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Monday 3 February 2025
Justice Department Announces Formation of Task Force to Combat Anti-SemitismRead the Press Release
Pursuant to President Trump’s Executive Order on Additional Measures to Combat Anti-Semitism, the Justice Department announced today the formation of a multi-agency Task Force to Combat Anti-Semitism. The Task Force’s first priority will be to root out anti-Semitic harassment in schools and on college campuses.
In addition to the Department of Justice, the Task Force will include representatives from the U.S. Department of Education, U.S. Department of Health and Human Services, and other agencies as it develops. The Task Force will be coordinated through the Department’s Civil Rights Division.
“Anti-Semitism in any environment is repugnant to this Nation’s ideals,” said Senior Counsel to the Assistant Attorney General for Civil Rights Leo Terrell, who will be heading the Task Force. “The Department takes seriously our responsibility to eradicate this hatred wherever it is found. The Task Force to Combat Anti-Semitism is the first step in giving life to President Trump’s renewed commitment to ending anti-Semitism in our schools.”
If you have been discriminated against, you can file a complaint with the Civil Rights Division, at Contact the Civil Rights Division | Department of Justice (https://civilrights.justice.gov). President Trump’s Executive Order can be found here: Additional Measures to Combat Anti-Semitism – The White House.
Ivanhoe Man Sentenced to 72 Months on Drug, Gun ChargesRead the Press Release
ABINGDON, Va. - A previously convicted felon who illegally possessed a firearm and possessed distribution quantities of methamphetamine was sentenced last week to 72 months in federal prison.
Troy Alexander Stamper III, 34, of Ivanhoe, Virginia, pled guilty in October 2024 to one count of possessing with the intent to distribute 50 grams or more of methamphetamine and one count of possession of a firearm by a previously convicted felon.
According to court documents, on June 23, 2023 the Grayson County Sheriff’s Office responded to a residence in Fries, Virginia to locate a wanted subject. Upon arriving at the residence, a witness reported that the wanted subject, and Stamper, fled upon seeing sheriff’s deputies arriving. In addition, the witness further reported that Stamper was in possession of a pistol.
The wanted subject was found hiding underneath the residence and stated that Stamper had stashed a duffel bag and a pistol underneath the porch of the residence. Deputies located the duffel bag, which contained a loaded, semiautomatic 9 mm pistol, 87 grams of methamphetamine, .873 grams of fentanyl, and 4 oxycodone tablets.
Stamper was apprehended a short time later and admitted that the pistol and bag containing the drugs belonged to him.
Acting United States Attorney Zachary T. Lee and Anthony Spotswood, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
The Grayson County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives are investigating the case.
Acting U.S. Attorney Zachary T. Lee is prosecuting the case.
Illegal Alien Indicted on Voter Fraud and Gun ChargesRead the Press Release
MIAMI – Carlos Jose Abreu, 45, an illegal alien living in Broward County, Florida, appeared in federal court today to face charges of impersonating a United States citizen when registering to vote and when voting in a federal election. Abreu is also charged with unlawfully possessing a firearm.
Abreu was previously indicted for passport application fraud and aggravated identity theft (case no: 24-cr-60155). On January 8, 2025, Abreu pled guilty to the passport fraud allegations.
According to allegations in the charging documents and statements made during court proceedings: Abreu is a national of the Dominican Republic who entered the United States illegally about 20 years ago and has lived in the country unlawfully since then. In 2007, the state of New Jersey issued an arrest warrant for Abreu on charges of kidnapping, sexual assault, endangering a child, and criminal restraint. Abreu moved to Florida, assumed the identity of a real person (a United States citizen) and used it to obtain a Florida driver license and apply for a passport. Abreu has been living in the United States under the assumed identity of the American citizen victim for about 18 years.
According to the recently returned indictment (case no. 25-cr-60015), Abreu also used the assumed identity of the American citizen victim to register to vote in September 2020, and to vote in the November 2022 federal midterm elections. It is also alleged that Abreu illegally possessed a firearm. It is a federal crime for an illegal alien to possess a firearm in the United States. If convicted on the voter fraud and gun charges, Abreu faces up to 15 years in federal prison. He also is subject to deportation.
U.S. Attorney Hayden O’Byrne for the Southern District of Florida and Acting Special Agent in Charge Michael Conklin of the U.S. Department of State’s Diplomatic Security Service (DSS) Miami Field Office made the announcement.
The DSS Miami Field Office investigated the case. Assistant United States Attorney Brianna Coakley is prosecuting it.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Honduran National Sentenced to Time Served for Illegal Re-EntryRead the Press Release
NEW ORLEANS – JUAN JOSE ARRIAGA-MORENO, a/k/a “Jaime Garcia Matamoros”, (“ARRIAGA-MORENO”), age 59, was sentenced on January 30, 2025, for illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans. ARRIAGA-MORENO was sentenced to time served, 6 months imprisonment, and will be removed from the country by the United States Immigration and Customs Enforcement. He has been in custody since August 29, 2024.
According to court documents, on November 9, 2018, ARRIAGA-MORENO was removed from the country after being encountered by immigration and Customs Enforcement and determined to have no legal right to be in the United States. On August 29, 2024, ARRIAGA-MORENO was again encountered by Immigration and Customs Enforcement officials in Terrytown, La. without legal authorization.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Honduran National Indicted for Illegal Reentry into the United StatesRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Alex Rafael Gonzalez-Morales (35, Honduras) with illegal reentry by a deported alien. If convicted, Gonzalez-Morales faces a maximum penalty of 10 years in federal prison. His trial is set for March 3, 2025.
According to the indictment, Gonzalez-Morales was previously convicted of of unlawful reentry of a removed alien and was subsequently removed from the United States in November 2019. Following his removal, Gonzalez-Morales did not receive the consent of the Attorney General or the Secretary of Homeland Security to reapply for admission to the United States. On or about January 14, 2025, Gonzalez-Morales was found to be voluntarily in the United States.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) Miami – Jacksonville sub-office It is being prosecuted by Assistant United States Attorney Rachel Lasry.
High School Coach Arrested for Alleged Attempt to Entice a Minor OnlineRead the Press Release
DEL RIO, Texas – A high school teacher and coach in Sabinal was arrested Friday on criminal charges related to his alleged attempt to entice a minor.
According to court documents, Kenneth Wayne Mulkey, 43, allegedly asked an undercover detective for their age, sex and location in a Snapchat interaction on Oct. 11, 2024. After the undercover officer replied by identifying as a 14-year-old boy, Mulkey allegedly identified himself as a 40-year-old football and track coach. He also sent a photo of himself before requesting sexually explicit photos of the minor—which the minor declined—and subsequently discussing topics that were sexual in nature. The affidavit alleges that the following day, Mulkey sent a sexually graphic photo of himself to the user he believed to be a teenage boy. An investigation revealed that when Mulkey had requested the sexually explicit photo of the minor on Oct. 11, his geolocation was within 40 meters of Sabinal High School.
HSI arrested Mulkey Jan. 31, 2025. He made is initial appearance in federal court Feb. 3 and is charged with attempted enticement of a minor. If convicted, he faces 10 years to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
Homeland Security Investigations is investigating the case.
Assistant U.S. Attorneys Nallely Duarte and Ekua Assabill 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 www.justice.gov/psc.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Henryetta Resident Pleads Guilty to Burglary and AssaultRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Cody Lynn Lusk, age 34, of Henryetta, Oklahoma, entered a guilty plea to one count of Burglary in the First Degree in Indian Country, and one count of Assault of a Spouse, Intimate Partner, or Dating Partner by Strangling, Suffocating, and Attempting to Strangle and Suffocate in Indian Country.
The Indictment alleged that on March 22, 2024, Lusk broke into the dwelling house of an individual and entered, intending to commit a crime within. The Indictment further alleged that Lusk then strangled and suffocated a dating partner.
The crimes occurred in Muskogee County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Federal Bureau of Investigation, the Cherokee Nation Marshal Service, and the Muskogee Police Department.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Lusk will remain in the custody of the United States Marshals Service pending sentencing.
Assistant U.S. Attorneys Caila M. Cleary and Morgan Muzljakovich represented the United States.
Hartford Substance Abuse Counselor Sentenced to 27 Months in Prison for Health Care Fraud SchemesRead the Press Release
Marc H. Silverman, Acting United States Attorney for the District of Connecticut, today announced that on January 31, 2025, THELMA “WENDY” EPPS, 60, of Hartford, was sentenced by U.S. District Judge Kari A. Dooley in Bridgeport to 27 months of imprisonment, followed by three years of supervised release, for health care fraud.
According to court documents and statements made in court, Epps was a Licensed Alcohol and Drug Abuse Counselor (LADC) with an office located at 330 Main Street in Hartford. In April 2013, she enrolled as a participating provider in the Connecticut Medicaid program along with an entity affiliated with Epps called Miracles to Destiny LLC. In July 2018, the Medicaid program suspended Epps from participating as a provider in the program based on a finding of a credible allegation of fraud. Medicaid told Epps that any attempt to circumvent her suspension by submitting claims for services performed by Epps or Miracles to Destiny LLC through other agencies or other billing numbers would result in termination of her provider agreement.
In 2019, Epps entered into an agreement with Dennis Tomczak, a Connecticut LADC who was a participating provider in Medicaid. Epps and Tomczak agreed that Tomczak would bill Medicaid using his Medicaid provider number for psychotherapy counseling services purportedly provided by Epps. These claims falsely represented that Tomczak had personally provided the services. In return for Tomczak billing the services, Epps agreed to pay Tomczak 25 percent of the amount Medicaid paid Tomczak. Between approximately April 2019 and November 2022, Medicaid paid Tomczak $330,547.71 for fraudulent claims for services purportedly provided by Epps that were billed under Tomczak’s provider number.
At some point during their scheme, Tomczak expressed concerns to Epps about the number and frequency of services that Epps told Tomczak she was providing. At about this time, Epps entered into a similar agreement with Shawn Tyson, a LADC in Connecticut, whereby Tyson would use his Medicaid provider number to submit claims to Medicaid for services Epps purportedly provided to Medicaid clients.
In November 2019, Epps assisted Tyson with the process of enrolling Tyson as a participating provider in Medicaid. Tyson’s provider application listed the location at which Tyson would provide services as 330 Main Street, Third Floor, in Hartford, the location of Epps’s and Miracles to Destiny LLC’s office. Once Tyson was enrolled as a Medicaid provider, Tyson provided Epps with his login information to the online portal for submitting claims to Medicaid, which Epps then used to submit claims. For a brief period before Tyson was enrolled as a Medicaid provider, unbeknownst to Tomczak, Epps submitted claims through Tomczak’s provider number for services purportedly provided by Tyson, by representing to Tomczak that she had performed these services. Medicaid paid Tomczak a total of $7,879.40 for these services.
During the scheme involving Epps and Tyson, Tyson would provide Epps the names of Medicaid patients and dates that Tyson purportedly provided psychotherapy counseling services to the patients, and Epps would then bill Medicaid for these services using Tyson’s provider number. Epps would also submit claims using Tyson’s provider number for services she purportedly provided to Medicaid patients. These claims falsely represented that Tyson had personally provided the services to the patients.
Epps and Tyson submitted and caused to be submitted claims for hundreds of thousands of dollars of psychotherapy services that neither Epps nor Tyson had actually provided to Medicaid clients. When Epps warned Tyson that he should not bill Medicaid for having provided psychotherapy to patients on holidays, such as July 4 and Thanksgiving, Tyson would typically change the dates of services and resubmit the list of services to Epps.
Medicaid paid Tyson $663,081.32 for claims that falsely represented that Tyson had personally provided services, or falsely represented that services had been provided when, in fact, they were not provided at all.
Judge Dooley ordered Epps to pay $1,001,058.43 in restitution to the Connecticut Medicaid program.
On November 8, 2024, Epps pleaded guilty to health care fraud. Epps, who is released on a $50,000 bond, is required to report to prion on March 3.
Tomczak and Tyson pleaded guilty to related charges and await sentencing.
This investigation was conducted by the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG) and the Federal Bureau of Investigation, with the assistance of the Connecticut Department of Social Services. The case was prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.
The U.S. Attorney’s Office, Connecticut Chief State’s Attorney’s Office, and Connecticut Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Hamilton man sentenced to 15 years in prison for receiving bulk amounts of narcotics through the mail, illegally possessing firearms, smuggling drugs into Butler County JailRead the Press Release
CINCINNATI – Joshua M. Riley, 46, of Hamilton, Ohio, was sentenced in U.S. District Court to 180 months in prison for narcotics and firearms crimes.
According to court documents, Riley was having bulk amounts of narcotics mailed to his home on Symmes Avenue in Hamilton through the United States Postal Service. In November 2022, law enforcement intercepted a package in route to Riley’s residence that included fictitious sender and recipient names. The package contained more than two kilograms of methamphetamine.
When agents later executed a search warrant at Riley’s residence, they discovered approximately 1,000 fentanyl pills, 40 pounds of marijuana, cocaine, drug trafficking paraphernalia, high-end jewelry and $18,500 in cash. Riley also illegally possessed at least 15 firearms, firearm magazines, and ammunition. Four of those firearms were later found to have been previously reported as stolen, and a fifth had an obliterated/filed off serial number. The other firearms included an Akdal Arms, 12 gauge semi-automatic shotgun and a Hi-Point nine millimeter high-powered rifle.
In July 2024, Riley pleaded guilty to possessing with the intent to distribute 500 grams or more of methamphetamine and 40 grams or more of fentanyl, as well as cocaine and marijuana. He also admitted to illegally possessing a firearm as a previously convicted felon.
While detained during this case, Riley was repeatedly caught smuggling drugs – namely, dozens of suboxone strips and amphetamines – into the Butler County Jail.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Lesley Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division; and Butler County Sheriff Richard K. Jones announced the sentence imposed by U.S. District Court Judge Jeffery P. Hopkins. Assistant United States Attorneys David P. Dornette and Timothy D. Oakley represented the United States in this case.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, and gangs that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Gardner business owner sentenced to prison for failing to pay taxesRead the Press Release
KANSAS CITY, KAN. – A Kansas business owner was sentenced to 17 months in prison for failing to forward more than one million dollars in employment tax collections to the Internal Revenue Service (IRS).
According to court documents, Marvin Vail, 53, of Gardner pleaded guilty to one count of failure to account for and pay over employment taxes.
As the owner and operator of Marvin's Tow Service, Inc. in Gardner, Kansas, Vail failed to pay employment taxes for at least 23 calendar quarters between 2012-2017. Employers are required to withhold Federal Insurance Contribution Act (FICA) taxes and income taxes from the wages paid to their employees then forward the withheld amounts to the IRS. IRS-Criminal Investigation agents interviewed the office administrator for Marvin's Tow Service and were told Vail wouldn’t allow the office administrator to pay the owed federal taxes.
As part of his sentence, a federal judge ordered Vail to pay the IRS $1,512,283 in restitution.
The IRS-Criminal Investigation investigated the case.
Assistant U.S. Attorney Scott Rask prosecuted the case.
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Fresno Man with Prior Fraud Conviction Pleads Guilty to Running a $4.2 Million Fraud Scheme Through His Technology StartupRead the Press Release
FRESNO, Calif. — Royce Newcomb, 62, of Fresno, pleaded guilty today to wire fraud and money laundering charges today for a long-running fraud scheme where he stole $4.2 million from investors, lenders, and the federal government, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, from 2017 through 2022, Newcomb owned Strategic Innovations, which was a technology startup company that purported to make smart home and business products meant to stop package theft, prevent weather damage to packages, and make it easier for emergency responders and delivery services to find homes and businesses. Newcomb developed prototypes of his products and received local and national media attention for them. For example, Time Magazine included his eLiT Address Box & Security System, which used mobile networks to pinpoint home and business locations, on its Best Inventions of 2021 list.
Newcomb made several false representations to his investors to deceive and cheat them out of their money. The false representations included that he had been awarded a grant by the National Science Foundation and that he would use the investors’ money to further develop and bring his products to market. That was not true. Instead, Newcomb used the money to pay for gambling, a Mercedes and Jaguar, and a mansion. He also used the money to pay for refunds to other investors who wanted out, and to pay for new, unrelated projects without the investors’ authorization.
During this period, Newcomb also received a fraudulent COVID-19 loan for more than $70,000 from the Small Business Administration and fraudulent loans for more than $190,000 from private lenders. He lied about Strategic Innovations having hundreds of thousands and even millions in revenue to get these loans.
Newcomb was previously convicted federally in 2011 for running a real estate fraud scheme in Sacramento. He was sentenced to more than five years in prison for that offense, and he was on federal supervised release for that offense when he committed the offenses charged in this case.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Joseph Barton and Jeffrey Spivak are prosecuting the case.
Newcomb is scheduled to be sentenced on May 5, 2025. Newcomb faces maximum statutory penalties of 20 years in prison and a $250,000 fine for the wire fraud charge, and 10 years in prison and a $250,000 fine for the money laundering charge. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.
Former martial arts and gymnastics instructor admits to receiving and possessing child sexual abuse materialRead the Press Release
GALVESTON, Texas – A 41-year-old Alvin man has entered a guilty plea to child pornography charges as trial was set to begin, announced U.S. Attorney Nicholas J. Ganjei.
Franklin Joseph Perkins previously worked at the Kuk Sool Won martial arts studio and Gulf Coast Gymnastics, both located in Alvin.
The investigation revealed a user with a Google account had uploaded files possibly depicting child sexual abuse material (CSAM) onto their servers. Law enforcement linked Perkins to that account and determined he had been using various Google accounts and his cell phone to receive and possess child pornography.
U.S. District Judge Jeffrey V. Brown accepted the plea and set sentencing for April 15. At that time, Perkins he faces a minimum of five and up to 20 years for receiving CSAM and up to 10 years for possessing it. He could also be ordered to pay up to a $250,000 fine as well as a $5,000 special assessment under the Justice for Trafficking Act, a maximum of a $35,000 special assessment under the Amy, Vicky and Andy Child Pornography Victim Assistance Act and mandatory restitution in an amount of no less than $3,000 per victim.
He will remain in custody pending sentencing.
Homeland Security Investigations conducted the investigation along with Pearland Police Department, Galveston County Sheriff’s Office and the Houston Metro Internet Crimes Against Children Task Force conducted the investigation.
Assistant U.S. Attorneys Kimberly Leo, Carrie Wirsing and Colton Turner are prosecuting the case, which was brought as part of Project Safe Childhood - a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former SCDC Captain Pleads Guilty to $279,000 Bribery ConspiracyRead the Press Release
COLUMBIA, S.C. —Christine Mary Livingston, 47, of Gaston, has pleaded guilty to honest services wire fraud conspiracy for her role in a bribery scheme in a South Carolina prison.
According to evidence presented in court, the investigation revealed that Livingston was a 16-year veteran of the South Carolina Department of Corrections (SCDC) at the time of her resignation in November 2021. By virtue of her position as Captain at the Broad River Correctional Institute (BRCI) from 2016 through 2021, she managed security operations at BRCI and was responsible for enforcing contraband policy and law. SCDC policy and state law prohibited her from accepting bribes or anything of value to influence the exercise of her official responsibilities.
From July 2018 through November 2021, however, Livingston accepted bribes from a least 45 prisoners and three family members of prisoners in exchange for smuggling contraband into BRCI and in exchange for failing to enforce contraband law and policy. She operated at least 14 peer-to-peer payment accounts on platforms such as Cash App that were established in false names but were linked to her legitimate bank accounts. One of her Cash App accounts received at least $279,000 in bribes, of which more than $225,000 was transferred to her personal bank accounts. She then used the proceeds for personal enrichment including on shopping, ATM cash withdraws, and the purchase of cryptocurrency.
At least 173 cell phones were purchased by Livingston on her personal Amazon account during the conspiracy, along with 130 SIM cards and phone accessories, headphones, screen protectors, and phone chargers. At least eight witnesses would have cooperated against Livingston at trial, including family members of prisoners, and records obtained from Facebook and contraband phones recovered by SCDC confirmed the bribery scheme.
“Livingston used her position and rank for personal, criminal gain which endangered other staff members and those housed at Broad River Correctional Institute,” said U.S. Attorney Adair Ford Boroughs for the District of South Carolina. “We will continue to work with SCDC to prosecute those who commit crimes within prison walls.”
“This is one more example of how illegal cellphones ruin lives, including those of correctional officers who get involved in the contraband trade,” SCDC Director Bryan Stirling said. “We appreciate the FBI and U.S. Attorney’s office investigating and prosecuting this case and holding these criminals accountable for their actions.”
Jerell Reaves, a co-defendant and prisoner responsible for more than $42,000 in bribes to Livingston, was recently sentenced to 60 months imprisonment by United States District Judge Sherri A. Lydon, to be followed by three years of supervision by U.S. Probation.
Livingston faces up to 20 years in federal prison, with the Government agreeing to recommend up to eight years as a part of her plea agreement, to be followed by court ordered supervision, $250,000 in monetary penalties, and forfeiture of assets including up to the full value of the bribes. Livingston is scheduled to be sentenced by United States District Judge Sherri A. Lydon on June 30 at 10:00 a.m.
The case was investigated by the FBI Columbia Field Office and the SCDC Office of Inspector General. Assistant U.S. Attorneys Elliott B. Daniels and Michael Shedd are prosecuting the case.
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Former Member of Congress Pleads Guilty to Wire Fraud SchemesRead the Press Release
FRESNO, Calif. — Former member of the U.S. House of Representatives Terrance John “TJ” Cox, 61, of Fresno, pleaded guilty today to one count of wire fraud and one count of wire fraud affecting a financial institution, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, Cox perpetrated fraud schemes targeting companies he was affiliated with. Cox created unauthorized off-the-books bank accounts and diverted client and company money into those accounts through false representations, pretenses and promises. From 2013 to 2018, across two different fraud schemes, Cox illicitly obtained client payments and company loans and investments that he solicited and then stole.
In addition, Cox fraudulently obtained a $1.5 million construction loan to develop the recreation area in Fresno known as Granite Park. Cox and his business partner’s nonprofit could not qualify for the construction loan without a financially viable party guaranteeing the loan. Cox falsely represented that one of his affiliated companies would guarantee the loan and submitted a fabricated board resolution that falsely stated that at a meeting on a given date, all company owners agreed to guarantee the Granite Park loan. No meeting took place, and the other owners did not agree to back the loan. The loan later went into default.
This case is the product of an investigation by the Federal Bureau of Investigation and the IRS Criminal Investigation. Assistant U.S. Attorneys Henry Z. Carbajal III and Jeffrey A. Spivak are prosecuting the case.
Cox is scheduled to be sentenced on June 2, 2025. Cox faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
cox_plea_agreement.pdfFormer Contractor Convicted of Sexual Assault of Co-Worker at Palo Alto VA HospitalRead the Press Release
SAN JOSE – A federal jury convicted a Palo Alto man for aggravated sexual abuse, sexual abuse by fear, and making false statements to a federal agent during an investigation. The jury reached its verdict late in the evening on Jan. 31, 2025, following a three-week trial before Senior U.S. District Judge Edward J. Davila.
Onofre Salas-Lozano, 42, worked as a night supervisor for the janitorial services contractor that cleaned the Palo Alto Veterans Affairs (VA) Hospital. According to court documents and evidence presented at trial, Salas-Lozano isolated and trapped the victim in a patient exam room at the hospital late at night on July 2, 2021, and forced her to engage in sexual activity. The victim suffered traumatic tissue injury during the assault, and DNA analysis confirmed the presence of Salas-Lozano’s sperm in the victim’s underwear. At the time of the incident, Salas-Lozano was the victim’s direct supervisor.
The jury also found that Salas-Lozano lied to a VA Office of Inspector General (OIG) special agent during a subsequent investigative interview when he denied having sexual intercourse with the victim on July 2, 2021, or at any other time. At trial, the defendant testified and claimed to have had consensual sex with the victim at some other time and denied making a false statement.
“Salas-Lozano used his position as a supervisor to sexually assault a fellow employee. Federal law enforcement will do all it can to secure justice for any victim of sexual assault,” said United States Attorney Ismail J. Ramsey. “This jury verdict ensures that the Salas-Lozano will now face severe consequences for his despicable acts.”
“The verdict sends a clear message that the VA OIG remains dedicated to holding those who commit an act of violence at a VA facility accountable,” said Special Agent in Charge Dimitriana Nikolov with the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “The VA OIG is grateful for the commitment of the U.S. Attorney’s Office to seek justice for the victim.”
Salas-Lozano is scheduled to appear in court today to set a date for sentencing. He faces a maximum penalty of life in prison on each count of aggravated sexual abuse and sexual abuse by fear, and a maximum penalty of eight years in prison on the count of materially false statement in a federal investigation.
Assistant U.S. Attorneys Marissa Harris and Christoffer Lee are prosecuting the case with the assistance of Sara Slattery, Susan Kreider, Sahib Kaur, Mimi Lam, and Fernanda Gonzalez. The prosecution is the result of an investigation by VA OIG, with significant assistance from the VA Police Service.
Folsom Man Pleads Guilty to Visa FraudRead the Press Release
SACRAMENTO, Calif. — Marcus Taslim, 70, of Folsom, pleaded guilty today to visa fraud, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, Taslim brought Person 1 to the United States from Indonesia in December 2018 to provide caregiving services for his mother, but he obtained a nonimmigrant visa for Person 1 through lies and false statements. Taslim secured this visa by falsely representing to a consular officer that Person 1’s length of stay in the United States would only be one month, that she would be paid minimum and overtime wages under the laws of the State of California, that she would be paid bi-weekly and in full, and that he had paid Person 1’s one-month salary in advance.
Taslim knew these statements to the consular officer were not true. For example, although Taslim paid Person 1 what looked like one month of salary in advance, as soon as the consular officer received proof of that payment, Taslim ordered Person 1 to withdraw that money and give it back to Taslim, which she did. Then, once in the United States, Person 1 worked for Taslim for about six months. She typically worked seven days a week, beginning work as early as 5 or 6 a.m. and ending at about 8 or 9 p.m. Taslim paid Person 1 far less than minimum wage, did not pay her bi-weekly and in full, and also confiscated her passport so she could not run away. Person 1 was only able to leave in June 2019, following intercession from the Folsom Police Department.
This case is the product of an investigation by the U.S. Department of State, Diplomatic Security Service’s San Francisco Field Office. Assistant U.S. Attorney Elliot C. Wong is prosecuting the case.
Taslim is scheduled to be sentenced on May 12, 2025, by U.S. District Judge William B. Shubb. Taslim faces a maximum term of 10 years in prison and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Federal Jury Convicts Former Bureau of Prisons Correctional Officer in Bribery, Drug SchemeRead the Press Release
FLORENCE, S.C. — Angela Crosland, 51, of Elgin, has been convicted of bribery, money laundering, distribution of methamphetamine and suboxone, and filing false income tax returns. A federal jury returned the guilty verdict following two days of trial.
Evidence presented to the jury showed that Crosland worked as a correctional officer at Federal Correctional Institution Williamsburg in Salters. While employed as a correctional officer, Crosland smuggled contraband into FCI Williamsburg in exchange for money. The contraband included suboxone, methamphetamine, K-2-soaked paper, marijuana, tobacco, food, and other items. Evidence presented to the jury included Crosland’s Cash App accounts records which reflected payments to her account totaling $56,791 from family and associates of inmates housed at FCI Williamsburg. These payments occurred over approximately a nine-month time period. In addition, Crosland failed to report this substantial income on her federal tax returns.
“Those who work in public service, especially in law enforcement and corrections, must be held to a higher standard," said U.S. Attorney Adair Ford Boroughs for the District of South Carolina. “Crosland’s actions damage trust in our prison systems while compromising the safety of Williamsburg FCI’s staff and inmates.”
“Crosland smuggled drugs and other contraband into the federal prison in exchange for tens of thousands of dollars in bribes,” said Eric Fehlman, Special Agent in Charge of the Department of Justice Office of the Inspector General Southeast Region. “Her corrupt actions jeopardized the safety and security of the entire facility.”
“The IRS is committed to working alongside our law enforcement partners to provide financial expertise while investigating individuals who engage in corruption, money laundering, and tax fraud,” said Special Agent in Charge Donald “Trey” Eakins, Charlotte Field Office, Internal Revenue Service Criminal Investigation.
United States District Judge Joseph Dawson, III, presided over the trial and will sentence Crosland after receiving and reviewing a pre-sentence report from the U.S. Probation office.
This case was investigated by the Office of Inspector General for the Department of Justice and the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys Bill Watkins and Winston Marosek are prosecuting the case.
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Federal Inmate Pleads Guilty to Possession of Methamphetamine with the Intent to DistributeRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Jessie Wooden (36, Miami) has pleaded guilty to possession with the intent to distribute 50 grams or more of methamphetamine. Wooden faces a minimum of 10 years, up to life, in federal prison. A sentencing date has not yet been set.
According to court records, on March 10, 2024, Wooden was an inmate at the Coleman Federal Correctional Complex (FCC Coleman) in Sumter County. During a visitation session, surveillance footage captured Wooden being thrown a bag containing contraband that had been smuggled into the prison. Correctional officers confiscated the bag, which contained 78 grams of methamphetamine. When interviewed by law enforcement, Wooden admitted to having visitors bring contraband into the prison for him. He also confirmed that he was going to distribute the methamphetamine inside FCC Coleman.
This case is being prosecuted as part of a United States Department of Justice task force aimed at rooting out contraband and misconduct in the Federal Bureau of Prisons. The task force was led by the Federal Bureau of Prisons and the Department of Justice Office of the Inspector General, with support from the Federal Bureau of Investigation, the Drug Enforcement Administration, and the United States Attorney’s Office for the Middle District of Florida. It is being prosecuted by Assistant United States Attorney Hannah Nowalk Watson.
Dominican National Charged with False Statement to Federally Licensed Firearms DealerRead the Press Release
Orlando, FL – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Eugenio Gonzalez-Paredes (53, Dominican Republic) with making a false statement to a federally licensed firearms dealer. If convicted, Gonzalez-Paredes faces a maximum penalty of 5 years in federal prison.
According to the indictment, Gonzalez-Paredes made a false statement on a Bureau of Alcohol, Tobacco, Firearms and Explosives Form 4473 stating that he had not previously been convicted of a crime punishable by more than a year in prison. At the time Gonzalez-Paredes made the statement, he had previously been convicted twice in the United States District Court in the District of Puerto Rico for illegal reentry by a previously deported alien.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Customs and Border Protection. It will be prosecuted by Assistant United States Attorney Megan Testerman.
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.
Detroit Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Allen Lation Baird, 48, of Detroit, Michigan, pleaded guilty today to possession with intent to distribute fentanyl and methamphetamine.
According to court documents and statements made in court, on May 3, 2023, law enforcement officers arrested Baid on an arrest warrant issued in Michigan. Officers searched Baird while taking him into custody and found approximately 56 grams of a substance containing fentanyl and 14 grams of methamphetamine. Baird told officers he was taking the controlled substances to someone else.
Baird is scheduled to be sentenced on June 5, 2025, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Police Department and the Huntington Violent Crime and Drug Task Force.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Courtney L. Finney is prosecuting the case.
This case was prosecuted as part of Operation Synthetic Opioid Surge (SOS), an enforcement surge that has sought to reduce the supply of deadly synthetic opioids in high impact areas.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:24-cr-183.
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Des Moines Man Sentenced to 204 Months in Federal Prison for Drug ChargesRead the Press Release
DES MOINES, Iowa – A Des Moines man was sentenced today to 17 years in federal prison for possession with intent to distribute a controlled substance containing fentanyl.
According to public court documents and evidence presented at trial, in the fall of 2023, Sharmarke Omar Mohamed, 37, was identified as a source of supply of counterfeit fentanyl pills in the Des Moines metro. Police conducted several controlled buys of hundreds of fentanyl pills from him. In early 2024, law enforcement surveilled Mohamed as he traveled to Arizona and quickly returned to Iowa. Law enforcement conducted a traffic stop of Mohamed’s vehicle and found him in possession of approximately 30,000 counterfeit fentanyl pills.
On September 30, 2024, following a one-day bench trial, a federal judge found Mohamed guilty. At his sentencing, a federal judge found Mohamed obstructed justice by committing perjury at his trial by lying under oath.
After completing his term of imprisonment, Mohamed will be required to serve a 6-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Des Moines Police Department-Narcotics Division.
Fentanyl has become the leading cause of drug overdose deaths in the United States. Counterfeit, fentanyl-laced pills often resemble pharmaceutical pills, but contain potentially lethal doses of fentanyl. In 2023, accidental overdose was the number one cause of death in 37 states for residents under 40 years old. https://stateline.org/2023/09/05/death-rates-for-people-under-40-have-skyrocketed-blame-fentanyl/. In Iowa, opioid-related deaths reached a record high 258 in 2021, up 64% compared with 2019, and decreased 8% in 2022. https://hhs.iowa.gov/media/11935/download.
Delaware County Man Convicted at Trial of Defrauding Pandemic Relief Programs of $8.4 MillionRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Francis J. Battista, 39, of Aston, Pennsylvania, was convicted at trial on all charges against him — 12 counts of wire fraud, three counts of aggravated identity theft, and seven counts of money laundering — for defrauding federal COVID-19 assistance programs of $8.4 million. United States District Court Judge Paul S. Diamond remanded the defendant into custody following the verdict on Friday afternoon.
Battista was charged by indictment with these offenses in June of 2022.
As proven at trial, between March 2020 and June 2021, the defendant fraudulently applied for 19 loans from the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, seeking over $10 million in proceeds. PPP and EIDL were federal government programs intended to provide emergency financial assistance to small businesses and their workers, who were suffering the economic effects of the COVID-19 pandemic.
Battista applied for one fraudulent PPP loan using his own name, and submitted fake and fabricated documents in support of the application. For the rest of his applications, he used other people’s names and personal identifying information on applications and the bogus support documents submitted in support of those applications. In one instance, Battista falsely renewed the Pennsylvania photo ID card of a deceased family friend, had it mailed to his house, and then used it to apply for a PPP loan.
Nine of Battista’s 19 loan applications were funded, with the defendant receiving $8.4 million in PPP payments. Battista used the proceeds of the loans to attempt to purchase waterfront property in Florida, buy a Range Rover, engage in risky stock trading that resulted in millions of dollars of losses, and pay for his children’s private school, among other unauthorized expenses.
The government has located and seized $6.3 million of those funds through forfeiture proceedings.
Battista will be sentenced on a date to be determined and faces a maximum possible sentence of 316 years in prison.
“Frank Battista tried to cash in on a public health crisis, diverting federal money meant to support businesses and workers hobbled by the pandemic,” said U.S. Attorney Romero. “He didn’t care that he was defrauding the government and all of us taxpayers — he just wanted to live larger on somebody else’s dime. As his case shows, my office and our partners are committing to prosecuting these shameless COVID crooks and holding them fully accountable.”
"Mr. Battista took advantage of our nation's generosity in a time of need by fraudulently applying for and obtaining COVID-19 program funds," said Yury Kruty, Special Agent in Charge of IRS-Criminal Investigation. "IRS-CI, along with our law enforcement partners, will continue to aggressively investigate those who scheme to exploit federal relief programs for their personal gain."
"The Secret Service is proud to work alongside our federal partners to bring these defendants to justice," said Glenn M. Dennis, Special Agent in Charge of the U.S. Secret Service. "Criminals exploiting the Paycheck Protection Program and Economic Injury Disaster Loan Program steal valuable funds from the American taxpayer and from businesses who rightfully needed these programs to continue operation during the pandemic. The Secret Service is committed to continuing our work with federal, state, and local law enforcement to track down and prosecute those who abused the PPP and EDIL Programs."
The case was investigated by the U.S. Treasury Inspector General for Tax Administration, U.S. Small Business Administration Office of Inspector General, Internal Revenue Service Criminal Investigation, and the U.S. Secret Service. The case is being prosecuted by Assistant United States Attorneys Nancy E. Potts and Eric D. Gill.
Convicted Felon Sentenced to 7 Years for Possession of FirearmRead the Press Release
Tampa, FL – U.S. District Judge Thomas P. Barber has sentenced Sherron Gary (41, Tampa) to seven years in federal prison for possessing a firearm and ammunition as a convicted felon. Gary pleaded guilty in October 2024.
According to court documents, on April 9, 2023, officers with the Tampa Police Department (TPD) attempted a traffic stop on a vehicle driven by Gary after observing the vehicle had a broken taillight. Gary failed to pull over and instead fled from the officers at a high rate of speed. A police helicopter followed Gary. After Gary’s vehicle was boxed in by law enforcement, Gary fled from the officers on foot, which the helicopter was also able to capture.
As Gary fled, the helicopter crew observed Gary discard an item as he was running that resembled a firearm. TPD officers apprehended Gary. After the arrest, the helicopter crew directed officers back to the location where they had observed Gary discard the firearm. Officers located a 9mm Walther Creed semiautomatic pistol at the location.
At the time, Gary had four prior felony convictions, including aggravated battery and armed burglary of a dwelling, trafficking of cocaine, delivery of cocaine, and delivery of cocaine within 1,000 feet of church. As a convicted felon, Gary is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation, the Tampa Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Samantha Newman. The forfeiture was handled by Assistant United States Attorney Suzanne Nebesky.
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.
Columbus man admits attempted transfer of obscene material to minor in undercover investigationRead the Press Release
BILLINGS — A Columbus man accused of attempting to send obscene material to a minor during an undercover investigation admitted to a charge today, U.S. Attorney Jesse Laslovich said.
The defendant, Jacob Curtis Wyckoff, 25, pleaded guilty to an information charging him with attempted transfer of obscene material to a minor. Wyckoff faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Wyckoff was released pending further proceedings.
In court documents, the government alleged that in January 2023, law enforcement in the Billings area set up an undercover operation relating to those with a sexual interest in children. The undercover persona was that of a 14-year-old female. The undercover posed on a social media site and on Jan. 26, 2023, Wyckoff reached out on KIK, using the profile name of “Jake Smith.” The undercover made Wyckoff aware in communications that she was “almost 15.” In communications between the two from January 2023 to July 14, 2023, discussions became increasingly sexual in nature. On multiple occasions, Wyckoff expressed a desire to meet the “child” for a sexual encounter. On July 6, 2023, Wyckoff sent the undercover a picture of his allegedly erect penis in his jeans and made sexually suggestive comments.
The U.S. Attorney’s Office is prosecuting the case. The FBI, Yellowstone County Sheriff’s Office, Laurel Police Department, and Montana Division of Criminal Investigations conducted the investigation.
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 Justice.gov/PSC.
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Clinton County Felon Sentenced to 65 Months for Unlawful Firearm PossessionRead the Press Release
ALBANY, NEW YORK – Richard Brundige, age 46, of Ellenburg Depot, New York, was sentenced today to 65 months in prison, to be followed by 3 years of supervised release, for unlawfully possessing a rifle as a previously convicted felon.
United States Attorney Carla B. Freedman, United States Marshal David McNulty, and New York State Police Superintendent Steven G. James made the announcement,
As part of his prior guilty plea, Brundige admitted that on December 12, 2022, he possessed a Marlin Model 336W lever action rifle and 17 rounds of ammunition. Brundige has four felony convictions in New York that prevented him from lawfully possessing the rifle. Brundige committed this offense while a fugitive from justice following a conviction in 2019.
The United States Marshal Service and New York State Police investigated this case, and Assistant U.S. Attorney Carling Dunham prosecuted this case.
Cassville Man Sentenced to More Than 8 Years in Prison for Attempted Enticement of A Minor to Engage in Prostitution and Sexual ActivityRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert Mansberger, age 59, of Cassville, Pennsylvania, was sentenced on January 14, 2025, by U.S. District Court Chief Judge Matthew W. Brann to 102 months of imprisonment and 10 years of supervised release on the charge of attempted enticement of a minor.
According to Acting United States Attorney John C. Gurganus, on November 10, 2023, law enforcement conducted an undercover operation during which they advertised an online ad on a known website that publicized sexual services of minors. Mansberger responded to the ad through multiple messages indicating he wanted to engage in sexual activity with a 13-year-old minor.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, Patton Township Police Department, the Centre County District Attorney’s Office, Williamsport Police, and the Lycoming County District Attorney’s Office. Assistant U.S. Attorney Alisan V. Martin prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
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Canadian National Charged with Stealing Approximately $65 Million in Cryptocurrency from Two DeFi ProtocolsRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Andean Medjedovic with wire fraud, computer hacking and attempted extortion for stealing approximately $65 million in cryptocurrency from the KyberSwap and Indexed Finance decentralized finance (DeFi) protocols, which are sophisticated financial platforms residing on cryptocurrency blockchains. Medjedovic is also charged with laundering the proceeds of the theft. He is currently at large.
John J. Durham, United States Attorney for the Eastern District of New York; Antoinette Bacon, Supervisory Official of the Justice Department’s Criminal Division; Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI); James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and William S. Walker, Special Agent in Charge, Homeland Security Investigations New York (HSI) announced the indictment.
“As alleged, the defendant executed a highly sophisticated scheme to exploit two decentralized finance protocols and steal tens of millions of dollars’ worth of cryptocurrency from investors,” stated United States Attorney Durham. “My Office remains at the forefront in prosecuting cutting-edge cases involving new and emerging technologies, demonstrating our commitment to protecting all financial markets, including the digital assets markets. Criminals like the defendant who take advantage of new technologies to harm investors will be held accountable no matter where in the world they carry out their schemes.”
Mr. Durham expressed his appreciation to the United States Securities and Exchange Commission’s Crypto Assets and Cyber Unit for their valuable assistance during the investigation.
“This was a sophisticated fraud that exploited vulnerabilities in ‘smart contracts’, resulting in the theft of millions of dollars in cryptocurrency,” stated IRS-CI New York Special Agent in Charge Chavis. “It’s alleged that Medjedovic executed a hack that stole nearly $65 million in crypto between two schemes, leaving liquidity pool investors in the red. In investigating this case, IRS-CI New York’s Cyber group worked closely with its federal partners while leveraging resources from IRS-CI’s Cyber Attaché at Europol and the J5 Cyber Group. Even with the complexities of DeFi, we tracked down who is responsible for this large-scale theft, and he is now a wanted man.”
“Hackers can at times be painted in a flattering light by pop culture, some admiring their skills and acumen. They're stealing money that isn't theirs, and they're breaking the laws of this country. We allege Andean Medjedovic violated several of those laws, and he, along with all the other cyber criminals who believe they're untouchable, will face justice,” stated FBI Assistant Director in Charge Dennehy.
“These charges are a result of HSI New York’s determination to disrupt Andean Medjedovic’s alleged sophisticated far-reaching transnational cybercrime and seek justice for the millions of dollars syphoned from financial platforms,” stated HSI New York Special Agent in Charge Walker. “Our global reach, experience and extensive knowledge of the cyber domain allow us to rapidly develop investigations into bad actors who seek to exploit the cryptocurrency market. Our federal partnerships across the globe made this investigation a success to include support from the HSI attaché offices in the Netherlands.”
KyberSwap and Indexed Finance were developers of automated market-making services called “liquidity pools” that allowed users to swap cryptocurrency tokens with each other. The liquidity pools were managed by computer code called “smart contracts” and relied on investor contributions of cryptocurrency. As alleged, Medjedovic used manipulative trading to exploit vulnerabilities in the KyberSwap and Indexed Finance smart contracts. These manipulative trades enabled Medjedovic to drain approximately $65 million in cryptocurrency that belonged to investors from the KyberSwap and Indexed Finance liquidity pools.
The KyberSwap Exploit
As alleged in the indictment, in 2023, Medjedovic planned and executed a scheme to exploit vulnerabilities in the KyberSwap protocol. KyberSwap was a DeFi protocol and developer of liquidity pools on several public blockchains, including the Ethereum and Arbitrum networks. Liquidity pools use user-contributed cryptocurrency to facilitate trading and market-making in cryptocurrencies. The KyberSwap liquidity pools were managed by computer code or “smart contracts” called automated market makers or “AMMs,” which set prices in the KyberSwap liquidity pools.
In November 2023, Medjedovic exploited vulnerabilities in the KyberSwap computer code to drain the KyberSwap liquidity pools. Medjedovic used hundreds of millions of dollars in borrowed cryptocurrency to create artificial prices in the KyberSwap liquidity pools. Medjedovic then calculated precise combinations of trades that would cause the KyberSwap AMM to “glitch,” in his words, allowing him to steal tens of millions of dollars in cryptocurrency from the liquidity pools. In total, Medjedovic stole approximately $48.8 million in investors’ cryptocurrency from 77 KyberSwap liquidity pools on six public blockchains.
Following the exploit, Medjedovic attempted to extort the developers of the KyberSwap protocol, as well as KyberSwap’s investors and the members of the de-centralized autonomous organization or “DAO” that governed the KyberSwap protocol. Medjedovic demanded control of the KyberSwap protocol and the KyberSwap DAO in exchange for which he would return approximately 50% of the cryptocurrency that he had stolen.
Medjedovic also attempted to launder the proceeds of his theft, including through “bridge” protocols used to transfer cryptocurrency from one blockchain to another, and through a cryptocurrency “mixer” used to conceal the source of digital assets. After one bridge protocol froze several of his transactions, Medjedovic agreed to pay an undercover law enforcement agent posing as a software developer approximately $80,000 to circumvent the bridge protocol’s restrictions and release approximately $500,000 in stolen cryptocurrency.
The Indexed Finance Exploit
As alleged in the indictment, Medjedovic committed a similar exploit of the Indexed Finance DeFi protocol. Indexed Finance liquidity pools are referred to as “index pools,” and function similarly to a mutual fund or exchange-traded fund in traditional finance. Instead of holding a basket of traditional equities, the index pools held an index of digital tokens contributed by users.
In October 2021, Medjedovic used manipulative trading to exploit two Indexed Finance liquidity pools on the Ethereum network. Medjedovic used hundreds of millions of dollars in borrowed cryptocurrencies to distort a process called “re-indexing,” which was used by the Indexed Finance smart contracts to add a new token to the liquidity pools. Medjedovic used the borrowed cryptocurrency to engage in manipulative trading to cause the Indexed Finance smart contracts to set artificial prices during the re-indexing process. He then stole approximately $16.5 million in investor cryptocurrency from the liquidity pools.
Beginning after the Indexed Finance exploit, in or around 2022, Medjedovic conspired with another person to launder the proceeds of his illegal conduct through cryptocurrency exchange accounts that were opened using false information, and by using a cryptocurrency mixer. Among other things, Medjedovic maintained a step-by-step playbook for moving large amounts of cryptocurrency through the mixer, which he titled a “moneyMovementSystem.” In other documents, Medjedovic discussed circumventing “know your customer” or “KYC” procedures and using cryptocurrency exchange accounts opened with false KYC information for “hacks and cashing out.”
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Business and Securities Fraud and National Security and Cybercrime Sections, with the Justice Department Criminal Division’s National Cryptocurrency Enforcement Team (NCET). Assistant U.S. Attorneys Nick M. Axelrod and Andrew D. Reich of the Eastern District of New York and NCET Trial Attorney Tian Huang of the Criminal Division’s Fraud Section are prosecuting the case with assistance from Paralegal Specialists Liam McNett and Madison Bates. SEC Enforcement Attorney Daphna A. Waxman, formerly a member of the NCET, provided significant assistance.
Valuable assistance was provided by the Justice Department’s Office of International Affairs. The Office thanks the Netherlands’ Public Prosecution Service and the Dutch National Police’s Cybercrime Unit in The Hague and United States Customs and Border Protection, New York Field Office.
The Defendant:
ANDEAN MEDJEDOVIC
Age: 22
CanadaE.D.N.Y. Docket No. 24-CR-529 (NGG)
24-cr-529_andean_medjedvovic_indictmenrt.pdfCanadian Man Charged in $65M Cryptocurrency Hacking SchemesRead the Press Release
Note: View the indictment here.
A five-count criminal indictment was unsealed today in federal court in New York charging a Canadian man with exploiting vulnerabilities in two decentralized finance protocols to fraudulently obtain about $65 million from the protocols’ investors.
According to court documents, from 2021 to 2023, Andean Medjedovic, 22, allegedly exploited vulnerabilities in the automated smart contracts used by the KyberSwap and Indexed Finance decentralized finance protocols. Medjedovic borrowed hundreds of millions of dollars in digital tokens, which he used to engage in deceptive trading that he knew would cause the protocols’ smart contracts to falsely calculate key variables. Through his deceptive trades, Medjedovic was able to, and ultimately did, withdraw millions of dollars of investor funds from the protocols at artificial prices, rendering the victims’ investments essentially worthless.
Medjedovic also allegedly laundered the proceeds of his fraudulent schemes through a series of transactions designed to conceal the source and ownership of the funds, including through swap transactions, “bridging transactions,” and the use of a digital assets “mixer.” With others, Medjedovic also allegedly schemed to open accounts with digital assets exchanges using false and borrowed identifying information to conceal the source and true ownership of the proceeds. In around November 2023, after executing the KyberSwap exploit, Medjedovic also allegedly attempted to extort the victims of the KyberSwap exploit through a sham settlement proposal, in which he demanded complete control of the KyberSwap protocol and the decentralized autonomous organization that oversaw the KyberSwap protocol in exchange for returning 50 percent of the digital assets that he fraudulently obtained through his scheme.
Medjedovic is charged with one count of wire fraud, one count of unauthorized damage to a protected computer, one count of attempted Hobbs Act extortion, one count of money laundering conspiracy, and one count of money laundering. If convicted, he faces a maximum penalty of 10 years in prison on the unauthorized damage to a protected computer count and 20 years in prison on each of the other counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, U.S. Attorney John J. Durham for the Eastern District of New York, Chief Guy Ficco of IRS Criminal Investigation (IRS-CI), Special Agent in Charge William S. Walker of Homeland Security Investigations (HSI) New York, and Assistant Director in Charge James E. Dennehy of the FBI New York Field Office made the announcement.
IRS-CI, HSI, and the FBI New York Field Office are investigating the case, with valuable assistance provided by U.S. Customs and Border Protection’s New York Field Office and the Justice Department’s Office of International Affairs. The Justice Department also thanks the Netherlands’ Public Prosecution Service and Cybercrime Unit — the Hague of the Dutch National Police for their significant assistance with the investigation.
Trial Attorney Tian Huang of the Criminal Division’s Fraud Section, who is a member of the National Cryptocurrency Enforcement Team (NCET), and Assistant U.S. Attorneys Nicholas Axelrod and Andrew Reich for the Eastern District of New York are prosecuting the case. SEC Enforcement Attorney Daphna A. Waxman, formerly a member of the NCET, provided significant assistance.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
California Group Indicted for Interstate Transportation of Stolen Property ConspiracyRead the Press Release
NEW ORLEANS, LOUISIANA – DEATHONY BLOCKER, age 38, JAMES BLOCKER, age 37, JOVAN COLLINS, age 34 (“COLLINS”), LORENZO TAYLOR, age 39 (“TAYLOR”), NEMIRAH DAVIDSON, age 38 (“DAVIDSON”), and PATRICK GARLAND, age 39 (“GARLAND”), residents of California, were charged on January 30, 2025 in a two-count indictment for conspiracy to commit interstate transportation of stolen goods, in violation of Title 18, United States Code, Section 371, and interstate transportation of stolen goods, in violation of Title 18, United States Code, Section 2314, announced U.S. Attorney Duane A. Evans.
According to the indictment, DEANTHONY BLOCKER, JAMES BLOCKER, COLLINS, TAYLOR, DAVIDSON, and GARLAND conspired to transport thousands of cartons of cigarettes interstate, that were stolen from warehousing facilities in Georgia, North Carolina, and Louisiana. The group cut through fences surrounding the facilities, using bolt cutters and crowbars to access the cigarette cartons.
If convicted of Count 1, the defendants face up to 5 years imprisonment, up to a $250,000 fine, up to 3 years of supervised release, and a mandatory $100 special assessment fee. As to Count 2, the defendants face up to 10 years of imprisonment, up to 3 years of supervised release, up to a $250,000 fine, and a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Jefferson Parish Sherriff’s Office, the Knightdale Police Department, the Atlanta Police Department, the Rockmart Police Department, the Texas Department of Public Safety, and the Fort Stockton Police Department in investigating this matter. Assistant United States Attorney Paul J. Hubbell of the General Crimes Unit is in charge of the prosecution.
Bradford County Man Sentenced to 132 Months in Prison for Distribution of MethamphetamineRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert M. Lutz, age 42, of Bradford County, Pennsylvania, was sentenced on January 31, 2025, to 132 months’ imprisonment by United States District Court Chief Judge Matthew W. Brann for distribution of a controlled substance, specifically, 50 grams and more of crystal methamphetamine.
According to Acting United States Attorney John C. Gurganus, beginning sometime in September of 2019 and continuing through February of 2020, Lutz, along with two indicted co-conspirators, engaged in a drug distribution conspiracy that involved the importation and distribution of methamphetamine in Bradford, Columbia, and Lackawanna counties. On at least two occasions, the Federal Bureau of Investigation conducted controlled purchases of crystal methamphetamine from Lutz in exchange for approximately $4,000 dollars. Laboratory testing of that methamphetamine revealed that it was between 93 and 96 percent pure.
The case was investigated by the Federal Bureau of Investigation and Assistant U.S. Attorney Luisa Honora Berti is prosecuting the case.
The maximum penalty under federal law for this offense is a term of life imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Boston Man Pleads Guilty to Illegal Possession of a Loaded Semi-Automatic PistolRead the Press Release
BOSTON – A Boston man pleaded guilty today to being a felon in possession of a loaded 9mm semi-automatic pistol.
Tyrone Goforth, 44, pleaded guilty to one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for April 8, 2025. Goforth was indicted by a federal grand jury in October 2020.
On July 31, 2020, officers responded to a call for a person with a gun at a bookstore in Roxbury, Mass. Goforth was inside the bookstore and fit the description of a man wearing a black shirt and olive pants. Goforth was found to be in possession of a Sig Sauer P938 9mm semi-automatic pistol loaded with five rounds of 9mm ammunition. Due to a 2000 conviction in Suffolk Superior Court, Goforth is prohibited from possessing firearms.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Leah B. Foley; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner Michael Cox made the announcement. Assistant U.S. Attorney John T. Dawley of the Organized Crime and Gang Unit 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 gun violence and other violent crime, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Bookkeeper Sentenced to Prison for Stealing More Than $1.6 Million from Two Small BusinessesRead the Press Release
CHARLOTTE, N.C. – Marc Weiss, 50, of Charlotte, was sentenced today to 40 months in prison followed by three years of supervised release for embezzling approximately $1.6 million from two small businesses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Weiss was ordered to pay restitution in the amount of $1,644,235.77.
Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, and Sheriff Darren Campbell of the Iredell County Sheriff’s Office, join U.S. Attorney King in making today’s announcement.
According to filed court documents and the sentencing hearing, from 2016 to 2022, Weiss engaged in a scheme to defraud two Mooresville, N.C. small businesses that employed him as a bookkeeper. Over the course of the scheme, Weiss, who was a trusted employee, abused his position and access to the companies’ financial accounts to make more than 100 fraudulent transfers totaling $1.6 million from the companies’ accounts into bank accounts under Weiss’s control. Court documents show that Weiss began to embezzle from the second company while he was already stealing from the first one. To disguise the fraud, Weiss created fake entries in the victim companies’ books and records, categorizing the fraudulent transfers as payments to existing vendors for software development, and advertising and marketing expenses.
According to court records, Weiss used the embezzled funds, in part, to pay for his personal lifestyle, including rent payments for a luxury apartment uptown; payments for high-end vehicles, including an Audi and a Mercedes-Benz; purchases at luxury retail stores, including Luis Vuitton, Gucci, Neiman Marcus, and Tiffany, among others; and luxury vacations, including multiple stays in The Ritz Carlton hotel.
In October 2023, Weiss pleaded guilty to wire fraud. He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the U.S. Secret Service and the Iredell County Sheriff’s Office for their investigation of the case.
Assistant U.S. Attorney William Bozin of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Bangor Woman Sentenced for Role in Penobscot and Aroostook County Drug TraffickingRead the Press Release
BANGOR, Maine: A Bangor woman was sentenced today in U.S. District Court in Bangor for her role in a conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl.
U.S. District Judge Stacey D. Neumann sentenced Shelby Loring, 29, to time served followed by three years of supervised release. Loring pleaded guilty on January 17, 2023, and was incarcerated for approximately 32 months.
According to court records, between January 2018 and December 2021, Loring and others trafficked methamphetamine and fentanyl in Penobscot and Aroostook counties and elsewhere. Loring regularly obtained quantities of drugs from her source, paying for the drugs with the proceeds from the sale of prior deliveries. Loring would distribute drugs to customers in Penobscot County while keeping some for her own use. Loring’s participation in the conspiracy resulted in contacts with local law enforcement that led to the seizure of drugs, firearms, drug paraphernalia, and other items.
Twenty-one defendants have been charged in this and related cases for their part in a widespread northern Maine drug trafficking conspiracy. To date, 11 of the defendants have been sentenced while 10 await sentencing:
Sentenced:
- Andrew Adams (32, Aroostook County) – 10 years
- Matthew Catalano (38, Penobscot County) – 165 months
- Christopher Coty (44, Bangor) – 4 years
- Blaine Footman (38, Bangor) – 5 years
- Nicole Footman (41, Holden) – 3 years
- Dwight Gary, Jr. (54, Medway) – Time served
- Thomas Hammond (26, Charleston) – 84 months
- James King (55, Caribou) – 165 months
- Shelby Loring (29, Bangor) – Time served (32 months)
- Danielle McBreairty (34, Glenburn) – 20 years
- Wayne Smith (33, Bangor) – 85 months
Awaiting sentencing:
- Daquan Corbett (30, Brockton, Mass.)
- Jason Cunrod (42, Caribou) – sentencing scheduled 02/20/25
- Carol Gordon (53, Bangor) – sentencing scheduled 02/20/25
- Daviston Jackson (28, Boston, Mass.)
- Joshua Jerrell (30, Orrington) – sentencing scheduled 02/11/25
- Sarah McBreairty (36, Dixmont) – sentencing scheduled 02/11/25
- John Miller (24, Caribou) – sentencing scheduled 02/20/25
- Aaron Rodgers (43, Bangor) – sentencing scheduled 02/11/25
- James Valiante, 42 (Linneus) – sentencing scheduled 02/20/25
- Joshua Young (48, Presque Isle) – sentencing scheduled 02/20/25
The U.S. Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; and Maine Drug Enforcement Agency investigated the case. Assistance was provided by the police departments in Orono, Bangor, Brewer, Caribou, Presque Isle and Houlton. U.S. Attorney Darcie McElwee also recognized the cooperation and coordination provided by the Maine State Attorney General’s Office and the Aroostook County District Attorney’s Office.
Organized Crime Drug Enforcement Task Forces: This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Andrew Hollins Imprisoned Following Guilty Pleas to Pandemic Fraud and Narcotics IndictmentsRead the Press Release
Burlington, Vermont - The United States Attorney’s Office for the District of Vermont stated that Andrew Hollins, who has also been known as Andrew Jones, 38, of Colchester, Vermont and New York City, was sentenced on January 31, 2024 in United States District Court in Burlington to 62 months of imprisonment following his guilty pleas to two separate indictments charging him with narcotics trafficking, wire fraud and money laundering. Chief U.S. District Judge Christina Reiss ordered that Hollins serve three years of supervised release following completion of his prison term and pay restitution in the amount of $33,000. The court ordered that Hollins’ federal sentence run concurrently with a 2 to 4-year sentence Hollins is currently serving in New York State on two gun charges.
In December 2022, a federal grand jury returned a superseding indictment alleging that Hollins distributed cocaine on three dates in late 2019. At the same time, the grand jury returned a separate indictment charging Hollins with fraud, money laundering and identity theft in connection with a series of pandemic-related Economic Injury Disaster Loan (“EIDL”) applications he submitted to the U.S. Small Business Administration in July and August 2020. Under the EIDL loan program, the SBA provides low-interest loans to businesses and persons that have suffered financial hardship because of a natural disaster, such as the Coronavirus pandemic.
According to the indictment, Hollins applied for eight EIDL loans in mid-2020 in his own name, in the names of two shell businesses he founded, in the names of two relatives and in the names of three persons whose identities Hollins stole. Some of the loans were funded by SBA, while others were rejected. The applications were fraudulent because they contained materially false statements about when the businesses were established, about the companies’ gross receipts in the preceding year, about the number of employees each business had and the physical location of the businesses. The SBA rejected most of the loan applications because it suspected fraud. However, two loans were funded, or partially funded, in the amount of $33,000.
This case was investigated by the Internal Revenue Service, Criminal Investigation and Homeland Security Investigations.
Hollins is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Alleged Armed Carjacker Charged After ArrestRead the Press Release
WASHINGTON – Parren Hawkins, 33, of Washington, D.C., was charged today in Superior Court with armed carjacking in connection with an incident, yesterday, in Northeast D.C. The charge was announced by U.S. Attorney Edward R. Martin, Jr., and Chief Pamela Smith of the Metropolitan Police Department (MPD).
According to documents filed in court, at approximately 2:47 a.m. on February 2, 2025, police officers were dispatched to 331 15th Street NE, where they located the victim of an armed carjacking. The victim told the officers that the defendant approached him as he sat in his vehicle, pointed a black handgun at him and told him to get out of the vehicle. The victim complied. The defendant then demanded money and took the victim’s wallet and cell phone before fleeing northbound on the 400 block of 15th Street, NE. The victim flagged down a passerby and called 911.
As police were interviewing the victim, Prince George’s County Police observed the stolen vehicle in Oxon Hill, Maryland. Officers began pursuing the vehicle until the defendant ultimately crashed into a curb. The driver fled on foot and police caught him on Darrington Road with a handgun in his possession.
Hawkins was presented in court today and ordered detained.
The Metropolitan Police Department is investigating the case. Assistant U.S. Attorney Shaniqua Butler is prosecuting the case.
13 Alleged Meth, Cocaine Traffickers Charged in 15-Count IndictmentRead the Press Release
Thirteen alleged drug traffickers operation out of the Texas Panhandle were federally charged in DEA-led Operation Put It In Reverse, announced Acting U.S. Attorney for the Northern District of Texas Chad Meacham.
Those charged in a 15-count indictment filed include:
• Juan Gabriel Castro, aka “Big Boy,” charged with conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute methamphetamine, possession with intent to distribute cocaine
• Luis Gilberto Garcia, charged with conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute methamphetamine, possession with intent to distribute cocaine
• Terry Deon Noble, charged with conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute methamphetamine, possession with intent to distribute cocaine, distribution of methamphetamine
• David Dewayne Keelin, charged with conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute methamphetamine, possession with intent to distribute cocaine
• Charlotte Ann Villanueva, charged with conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute methamphetamine
• Kody Ryan Patterson, charged with conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute methamphetamine
• Melissa Lynn Nelson, charged with conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute methamphetamine
• Joshua James Tarver, charged with conspiracy to distribute and possess with intent to distribute controlled substances, distribution of methamphetamine,
• Danny James Wise, charged with conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute methamphetamine
• Christopher Steven Conley, charged with conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute methamphetamine
• Reba Lynn McLaughlin, charged with conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute methamphetamine
• Mario Socorro Martinez, charged with conspiracy to distribute and possess with intent to distribute controlled substances, distribution of methamphetamine, possession with intent to distribute methamphetamine
• Alfredo Olivares Jimenez, aka “Freddie,” charged with conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute methamphetamine
The defendants were arrested last week.
Over th course of the investigation, law enforcement seized approximately 70 kilograms of methamphetamine, four kilograms of cocaine, two kilograms of fentanyl, $70,000 in assets, and eight firearms.
“These arrests demonstrate the continued resolve of DEA Amarillo Resident Office to investigate this organization to the fullest extent possible,” said DEA Special Agent in Charge Eduardo A. Chávez. “Local street dealers, transporters, bulk suppliers, and anyone in between should know DEA is committed to holding everyone in this organization, and others like it, accountable for selling deadly drugs to our communities.”
An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, the defendants face as much as twenty years to life in federal prison.
The Drug Enforcement Administration’s Dallas Field Division – Amarillo Resident Office conducted the investigation with the Texas Department of Public Safety’s Criminal Investigation and Highway Patrol Divisions, the Amarillo Police Department, the Randall County Sheriff’s Department, the Potter County Sheriff’s Department, the Hall County Sheriff’s Office, Agents of the Texas Attorney General’s Office (OIG), Texas Game Warden Officers, the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division, the Federal Bureau of Investigation’s Dallas Field Office, the United States Marshal’s Service, and Texas State Probation – Amarillo. Assistant U.S. Attorney Anna Marie Bell is prosecuting the case.
Friday 31 January 2025
Virginia Woman Pleads Guilty to Bank Fraud ConspiracyRead the Press Release
ALBANY, NEW YORK – Sherry Ozmore, age 56, of Richmond, Virginia, pled guilty today to conspiracy to commit bank fraud in connection with her role as a “runner” for a nationwide conspiracy to impersonate customers of financial institutions to fraudulently obtain cash, checks, loans, and credit. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Ozmore was indicted in October 2024 as part of a superseding indictment charging the alleged ringleader of the conspiracy, Oluwaseun Adekoya, 39, a Nigerian citizen living in New Jersey, as well as David Daniyan, 60, a Nigerian citizen who according to prosecutors has lived in the United States under stolen identities for decades, with orchestrating a conspiracy to steal the identities of people who resided all over the country and impersonate those people at banks and credit unions to fraudulently obtain cash, checks, loans, and credit. According to documents previously filed in court, the conspirators also allegedly opened bank accounts in the names of identity theft victims, which were then used to deposit and access the funds from checks they had fraudulently obtained from banks and credit unions by impersonating other individuals. The conspirators’ conduct allegedly involved nearly $3 million in intended losses, over $1.7 million of which was successful.
Ozmore admitted that she was recruited to join the conspiracy as a runner in or around January 2023 and fraudulently obtained over $195,000 over a five-month period that year from banks and credit unions by impersonating identity-theft victims whose personal identifying information was supplied to her by supervisors. Ozmore was paid a small portion of the money she fraudulently obtained.
The following defendants are charged as follows in the superseding indictment:
- Adekoya is charged with conspiracy to commit bank fraud, money laundering conspiracy, and nine counts of aggravated identity theft;
- Daniyan is charged with conspiracy to commit bank fraud, money laundering conspiracy, and four counts aggravated identity theft;
- Kani Bassie, 36, of Brooklyn, New York, is charged with conspiracy to commit bank fraud and two counts of aggravated identity theft;
- Davon Hunter, 27, of Richmond, Virginia, is charged with conspiracy to commit bank fraud and aggravated identity theft;
- Jermon Brooks, 20, of Richmond, Virginia, is charged with conspiracy to commit bank fraud and aggravated identity theft;
- Christian Quivers, 20, of Richmond, Virginia, is charged with conspiracy to commit bank fraud and aggravated identity theft; and
- Crystal Kurschner, 44, of Brooklyn, is charged with conspiracy to commit bank fraud and aggravated identity theft.
The prosecution is the result of an ongoing investigation by the U.S. Attorney’s Office and FBI-Albany, which began after the May 2022 arrest of Daniyan, Gaysha Kennedy, 46, of Brooklyn, and Victor Barriera, 64, of the Bronx, by the Cohoes Police Department after the trio had allegedly traveled to the Capital Region to commit bank fraud.
Adekoya, Daniyan, Kennedy, and Barriera were originally indicted, along with coconspirators Jerjuan Joyner, 50, of Brooklyn, Akeem Balogun, 56, of Brooklyn, Danielle Cappetti, 46, of the Bronx, and Lesley Lucchese, 53, of Brooklyn.
At sentencing on May 6, 2025, Ozmore faces a maximum term of 30 years’ incarceration, an order of restitution in the amount of $195,500, and a term of supervised release of up to 5 years.
Kennedy, Barriera, Joyner, Balogun, Cappetti, and Lucchese have pled guilty to bank fraud conspiracy and are pending sentencing.
The charges in the superseding indictment are merely accusations. The remaining defendants are presumed innocent unless and until proven guilty.
FBI Albany is investigating the case, with assistance from the FBI Field Offices in New York, Newark, Richmond and Resident Agencies in Westchester, New York; Brooklyn/Queens, New York; Garrett Mountain, New Jersey; and Fort Walton Beach, Florida. Additional assistance was provided by other law enforcement agencies, including Immigration and Customs Enforcement – Enforcement & Removal Operations (New York Field Office & Albany sub-office); U.S. Department of State Diplomatic Security Service (Buffalo Field Office & St. Albans Resident Office); U.S. Social Security Administration – Office of the Inspector General; New York law enforcement agencies including the New York State Police; Cohoes PD; Colonie PD; Elmira PD; Corning PD; Plattsburgh PD; Florida law enforcement agencies including the Okaloosa County Sheriff’s Office and Escambia County Sheriff’s Office; the Pennsylvania State Police; Alabama law enforcement agencies including the Calhoun County Sheriff’s Office, Gasden PD, and Rainbow City PD; Georgia law enforcement agencies including the Georgia State Patrol, Bartow County Sheriff’s Office, and Morrow PD; Kansas law enforcement agencies including Lawrence PD and Overland Park PD; New Hampshire law enforcement agencies including Rochester PD, Manchester PD, and Amherst PD; the Delaware State Police; Maryland law enforcement agencies including the Maryland State Police, Harford County Sheriff’s Office and Baltimore County Sheriff’s Office; Wisconsin law enforcement agencies including Onalaska PD and Eau Claire PD; and Indiana law enforcement agencies including the Allen County Sheriff’s Office.
Assistant United States Attorneys Benjamin S. Clark and Joshua R. Rosenthal are prosecuting this case.
Venezuelan Man Charged with Conspiracy to Distribute Methamphetamine, Possession of A Firearm in Furtherance of Drug Trafficking CrimeRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Jose Manuel Guerra-Caballero, 37, of Venezuela, was charged with one count of conspiracy to distribute more than 500 grams of a substance containing methamphetamine, and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to the complaint, Guerra-Caballero, described by a co-conspirator as a member of the Tren de Aragua criminal organization, conspired with six other individuals to provide armed protection for a drug transaction involving ten pounds of methamphetamine. Guerra-Caballero arranged the protection remotely and confirmed over the phone that his co-conspirators were armed and ready to serve in the operation.
The drug deal was a ruse created by undercover ATF agents after Guerra-Caballero and his associates had offered their services for various illegal and violent activities. The undercover operation came on the heels of multiple purchases of firearms by ATF undercover officers that Guerra-Caballero believed would be trafficked to Mexico.
The defendant was arrested in Indiana and made his initial appearance in front of Judge Colin H. Lindsay in the Western District of Kentucky.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and Homeland Security Investigations are handling the investigation. The prosecution is being handled by the Violent Crimes and Immigration Enforcement Section of the United States Attorney’s Office in the District of Colorado.
Case Number: 25-mj-17
Utqiagvik man sentenced to 15 years for producing child pornographyRead the Press Release
FAIRBANKS, Alaska – An Utqiagvik man was sentenced today to 15 years in prison and will serve 10 years on supervised release for producing child pornography.
According to court documents, a detective with a local law enforcement agency, acting in an undercover capacity and posing online as a 13-year-old girl, operated an account with a social media application known to law enforcement to be utilized by individuals seeking sexual encounters with minors. On Nov 6, 2023, the undercover detective received a message from Billy Ray Okpeaha Jr., 25.
Between Nov. 6, 2023, and Jan. 18, 2024, Okpeaha and the undercover detective engaged in online exchanges that included Okpeaha’s requests that the undercover detective send him explicit content, the defendant sending a photo of his genitals to the undercover detective, and discussions about meeting each other in person and sexual interactions if an in-person meet occurred. Okpeaha sent the address of the hotel he was staying at and requested the undercover detective meet him at his hotel room.
Okpeaha made plans to meet the undercover detective for a sexual encounter on Jan. 22, 2024. He was arrested that day at an apartment in Utqiagvik. Investigators seized and searched his electronic devices, which contained child sexual abuse materials, including visuals of a known minor victim. The known minor victim was interviewed and confirmed sending images of child sexual abuse material at Okpeaha’s request.
Okpeaha was initially released on pre-trial supervision following his arrest but fled his transitional living facility. He was re-arrested in Coldfoot, Alaska, allegedly attempting to evade supervision and capture.
On Sept. 4, 2024, Okpeaha pleaded guilty to one count of sexual exploitation of a child – production of child pornography.
“Crimes against children are among the most heinous offenses, inflicting lasting harm on vulnerable victims. Mr. Okpeaha deliberately targeted innocent children in a rural village for his own sexual gratification, exposing a clear and present danger to our communities,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Our office will continue to work closely with law enforcement partners to identify, apprehend and vigorously prosecute anyone who attempts to exploit or target the children of Alaska.”
“The defendant used the Internet to commit child exploitation crimes in Alaska and was found to be in possession of CSAM on his devices,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “This investigation and sentencing demonstrate the severity of the defendant’s crimes, and our commitment to prevent further victimization and ensure online predators are brought to justice.”
The FBI Anchorage Field Office and Anchorage Police Department investigated this case as part of the FBI’s Child Exploitation and Human Trafficking Task Force, with assistance from the North Slope Borough Police Department.
Assistant U.S. Attorney Carly Vosacek prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Utah and California Businessmen Indicted for Defrauding Millions of Dollars from InvestorsRead the Press Release
ST. GEORGE, Utah – An indictment was unsealed today after a fraudster was arrested following a federal grand jury’s return of an indictment this week charging him and his business partner with multiple financial crimes.
According to court documents, Thomas Paul Madden, 66, of Washington City, Utah; and Jeremy Tyler Grabow, 54, of Ladera Ranch, California, engaged in a scheme from September 2017 to the present, to defraud investors in Cascade IR, LLC and Savitar Systems LLC. Using his entity, Cascade, Madden lied to investors about his ability and intent to sell them penny stocks, repeatedly using investors’ money for Ponzi payments and personal expenses. This part of the scheme resulted in Madden taking in over $23 million from over 200 investors.
Beginning in 2021, Madden and Madden and Grabow used their entity Savitar, to further defraud investors. They told investors that Savitar was working with various partners on a large casino and resort project in Mexico that would generate high returns on investments. But Savitar did not have the represented business partnership and lacked any legitimate business operations. Instead, Madden and Grabow diverted investors’ money to the Ponzi scheme. The Savitar scheme resulted in Madden and Grabow obtaining over $2 million from at least 10 investors.
Madden is charged with four counts of wire fraud. Madden and Grabow are both charged with wire fraud conspiracy and money laundering conspiracy. Madden’s initial appearance on the indictment is February 3, 2025, at 10:00 a.m. before a U.S. Magistrate Judge in St. George. Grabow’s initial appearance is scheduled for February 24, 2025, at 10:00 a.m. before a U.S. Magistrate Judge in St. George.
United States Attorney Trina A. Higgins for the District of Utah made the announcement.
The case is being investigated jointly by the Utah Division of Securities and the FBI Salt Lake City Field Office.
Assistant United States Attorneys Stephen P. Dent and Joseph M. Hood of the U.S. Attorney’s Office for the District of Utah are prosecuting the case.
If you think you are a victim in this case, information can be found on the U.S. Attorney’s Office Victim Witness Assistance page.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney’s Office Secures 15-Year Sentence for Deadly 2022 DWI Crash that Killed Three PeopleRead the Press Release
ALBUQUERQUE – A Laguna man was sentenced to 15 years in federal prison for a fatal DWI crash on the Laguna Pueblo in 2022 that killed three members of the same family.
There is no parole in the federal system.
According to court documents, on August 7, 2022, Cody Allen Charlie, 38, an enrolled member of the Pueblo of Laguna, was driving intoxicated at 116 miles per hour while using his cell phone when he crashed into another vehicle on Interstate 40, near mile marker 130. The impact caused the other vehicle to veer off the interstate and onto the shoulder, where it rolled over. All three occupants of that vehicle were killed in the crash. Instead of providing help to his victims, Charlie left his wrecked vehicle and ran from the scene.
Upon his release from prison, Charlie will be subject to five years of supervised release. He must also make full monetary restitution to the victims of his crimes. As part of his supervised release, Charlie will be subject to alcohol and substance-abuse monitoring, and he must also complete mental-health and substance-abuse programs. As a convicted felon, Charlie is no longer permitted to own or possess a firearm.
U.S. Attorney Alexander M.M. Uballez made the announcement today.
The Bureau of Indian Affairs investigated this case with assistance from the Laguna Police Department and New Mexico State Police. Assistant U.S. Attorneys Brittany DuChaussee and Zachary C. Jones are prosecuting the case.
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U.S. Attorney’s Office Collects over $39 Million in Civil and Criminal Actions in Fiscal Year 2024Read the Press Release
SYRACUSE, NEW YORK – United States Attorney Carla B. Freedman announced today that the Northern District of New York’s Asset Recovery Unit collected $39,262,324 in civil, criminal and forfeiture actions in Fiscal Year 2024. Of this amount, $14,085,025 was collected in criminal actions, $15,874,944 was collected in civil actions, and $9,302,354 was collected in asset forfeiture actions.
The Northern District of New York also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $18,995,733 in cases pursued jointly by these offices. Of this amount, $39,092 was collected in criminal actions and $18,956,641 was collected in civil actions.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, forfeited assets deposited into the Department of Justice Assets Forfeiture Fund can be used to restore funds to crime victims and for a variety of law enforcement purposes. In Fiscal Year 2024, $8,330,553 of the funds forfeited in prior years through criminal and civil judicial forfeiture actions in the Northern District of New York were applied to victim compensation.
United States Attorney Carla Freedman stated: “These are great results – every recovery of funds strikes a blow for justice. I created the Asset Recovery Unit shortly after I took office in 2021, and I am incredibly proud of its efforts to make sure that crime does not pay, that crime victims are compensated as much as possible, and that companies pay appropriately steep penalties when they defraud the government.”
In May, $11.3 million was recovered as part of a civil settlement in United States ex rel. Elevation 33, LLC v. Guidehouse, Inc. and Nan McKay and Associates, for violations of the False Claims Act, for failing to meet cybersecurity requirements in a federally funded contract intended to ensure a secure online environment for low-income New Yorkers to apply for federal rental assistance during the COVID-19 pandemic. Guidehouse and its subcontractor, Nan McKay and Associates, admitted as part of a settlement agreement that neither satisfied their obligation to complete the required testing of the web site used to house applicants’ information, and the site was shut down within 12 hours after certain applicants’ personally identifiable information had been compromised.
In February, the Northern District of New York restored $4,950,440 in funds forfeited from Richard J. Sherwood and Thomas K. Lagan, who were sentenced to both federal and state prison for stealing approximately $11.8 million from the estates of three sisters who died. These funds were initially forfeited by the government through its criminal prosecutions of Sherwood and Lagan, and were restored in 2024 to the victims of the fraud by the Attorney General and the Money Laundering and Asset Recovery Section of the United States Department of Justice. The victims include churches, Ukrainian-American civic organizations, a local hospital and a local university scholarship fund.
In September, the U.S. Attorney’s Office recovered $1 million from Derek R. Schwartz, who was sentenced this summer to 72 months in prison for conspiring with former ValueWise CEO Michael T. Mann to defraud companies that loaned millions of dollars to ValueWise subsidiaries. These funds will be distributed to two financing companies that were victims of a sophisticated, years-long scheme.
The Asset Recovery Unit is an initiative that works to deprive criminals of the proceeds of crimes, recovers property that may be used toward restitution, and enforces collection of criminal and civil debts owed to the United States or to victims of federal crimes. The Asset Recovery Unit is comprised of Assistant United States Attorneys Lisa Fletcher, Elizabeth Conger and Melissa Rothbart, Paralegals Joshua Goodfriend, Marianne Meigs, Carly Clay, Erin Hyatt, Jiselle Cabezas, and Teilor Kaiser Clarey, and Investigative Analyst Jason Babiarz.
U.S. Attorney’s Office Collects over $12.9M in Civil and Criminal Actions in Fiscal Year 2024Read the Press Release
SALT LAKE CITY, Utah – U.S. Attorney Trina A. Higgins announced today that the District of Utah collected $12,954,017.21 in criminal and civil actions in Fiscal Year 2024. Of this amount, $8,385,272.13 was collected in criminal actions and $4,568,745.08 was collected in civil actions.
Additionally, the District of Utah worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $2,978,609.99 in cases pursued jointly by these offices. Of this amount, $12,350.00 was collected in criminal actions and $2,966,259.99 was collected in civil actions.
For example:
• A Washington County man paid the remaining balance of $2,139,926.35 in restitution in FY2024 after he was ordered by the court in 2022 to pay $3.2 million dollars. The defendant was sentenced to 33 months’ imprisonment after he failed to file financial reports with the United States Treasury after bringing currency in excess of $10,000 back into the United States from China. See press release: Washington Man Sentenced to 33 Months in Prison and Ordered to Pay $3.2 Million Dollars for Kickback Scheme
• In July 2024, A Utah businessman was sentenced to imprisonment and ordered by the court to pay $10,250,834.53 in restitution after he admitted to defrauding hundreds of trusting investors throughout the United States out of millions of dollars in his smartphone company, SAYGUS. See press release: Smartphone Fraudster Sentenced to 29 Months’ Imprisonment After Cheating Investors Out of $10MThe U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s Office in the District of Utah, working with partner agencies and divisions, collected $4,625,653 in asset forfeiture actions in FY 2024. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney’s Office Collects Nearly $3M for Taxpayers and Victims in 2024Read the Press Release
Memphis, TN – Acting United States Attorney Reagan Fondren announced today that the U.S. Attorney’s Office for the Western District of Tennessee collected $2,932,631.57 in criminal and civil actions in Fiscal Year 2024. Of that amount, $2,635,982.75 was collected in criminal actions and $296,648. 82 was collected in civil actions.
Additionally, the Western District of Tennessee worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $23,145.23 in cases pursued jointly by these offices.
“The federal government has a responsibility to collect restitution for victims of crime. Our Criminal and Civil Divisions, including the Financial Litigation Program, work diligently to ensure that this mission is met,” said Acting U.S. Attorney Reagan Fondren.
The U.S. Attorney’s Office in Tennessee’s Western District, working with partner agencies and divisions, also collected $2,688,743 in asset forfeiture actions in fiscal year 2024. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Several cases generated significant collection efforts in fiscal year 2024, including:
U.S. v. Rosemary Covey and Morgan Stanley, 06-cr-20408 and 24-cv-2257. Covey was convicted of Bank Fraud and Access device fraud and ordered to pay restitution in the amount of $1,034,105.49. After years of minimal restitution payments, the USAO learned of a retirement account at Morgan Stanley. The USAO filed a Writ of Garnishment on defendant’s IRA and received $73,843.54 in proceeds that were applied to the restitution.
U.S. v. Teresa T. Parsley, 07-cr-20035. Parsley was convicted of bank fraud and conspiracy to commit bank fraud. As a result, she was ordered to pay $3,829,605.29 in restitution. After she made only minimal payments, the U.S. Attorney’s Office recovered $143,845 from the proceeds of the sale of her home, which was applied to her restitution.
The U.S. Attorney’s Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
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For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
U.S. Attorney’s Office Collects More than $4M in Civil and Criminal Actions Plus Nearly $2M in Forfeited Assets in Fiscal Year 2024Read the Press Release
TULSA, Okla. – U.S. Attorney Clint Johnson announced today that the Northern District of Oklahoma (NDOK) collected $4,029,804.93 in criminal and civil actions in Fiscal Year 2024. Of this amount, $2,572,450.48 was collected in criminal actions, and $1,457,354.45 was collected in civil actions. Additionally, the NDOK worked with partner agencies and divisions to collect $1,726,442 in asset forfeiture actions in FY 2024.
“The Asset Recovery Unit and Asset Forfeiture teams consist of federal prosecutors, investigators, and professional support staff. In 2024, they collected more than $4 million on behalf of victims and collected nearly $2 million in assets, said U.S. Attorney, Clint Johnson. “Both teams diligently work to recover court ordered restitution to victims and process court ordered forfeiture. This funding not only impacts the Crime Victims Fund, but also goes towards law enforcement programs.”
Examples of Asset Recovery…
In March 2024, the Northern District recovered $106,994.94 in U.S. v. Shane Hannaford, 21-CR-111. A veteran of the U.S. Marines, Hannaford devised a fraudulent investment scheme, defrauding fellow veterans he had served with in Iraq. Hannaford pled guilty to Bank Fraud, and the Court ordered him to pay $806,607.14 in restitution to his victims. The Northern District captured a significant payment towards restitution by intercepting proceeds from Hannaford’s sale of his home.In September 2024, the Northern District recovered $287,521.53 in U.S. v. Keven Ellis Partin, 19-CR-121. Partin pled guilty to Offering or Paying Healthcare Kickbacks. The Court ordered him to pay $338,805 in restitution to Department of Labor, TRICARE, Department of Veteran Affairs, and Medicare. Through liens and other enforcement tools, the Northern District recovered full restitution for these federal agencies.
In May 2024, the Northern District of Oklahoma recovered $62,000 in U.S. v. Leslie Ellen Mansfield, 23-CR-170. Mansfield, an attorney, oversaw special needs trust accounts for intellectually challenged adults. Mansfield pled guilty to Bank Fraud, and the Court ordered her to pay $137,240.95 in restitution. The Northern District recovered full restitution for the living victims.
Examples of Asset Forfeiture…
In March 2024, the Northern District recovered $35,000 in U.S. v. Jesus Salazar-Lares, et al., 22-CR-339. In Aug. 2024, Salazar-Lares and others, traveled from Chicago to Tulsa and delivered more than 10 pounds of methamphetamine. Salazar-Lares pled guilty to distribution of methamphetamine. The court authorized the seizure of $35,000 in cash.In April 2024, the Northern District recovered $84,788.42 in U.S. v. Melvin Brown, 22-CR-419. From July 2020 through May 2021, Brown conspired with others to distribute cocaine. Brown pled guilty to drug conspiracy. The court authorized the seizure of Brown’s bank account that had approximately $84,788.42.
In June 2024, the Northern District recovered $620,000 in U.S. v. Jose Romero, et al., 22-CR-339. From Oct. 2019 through Oct. 2022, Romero conducted financial transactions with funds received through drug trafficking. Romero pled guilty to 18 counts of money laundering. The court authorized the forfeiture of $20,297 in cash, 18 vehicles, one firearm, approximately $50,076.31 from seized bank accounts, and four real estate properties.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney's Office Collects $22,332,003.82 in Criminal and Civil Actions, and $5,043,741 in Asset Forfeiture Actions in Fiscal Year 2024Read the Press Release
KNOXVILLE, Tenn. — U.S. Attorney Francis M. Hamilton III announced today that the Eastern District of Tennessee collected $22,332,003.83 in criminal and civil actions in Fiscal Year 2024. Of this amount, $10,674,477.21 was collected in criminal actions and $11,657,526.62 was collected in civil actions. Additionally, the U.S. Attorney’s Office for the Eastern District of Tennessee, working with partner agencies, collected $5,043,741 in asset forfeiture actions in Fiscal Year 2024.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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Two members of multi-state drug trafficking rings linked to Aryan prison gangs sentenced to lengthy prison termsRead the Press Release
Tacoma – Two members of drug trafficking organizations linked to Aryan prison gangs were sentenced today in U.S. District Court in Tacoma to twelve- and seven-year prison terms, announced U.S. Attorney Tessa M. Gorman. Eric Smith,54, of Tacoma, was sentenced to twelve years in prison and Sara Thompson, 39, of Bonney Lake, Washington, was sentenced to seven years in prison. Both defendants were arrested in connection with the investigation of drug trafficking organizations connected to the Aryan Family and Omerta prison gangs. At the sentencing hearing for Smith, Chief U.S. District Judge David G. Estudillo said, “These drugs, particularly fentanyl, are creating a mess in our community. It creates people who can no longer function and leads to overdose and death.”
“Both of these defendants served as trusted coconspirators for the leaders of distribution cells identified in this case,” said U.S. Attorney Gorman. “As such they are responsible for distributing hundreds of thousands of doses of potentially deadly fentanyl and methamphetamine. The damage done to our communities is severe.”
“Every Fentanyl pill introduced into our communities has the potential to destroy lives.” said W. Mike Herrington, Special Agent in Charge of the FBI’s Seattle field office. “The defendants conspired with others, including with individuals already incarcerated, to traffic these deadly pills into Washington state. The FBI and our partners will continue our efforts to keep these poisons off the streets and out of our neighborhoods.”
According to records filed in the case, Eric Smith served as a trusted drug customer and redistributor for the leader of the criminal conspiracy, Jesse Bailey. Smith helped Bailey wash over 50 kilograms of methamphetamine to prepare it for distribution. Smith carried and was caught with various firearms while engaged in the drug trade. On November 1, 2024, he pleaded guilty to conspiracy to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime.
Sara Thompson pleaded guilty in August 2024 to conspiracy to distribute controlled substances. Thompson is in a romantic relationship with the leader of the drug distribution cell, 39-year-old Yehoshua Kilp. Thompson served as Kilp’s proxy for major narcotics deals. Law enforcement raided the Airbnb she stayed at with Kilp immediately after one of these deals and seized nearly 45 kilograms of methamphetamine, and over 5 kilograms of fentanyl in powder and pill form. Thompson continued to sell drugs on behalf of the drug trafficking organization even after Kilp was arrested on state charges.
At her sentencing Chief Judge Estudillo said, “The crime that’s associated with controlled substances, the violence that’s sometimes associated with it . . . It’s just a path of destruction for everybody around it. . . . These things have impact and there’s a reason why there’s significant consequences for this type of conduct.”
“Mr. Smith and Ms. Thompson helped a hate group distribute over a million potentially lethal doses of fentanyl into our neighborhoods,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “We, at the Drug Enforcement Administration, and our partners will do everything in our power to stop those who try to poison and destroy our communities with drugs, violence, and hate.”
Law enforcement made two dozen arrests on federal charges on March 22, 2023. The coordinated takedown involved ten swat teams and more than 350 law enforcement officers. On that day law enforcement seized 177 firearms, more than ten kilos of methamphetamine, 11 kilos of fentanyl pills and more than a kilo of fentanyl powder, three kilos of heroin, and more than $330,000 in cash from eighteen locations in Washington and Arizona. Earlier in the investigation law enforcement seized 830,000 fentanyl pills, 5.5 pounds of fentanyl powder, 223 pounds of methamphetamine, 3.5 pounds of heroin, 5 pounds of cocaine, $388,000 in cash, and 48 firearms.
The top-level leader of the drug trafficking ring, Jesse Bailey, is scheduled to be sentenced on May 16, 2025, and his wife and co-conspirator Candace Bailey, is scheduled for sentencing on June 13, 2025.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This investigation was led by the FBI with critical investigative teamwork from the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Washington State Department of Corrections and significant local assistance from the Tacoma Police Department, Pierce County Sheriff’s Office, and the Thurston County Narcotics Task Force, led by the Thurston County Sheriff’s Office. Throughout this investigation the following agencies assisted the primary investigators: Washington State Patrol, Customs and Border Protection Air and Marine, Lewis County Sheriff’s Office, Lakewood Police Department, and U.S. Postal Inspection Service (USPIS).
The case is being prosecuted by Assistant United States Attorneys Zach Dillon, Max Shiner, and Jehiel Baer.
Two Women Sentenced to Federal Prison for Roles in Separate Eastern Idaho Fentanyl Distribution CasesRead the Press Release
POCATELLO – U.S. Attorney Josh Hurwit announced the outcomes in two separate eastern Idaho cases in which the defendants were sentenced to 6.5 years and over 4 years in federal prison, respectively, for fentanyl distribution.
“These cases again demonstrate our unwavering commitment to tackling fentanyl trafficking and keeping this poison out of our communities, including tribal lands,” said U.S. Attorney Hurwit. “I am grateful to the law enforcement partners and our prosecutors and staff who make these successes possible.”
In one case, Rebecca Marie Lavatta, 33, of Idaho Falls, was sentenced on January 28, 2025, to 78 months in federal prison for possession with intent to distribute fentanyl.
According to court records, on May 17, 2023, following a year-long investigation, detectives with the Idaho Falls Police Department, Idaho State Police, and Pocatello Police Department, located Lavatta in Pocatello, and arrested her on outstanding warrants. During a search of her vehicle, law enforcement recovered two loaded handguns, suboxone, and a heat-sealed clear bag containing 5,000 fentanyl pills.
Chief U.S. District Judge David C. Nye also ordered Lavatta to serve five years of supervised release following her prison sentence. Lavatta pleaded guilty to the charge in July 2024.
In a separate case, Kristen Nichole Meyer, 28, of Idaho Falls, was sentenced on January 29, 2025, to 57 months in federal prison for possession with intent to distribute fentanyl.
According to court records, on August 18, 2023, Fort Hall Police officers responded to the area of the Fort Hall Casino on a report of a couple who appeared to be fighting. Officers located Kristen Meyer, along with her husband, Andrew Meyer near their car, which had fentanyl pills in plain view. Bingham County Sheriff’s deputies searched the car and found over 12,000 fentanyl pills, along with other drugs. Both Kristen and Andrew Meyer admitted to selling the drugs. Andrew Meyer’s sentencing is scheduled for March 17, 2025.
Chief Judge Nye also ordered Meyer to serve three years of supervised release following her prison sentence. Meyer pleaded guilty to the offense in September 2024.
U.S. Attorney Hurwit commended the Idaho Falls Police Department, the Idaho State Police, and the Pocatello Police Department for their work in the Lavatta case as well as the Fort Hall Police Department and the Bingham County Sheriff’s Office for the Meyer investigation. Assistant U.S. Attorney Justin Paskett prosecuted the Lavatta case and Assistant U.S. Attorney Jack Haycock prosecuted the Meyer case.
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Two Mexican Nationals Charged in Conspiracy to Fraudulently Obtain Visas for Immigrant ‘Victims’ of Staged CrimesRead the Press Release
KANSAS CITY, Mo. – Two Mexican nationals in the Kansas City area have been charged in federal court for their roles in a conspiracy to stage numerous armed robberies so that the purported victims of these crimes, who were immigrants to the United States, could use their status as crime victims to apply for visas.
Oscar Gutierrez, 35, of Independence, Mo., and Jose Luis Morales Salgado, 36, of Kansas City, Mo., both of whom are citizens of Mexico, were charged in a criminal complaint filed under seal in the U.S. District Court in Kansas City, Mo., on Thursday, Jan. 30. The federal criminal complaint, which was unsealed and made public following Salgado’s arrest and initial court appearance, charges both men with participating in a conspiracy to fraudulently obtain immigration visas. Gutierrez is already in custody on state charges in a separate case.
The complaint alleges that immigrants contacted Salgado to arrange for themselves to become “victims” of staged robberies so they could submit applications for U-Visas, which are granted to crime victims. These immigrants, who were either illegally present in the United States or in the United States legally through work visas, paid Salgado thousands of dollars to participate. In exchange, Salgado directed them to the location of a planned staged robbery on a particular day and time.
Salgado allegedly recruited individuals to pose as robbers during the staged robberies and provided directions to those individuals. One of the persons Salgado recruited to pose as a robber, says the complaint, was Gutierrez.
According to an affidavit filed in support of the criminal complaint, each incident involved immigrants who later told police they had car trouble and pulled over and got out of their vehicle to diagnose the car trouble. Soon after stopping, another vehicle would arrive and park next to, or in front of, the purported victim’s vehicle. The robber, wearing a medical mask over his face and brandishing a firearm, would strike the purported victims in the head or face, take their cash, and typically fire two rounds into the purported victim’s vehicle.
Investigators with the Kansas City, Mo., Police Department initially identified 11 incidents in which the reported robberies followed this pattern. These cases were linked to each other, based in part, on leads generated from the National Integrated Ballistics Information Network (NIBIN). NIBIN utilized ballistic imaging technology to compare cartridge case markings on the expended cartridges from each crime scene. Detectives determined there was likely one firearm used in the commission of all of the robberies. Detectives gathered information from city cameras and license plate readers to identify the vehicles used in the robberies, the affidavit says, which led them to Gutierrez.
Salgado allegedly instructed the immigrants to falsely report to law enforcement officials how the robberies occurred, and advised them how to make these false reports in an effort to bolster their applications for U-Visas.
The Victims of Trafficking and Violence Protection Act strengthens the ability of law enforcement agencies to investigate and prosecute certain crimes while also protecting victims of crimes who are willing to help law enforcement authorities in the investigation or prosecution of the criminal activity. Foreign nationals are eligible for a U-Visa if they were the victim of qualifying criminal activity, suffered substantial physical or mental abuse as a result of having been a victim of the criminal activity, possessed information about the criminal activity, and were likely to be helpful to law enforcement in the investigation or prosecution of the crime.
According to the affidavit, a source told investigators the number of purported victims involved in the scheme was well over 100. The complaint specifically cites 11 robberies involving 33 purported victims that occurred as part of the conspiracy between Dec. 29, 2021, and July 13, 2024. Of those 33 immigrants, 18 have submitted U-Visa applications claiming to be victims of violent crimes.
An undercover federal agent and a law enforcement source met with Salgado on Jan. 22, 2025, according to the affidavit, and recorded their meeting. The undercover agent made arrangements to pay Salgado $4,000 for the robbery to be staged in order to fraudulently obtain a U-Visa. Salgado told the undercover agent he would “put on a grand show.” Once the plans were agreed upon, the undercover agent paid Salgado $500 with a promise to pay the balance later. The undercover agent met with Salgado again on Thursday, Jan. 30, and Salgado was arrested.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Kansas City, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Homeland Security Investigations.
Two Members of Violent Gang Sentenced to Prison for Racketeering and Drug TraffickingRead the Press Release
BOSTON – Two members of the violent Boston-area gang, Cameron Street, were sentenced to prison yesterday for their roles as drug traffickers operating on behalf of the criminal enterprise. During the investigation, 21 firearms and hundreds of rounds of ammunition were allegedly seized from 11 of the defendants.
James Rodrigues, a/k/a “Bummy,” 34, of Boston, was sentenced by U.S. Senior District Court Judge William G. Young to 42 months in prison to be followed by three years of supervised release. On Jan. 16, 2025, Rodrigues pleaded guilty to conspiracy to participate in a racketeering enterprise (more commonly referred to as RICO or racketeering conspiracy) and conspiracy to distribute cocaine and cocaine base (crack cocaine).
Judge Young also sentenced Devante Lopes, a/k/a “D-Lopes,” 31, of Boston and Quincy, to 60 months in prison and three years of supervised release. In May 2024, Lopes pleaded guilty to RICO conspiracy; conspiracy to distribute marijuana; and possession with intent to distribute cocaine.
Over the course of a two-year investigation, Rodrigues and Lopes were identified as Cameron Street members who were primarily involved in drug trafficking. Specifically, Rodrigues worked with other Cameron Street members to distribute hundreds of grams of cocaine and cocaine base (crack cocaine) from a stash house in Somerville. During the investigation, law enforcement made a series of controlled purchases from Rodrigues and other Cameron Street members. This included two separate occasions in which Rodrigues sold 48 grams of crack cocaine and 50 grams of crack cocaine, respectively, to a cooperating witness. During a search of the Somerville stash house in April 2022, 398 grams of cocaine along with packaging materials, two hydraulic presses, a digital scale, a cell phone and $14,986 in U.S. currency were seized.
Lopes was a significant drug trafficker who, from 2019 through 2020, regularly used the mail to import large quantities of marijuana from California to Boston and neighboring cities. In exchange, Lopes shipped packages containing between $40,000 to $50,000 in cash. One of the packages intended for Lopes was intercepted by law enforcement and found to contain 2.6 kilograms (2,637 grams) of marijuana. Over the course of the investigation, a total of 24 packages of similar size were tracked as having been shipped from various address in California to Lopes. As a result, it is estimated that Lopes received 56.6 kilograms of marijuana.
During a search of Lopes’ residence in April 2022, 800 grams of cocaine was seized from inside a bench by his bed along with digital scales, plastic bags commonly used for street-level sales, a bag of pink pills, a money counter, an empty Glock firearm box and a round of ammunition next to Lopes’ bed. During the search of Lopes’ apartment, remote cameras were discovered inside each room as well as two hidden compartments. One of the hidden compartments was concealed inside a shelf and contained approximately $5,000 in cash, a box of ammunition and foam cut-outs for a firearm. The second hidden compartment was found inside a mirror and contained a foam insert:
A subsequent examination of Lopes’ cellphone revealed messages, images and videos connecting Lopes to members of Cameron Street, unlawful firearm possession and drug trafficking proceeds:
According to court documents, the Cameron Street gang is a violent criminal enterprise whose members and associates are involved in a variety of criminal activities – including murders, attempted murders, armed robberies, carjackings, home invasions, human trafficking, as well as drug and firearms trafficking, among other offenses – in the Dorchester neighborhood of Boston and surrounding areas. It is alleged that Cameron Street members use violence against rival gangs and witnesses, typically with the use of firearms, to maintain and enhance their status and the overall reputation of the gang, as well as to protect the gang’s power, reputation and territory. Members engage in drug trafficking activity and distributed kilograms of cocaine, cocaine base (crack cocaine), oxycodone and marijuana throughout Massachusetts.
United States Attorney Leah B. Foley; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Feld Division; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Massachusetts State Police; Suffolk County Sheriff’s Office; Suffolk, Plymouth, Norfolk and Bristol County District Attorney’s Offices; and the Canton, Quincy, Randolph, Somerville, Brockton, Malden, Stoughton, Rehoboth and Pawtucket (R.I.) Police Departments. Assistant U.S. Attorneys Christopher J. Pohl and Charles Dell’Anno of the Narcotics & Money Laundering Unit prosecuted the cases.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. 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 details contained in the charging documents are allegations. The remaining defendants named in the indictment are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.