosecuted by Assistant U.S. Attorney Edward Chang.
To report fraud in a VA program, call the VA-OIG hotline at 1-800-488-8244 or visit https://www.va.gov/oig/hotline/.
DEFENDANTS Case Number 25CR0310-JES
Rafael Castro Age: 50 Oceanside, CA
Miriam Castro Age: 48 Oceanside, CA
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in prison and $250,000 fine
INVESTIGATING AGENCIES
Department of Veterans Affairs, Office of Inspector General
Treasury Inspector General for Tax Administration
Fentanyl Trafficker Sentenced to 165 Months for Bringing Thousands of Counterfeit Oxycodone Pills into the DistrictRead the Press Release
WASHINGTON – Craig Eastman, 21, of Washington D.C., was sentenced today in U.S. District Court to 165 months in federal prison for participating in a massive fentanyl trafficking conspiracy that distributed hundreds of thousands of fentanyl-laced counterfeit oxycodone pills from Southern California to destinations throughout the United States, including the District. Eastman was one of more than two dozen co-defendants arrested over the course of 2023 in D.C., Virginia, Maryland, San Diego, and Los Angeles and charged in the conspiracy.
The sentence was announced by U.S. Attorney Edward R. Martin, Jr., DEA Special Agent in Charge Ibrar A. Mian of the Washington Division, Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service Washington Division, and Chief Pamela Smith of the Metropolitan Police Department.
Eastman pleaded guilty on July 25, 2024, to conspiring to distribute 400 grams or more of fentanyl. In addition to the 165-month prison term, U.S. District Judge Colleen Kollar-Kotelly ordered Eastman to serve five years of supervised release.
The impetus for this investigation was the overdose death of Diamond Lynch, a young mother in Southeast D.C. In addition to investigating and prosecuting the death-resulting case,[1] law enforcement followed the evidence and uncovered a vast network of traffickers who transported fentanyl from Mexico to Los Angeles to the District of Columbia. Since then, investigators have seized more than 450,000 fentanyl pills, 1.5 kilograms of fentanyl powder, and 30 firearms.
According to court documents, Eastman entered into the conspiracy after he was introduced to a Los Angeles-based drug trafficker, who was a distributor of fentanyl-laced counterfeit oxycodone pills. Eastman traveled to Southern California to purchase the fake oxycodone from the L.A. supplier and returned to the District with the drugs. Eastman and his co-conspirators employed two primary methods to transport the pills to the District: they smuggled them in luggage or carry-on items on airline flights, or they shipped the pills utilizing the U.S. Postal Service and commercial mail carriers
After transporting the fentanyl-laced pills back to the District of Columbia, Eastman redistributed them for profit, primarily in collaboration with a co-defendant. Two redistributors of the pills were his siblings, Larry and Justice Eastman, who later were convicted of conspiracy to distribute and possess with intent to distribute fentanyl. Ms. Lynch was a customer of Larry and Justice Eastman.
Craig Eastman not only knew of Ms. Lynch’s overdose death, but proceeded to attempt to sell the batch of pills that included Ms. Lynch’s fatal dose at a discount rather than simply destroy them and incur the financial loss. Specifically, the month after Ms. Lynch’s overdose death, Craig Eastman marketed the same bulk supply of pills that included Ms. Lynch’s fatal dose. Craig Eastman informed a prospective customer that he “caught a bad batch of some 30s,” and asked the customer to “see if [he] got somebody to sell em to[,] I got endless.”
Craig Eastman also had been found in residences containing firearms on multiple occasions. On September 1, 2021, law enforcement searched Craig Eastman’s residence in the 2300 block of Raynolds Place SE. Agents found him inside his bedroom, along with 204 fentanyl-laced counterfeit oxycodone pills, multiple firearms and accompanying magazines and ammunition, as well as several thousand dollars in cash. On December 4, 2021, officers searched Eastman’s residence and recovered four firearms, about $1,700 in cash, and distribution quantities of fentanyl-laced counterfeit oxycodone pills. In his bedroom specifically, officers found a Glock 17 equipped with a high-capacity magazine and a machine gun conversion device, along with fentanyl-laced counterfeit oxycodone pills. When Craig Eastman was arrested along with co-defendant Charles Taylor on March 22, 2023, in a stash house in the District, officers recovered seven firearms (including one machine gun), assorted ammunition, more than a dozen pounds of marijuana, and a pill bottle containing fentanyl-laced counterfeit oxycodone pills.
DEFENDANT
AGE
LOCATION
CHARGES/SENTENCE
Hector David Valdez,
aka “Curl”
27
Santa Fe Springs, CaliforniaConspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl;
Conspiracy to commit international money laundering.
Craig Eastman
21
Washington, D.C.Sentenced on February 6, 2025, to 165 months for conspiracy to distribute more than 400 grams of fentanyl.Charles Jeffrey Taylor21
Washington, D.C.Conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Raymond Nava, Jr.20
Bell Gardens,
California
Sentenced September 17, 2024, to 14 years for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Ulises Aldaz28
Bell Gardens,
California
Sentenced June 28, 2024, to 95 months in prison for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Max Alexander Carias Torres27
Bell Gardens,
California
Conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl;
Conspiracy to commit international money laundering
Teron Deandre McNeil, aka “Wild Boy”34
Washington, D.C.Conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Marvin Anthony Bussie,
aka “Money Marr”
22
Washington, D.C.Sentenced June 28, 2024, to 120 months in prison for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Marcus Orlando Brown29
Washington, D.C.Sentenced October 3, 2024, to 108 months in prison for conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl.Columbian Thomas, aka "Cruddy Murda”27
Washington, D.C.Sentenced October 22, 2024, to 160 months in prison for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Wayne Rodell Carr-Maiden30
Washington, D.C.Sentenced April 29, 2024, to 45 months in prison for conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl.Andre Malik Edmond,
aka “Draco”
23
Temple Hills, MarylandSentenced July 22, 2024, to 130 months in prison for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Treyveon James Johnson,
aka “Treyski”
20
Alexandria, VirginiaSentenced September 5, 2024, to 108 months in prison for conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl.Karon Olufemi Blalock,
aka “Fat Bags”
30
Alexandria, VirginiaConspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Ronte Ricardo Greene,
aka “Cardiddy”
29
Washington, D.C.Conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Melvin Edward Allen, Jr., aka “21”39
Washington, D.C.Pleaded guilty on December 18, 2024, to conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl.Darius Quincy Hodges,
aka “Brick”
34
Glen Allen, VirginiaConspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Lamin Sesay,
aka “Rock Star”
28
Alexandria, VirginiaConspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Paul Alejandro Felix26
Glendale,
California
Sentenced November 12, 2024, to 164 months in prison for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Omar Arana,
aka “Frogs”
27
Cudahy,
California
Pleaded guilty January 3, 2025, to conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Edgar Balderas, Jr., aka “Nano”27
San Diego,
California
Pleaded guilty December 19, 2024, to conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Raul Pacheco Ramirez30
Long Beach,
California
Sentenced November 26, 2024, to 95 months for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Giovani Alejandro Briones30
Victorville, CaliforniaPleaded guilty October 24, 2024, to conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Alfredo Rodriguez Gonzalez26
Rosarito, MexicoConspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl;
Conspiracy to commit international money laundering.
These prosecutions followed a joint investigation by the DEA Washington Division and the U.S. Postal Inspection Service Washington Division, in partnership with the Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The investigation had additional support from the DEA’s Los Angeles, San Diego, and Riverside Field Divisions, the FBI Washington Field Office, and the Charles County, Maryland, Sheriff’s Office. Valuable assistance was provided by the U.S. Attorney’s Offices in the Central and Southern Districts of California, the Eastern District of Virginia, and the District of Maryland.
The case is being prosecuted by Assistant U.S. Attorneys Matthew W. Kinskey, Solomon S. Eppel, and Iris McCranie of the Violence Reduction and Trafficking Offenses (VRTO) Section.
[1] https://www.justice.gov/usao-dc/pr/brother-and-sister-sentenced-drug-conspiracy-involving-fentanyl-sales
Fentanyl Distributor Is Sentenced to Seven Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Ryan Rudy Elledge, 30, of Sherrills Ford, N.C., was sentenced today to 84 months in prison and four years of supervised release for distributing fentanyl, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Sheriff Donald G. Brown II of the Catawba County Sheriff’s Office, and Chief Tyler Whisenant of the Maiden Police Department, join U.S. Attorney King in making today’s announcement.
According to court documents and proceedings, law enforcement began investigating Elledge in January 2023, for suspected fentanyl distribution in and around Catawba County. On February 17, 2023, officers executed a search warrant at Elledge’s residence, seizing more than 71 grams of fentanyl and over $21,000 in cash. In February 2024, law enforcement began a second investigation, after learning that Elledge was selling drugs again from his home in Newton, N.C. On February 22, 2024, a confidential informant purchased fentanyl and other narcotics from Elledge. The following day, officers executed a search warrant at Elledge’s residence, seizing fentanyl and methamphetamine. Court records show that Elledge admitted to distributing more than a kilogram of fentanyl and over 200 grams of methamphetamine.
On August 20, 2024, Elledge pleaded guilty to conspiracy to distribute and to possess with intent to distribute fentanyl, and possession with intent to distribute fentanyl. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the ATF, the Catawba County Sheriff’s Office, and the Maiden Police Department for their investigation of the case.
Assistant U.S. Attorney Alfredo De La Rosa with the U.S. Attorney’s Office in Charlotte prosecuted the case.
Federal Jury Convicts Dominican Republic National of Alien SmugglingRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that a federal jury convicted Omaily Sanchez Taveras, 36, of the Dominican Republic, of alien smuggling after a two-day trial. For his conviction, Taveras faces a maximum sentence of 10 years of incarceration and a maximum fine of $250,000.
According to evidence presented at trial, on October 13, 2024, federal authorities received a tip of a suspicious vessel in the Fortuna Bay area of St. Thomas with what appeared to be aliens on board. Custom and Border Protection Air and Marine Interdiction agents traveled to the area and encountered the vessel dead in the water near West Cay. On board the vessel were four Romanians, four Dominican Republic nationals and two were Brazilians who all paid Taveras to take them to Culebra, Puerto Rico.
This case was investigated by Homeland Security Investigations and Customs and Border Protection Air and Marine Interdiction and was prosecuted by Assistant United States Attorneys Everard E. Potter and Denise N. George.
Eleven Members and Associates of Paterson Based Gang Known as “100k” Indicted for Racketeering for Their Roles in A Murder, Three Shootings, Two Robberies, Drug Trafficking Activities, Bank Fraud, and Other CrimesRead the Press Release
NEWARK, N.J. – Eleven members of the Paterson based neighborhood street gang known as “100k” were indicted for their roles in a violent racketeering conspiracy, Acting U.S. Attorney Vikas Khanna announced today.
The Indictment charges Jasun Allah, a/k/a “Rackz,” 21, of Paterson (“J.Allah”); Christopher Thomas, a/k/a “CJ,” 27, of Hackensack; Michael Davis, a/k/a “Baby 3,” 27, of Paterson; Jazmeir Reyes, a/k/a “Baby Joe,” a/k/a “Joe,” 19, of Paterson; Kyzeik Robinson, a/k/a “Doo Doo,” a/k/a “King Sparks,” a/k/a “Sparks,” 19, of Paterson; Jacim Pitts, a/k/a “Jefe,” 24, of Paterson; Born Allah, a/k/a “Freedom,” 23, of Paterson (“B.Allah”); Elijah Rubio, a/k/a “Lottery,” 20, of Paterson; Trasean Short, a/k/a “Hound,” 19, of Elmwood Park; Elijah Byrd, a/k/a “CEO,” 19, of Paterson; and Quincy Franklin, a/k/a “Double O,” 27, of Paterson with one count of conspiracy to violate the Racketeer Influenced Corrupt Organizations statute (“RICO”), in violation of Title 18, United States Code, Section 1962(d) (“RICO conspiracy”). The Indictment also incorporates charges connected to a drug conspiracy involving Reyes, Davis, Robinson, and Pitts and the attempted armed robbery of a postal inspector by Reyes, which were previously charged on complaint.
These charges are the result of a long-running investigation coordinated between the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Jersey State Police, the United States Postal Inspection Service, and the Passaic County Sheriff’s Office, among other law enforcement agencies.
According to documents filed in this case and statements made in court:
J.Allah, Thomas, Davis, Reyes, Robinson, Pitts, B.Allah, Rubio, Short, Byrd, and Franklin are all members and associates of the neighborhood based street gang known as “100k,” which operates in the area of North Main Street and Jefferson Street in Paterson, New Jersey (the “100k Enterprise”). Since in or around January 2022, these members and associates of the 100k Enterprise have engaged in numerous criminal acts in furtherance of their gang, including murder, shootings, robberies, drug trafficking, and bank and wire fraud.
Since the gangs founding in 2016, members and associates of the 100k Enterprise have engaged in acts of violence against members of rival gangs, such as their primary rival, “the Blockboyz,” which operates out of the Presidential Tower Housing Complex in Paterson, among other rival gangs, such as “4k,” which operates in the area of Rosa Parks Boulevard near Lyon Street, Keen Street, and Mercer Street, also in Paterson.
Several of these acts of violence are charged in the Superseding Indictment. Specifically, on or about October 1, 2023, in retaliation for the death of a high ranking member of the 100k Enterprise, J.Allah, Thomas, Davis, and other members and associates of the 100k Enterprise shot and killed Victim-2, in territory controlled by the Blockboyz.
On or about May 27, 2024, Pitts and other members and associates of the 100k Enterprise shot and injured Victim-3, a member of the rival gang “4k.”
On or about October 3, 2024, Short exchanged fire with Victim-4 in territory controlled by the 100k Enterprise. Weeks later, on or about November 17, 2024, Short shot and injured Victim-5, a member of the Blockboyz, in territory controlled by the Blockboyz, and Byrd acted as the driver in that November shooting.
The defendants raised money for themselves and the 100k Enterprise by engaging in robberies, drug trafficking, and bank fraud and other financial schemes. Two such robberies are charged in the Indictment, including the armed robbery of a commercial marijuana store on or about January 13, 2022 by Reyes, B.Allah, Short, Rubio, and others; and the attempted armed robbery of Victim-1, a United States Postal Service employee, on or about July 28, 2023 by Reyes, who tried to obtain an arrow key from the victim. This arrow key would have allowed members of the 100k Enterprise to gain access to United States Postal Service mailboxes within a certain geographic area or postal route.
The gang’s drug trafficking activities were extensive, with investigators conducting 16 controlled buys with Reyes, Robinson, Davis, and Pitts by utilizing undercover officers and observing countless more drug deals committed by the defendants within and around the territory of Paterson controlled by the 100k Enterprise through physical surveillance and review of cell phone records and social media accounts controlled by the defendants.
The charge of RICO conspiracy in the Indictment carries a maximum statutory penalty of life in prison as to J.Allah, Thomas, and Davis, and a maximum statutory penalty of 20 years in prison as to Reyes, Robinson, Pitts, B.Allah, Rubio, Short, Byrd, and Franklin.
The count of conspiracy to distribute controlled substances charged in the Indictment against Reyes, Robinson, Davis, and Pitts carries a mandatory minimum term of 5 years in prison and a maximum penalty of 40 years in prison and a fine of at least $5 million. On each of the counts of distribution and possession with intent to distribute controlled substances, Reyes, Robinson, Davis, and Pitts face a maximum penalty of 20 years in prison and a maximum fine of $1 million.
On each of the counts of attempted Hobbs Act robbery and assaulting or impeding certain United States officers or employees, Reyes faces a maximum penalty of 20 years’ imprisonment and up to a $250,000 fine, or twice the gain or loss from the offense, whichever is greatest. On the count of brandishing a firearm in connection with a crime of violence, Reyes faces a mandatory minimum term of 7 years and a maximum term of life imprisonment, which must run consecutively to any other prison sentence imposed, and a fine of up to $250,000.
Acting U.S. Attorney Khanna credited law enforcement members with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge L.C. Cheeks, Jr.; the New Jersey State Police, Gangs and Organized Crime North Unit, under the direction of Col. Patrick J. Callahan; the United States Postal Inspection Service, under the direction of Inspector in Charge Christopher Nielsen; the Passaic County Sheriff’s Office, under the direction of Sheriff Thomas Adamo; the Paterson Police Department, under the direction of Officer In Charge Patrick Murray; the Bergen County Sheriff’s Office under the direction of Sheriff Anthony Cureton; the Passaic County Prosecutor’s Office under the direction of Prosecutor Camelia Valdes; and the Bergen County Prosecutor’s Office under the direction of Prosecutor Mark Musella with the investigation leading to today’s charges.
This case is part of the Paterson Violent Crime Initiative (VCI), which was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Passaic County Prosecutor’s Office, and the City of Paterson’s Department of Public Safety for the purpose of combatting violent crime in and around Paterson. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration, the U.S. Marshals, the Paterson Department of Public Safety, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, N.J. State Parole, Bergen County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, and N.J. Department of Corrections.
This case 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.
The government is represented by Assistant U.S. Attorney Jake A. Nasar of the Criminal Division in Newark.
allahetal.sindictment.pdf
Drug Trafficker Sentenced to 10 Years in Federal PrisonRead the Press Release
BOISE – Robert Paul Anthony Aragon, 31, of California, was sentenced to 120 months in federal prison for possession with intent to distribute methamphetamine and cocaine, U.S. Attorney Josh Hurwit announced today.
According to court records, Aragon was stopped for a traffic violation in Owyhee County. During the stop, a K9 trained in the detection of the odor of a controlled substance conducted an open-air sniff around Aragon’s vehicle and positively alerted to the presence of the odor of a controlled substance. Officers conducted a search of the vehicle and discovered 25 pounds of methamphetamine, 2.2 pounds (one kilo) of cocaine, and a Glock 27 firearm with an extended magazine carrying 22 rounds of ammunition.
Senior U.S. District Judge B. Lynn Winmill also ordered Aragon to serve five years of supervised release following his prison sentence.
U.S. Attorney Hurwit commended the work of the Drug Enforcement Administration, the Nampa Police Department Special Investigations Unit, the Owyhee County Sheriff’s Office, and the Idaho State Police, which led to the charges and arrest. Assistant U.S. Attorney David Morse prosecuted this case.
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Drug Dealer Arrested with Firearm, Agents Seize Seven Kilograms of Fentanyl Powder, 12 Kilograms of Fentanyl-Laced Pills from His Apartment in PhoenixRead the Press Release
PHOENIX, Ariz. – Jose Manuel Arellano-Noriega, 37, a Mexican national living in Phoenix, was arrested in Phoenix on Monday and charged with Possession with the Intent to Distribute More than 400 Grams of Fentanyl.
According to the complaint, investigators with the Drug Enforcement Administration (DEA) Phoenix East Valley Drug Enforcement Task Force were in the area of 43rd Avenue and McDowell Road in Phoenix when they observed a red Fiat 500 traveling approximately 55 miles per hour in a 45 mile per hour zone. Based on the traffic violation, investigators conducted a traffic stop. The driver of the vehicle was identified as Arellano-Noriega based on his Mexican passport. A police canine conducted an open-air sniff of the vehicle and alerted to the presence of narcotics in the vehicle.
Investigators searched the vehicle and located a black backpack which contained a black semi-automatic 9mm handgun with a loaded magazine. During a post-Miranda interview, Arellano-Noriega stated he was the owner of the handgun and informed investigators he was in possession of large amounts of fentanyl pills and fentanyl powder at his apartment. Arellano-Noriega provided investigators verbal and written consent to search his apartment and provided the exact locations of the pills and powder located at his apartment.
In Arellano-Noriega’s apartment, investigators seized seven bricks, weighing over 7,800 grams of a white powdery substance that field tested positive for fentanyl. Investigators also seized approximately 100,000 blue pills which weighed approximately 12,146 grams and that field tested positive for fentanyl.
Possession with the Intent to Distribute More than 400 grams of Fentanyl carries a mandatory minimum penalty of 10 years to life in prison and a fine of up to $10,000,000.
A criminal complaint is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The DEA Phoenix East Valley Drug Enforcement Task Force conducted the investigation in this case. Assistant U.S. Attorney Stuart Zander, District of Arizona, Phoenix, is handling the prosecution.
CASE NUMBER: MJ-25-0964-PHX-ESW
RELEASE NUMBER: 2025-013_Arellano-Noriega# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Dominican National Sentenced to 60 Months in Prison for Role in Operating Fentanyl Drug MillRead the Press Release
NEWARK, N.J. – A Dominican national was sentenced to 60 months in prison for his role in a conspiracy to distribute and transport bulk quantities of fentanyl into northern New Jersey communities from a drug mill located in the Philadelphia, Pennsylvania area, Acting U.S. Attorney Vikas Khanna announced.
Hector Luiz De La Cruz Nunez, 32, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to a two-count information charging him with one count of conspiracy to distribute and possess with intent to distribute fentanyl, and one count of possession with intent to distribute fentanyl.
According to documents filed in this case and statements made in court:
In February 2022, Nunez and his co-conspirators operated a private residence, commonly referred to as a drug mill, in which he and his co-conspirators produced large quantities of bulk fentanyl for redistribution. In early March 2022 following a car stop, law enforcement recovered nearly six kilograms of fentanyl packaged in approximately 400 individual bricks concealed within a hidden compartment inside of the vehicle that Nunez was driving.
In addition to the prison term, Judge Hayden sentenced Nunez to three years of supervised release.
Nunez’s co-conspirators, Emmanuel F. Almonte Mejia, 40, and Loanny F. Duran Hiciano, 37, have both pleaded guilty to conspiracy to distribute and possess with intent to distribute fentanyl. Mejia and Hiciano await sentencing.
Acting U.S. Attorney Khanna credited special agents of the U.S. Department of Homeland Security Investigations (HSI) Newark, under the direction of Special Agent in Charge Ricky Patel, HSI Philadelphia, under the direction of Special Agent in Charge Edward Owens, and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation that led to the sentencing.
The government is represented by Assistant U.S. Attorney Vincent D. Romano of the Criminal Division in Newark.
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Defense counsel: Justin Capek
Deering, Alaska, man indicted for abusive sexual contact on an aircraft from Anchorage to SeattleRead the Press Release
Seattle – A 27-year-old Deering, Alaska man was arraigned today following his indictment for abusive sexual contact, announced U.S. Attorney Tessa M. Gorman. Trayton C. Ballot was arrested on January 15, 2025, when the Alaska Airlines flight he was on arrived at Seattle-Tacoma International airport. Ballot pleaded not guilty this morning and trial was scheduled in front of U.S. District Judge John H. Chun on April 7, 2025.
According to records filed in the case, the 17-year-old victim was flying with her mother and a friend from Anchorage to Seattle. Ballot was seated in the middle seat in a row near the back of the plane. The victim was in the window seat. Ballot appeared to be asleep, but then allegedly moved his hand onto the victim’s inner thigh and began rubbing her thigh. The victim removed Ballot’s hand. Two more times Ballot moved his hand onto the 17-year-old’s inner thigh, and she removed his hand. After the third time, the victim lowered her tray table and wedged a pillow under it to protect her lap. Despite those barriers, Ballot moved his hand under the armrest and attempted to place it over the victim’s thigh. The victim pressed down on the pillow to stop the assault and Ballot took his hand away.
The victim typed into her phone that the man seated next to her had touched her and showed the message to her mother who was seated in the row behind her. At her mother’s instruction, the victim notified the flight attendants who moved her to a different seat.
Ballot was arrested when the plane arrived in Seattle. He was held at the Federal Detention Center at SeaTac until the next day when he was released on many conditions including that he notify any airline of these charges before he travels.
Ballot waived his presence at arraignment and his attorney entered a plea of “Not Guilty.”
Abusive sexual contact is punishable by up to two years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI.
The case is being prosecuted by Assistant United States Attorney Carolyn Forstein.
Colombian Smuggler Extradited in Connection with Pregnant Woman’s Border-Crossing DeathRead the Press Release
PLATTSBURGH, NEW YORK – A Colombian man was extradited from Canada to the United States and arraigned today for charges arising from the drowning of a pregnant woman. The woman, a citizen of Mexico, died in December 2023 while trying to illegally enter the United States by wading across the Great Chazy River in Champlain, New York.
United States Attorney Carla B. Freedman; Special Agent in Charge Erin Keegan of Homeland Security Investigations, Buffalo, New York Field Office; and Chief Patrol Agent Robert N. Garcia of United States Border Patrol, Swanton Sector, made the announcement.
Jhader Augusto Uribe-Tobar, age 36, is a citizen of Colombia who resides in Quebec, Canada.
According to the indictment and an earlier-filed criminal complaint, Uribe-Tobar smuggled a pregnant woman, A.V.-F., from Canada into the Northern District of New York for $2,500, by instructing her to wade through the frigid Great Chazy River in darkness. The smuggling attempt ended in A.V-F.’s death.
United States Attorney Carla Freedman stated: “This tragedy highlights the dangers of illegal migration and how, as alleged, smugglers deliberately put people in harm’s way for profit. By vigorously prosecuting human smuggling networks, we are deterring and reducing the number of dangerous crossings like the one that took the lives of this young woman and her unborn child.”
HSI Buffalo Special Agent in Charge Erin Keegan stated: “We will not stand by as lives are tragically lost by the deception of human smugglers profiting off the vulnerability of migrants. HSI Buffalo and our partners vigorously pursue justice for the victims who are exploited and endangered by the people whom they are trusting to move them across borders.”
Border Patrol Chief Patrol Agent Robert Garcia stated: “Effective border security enforcement hinges on tangible penalties for criminal actions. The U.S. Border Patrol continues to enforce the laws of the United States, and this prosecution by the U.S. Attorney’s Office demonstrates that those who violate the law will be held accountable.”
The charges in the complaint and indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
On December 7, 2023, A.V-F.’s relative contacted Uribe-Tobar on TikTok where Uribe-Tobar advertised himself as a smuggler. Uribe-Tobar advised A.V-F.’s relative, “It costs $2500 American, it is worked through Montreal and they are left in the City of Plattsburgh, NY.” A few days later, on December 11, 2023, A.V-F.’s relative sent Uribe-Tobar proof that he had wired $2,500 to Uribe-Tobar. Shortly after receiving that message, Uribe-Tobar traveled with A.V-F. to the immediate area of the United States-Canada border.
At approximately 6:21 that evening, Uribe-Tobar told A.V-F.’s relative, “Friend we are at the river crossing.” At 6:22 p.m., Uribe-Tobar told A.V-F.’s relative, “She is crossing friend” to which her relative replied, “I’m very nervous.” At 7:06 p.m., Uribe-Tobar messaged A.V-F’s relative, “Bro hello, I think she got wet or turned off her cell phone. Bro, I told her to hold it while she was crossing.” Uribe-Tobar followed that message with a screenshot of messages he exchanged with A.V-F., which showed that he had sent her three messages at 6:17 p.m. The screenshot indicates that the last message was never read.
Uribe-Tobar and A.V-F’s relative continued to exchange messages throughout the night of December 11, 2023. Uribe-Tobar claimed that he had people searching for A.V-F. and that “I already sent them a pin to see if they see her, I told them what happened and that she is pregnant.”
On December 12, 2023, A.V-F.’s relative told a Border Patrol Agent in Champlain that she was supposed to illegally enter the United States on December 11, but that he had not heard from her. He reported her last known location as the edge of the Great Chazy River in Champlain, and that the smuggler had told A.V-F. the river was wadable. Multiple law enforcement agencies immediately began to search for A.V-F. On December 14, 2023, they found A.V-F.’s body in the Great Chazy River.
The charges against Uribe-Tobar carry a minimum term of 3 years and a maximum term of life in prison. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
At his initial appearance today in Plattsburgh, Uribe-Tobar was ordered detained pending a trial scheduled before Senior United States District Judge David N. Hurd in Utica, New York.
The Department of Homeland Security, Homeland Security Investigations and United States Border Patrol are investigating the case. Assistant U.S. Attorneys Katherine Kopita and Carling Dunham are prosecuting the case. The Department of Justice’s Office of International Affairs assisted in securing the arrest and extradition of Uribe-Tobar.
Civil Forfeiture Action Filed in Federal Court Against Bronx Residence Used as Stash House for Firearms and Drug TraffickingRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York; Bryan Miller, the Special Agent in Charge of the New York Field Division for the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”); and Jessica S. Tisch, the Commissioner of the New York City Police Department (“NYPD”), announced today the filing of a civil forfeiture Complaint against a Bronx residence located at 3267 Decatur Avenue in the Bronx, New York. The Complaint alleges that the residence was used by members of the “Drilly Gang” as a stash house for drug trafficking and firearms.
U.S. Attorney Danielle R. Sassoon said: “As alleged, 3267 Decatur Avenue—a Bronx residence located steps away from an elementary school—was used by members of a gang as a stash house for drugs and firearms. This civil forfeiture action seeking to seize the residence demonstrates that we will use all the tools available to protect the streets of this city. Together with our law enforcement partners, we remain committed to the fight against gun violence and drug trafficking in our community.”
ATF Special Agent in Charge Bryan Miller said: “Illicit drug trafficking destroys lives and fuels violence. Taking over a home, for the purpose of selling illegal drugs next to a school, while boasting about it on social media, demonstrates a blatant disregard for the safety of our communities. The ATF / NYPD Joint Firearms Task Force remains committed to dismantling criminal networks and protecting innocent people from the tragic consequences of violent crime. No one should have to live or work next to an illegal narcotics operation run by armed criminals. We will remain relentless in our efforts to keep our streets safe. I commend the dedication and hard work of the men and women of the Joint Firearms Task Force, NYPD 52nd Precinct, and SDNY for their efforts in this case.”
According to the allegations in the Complaint filed in Manhattan federal court today and other court filings: [1]
Since in or about April 2024, law enforcement agents with the ATF and the NYPD have been conducting an investigation into 3267 Decatur Avenue in the Bronx, New York, including members of a group known as the “Drilly Gang” that used 3267 Decatur Avenue as a stash house for drug trafficking and firearms. The residence at 3267 Decatur Avenue is located steps away from an elementary school in the Norwood neighborhood of the Bronx. Members of the Drilly Gang were using 3267 Decatur Avenue as a headquarter of operations, including as a location to film rap videos in furtherance of the Drilly Gang, which included depictions of drugs and weapons. Members of the Drilly Gang also posted on social media photographs and videos depicting their involvement in the sale of drugs and possession of firearms, as depicted below:
On or about November 4, 2024, law enforcement officers executed a search warrant at 3267 Decatur Avenue and recovered, among other things: a pistol magazine; 177.73 grams of cocaine; 33 grams of methamphetamine; 38 grams of fentanyl; 65 grams of psilocybin mushrooms; and 240 grams of marijuana. Investigators also found drug packaging materials, which were designed to make the drugs look like candy (i.e., Welch's Fruit Snacks, Skittles, Peanut Buddy Bars, etc.) and approximately $1700 in U.S. currency. Depicted below are some of the items seized from 3267 Decatur Avenue:
* * *
Ms. Sassoon praised the outstanding investigative work of the ATF and the NYPD.
This case is being handled by the Office’s Violent and Organized Crime Unit and Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Andrew K. Chan and Frank J. Balsamello are in charge of the prosecution.
[1] As the introductory phrase signifies, the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Charlotte Man Is Sentenced to Prison for Illegal Possession of A Firearm and Transfer of A MachinegunRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Shakor Daniels, 26, of Charlotte, to 37 months in prison followed by three years of supervised release for possession of a firearm by a convicted felon and transfer of a machinegun, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, joins U.S. Attorney King in making today’s announcement.
According to court documents and court proceedings, on June 13, 2023, law enforcement stopped Daniels’s vehicle for a traffic violation. Over the course of the traffic stop, officers found two firearms inside the vehicle. Daniels admitted to possessing a firearm for protection.
Court documents show that, in the fall of 2023, law enforcement determined that Daniels was advertising Glock switches for sale on his social media account, which included the tag line “Go fed or go home.” A Glock switch is an illegal conversion device that enables a conventional semi-automatic pistol to function as a fully automatic firearm. According to court records, on several occasions, undercover ATF agents purchased multiple items from Daniels, including Glock switches for handguns and a rifle, and a 45-round drum magazine. On January 14, 2024, Daniels sent an image of a handgun to an undercover ATF agent that Daniels was selling. The undercover agent agreed to meet Daniels to purchase the firearm. On January 16, 2024, Daniels was arrested when he arrived to sell the firearm to the undercover agent. Daniels has prior criminal convictions, and he is prohibited from possessing firearms.
Daniels is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
The ATF investigated the case with the assistance of the Charlotte Mecklenburg Police Department.
The U.S. Attorney’s Office in Charlotte prosecuted the case.
Career offender sentenced to 25 years in prison for fentanyl traffickingRead the Press Release
RICHMOND, Va. – A North Carolina man was sentenced today to 25 years in prison for possession with intent to distribute parafluorofentanyl and fentanyl.
According to court documents, on the evening of September 17, 2023, Jaron James Starkey, 35, of Charlotte, and formerly of New Castle County, Delaware, was driving erratically southbound on I-95 in Caroline County. Other drivers traveling on I-95 called 911 to report the erratic driving. Virginia State Police (VSP) responded to the area and upon arrival observed that Starkey had crashed his Jeep. Starkey, who was alone in the car, was speaking incoherently and his eyes were bloodshot. He was transported to the Mary Washington Hospital emergency room.
Upon approaching the vehicle, the responding VSP officers also observed thousands of glassine baggies, each of which appeared to contain a white powder, scattered throughout Starkey’s car. A total of 4,497 blue glassine baggies collected contained Parafluorofentanyl, with a net weight of over 122 grams. Also in the vehicle were 120 white glassine baggies containing fentanyl.
Starkey has 21 prior convictions as an adult, including two previous drug trafficking convictions, convictions for possessing firearms as a convicted felon, and conspiracy to commit burglary, among others.
Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; Lt. Colonel Matt Hanley, Virginia State Police Interim Superintendent; and Brian Layton, Chief of Fredericksburg Police, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. The Fredericksburg Regional Narcotics Task Force assisted in the investigation of this case.
Assistant U.S. Attorney Angela Mastandrea prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-58.
Canadian Businessman Sentenced for Obstruction of Justice for Hiding and Laundering Millions After His 2020 Money Laundering ConvictionRead the Press Release
WASHINGTON – Firoz Patel, 50, of Montreal, Canada, was sentenced to 41 months in federal prison today in connection with his efforts to conceal and launder 450 Bitcoin, currently valued at over $43 million, that he hid from the U.S. District Court handling his 2020 conviction and sentencing for conspiring to operate an unlicensed money transmitting business and to commit money laundering.
The sentence was announced by U.S. Attorney Edward R. Martin, Jr., HSI Acting Special Agent in Charge Kai Wah Chan of Homeland Security Investigation’s Washington, D.C., Field Office.
Patel plead guilty on September 17, 2024, to one count of obstruction of an official proceeding. In addition to the prison term, U.S. District Court Judge Dabney L. Friedrich ordered three years of supervised release, a forfeiture money judgment in the amount of $24,020,699.83, and forfeiture of 450 Bitcoin plus interest currently restrained at a virtual currency exchange in the United Kingdom.
In 2020, Patel was convicted and sentenced to 36 months for operating Payza, an illegal financial payments platform that processed cryptocurrency payments.
According to court documents, in 2004 Patel began operating his payment processing company AlertPay, which evolved into Payza. The Montreal company offered its services to customers across the United States, even though the business lacked a license to operate in any state or the District of Columbia.
Throughout Payza’s existence, the company partnered with various money services businesses, such as OboPay in 2012, another online money services business. At Patel’s direction, merchants were not removed from Payza’s platform for being involved in high-risk activities such as Ponzi schemes, money laundering activities, multilevel-marketing (MLM) scams, money-cycler scams, pyramid schemes, and steroid distributors. Payza did not have a Bank Secrecy Act Officer, it did not conduct legally required Bank Secrecy Act/anti-money-laundering audits, and it operated in the United States at various times without registering with the U.S. Department of Treasury Financial Crimes Enforcement Network (FinCEN) or state authorities.
On July 16, 2020, Patel pled guilty to one count of conspiracy to operate an unlicensed money-transmitting business and to launder monetary instruments, based on his operation of Payza. As a condition of his plea, he was required to identify and forfeit any property involved in the offense to which he pleaded guilty. Although Patel had control over more than 450 Bitcoin in Payza’s illicit proceeds—valued at approximately $24,000,000 at the time—he provided false information to the U.S. Probation Office and the Court in an attempt to hide his illicit Bitcoin wealth, including by claiming his only assets were $30,000 in a retirement savings account.
On November 10, 2020, then-District Judge Ketanji Brown Jackson sentenced the defendant to 36 months in prison and two years of supervised release and entered an agreed-upon order requiring Patel to forfeit any property involved in his offense, as well as any property traceable to such property. Rather than comply, shortly after his sentencing but before reporting to prison, Patel began consolidating Payza’s illicit cryptocurrency proceeds and attempted to deposit them with Binance, a virtual currency exchange. On April 22, 2021, Binance informed Patel that his account was being closed for violating Binance’s terms of service and being flagged by a third-party compliance tool. Forced to withdraw 450 Bitcoin, Patel opened an offshore virtual currency account in his father’s name, listed an address in Belize linked to Payza’s operations, and transferred the same 450 Bitcoin in illicit proceeds into the account shortly before he reported to the Bureau of Prisons. This second virtual currency exchange also deemed the deposit suspicious and froze the funds.
Patel contacted the exchange in June 2021 stating “[i]f this is about me, then realize that I am not beholden to any actions by the USA or any other government authorities. I have paid my dues and I owe nothing to anybody.” Patel tasked a Payza business associate to work on providing false Know Your Customer (KYC) information to the virtual currency exchange in an effort to unfreeze the illicit funds. Had the scheme succeeded, Patel would have successfully hid and laundered the funds and been released from prison with 450 BTC in criminal proceeds awaiting him. The Department of Justice restrained Patel’s Bitcoin through a Mutual Legal Assistance Treaty request to the United Kingdom during the course of the investigation.
According to the Government’s sentencing memo, Patel became aware of the investigation while serving his 36-month sentence for the 2020 conviction. As Patel neared his release date, he enlisted the assistance of C.A. to impersonate an attorney and engage in sham negotiations with the U.S. Attorney’s Office. C.A. and Patel planned to string along the assigned Assistant United States Attorney (AUSA) long enough for Patel to be released on his 2020 conviction and flee the United States to Canada to avoid prosecution. The AUSA and investigators discovered the false impersonation in advance of Patel’s release date and returned an Indictment of Patel in May 2023. He has been in Bureau of Prisons custody or detained pre-trial since June 2021.
This case was investigated by the Homeland Security Investigations (HSI) Washington, D.C. Field Office. The case is being prosecuted by Assistant United States Attorney Kevin L. Rosenberg and Special Assistant United States Attorney Christopher B. Brown of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney Jonas Lerman of the Criminal Division’s Computer Crime and Intellectual Property Section, National Cryptocurrency Enforcement Team. Valuable assistance was also provided by Scott Meisler and Josh Handell of the Criminal Division’s Appellate Section, and by Trial Attorney Erin Mikita and former Trial Attorney Roberto Iraola of the Criminal Division’s Office of International Affairs. The case was originally investigated by former Assistant United States Attorney Arvind K. Lal.
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California CPA Indicted for Filing False Tax ReturnsRead the Press Release
A grand jury in San Francisco returned an indictment yesterday charging a California man with filing false tax returns with the IRS.
According to the indictment, Michael M. Gilbert, of San Rafael, filed false tax returns for himself and two business entities he controlled. Gilbert, a Certified Public Accountant since 1985, allegedly underreported the total income his accounting and tax preparation business, M.M. Gilbert & Company Inc. (M.M. Gilbert), received during the years 2017 through 2020. Gilbert allegedly solicited payments from clients of M.M. Gilbert for “tax strategies” and “donations,” among other things, which the clients paid to White Mountain Properties Inc. (White Mountain), another entity Gilbert controlled. Gilbert allegedly did not report these payments as income on White Mountain’s 2017 through 2021 business tax returns. According to the indictment, in 2020 and 2021, Gilbert also transferred more than $5 million from White Mountain to himself and then did not report that income on his individual tax returns.
Gilbert is scheduled for his initial court appearance on Feb. 19 before U.S. Magistrate Judge Laurel Beeler for the Northern District of California. If convicted, Gilbert faces a maximum penalty of three years in prison for each count of filing a false tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen Kelly of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Julia M. Rugg and Patrick Burns of the Tax Division are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Caledonia Man Pleads Guilty to Three Counts of Sexually Exploiting A MinorRead the Press Release
GRAND RAPIDS – Acting U.S. Attorney for the Western District of Michigan Andrew Birge today announced that Scott Michael Elam, 41, of Caledonia, pleaded guilty to three counts of sexual exploitation of a minor. Elam faces a mandatory minimum of 15 years in prison and a maximum of 90 years in prison. He is scheduled to be sentenced on May 29.
Elam was arrested and indicted in November 2024 on seven counts of sexually exploiting four different minors. According to court documents, Elam recorded himself having sex with one of the minors on two different occasions and directed the other victims to take explicit photos and videos of themselves and then send them to him. He supplied alcohol, marijuana, vapes, and other contraband to the minors. Elam charged money for each and offered to reduce the price for minors who created and provided sexually explicit videos of themselves or had sex with him.
“Today’s plea by Scott Elam highlights the FBI’s unwavering commitment to holding sexual predators accountable and safeguarding our most vulnerable citizens,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “Mr. Elam's abhorrent criminal acts against minors are utterly indefensible, and such behavior is not acceptable. I am deeply grateful for the relentless dedication and tireless efforts of the men and women of the FBI in Michigan, including the West Michigan-based Child Exploitation Task Force (WEBCHEX), our partners at the Kent County Sheriff’s Office, and the U.S. Attorney’s Office for the successful prosecution in the Western District of Michigan. The FBI in Michigan remains committed to working alongside our law enforcement partners to investigate, disrupt, and bring to justice any individuals who prey on our children.”
“The Kent County Sheriff’s Office is committed to pursuing justice for victims of child exploitation and ensuring that offenders are held accountable. This case highlights the critical importance of parents and guardians having open conversations with their children about the dangers of social media. Our dedicated staff and partnerships with federal agencies allow us to continue protecting our community from those who seek to harm children,” the department said in a statement.
The Kent County Sheriff’s Office and FBI are investigating this case, and Assistant United States Attorney Olivia Ghiselli is prosecuting it.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, visit www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
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Brink’s Forfeits $50 Million for Failing to Register as a Money Transmitting BusinessRead the Press Release
SAN DIEGO – Brink’s Global Services USA, Inc., a currency transporter and subsidiary of Brink’s, Inc. and The Brink’s Company, agreed to forfeit $50,391,143.22 to settle criminal allegations that it operated as an unlicensed money transmitting business.
Today’s settlement is believed to be the first resolution with an armored car company based on admissions of criminal wrongdoing for failing to register as a money transmitting business. Brink’s Global Services USA, Inc. (BGS) admitted that it violated Bank Secrecy Act rules requiring that a company transporting money to a third party register with the Financial Crimes Enforcement Network (FinCEN) and maintain anti-money laundering compliance programs.
As part of a Non-Prosecution Agreement, which allows a company or individual to avoid criminal prosecution in exchange for meeting certain criteria, BGS admitted that it illegally transported money domestically and internationally between third parties and outside the limited regulatory protections for currency transporters. During this illegal conduct, BGS failed to have compliance controls in place to ensure its business activities remained within the regulatory safe harbor provided to the armored car industry. As a result, BGS operated as unlicensed money transmission business on multiple occasions in violation of U.S. law.
For example, BGS transported more than $15 million from a money service business in San Diego to a separate money service business in Florida across 12 transactions but failed to seek or obtain information confirming that the final beneficiary of each transaction was not someone other than the shipper and did not have compliance controls in place to do so. In fact, for each of the 12 transactions, the approximately $15 million was ultimately transmitted to a third-party not identified by BGS.
In addition, on eight occasions BGS was involved in the importation of currency totaling more than $35 million into the United States from Mexico. BGS and two other currency transporters caused the currency importation and subsequent domestic transportation of that money on behalf of a money service business located in Mexico for final delivery to several money service businesses in the United States. Such currency cross-border transshipments fall outside the safe harbor of the currency transporter exemption – which allows a company to avoid Bank Secrecy Act requirements if transactions involve just one company or individual and no third parties – and rendered BGS an unlicensed money transmitter in violation of Title 18, United States Code, Section 1960.
“This year’s long investigation detected—and now closes—a back door where cash covertly entered the global financial system,” said First Assistant U.S. Attorney Andrew Haden. “For too long, parties have used currency transporters in a manner that evaded Bank Secrecy Act reporting requirements and anti-money laundering tools. This office remains laser-focused on holding individuals and corporations—including those in the armored car industry—accountable for moving money in ways that dodge U.S. law.”
“This settlement serves as a testament to the unwavering dedication and collaboration of Homeland Security Investigations (HSI) and our law enforcement partners,” said Shawn Gibson, Special Agent in Charge of HSI San Diego. “Together, we have worked to uncover and address the criminal enterprises that have exploited the U.S. financial system for many years. Our commitment to safeguarding the integrity of our financial markets remains resolute, and we will continue to pursue those who threaten its stability and security.”
“This case highlights the significance of Customs and Border Protection’s (CBP) collaboration between law enforcement agencies in dismantling illegal operations that undermine the integrity of our financial systems,” said Sidney Aki, CBP Director of Field Operations for San Diego. “Through these partnerships, we have successfully exposed and disrupted illicit activities that spanned across borders, to include operations in Mexico. Their agreement to forfeit these funds demonstrates our commitment to holding individuals and businesses accountable when they violate the law. We remain steadfast in our pursuit of those who exploit financial systems for unlawful purposes, ensuring that justice is served, and public trust is upheld.”
In a parallel enforcement action, BGS and FinCEN resolved civil allegations related to BGS’s failure to maintain an adequate anti-money laundering program and other related violations.
This case was led by Assistant U.S. Attorney E. Christopher Beeler with important contributions from Assistant U.S. Attorneys Carl F. Brooker and Michael A. Deshong.
The full agreement is attached here.
npa_brinks_global_services_usa_fully_executed201023978.1.pdfINVESTIGATING AGENCIES
Homeland Security Investigations
U.S. Customs and Border Protection
Boston Man Sentenced to Five Years in Prison for Trafficking More Than Two Dozen Illegal Firearms into BostonRead the Press Release
BOSTON – A Boston man was sentenced today in federal court for conspiring to traffic dozens of illegal firearms from South Carolina to Boston.
Aizavier Roache, 31, was sentenced by U.S. District Court Judge Leo T. Sorokin to five years in prison, to be followed by three years of supervised release. In October 2024, Roache pleaded guilty to one count of firearms trafficking and conspiracy.
The investigation arose after a firearm recovered from a shooting in Boston was identified as having been purchased in South Carolina 15 days prior. Over a three-year period, Roache and his co-conspirator Trevon Brunson, conspired to traffic dozens of illegal firearms from South Carolina to Massachusetts. Specifically, Roache would text Brunson photos of the firearms he wanted. After purchasing the firearms in South Carolina, Brunson would meet Roache at different locations in Columbia, S.C. to transfer the firearms.
Numerous text messages as well as bank, travel and firearm records detailed the conspiracy. Intercepted communications uncovered an instance were Brunson used Roache’s credit card to complete a multi-gun purchase because he didn’t have enough cash on hand, during which Roache texted Brunson the pin number for the card. Additionally, a video recovered from Roache’s phone showed him on a bus showing off a carry-on bag that contained four firearms. The date of the video corresponded with Roache’s trip back to Massachusetts after a multi-gun purchase in April of 2023.
In total, the defendants trafficked more than 24 illegal firearms into Massachusetts from South Carolina. Eleven of the trafficked firearms were recovered in Massachusetts after being used in a crime.
Brunson pleaded guilty in October 2024 and is scheduled to be sentenced on March 21, 2025.
United States Attorney Leah Foley; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.
Bellevue Man Sentenced to 48 months in Prison for Possessing Unregistered Silencers and Short-barreled RiflesRead the Press Release
United States Attorney Susan Lehr announced that Robert D. Roggentine, Jr., age 63, of Bellevue, Nebraska, was sentenced on February 5, 2025 in federal court in Omaha, Nebraska, after having pled guilty to two counts of possession of unregistered firearms pertaining to his possession of multiple unregistered firearm silencers and short-barreled rifles. United States District Court Judge Brian C. Buescher sentenced Roggentine to 48 months’ imprisonment. There is no parole in the federal system. After Roggentine’s release, he will begin a 2-year term of supervised release. As part of this prosecution, Roggentine forfeited 10 firearm silencers, four short-barreled rifles, and silencer components.
On March 14, 2024, Bellevue Police Officers responded to a 911 call to Roggentine’s home near 15th and Franklin Streets in Bellevue. Roggentine called 911 because he was hallucinating and had discharged a handgun in his home. Officers observed him to be under the influence. Officers saw several firearms throughout the home and a user quantity of methamphetamine. They arrested him.
Officers searched the residence and seized multiple firearms, methamphetamine, marijuana, and drug paraphernalia. They observed firearm components, silencers, silencer components, an instruction manual regarding building silencers, multiple firearm magazines, and large amount of ammunition.
On March 30, 2024, Bureau of Alcohol, Tobacco, and Firearms (“ATF”) agents served a search warrant on Roggentine’s home and seized more drug paraphernalia, multiple firearms, firearms parts and accessories, ammunition, tools used in the manufacture of firearm silencers, and nine firearm silencers that were not registered in the National Registration and Transfer Record (“NFRTR”). Many of the firearm silencers showed signs of self-manufacture. Roggentine admitted to habitually smoking methamphetamine and marijuana, and ingesting “chemical” mushrooms he said he had legally purchased. He acknowledged the firearm silencers in his home. He admitted having more firearms and accessories stored at his brother in-law’s house, also in Bellevue. His brother in-law told ATF agents that he had stored the firearms for Roggentine for approximately one month due to concerns that Roggentine would use them to harm himself or others and provided consent for agents to remove them, in total: one firearm silencer and four short-barreled rifles belonging to Roggentine – None of which were registered in the NFRTR.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bellevue Police Department.
Atlanta Man Sentenced to over 5 Years for Smuggling Cocaine into A Florida Port via Container ShipRead the Press Release
Tampa, FL – U.S. District Judge Kathryn K. Mizelle has sentenced Wesley Berton Paul (48, Georgia) to 5 years and 11 months in federal prison for importing cocaine into the United States from Panama. Paul entered a guilty plea on August 19, 2024.
According to court documents, in April of 2022, Paul and others in Panama and New York coordinated a shipment of 15 kilograms of cocaine from Panama to Port Everglades, Florida. The cocaine was hidden inside a cargo container’s refrigeration unit. Law enforcement seized the cocaine upon its arrival to Florida.
Paul’s role in the conspiracy was to secure compromised port workers in Florida to offload the cocaine for further distribution within the United States. As compensation for his illicit services, Paul was to be paid in bricks of cocaine, which he would later sell to others.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. 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 www.justice.gov/OCDETF.
The specific mission of the OCDETF Panama Express Strike Force is to disrupt and dismantle Transnational Criminal Organizations involved in large scale drug trafficking, money laundering, and related activities. The OCDETF Panama Express Strike Force is comprised of agents and officers from the Coast Guard Investigative Service, the Drug Enforcement Administration, the Federal Bureau of Investigation, and Homeland Security Investigations. This case is being prosecuted by Assistant United States Attorney David J. Pardo.
Armed Leader of a Drug Trafficking Organization Shipping Kilogram Quantities of Cocaine from Puerto Rico Sentenced to Ten Years in PrisonRead the Press Release
NEW BERN, N.C. – Cesar De Sena Arias, aka “Junior,” was sentenced to 120 months in prison and five years of supervised release for his role as an armed leader of a trafficking organization bringing kilogram quantities of cocaine into Raleigh from Puerto Rico.
On March 4, 2024, Arias, age 32, pled guilty to conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine and to possession with intent to distribute 500 grams or more of cocaine, and aiding and abetting.
According to court documents and other information presented in court, the Drug Enforcement Administration (DEA) and Raleigh Police Department (RPD) conducted a federal wiretap investigation into the Arias drug trafficking organization in April 2022.
The investigation revealed that Arias was utilizing the U.S. Postal Service to send shipments of kilogram-quantities of cocaine from Puerto Rico to various addresses in Raleigh.
The United States Postal Inspection Service (USPIS) was able to identify Internet Protocol (IP) addresses used to track multiple shipments, and at least one phone number associated with those IP addresses was traced to a known residence of Arias.
Further surveillance of Arias confirmed that he travelled to the residences where packages were being shipped. Searches of multiple locations identified in the investigation resulted in the seizure of kilogram quantities of cocaine, a firearm, and more than $20,000 in cash.
Two co-defendants in this investigation have also been convicted and sentenced.
Luis Portes-Martes (5:23-CR-00119-FL-2): 48 months imprisonment and 5 years supervised release.
Robert Norris Mariscal (5:23-CR-00119-FL-3): 60 months imprisonment and 5 years supervised release.
This investigation was an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, 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.
Daniel P. Bubar, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The DEA, Raleigh Police Department, and U.S. Postal Inspection Service investigated the case and Assistant U.S. Attorney Kelly Sandling prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-00119-FL.
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Acting United States Attorney Fondren Announces Federal Indictments for Firearm and Violent CrimesRead the Press Release
Memphis, TN – Acting United States Attorney Reagan Fondren announced today the indictments of seven individuals who were charged with federal gun and violent crime offenses in West Tennessee. Acting United States Attorney Fondren emphasized that the United States’ commitment to prosecuting individuals who illegally possess firearms and commit violent offenses remains a top priority for her office.
The following defendants were charged with firearm or violent crime offenses:
- Torrian Floyd, 35. Floyd was indicted on January 30, 2025, on one count of possession of a firearm by a convicted felon.
- Mohamadou Ba, 21. Ba was indicted on January 30, 2025, on one count of robbery of a business affecting interstate commerce, one count of brandishing a firearm during and in relation to the robbery, and for being a felon in possession of a firearm.
- Maurice Harris, 31. Harris was indicted on three counts robbery of a business affecting interstate commerce, three counts of brandishing a firearm during and in relation to the robberies, and for being a felon in possession of a firearm.
- Marshun Lewis, 24. Lewis was indicted on two counts robbery of a postal carrier and two counts of brandishing a firearm during and in relation to the robberies.
- Royce Newsome, 32, and Alvin Anthony, 30. Newsome and Anthony were indicted on one count each of conspiracy to commit carjacking and carjacking. Additionally, Newsome was indicted on one count of aiding and abetting a robbery, and Anthony was indicted on one count of accessory after the fact to the carjacking.
- Christopher Busby, 53. Busby was indicted on two counts of possession of a firearm by a convicted felon.
These cases are being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Federal Bureau of Investigation’s Safe Streets Task Force; the Project Safe Neighborhoods Gun Task Force; the Memphis Police Department; and the Shelby County Sheriff’s Office. Anyone with information about switches or other federal gun crimes can call 1-800-ATF-GUNS (1-800-283-4867).
The charges and allegations contained in the indictments are merely accusations of criminal conduct, not evidence. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt and convicted through due process of law. If convicted, each defendant’s sentence will be determined by the Court after review of the factors unique to the case, including the defendant’s prior criminal records (if any), the defendant’s role in the offense, and the characteristics of the violation.
These indictments are 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 of Justice 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, using data-driven methods to set focused and strategic enforcement priorities, and measuring the results.
Acting United States Attorney Fondren thanked the Assistant United States Attorneys prosecuting these cases, as well as the law enforcement partners who investigated the cases.
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