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Thursday 23 January 2025
Baltimore Man Faces Federal Indictment for Sexual Exploitation of a Minor and Producing Child Sexual Abuse MaterialRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment, charging Jose Adan Lopez-Guevara, 37, of Baltimore, with five counts of sexual exploitation of a minor and possession of child sexual abuse material.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the indictment with Special Agent in Charge Michael S. McCarthy, Homeland Security Investigations (HSI); Colonel Roland L. Butler, Jr., Superintendent, Maryland State Police (MSP); Chief Robert McCullough, Baltimore County Police Department; and Prince George’s County State’s Attorney Aisha Braveboy.
According to the indictment, the defendant persuaded, induced, enticed, and coerced a minor male to engage in sexually explicit conduct so that a visual depiction could be produced and transmitted. Law enforcement allegedly found Lopez-Guevara in possession of child sex abuse material on December 12, 2024.
If convicted, Lopez-Guevara faces a mandatory minimum sentence of 15 years and a maximum sentence of 30 years in federal prison for each of the five counts of sexual exploitation of a minor. Additionally, he’s looking at a maximum of 20 years in federal prison for possession of child sexual abuse material. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentences after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt, so an individual charged by indictment is presumed innocent unless they are proven guilty at a later criminal proceeding.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education n, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
U.S. Attorney Barron commended HSI, MSP, the Baltimore County Police Department, and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Barron also thanked Assistant U.S. Attorney Paul E. Budlow who is prosecuting the federal case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit https://www.justice.gov/usao-md/community-outreach.
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Anesthesiology service provider pays almost $1M to settle False Claims Act liabilityRead the Press Release
HOUSTON – Northwest Anesthesiology and Pain Services (NWAP) has agreed to pay $999,999 to resolve potential violations related to the submission of claims for reimbursement to Medicare for services rendered by its independently contracted pain management practices, announced acting U.S. Attorney Jennifer B. Lowery.
NWAP is an anesthesiology service provider in Houston and surrounding areas.
The allegations include violations of the False Claims Act (FCA) and the physician self-referral law (aka Stark Law).
In 2019, NWAP’s former president Donald Carmichael hired Stacey Green and her company Remedy Physician Solutions as an independent contractor to manage NWAP’s pain management practices. NWAP gave Green authority over the practices’ compensation and discretionary productivity bonus payments.
Following an internal investigation, NWAP claims Green instructed NWAP’s billing company to calculate bonus payments based on lab referrals minus costs, fees and expenses rather than calculating bonuses properly based on the practices’ productivity as provided for in their agreements. NWAP suspected this was done to increase total collections, which formed the basis of Green’s management fee.
From Jan. 1, 2019, through Dec. 31, 2021, NWAP reported it paid approximately $1.8 million in bonus payments as a result of the contractor’s misconduct.
The government alleges such actions created improper financial relationships between NWAP and its independently contracted pain management practices as NWAP was paying bonuses to these practices from its lab revenue as allegedly thinly veiled kickbacks for referrals.
“The Stark Law safeguards the integrity of the Medicare program by ensuring patients receive care based on their physician’s independent medical judgment and not any personal financial interests,” said Lowery. “Our office remains committed to protecting the program and reinforcing the public trust in our federal healthcare system, and we will continue to hold those accountable for violating these safeguards.”
“Prohibited referrals and financial incentives in health care jeopardize patient safety and drive unnecessary medical services. Additionally, submitting false claims to Medicare for services resulting from unlawful referrals undermines the integrity of federal health care programs and diminishes public trust,” said Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services - Office of Inspector General (DHHS-OIG). “DHHS-OIG remains resolute in holding accountable those who engage in fraud and disregard the patient-first values central to the medical profession.”
This settlement stems from NWAP’s self-disclosure to the U.S. Attorney’s Office (USAO) and DHHS-OIG. NWAP received credit for its self-disclosure and cooperation with the investigation.
The USAO conducted the investigation with assistance from DHHS-OIG. Assistant U.S. Attorney (AUSA) Michelle Luong handled the matter along with former AUSA Andrew Bobb.
Amtrak Employee Admits Participating in $11 Million Health Care Fraud SchemeRead the Press Release
NEWARK, N.J. – An Amtrak employee admitted participating in a health care fraud scheme to defraud Amtrak, Acting U.S. Attorney Vikas Khanna announced.
Rodolfo Rivera, 41, of Clayton, Delaware, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an Indictment charging him with conspiracy to commit health care fraud. The Indictment also charges nine other co-conspirators in connection with the scheme: Kevin Frink, 53, of Willingboro, New Jersey; Quinton Johnson, 53, of Irvington, New Jersey; David McBrien, 36, of Levittown, Pennsylvania; Gregory Richardson, 35, of Roosevelt, New York; Michael Toal, 35, of Hazlet, New Jersey; Damany Walker, 41, of Irvington, New Jersey; Timothy Bogen, 59, of Hamden, Connecticut; Dion Jacob, 50, of Brooklyn, New York; and David Lonergan, 64, of Rockaway Park, New York.
According to documents filed in this case and statements made in court:
From January 2019 through June 2022, Rivera and his co-conspirators—who were also Amtrak employees—engaged in a scheme to obtain cash kickbacks from health care providers in return for their agreement to allow their health insurance plan to be billed for services that were never provided and were not medically necessary. As a result of the fraudulent claims submitted on behalf of Rivera, his dependent, and other Amtrak employees that he recruited into the scheme, the Amtrak health care plan paid over $2 million in reimbursements. In total, as a result of the conspiracy, the Amtrak health care plan paid over $11 million in fraudulent claims associated with providers connected to the scheme.
Rivera received thousands of dollars in cash kickbacks from health care providers in return for his participation in the scheme, including from Punson Figueroa, an acupuncturist, and Michael DeNicola, a podiatrist. Figueroa previously pleaded guilty to conspiracy to commit health care fraud and was sentenced on September 24, 2024 to 34 months in prison. DeNicola previously pleaded guilty on June 29, 2022 to conspiracy to commit health care fraud, among other offenses. His sentencing remains pending.
The health care fraud conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Rivera’s sentencing is scheduled for June 26, 2025.
Acting U.S. Attorney Khanna credited special agents of the Amtrak Office of Inspector General, under the direction of Special Agent in Charge Michael J. Waters, the Amtrak Police Department, under the direction of Chief of Police Samuel Dotson, and special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Frank A. Tarentino III in New York, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jessica R. Ecker and Katherine M. Romano of the Health Care Fraud Unit, and Senior Trial Counsel Barbara Ward of the Bank Integrity, Recovery, and Money Laundering Unit, in Newark.
The charge and allegations contained in the Indictment against Frink, Johnson, McBrien, Richardson, Toal, Walker, Bogen, Jacob, and Lonergan, are merely accusations, and they are each presumed innocent unless and until proven guilty.
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Defense counsel: Dennis S. Cleary, Esq.
rivera.indictment.pdfAmmon Man Sentenced to 12 Years in Federal Prison for Distributing Child Sexual Abuse MaterialRead the Press Release
POCATELLO – Chase Phillip Hornaday, 41, of Ammon, was sentenced to 144 months in federal prison for distributing child sexual abuse material, U.S. Attorney Josh Hurwit announced today.
According to court records, officers with the Idaho Internet Crimes Against Children (ICAC) Task Force began investigating Hornaday in November 2023, after receiving reports that he had possessed and distributed child sexual abuse material. After executing a search warrant on an online file sharing account belonging to Hornaday, ICAC officers uncovered more than 60 images and videos of child sexual abuse material in the account and found evidence that Hornaday had exchanged child sexual abuse material with other individuals online. On January 10, 2024, officers executed a search warrant at Hornaday’s home and recovered his cell phone, which contained an additional 300 images of child sexual abuse material.
Senior U.S. District Judge B. Lynn Winmill also ordered Hornaday be placed on supervised release for five years following his prison sentence and ordered that he pay $27,000 in restitution. Hornaday will also be required to register as a sex offender. Hornaday pleaded guilty to the charge on October 23, 2024.
“Another Idaho community is safer because of the teamwork between federal law enforcement, the ICAC Task Force, and local sheriff’s offices and police departments,” said U.S. Attorney Hurwit. “We will continue to spare no effort to find and prosecute those who possess or distribute child sexual abuse material.”
“The sentence reflects the serious nature of child exploitation and sends a clear message that those who prey on the most vulnerable members of our society will be held accountable,” said acting Special Agent in Charge Matthew Murphy, who oversees HSI operations in the Pacific Northwest. “The investigation and prosecution of these crimes remain a top priority for our agency, and we are committed to working with our law enforcement partners to ensure that offenders are held accountable to the fullest extent of the law.”
“This sentence represents the hard work of ICAC’s investigators,” said Attorney General Raúl Labrador. “I’m grateful for the continued commitment of every participating agency to keep our kids safe from abuse and exploitation, and for the courts that recognize the seriousness of these crimes.”
U.S. Attorney Hurwit commended Homeland Security Investigations in Idaho Falls, the Bonneville County Sheriff’s Office, the Idaho Falls Police Department, and the Idaho ICAC Task Force for the investigation. Assistant U.S. Attorney Justin Paskett prosecuted this 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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal 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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Alpha Influence Ringleader Admits to Defrauding Investors of over $20MRead the Press Release
SALT LAKE CITY, Utah – A Utah businessman pleaded guilty today to securities fraud and money laundering after admitting he lied to investors and fraudulently sold investment contracts, which are securities, through his company Alpha Influence, LLC for “Alpha Automated Stores.”
Jeremiah Joseph Evans “The Bull,” 29, of Utah County, was charged by felony information on January 21, 2025.
According to court documents and admissions made at the change of plea hearing, from July 2019 to July 2022, Evans fraudulently sold investments in e-commerce stores through Alpha Influence, LLC., a registered Utah corporation. As part of the scheme to defraud, Evans promised investors to secure money in exchange for the Alpha investments. Evans fraudulently obtained approximately $20,894,674 from approximately 530 investors. As alleged in court documents, Evans lied to investors about how successful his company was and how long it was in operation. Evans sold the e-commerce stores to purchasers as a passive investment and promised that the stores would make consistent, predictable, monthly returns despite knowing this was false. He failed to disclose that the majority of the invested funds went directly to Alpha Influence, LLC, and were primarily distributed as commissions to those selling the fraudulent investment and himself, with only a small portion sent to the servicer of the investors’ stores.
Evans is scheduled to be sentenced April 3, 2025, at 1:30 p.m. before a U.S. District Court Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is being investigated jointly by the Utah Division of Securities and the FBI Salt Lake City Field Office.
Assistant United States Attorneys Mark Woolf, Brian Williams, and Jennifer E. Gully of the U.S. Attorney’s Office for the District of Utah are prosecuting the case.
Alleged Sinaloa Cartel Leader Extradited from Mexico, Appears in CourtRead the Press Release
SAN DIEGO – Alleged Sinaloa Cartel cell leader Octavio Leal-Hernandez, aka Chapito Leal, who is believed responsible for trafficking large amounts of methamphetamine, cocaine, heroin and marijuana into the United States from Mexico, appeared in federal court today following his extradition from Mexico yesterday.
Leal-Hernandez was indicted by a federal grand jury in the Southern District of California in May 2020 for International Conspiracy to Distribute Controlled Substances and Conspiracy to Distribute Controlled Substances.
At today’s hearing, Leal-Hernandez was arraigned and entered a not-guilty plea before U.S. Magistrate Judge Barbara L. Major. The judge granted the government’s request that the defendant be held without bond pending trial. His next court appearance is scheduled for March 10, 2025, for a motion hearing/trial setting in front of U.S. District Court Judge Benjamin J. Cheeks.
The government filed a memorandum today in support of its request for detention that describes Leal-Hernandez as a cell leader who rose through the ranks of the Sinaloa Cartel. The memo said Leal-Hernandez was aligned with the Beltran-Leyva faction of the Sinaloa Cartel, specifically with Fausto Isidro Meza Flores, aka Chapo Isidro. Meza Flores is the co-leader of the Beltran-Leyva faction of the Sinaloa Cartel and was designated by the U.S. Treasury Department’s Office of Foreign Assets Control as a Foreign Narcotics Kingpin.
Between January 2012 and April 2012, law enforcement authorities lawfully intercepted wire and electronic communications between Leal-Hernandez and several of his drug trafficking associates. The wiretap intercepts confirmed that Leal-Hernandez was a leader/organizer of the Beltran-Leyva faction of the Sinaloa Cartel in Tijuana, Mexico and was responsible for supplying drug distributors in Southern California and other destinations within the United States. The wiretap intercepts also confirmed that Leal-Hernandez has committed acts of violence to facilitate his drug trafficking activities.
Further investigation after 2012 until his arrest in 2020 confirmed that Leal-Hernandez remained one of the organization’s leaders, responsible for directing, managing, and overseeing the organization’s drug trafficking in Tijuana.
According to the government’s detention memorandum, Leal-Hernandez oversaw the collection and preparation of large shipments of methamphetamine, cocaine, heroin, and marijuana from Tijuana, Mexico into the United States. He then directed organization members to coordinate the logistics of storing the drugs in the organization’s stash houses and transporting them to the organization’s distributors and customers throughout California and elsewhere in the United States.
“This appearance in an American court is the result of our unwavering pursuit of those who perpetuate violence and push narcotics into our communities,” said U.S. Attorney Tara McGrath. “We will hold traffickers accountable, no matter how long it takes.”
“The arrest and extradition of Leal-Hernandez marks a significant victory in our relentless fight against the deadly scourge of narcotics trafficking. This joint Homeland Security Investigations (HSI) and Drug Enforcement Administration (DEA) investigation was made possible due to the dedication, expertise, and extensive investigative work of our special agents and our invaluable federal law enforcement partners,” said Shawn Gibson, Special Agent in Charge of Homeland Security Investigations in San Diego. “We extend our deepest gratitude to all involved for their unwavering hard work, commitment, and collaboration.”
“Drug traffickers are predators that must be held accountable for the harm they cause,” said DEA Special Agent in Charge Brian Clark. “The capture and extradition of Leal-Hernandez is a reminder to any cartel member that there is nowhere to hide; we will use every tool at our disposal to hold you accountable because no one is beyond the grasp of the DEA and our law enforcement partners.”
“International drug cartels cause immeasurable harm to the American public by importing lethal narcotics and committing acts of violence which terrorize our community,” said FBI San Diego Special Agent in Charge Stacey Moy. “The serious and sustained actions of international drug traffickers will not be tolerated, and we will continue to work closely with our partners to keep our communities safe.”
This case is being prosecuted by Assistant U.S. Attorney Joshua Mellor. The U.S. Marshals Service completed the removal of Leal-Hernandez from Mexico to the Southern District of California.
DEFENDANTS Case Number 20cr1224
Octavio Leal-Hernandez Age: 44 Tijuana
SUMMARY OF CHARGES
International Conspiracy to Distribute Controlled Substances, in violation of Title 21, United States Code, Sections 959, 960, and 963
Maximum Penalty: Life, Mandatory Minimum: Ten years
Conspiracy to Distribute Controlled Substances, in violation of Title 21, United States Code, Sections 841(a)(1) and 846.
Maximum penalty: Life, Mandatory Minimum: Ten years
INVESTIGATING AGENCIES
Homeland Security Investigations
Drug Enforcement Administration
Federal Bureau of Investigation
U.S. Coast Guard
The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Leal-Hernandez.
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This prosecution 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.
Wednesday 22 January 2025
Washington man pleads guilty to extorting clients using phony escortsRead the Press Release
ALEXANDRIA, Va. – A Washington man pled guilty today to using phony online escort profiles to extort hundreds of thousands of dollars from clients.
According to court documents, from at least August 2020 through October 2024, Abdul Kareem Kabba, 29, used photos and videos of women purchased from OnlyFans to create fake escort profiles on websites such as TheEroticReview.com. Kabba then would assume the identity of the “escort” and communicate with people interested in acquiring services. Kabba would typically ask them to send a deposit using peer-to-peer payment platforms or through websites that are commonly used by adult content creators to receive money. Kabba also would ask clients to verify their identities by sending a picture of themselves holding a form of identification such as a driver license and sending him a link to their social media profiles.
After a client paid the deposit and sent the identifying information, Kabba then would blackmail them. Kabba would threaten the clients that, unless they sent Kabba additional money, he would alert the police, the clients’ families, and the clients’ employers that the men were attempting to solicit a prostitute. As a result of his scheme, Kabba caused a total loss of $692,000 to his victims.
Kabba is scheduled to be sentenced on April 9 and faces up to 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia, and John T. Perez, Special Agent in Charge, Headquarters Operations, Office of Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau (FRB-CFPB OIG), made the announcement after U.S. District Judge Rossie D. Alston Jr. accepted the plea.
Assistant U.S. Attorney Christopher Hood for the Eastern District of Virginia and Trial Attorney Babasijibomi Moore of the Criminal Division’s Fraud Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-263.
Tilton Veterinarian Agrees to Pay $53,500 to Settle Allegations of Controlled Substances Act ViolationsRead the Press Release
CONCORD – The Tilton Veterinarian Hospital in Tilton, and its owner Sara Laroux, D.V.M., agreed to pay the United States $53,500 to resolve allegations that they violated the Controlled Substances Act (CSA) by failing to keep accurate records of controlled substances, including opioids, Acting U.S. Attorney Jay McCormack announces.
The CSA deters the illegal distribution, possession, dispensing, and improper use of controlled substances. The CSA requires the accurate inventorying, tracking and recordkeeping of each controlled substances to prevent misuse.
“Particularly amid an opioid crisis, compliance with the CSA’s prescription-writing and recordkeeping requirements is essential in ensuring that opioids and other addictive drugs are not diverted and abused,” said Acting U.S. Attorney Jay McCormack. “With the help of our partners, the U.S. Attorney’s Office will continue to prioritize enforcement of this vital statute using all available tools at our disposal.”
“DEA registrants are responsible for handling controlled substances responsibly and ensuring that complete and accurate records are being properly kept and accounted for in compliance with the Controlled Substance Act,” said Acting DEA Special Agent in Charge Stephen Belleau, New England Field Division. “We are committed to working with our law enforcement and regulatory partners to ensure that these rules and regulations are followed.”
Beginning in January 2024, the DEA conducted an investigation into allegations that Dr. Laroux’ controlled substance records at the hospital were incorrect and that controlled substances were missing. The investigation included an on-site inspection of records, and an accountability audit of controlled substance inventories and record-keeping processes at the hospital. The investigation revealed numerous violations of the CSA: including, Dr. Laroux’s failure to maintain complete and accurate records of the controlled substances she received, dispensed, or destroyed, her failure to conduct proper inventories of controlled substances on hand, received by the hospital, and that she had altered pages of her records and forged signatures. The investigation also revealed significant shortages of various controlled substances received by the hospital, as well as that Dr. Laroux failed to provide effective controls and procedures to guard against theft and diversion of controlled substances and was not present at the hospital for large periods of time while leaving controlled substances unmonitored and unsecured.
The Drug Enforcement Administration led the investigation leading to the settlement agreement. The case was handled by Assistant U.S. Attorney Raphael Katz.
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Three Men Sentenced to Federal Prison for Their Roles in a Counterfeit Money SchemeRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that U.S. District Court Judge Eric C. Schulte has sentenced three South Dakota men convicted of crimes related to a counterfeit currency operation. The sentencings took place on January 13, 2025.
Sonny Chao, age 36, of Oacoma, South Dakota, was sentenced to seven and a half years in federal prison, followed by three years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Anthony Martinez, age 24, of Chamberlain, South Dakota, was sentenced to one month in federal prison, followed by two years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Gino Martinez, age 21, of Chamberlain, South Dakota, was sentenced to two years of probation and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
All three defendants were ordered to pay $7,500 in restitution to the victims of this matter. The restitution was ordered to be paid jointly and severally.
The defendants were indicted by a federal grand jury in June 2024. Chao pleaded guilty to Possession of Electronic Image for Counterfeiting Obligations or Securities and Prohibited Person in Possession of a Firearm on October 16, 2024. Anthony Martinez pleaded guilty to two counts of Passing Counterfeit U.S. Currency on October 17, 2024. Gino Martinez pleaded guilty to one count of Passing Counterfeit U.S. Currency on October 15, 2024.
These convictions stemmed from Chao using electronic images on his computer to create counterfeit $100.00 Federal Reserve Notes that were passed at various businesses throughout central South Dakota between November 28, 2023, and March 17, 2024. Chao would soak genuine $1.00 Federal Reserve Notes in a solution that removed the ink and print the image of a $100.00 Federal Reserve Note on the blank genuine paper. Anthony and Gino Martinez assisted Chao by passing the counterfeit currency at a number of businesses. During the execution of a search warrant at Chao’s residence, law enforcement located two firearms in Chao’s bed. Chao was prohibited from possessing firearms due to prior felony convictions.
This case was investigated by the U.S. Secret Service with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, South Dakota Highway Patrol, South Dakota Fusion Center, South Dakota Division of Criminal Investigation, Chamberlain Police Department, Lyman County Sheriff’s Office, Brule County Sheriff’s Office, Jerauld County Sheriff’s Office, Winner Police Department, Mitchell Police Department, and the Pierre Police Department. Assistant U.S. Attorney Wayne Venhuizen prosecuted the case.
Chao and Anthony Martinez were immediately remanded to the custody of the U.S. Marshals Service.
Stephens County Man Pleads Guilty to Possession of Child PornographyRead the Press Release
OKLAHOMA CITY – DAMIEN CHRISTOPHER HAMILTON, 23, of Stephens County, has pleaded guilty to possession of child pornography in Indian Country, announced U.S. Attorney Robert J. Troester.
On September 4, 2024, a federal Grand Jury charged Hamilton with possession of child pornography in Indian Country. According to the Indictment, on June 13, 2024, Hamilton possessed an iPhone that contained images of child sexual abuse material (CSAM).
On January 22, 2025, Hamilton pleaded guilty, and admitted he possessed images and videos of CSAM. At sentencing, Hamilton faces up to 20 years in federal prison and a fine of up to $250,000.
This case is in federal court because Hamilton is a member of the Chickasaw Nation and the crimes were committed within the boundaries of the Chickasaw Nation.
This case is the result of an investigation by the Chickasaw Nation Lighthorse Police Department, the Duncan Police Department, and the Oklahoma State Bureau of Investigation. Special Assistant U.S. Attorney Kaleigh Blackwell is prosecuting the case.
Reference is made to public filings for additional information.
Six foreign nationals sentenced for attempting to traffic cocaine into the United StatesRead the Press Release
NEWPORT NEWS, Va. – Four Mexican nationals and two Ecuadoran nationals have been sentenced for possession with intent to distribute cocaine.
According to court documents, on Feb. 24, 2024, while on routine patrol in the Eastern Pacific Ocean, a helicopter from the Coast Guard Cutter Munro detected a go-fast vessel (GFV) with no identifying markings of nationality approximately 450 nautical miles southwest of Acapulco, Mexico, in international waters. The Munro was patrolling in the vicinity and diverted to intercept. A long-range interceptor small boat was launched and navigated to the last known position of the GFV.
The helicopter observed the GFV jettison a fuel barrel and used warning shots to halt the boat. The LRI arrived and a boarding team took control of the GFV.
The team encountered six individuals aboard the GFV, identified as Rudi Euriel Santos Bernal, Juan Manuel Gastelum Valenzuela, Ronny Rosado Alvarez, Juan Ramon Vega Cardenas, Manuel Rodrigo Otero Rivera, and Kennedy Samuel Rivera Flores. None of the individuals made a claim of nationality for the vessel. Permission was granted to treat the vessel as “without nationality,” and a full law enforcement boarding was conducted. The boarding team safely located and then transferred to the cutter all contraband, which included 38 bales of cocaine for an estimated at-sea weight of 1,790 kilograms.
Gastelum Valenzuela pled guilty on Aug. 19, 2024, and was sentenced on Dec. 18, 2024, to two years in prison.
Rosado Alvarez and Rivera Flores pled guilty on August 20, 2024, and was sentenced on Dec. 18, 2024, to two years in prison. On Dec. 19, 2024, Rivera Flores was sentenced to two years in prison. On Dec. 18, 2024, Rosado Alvares was sentenced to two years in prison.
Otero Rivera and Vega Cardenas pled guilty on July 29, 2024. Otero Rivera was sentenced on Dec. 11, 2024, to two years in prison. Vega Cardenas was sentenced on Jan. 21 to two years and three months in prison.
Santos Bernal pled guilty on Sept. 18, 2024, and was sentenced on Jan. 21 to two years in prison.
Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia; Ibrar A. Mian, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; and Kai Wah Chan, Acting Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C., made the announcement.
Assistant U.S. Attorneys Eric M. Hurt and Kevin M. Comstock prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:24-cr-15.
Seven Individuals Charged in Largest Employee Retention Credit Scheme Case in the United StatesRead the Press Release
Earlier today, at the federal court in Central Islip, an indictment was unsealed charging Keith Williams, Janine Davis, Morais Dicks, James Hames, Jr., Jamari Lewis, Ewendra Mathurin, and Tiffany Williams with conspiracy to defraud the United States, wire fraud, and aiding and assisting the preparation of false tax returns. Six defendants were arrested this morning in New York and will be arraigned this afternoon before United States District Judge Gary R. Brown. Jamari Lewis is not in custody and will be arraigned in the Eastern District of New York at a later date.
John J. Durham, United States Attorney for the Eastern District of New York, Karen E. Kelly, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI ), Brendan Donahue, Acting Inspector in Charge, United States Postal Inspection Service, New York Division (USPIS) and William S. Walker, Special Agent in Charge, Homeland Security Investigations, New York (HSI), announced the arrests and charges.
“As alleged, the defendants shamefully took advantage of a global health emergency to line their pockets with millions of dollars that were intended for struggling families and small businesses just trying to stay afloat and lavished themselves with luxury goods while shamefully boasting about their criminal activity,” stated United States Attorney Durham. “My Office will continue to investigate and prosecute those who stole taxpayer dollars intended to assist Americans coping with the impacts of the COVID-19 pandemic.”
“Criminals have found ways to exploit every iteration of aid offered through the COVID-19 pandemic relief funds. The ERC was created to help businesses keep themselves and their employees afloat. Yet, the defendants allegedly stole $44 million from the relief pool and chose to spend their illicit gains on jewelry, designer clothing, and luxury cars. IRS-CI worked this case with our law enforcement partners to make sure that the egregious acts of those arrested today do not go unpunished. It’s time they face justice,” stated IRS-CI New York Special Agent in Charge Chavis.
“This program was created to aide struggling small businesses during the pandemic, instead these individuals exploited it to fraudulently take money from taxpayers for their financial gain. USPIS will continue to aggressively investigate individuals who defraud the government,” stated USPIS Acting Inspector in Charge Donahue. “The outstanding work done by USPIS New York Division, HSI, IRS, DOJ Tax and the United States Attorney’s Office for the Eastern District of New York ensures individuals are brought to justice for their crimes.”
“As alleged in the indictment, an astonishing amount of taxpayer funds were illegally siphoned by a criminal organization from a needs-based government fund. As a result of the close coordination on this investigation, those defendants ultimately found guilty for perpetrating this fraudulent scheme will pay for their greed,” said HSI New York Special Agent in Charge William S. Walker. “HSI continues to work side-by-side with our law enforcement partners to ensure justice is brought to fraudsters who shamelessly steal from our nation’s economic assistance programs.”
Congress created the Employee Retention Credit (ERC) and the Sick and Family Leave Credit (SFLC) to provide emergency financial assistance in connection with the economic effects of the COVID-19 pandemic. The ERC was introduced in 2020 to incentivize businesses to continue paying employees by providing, at first, for a 50% credit on up to $10,000 in wages paid to each employee for the calendar year for businesses closed by government order or who had a 50% drop in gross receipts due to the pandemic. By 2021, the percentage credit increased to 70% per employee per quarter. The SFLC provided a dollar-for-dollar tax credit to businesses that paid wages to employees on sick leave and a two-thirds credit on wages paid to employees on family leave due to COVID-19. Through the PPP, Congress authorized over $600 billion in forgivable loans to small businesses for job retention and other expenses.
According to court documents, between November 2021 and June 2023, the defendants filed over 8,000 quarterly payroll tax returns claiming over $600 million in COVID-19 pandemic relief funds. On behalf of themselves and their clients, the defendants submitted filings seeking payment under the ERC and the SFLC. Several of the defendants also filed fraudulent Paycheck Protection Program (PPP) loan applications.
The scheme primarily operated out of Williams’s purported credit repair business, which was called “Credit Reset.” To claim the ERC and SFLC funds, the defendants and their co-conspirators submitted tax returns to the IRS on behalf of shell businesses that, in the vast majority of cases, had no legitimate operations or employees. In total, the defendants and their co-conspirators successfully secured over $44 million in government funds through this scheme, which they then spent on goods including jewelry, electronics, designer clothing, and luxury automobiles. The defendants flaunted their criminal activity openly. For example, Lewis, an aspiring rapper who uses the stage-name, “Mr. Chaketah,” posted on social media a recording of song he wrote that was entitled, “I’m Really Sophisticated (IRS)” and the album cover for his song featured the logo of the Internal Revenue Service. In a recorded call with a co-conspirator, Williams compared the fraud scheme to “taking candy from a baby.” When investigators executed a search warrant at Williams’s home, they seized millions of dollars’ worth of luxury goods that appear to have been purchased using proceeds of the fraud scheme, including designer items from Rolex, Gucci, Louis Vuitton, Fendi, Balenciaga, and Versace, as well as high-end vehicles, including a Land Rover, a Polaris Slingshot, and a Tesla Model Y.
The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty. The defendants each face up to 20 years in prison if convicted of wire fraud, up to five years in prison for conspiracy and up to three years in prison on aiding and assisting in the preparation of false tax returns.
The government’s case is being handled by the Criminal Section of the Office’s Long Island Division and the Department of Justice’s Tax Division. Assistant United States Attorneys Adam R. Toporovsky and James R. Simmons of the Eastern District of New York, along with Trial Attorney Richard J. Kelley are in charge of the prosecution, with the assistance of Paralegal Specialist Janelle Robinson. Trial Attorney Samuel B. Bean, formerly of the Tax Division, also assisted on the investigation.
The Defendants:
KEITH WILLIAMS
Age: 46
West Hempstead, New YorkJANINE DAVIS (also known as “Holiday”)
Age: 41
Wheatley Heights, New YorkMORAIS DICKS
Age: 55
Dix Hills, New YorkJAMES HAMES, JR. (also known as “Poppa”)
Age: 65
Campbell Hall, New YorkJAMARI LEWIS (also known as “Mr. Chaketah”)
Age: 26
Queens, New YorkEWENDRA MATHURIN (also known as “Rayda”)
Age: 32
Queens Village, New YorkTIFFANY WILLIAMS (also known as “Joy”)
Age: 41
Brooklyn, New YorkE.D.N.Y. Docket No. 25-CR-20 (GRB)
erc_indictment.pdfSeven Charged in Nation’s Largest COVID-19 Tax Credit SchemeRead the Press Release
An indictment was unsealed today in Central Islip, New York, charging seven individuals with operating a multi-state conspiracy in which they attempted to defraud the United States of more than $600 million by filing more than 8,000 false tax returns claiming COVID-19-related employment tax credits.
In response to the COVID-19 pandemic and its economic impact, Congress authorized a tax credit that incentivized businesses to keep employees on their payroll, also known as the “Employee Retention Credit” or ERC.
Congress also authorized a credit that reimbursed businesses for the wages paid to employees who were on sick or family leave and could not work because of COVID-19. This “paid sick and family leave credit,” or SFLC, was equal to the wages the business paid the employees during their leave.
According to the indictment, from November 2021 to June 2023, defendants Keith Williams, Jamari Lewis, Morais Dicks, Janine Davis, Tiffany Williams, James Hames Jr. and Ewendra Mathurin, all current or former New York residents, repeatedly exploited these programs that were intended to help businesses impacted by the COVID-19 pandemic. The scheme was allegedly headquartered at Credit Reset, a purported credit repair business Keith Williams owned and operated. Acting as tax preparers, the defendants allegedly filed more than 8,000 false employment tax returns with the IRS claiming COVID-related tax credits on behalf of themselves and their clients. Each of these returns were allegedly fraudulent in that they claimed SFLC in excess of the amount of wages reported on the tax return, listed the same wages as both qualified sick leave wages and qualified family leave wages or claimed the SFLC and ERC for the same wages, none of which was permitted by law. The defendants allegedly profited from the scheme by receiving tax refund checks from the U.S. Treasury and by charging clients a fee or a percentage of the tax refund the client received. The defendants also allegedly recruited others into the scheme who were compensated by receiving a percentage of fraudulently obtained U.S. Treasury checks.
In total, the defendants sought more than $600 million of which the IRS paid approximately $45 million to the defendants and their clients.
Additionally, the defendants allegedly concealed their preparation of the false tax returns by not listing themselves as the paid preparer on the tax returns and by using Virtual Private Networks (VPNs) to obscure their IP addresses while filing the false returns. If a client did not have a business, members of the conspiracy allegedly would sometimes sell shell companies to them in order to file false tax returns. After noticing discrepancies in the filed returns, the IRS and Social Security Administration (SSA) allegedly requested additional information regarding the tax returns the defendants prepared. In response, members of the conspiracy allegedly would often transmit false information to the IRS and SSA.
Some of the defendants also allegedly submitted false Paycheck Protection Program (PPP) loan applications.
In total, the defendants were charged with 45 counts relating to the scheme including conspiracy to defraud the United States, wire fraud and aiding and assisting in the preparation of false tax returns. Keith Williams, Lewis, Mathurin, Davis, Tiffany Williams and Dicks were also charged with wire fraud in relation to fraudulent PPP applications they submitted.
If convicted, the defendants face a maximum penalty of five years in prison for the conspiracy to defraud the United States charge, a maximum penalty of 20 years in prison for each wire fraud charge arising out of the ERC scheme, a maximum penalty of 30 years in prison for each wire fraud charge arising out of the PPP fraud and a maximum penalty of three years in prison for each charge of aiding and assisting in the preparation of false return charge. A federal district court judge will determine the sentence of each defendant after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, U.S. Attorney John J. Durham for the Eastern District of New York, Acting Inspector in Charge Brendan Donahue of the U.S. Postal Inspection Service (USPIS)’s New York Division and Special Agent in Charge Harry T. Chavis Jr. of IRS-Criminal Investigation (IRS-CI) New York made the announcement.
IRS-CI and USPIS are investigating the case.
Trial Attorney Richard Kelley of the Tax Division and Assistant U.S. Attorneys Adam Toporovsky and James Simmons for the Eastern District of New York are prosecuting the case. Former Tax Division Trial Attorney Samuel Bean assisted with the investigation.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Keith Williams et al Indictment.pdfSecond Dubuque Man Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
A second man who sexually abused a child pled guilty today in federal court in Cedar Rapids, Iowa. John James Dixon, age 41, from Dubuque, Iowa, was convicted of one count of sexual exploitation of a child and one count of distribution of child pornography.
At the plea hearing, Dixon admitted that, between September 2023 and May 2024, he knowingly used, persuaded, induced, and enticed a minor under the age of 18 to engage in sexually explicit conduct. He also admitted that between September 2023 and May 2024, he knowingly distributed visual depictions of a minor engaging in sexually explicit conduct.
Dixon is the second man to plead guilty in this case. On December 18, 2024, Justin James Paisley, age 35, from Dubuque, Iowa, pled guilty to one count of sexual exploitation of children and one count of distribution of child pornography. At Paisley’s plea hearing, he admitted that between the spring of 2022 and May 2024, he knowingly used, persuaded, induced, and enticed minors under the age of 18 to engage in sexually explicit conduct. Paisley also admitted that between August 2023 and May 2024, he knowingly distributed visual depictions of a minor engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Sentencing before United States District Court Chief Judge C.J. Williams will be set for both Dixon and Paisley after a presentence report is prepared. Dixon and Paisley remain in custody of the United States Marshal pending sentencing. They each face a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 50 years’ imprisonment, a $500,000 fine, $95,200 in special assessments, and life term of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Devra T. Hake and was investigated by the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-1032.
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Registered Sex Offender Pleads Guilty to Possession of Child PornographyRead the Press Release
ALBANY, NEW YORK – Damian Quillinan, age 50, of Broadalbin, New York, pled guilty today to possession of child pornography while under post-release supervision for prior child pornography offenses. United States Attorney Carla B. Freedman and Erin Keegan, Special Agent in Charge of the Homeland Security Investigations (HSI), Buffalo Field Office, made the announcement.
According to the plea agreement and documents previously filed in the case, Quillinan is a registered sex offender in the State of New York, stemming from his 2017 convictions in the Northern District of New York for multiple counts of receipt and possession of child pornography.
In January 2024, shortly after being released from incarceration on those offenses, Quillinan manipulated a video of a prepubescent minor he obtained over the internet to create a lewd and lascivious image of the minor’s genitalia, which he then possessed on a tablet until it was seized by law enforcement during a search of his residence in September 2024.
Quillinan also admitted to violating the terms of his supervised release on his prior convictions by committing the new offense and by possessing unauthorized internet-capable devices. He is scheduled to be sentenced on the new offense and his supervised release violation by United States District Judge Mae A. D’Agostino on May 22, 2025.
Quillinan faces a mandatory minimum term of 10 years in prison, and up to 20 years in prison, and an additional term of up to 2 years in prison on his violation of supervised release. He also faces a fine of up to $250,000 and a supervised release term of at least 5 years and up to life. Quillinan may also be ordered to pay restitution to the victim of his offense and forfeit the device used in the offense. Quillinan must continue to register as a sex offender upon his release from prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
HSI investigated this case. Assistant United States Attorneys Benjamin S. Clark and Nicholas Walter are prosecuting this case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Pryor Man Sentenced to Life After Jury Convicts Him of Aggravated and Abusive Child Sexual AbuseRead the Press Release
TULSA, Okla. – Previously convicted by a jury in July, Adam Joseph King, was sentenced today for Aggravated Sexual Abuse of a Minor Under 12 in Indian Country and Abusive Sexual Contact with a Minor Under 12 in Indian Country.
U.S. District Judge John D. Russell sentenced King, 36, to life imprisonment on both counts.
“King took advantage of a child entrusted in his care and continues to show no remorse for his actions,” said U.S. Attorney Clint Johnson. “The only way to stop someone like King and protect the community is by giving him a lengthy prison sentence.”
“The victim in the case was just eight years old when King began abusing her. Despite the trauma she endured, she found the courage to tell her story in court, and as a result this dangerous predator will now live behind bars where he can never harm another child,” said FBI Oklahoma City Special Agent in Charge Doug Goodwater. “Her resilience is a powerful reminder of why we do this work – to protect the most vulnerable members of our community and hold violent offenders accountable for their crimes.”
Evidence presented to the jury showed that King repeatedly sexually abused his girlfriend's child from age eight through eleven years old. King exploited the child that was in his care and warned the victim not to tell.
The child victim testified about the sexual abuse she received and eventually reported the abuse to a school counselor. Experts further testified that the evidence collected from King’s bedroom matched the DNA of the child victim.
The investigation showed that King and his girlfriend, the victim's mother, denied any wrongdoing by King. Once the investigation began, the minor victim and sibling were removed from the home and placed in the custody of their grandparents, where they have remained.
The minor victim is a tribal citizen. King will remain in custody pending transfer to the U.S. Bureau of Prisons.
The FBI, the Catoosa Police Department, and the Oklahoma State Bureau of Investigations investigated the case. Assistant U.S. Attorneys Valeria Luster and Matthew Cyran prosecuted the case.
If you want to make a report of child sexual exploitation, you can use the National Center for Missing and Exploited Children (NCMEC) CyberTipline.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Parkersburg Man Pleads Guilty to Immigration CrimeRead the Press Release
CHARLESTON, W.Va. – John Robert Coe, 66, of Parkersburg and a retired Wood County Board of Education employee, pleaded guilty today to continuing to employ a known illegal alien.
According to court documents and statements made in court, from early 2011 until May 12, 2021, a foreign national from Madagascar worked without monetary compensation at the business that Coe co-owned with Frederick Sayre Anderson. Coe admitted that, at some point in 2011, he learned the foreign national’s presence in the United States was unlawful. Coe further admitted that the foreign national continued to work at the business until May 12, 2021, despite her illegal immigration status.
The foreign national was also housed at the business, sleeping in an office converted into a bedroom. The business has no shower or bathing facilities. Coe permitted the foreign national to bathe at his residence, though at times the foreign national was unable to shower at Coe’s residence.
The business is a laboratory that provides water quality testing kits to state and local governments across the country. Coe admitted that the foreign national performed work for the business including shipping supplies to customers, receiving customer service calls, and handling the company’s accounts receivable.
Coe further admitted that he also had the foreign national perform side jobs for him during this time period. These side jobs included cleaning his residence and editing history book manuscripts that he was preparing for publication. Coe compensated the foreign national in cash for these side jobs.
On May 7, 2021, Coe learned from Anderson that federal immigration agents were at the business and searching for the foreign national. Coe admitted that Anderson suggested later that day that they move the foreign national into Coe’s residence. Coe further admitted that he did not want the foreign national moving into his residence. They discussed moving the foreign national into a motel before agreeing that the foreign national should remain at the business. On May 12, 2021, the foreign national permanently left the business with the assistance of federal authorities.
Coe is scheduled to be sentenced on May 5, 2025, and faces a maximum penalty of six months in prison, up to three years of supervised release, and a $3,000 fine. Coe has agreed to pay $54,740 in restitution.
Anderson, 64, of Parkersburg, pleaded guilty on January 4, 2024, to concealing, harboring, and shielding an alien from detection and awaits sentencing.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the West Virginia State Police, and the Parkersburg Police Department.
United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Jonathan T. Storage is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-178.
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Orange County Man Sentenced to 75 Months for Distributing Methamphetamine and Selling Illegal Pills on the Dark WebRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York, announced today that KYLE WEILAND, who operated an illegal pill and narcotics manufacturing business on the dark web, was sentenced by U.S. District Judge Cathy Seibel to 63 months in prison, along with a consecutive 12-month prison term for violating the terms of his supervised release for a previous, similar offense. In September 2024, WEILAND pled guilty to distributing methamphetamine and selling misbranded drugs.
U.S. Attorney Danielle R. Sassoon said: “In 2019, Kyle Weiland was convicted for selling illegal pills online. After serving his prison term and while still on supervised release, he returned to his illegal drug business. Weiland manufactured dangerous pills, including those containing methamphetamine, that he sold on the dark web to customers throughout the United States. But, just as before, Weiland was caught. This sentence sends a clear message that selling illegal pills does not pay and will be met with serious prison sentences. We will not tolerate the illegal sale of narcotics and other addictive substances into the community, whether those sales take place on the street or the dark web.”
WEILAND admitted that he manufactured, sold on the dark web, and shipped to customers throughout the U.S., various pills that contained or were marketed as methamphetamine, amphetamine, oxycodone, various benzodiazepines, or analogs of these substances. WEILAND agreed to forfeit $2,093,887.72, including $21,341.00 in cash; a 2008 Maserati GranTurismo; a 2013 Maserati GranTurismo; a 2019 McLaren 570S; and various cryptocurrencies.
WEILAND was previously convicted in 2019 for selling illegal pills online and was sentenced to six months in prison followed by three years supervised release. He committed the instant offense while serving his term of supervised release.
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In addition to the prison term, WEILAND, 36, of Tuxedo Park, New York, was sentenced to three years of supervised release.
Ms. Sassoon praised the outstanding investigative work of U.S. Drug Enforcement Administration.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Shaun E. Werbelow and Justin L. Brooke are in charge of the prosecution.
Omaha Woman Sentenced in Drug ConspiracyRead the Press Release
United States Attorney Susan Lehr announced that Amy Holmdohl, age 47, of Omaha, Nebraska was sentenced on January 22, 2025, in federal court in Omaha for her participation in a methamphetamine drug conspiracy. United States District Judge Brian C. Buescher sentenced Holmdohl to 188 months’ imprisonment. There is no parole in the federal system. After Holmdohl is released from prison, she will begin a 5-year term of supervised release.
On December 2, 2022, Drug Enforcement Administration Special Agents conducted a controlled delivery operation at the Holiday Inn Express in Omaha after a United States Postal Inspector found approximately 800 grams of meth in two priority mail express packages addressed to the Holiday Inn.
An undercover Postal Inspector delivered the packages to an employee of the Holiday Inn Express, where later that day surveillance officers observed Amy Holmdohl arrive, enter the lobby, and pick up the two packages at the front desk. Holmdohl was taken into custody in the hotel lobby after she took custody of the two packages.
During a police interview Holmdohl admitted to her involvement in distributing meth, and that she had requested the two packages be sent to her from a California Source of Supply.
This case was investigated by the United States Postal Inspection Service and Drug Enforcement Administration.
Omaha Man Sentenced for Meth DistributionRead the Press Release
United States Attorney Susan Lehr announced that Joseph Goeken, age 40, of Omaha, Nebraska, was sentenced January 22, 2025, in federal court in Omaha for distribution of methamphetamine. United States District Judge Brian C. Buescher sentenced Goeken to 190 months’ imprisonment. There is no parole in the federal system. After Goeken’s release from prison, he will begin a 5-year term of supervised release.
On March 11, 2024, a Drug Enforcement Agency undercover agent purchased approximately one pound of meth from Goeken in Omaha. The meth was submitted to a crime laboratory for testing, which determined the meth weighed 443 grams of meth and purity was at least 91 percent. Goeken made two other meth sales to the undercover – two ounces on March 5, 2024, and another pound on April 4, 2024.
On April 8, 2024, while DEA agents were preparing to execute a search warrant at Goeken’s apartment in Omaha, a Nebraska State Patrol trooper attempted a traffic stop. Goeken drove away at a high rate of speed, passed traffic in the wrong lane, and abandoned the vehicle two minutes later. Officers found approximately 116 grams of meth (weight with packaging) and a digital scale inside of a bag in the vehicle. Inside Goeken’s apartment, agents found approximately 59 grams of meth (weight with packaging).
This case was investigated by the Drug Enforcement Administration.
Omaha Man Sentenced for Meth ConspiracyRead the Press Release
United States Attorney Susan Lehr announced that Luis Avelar, age 28, of Omaha, Nebraska, was sentenced January 22, 2025, in federal court in Omaha for conspiracy to distribute methamphetamine. United States District Judge Brian C. Buescher sentenced Avelar to 262 months’ imprisonment. There is no parole in the federal system. After Avelar’s release from prison, he will begin a 5-year term of supervised release.
Beginning in 2020, Drug Enforcement Agency (DEA) agents identified Avelar as a suspect involved in meth distribution in the Omaha area. On March 11, 2020, Avelar was seen leaving an apartment with a backpack where a confidential source later purchased one pound of meth from someone else. On April 18, 2023, another confidential source attempted to purchase a half-pound of meth from Avelar. Avelar went with the confidential source to meet Avelar’s supplier, but the sale did not occur because the supplier refused to sell less than one pound.
On December 30, 2023, DEA agents interviewed Avelar at the Douglas County Jail. After being advised of his rights, Avelar admitted to his role in meth distribution. Avelar told the agents he started selling meth in Omaha in 2020. Avelar told agents he sold a pound of meth for a Mexico-based drug supplier four or five times. Avelar also said he rented a storage unit for meth to be stored. After someone was busted in a hotel, Avelar went to the storage unit and cleaned it out, delivering at least 10 pounds of meth to a co-conspirator’s house. Investigators confirmed that Avelar rented a storage unit in Omaha from November 7 to November 23, 2022. The unit was rented in the name of Avelar’s girlfriend. Avelar was identified via surveillance footage being at the storage facility on November 23, 2022, the same day Bellevue police had busted someone with 11 pounds of meth in a motel room.
This case was investigated by the Drug Enforcement Administration. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Ohio Man Sentenced to Prison for Federal Gun Crime and Violating Supervised ReleaseRead the Press Release
HUNTINGTON, W.Va. – Jermaine Demaul Cathey, 43, of Columbus, Ohio, was sentenced today to eight years and six months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm and violating supervised release.
According to court documents and statements made in court, on April, 20, 2023, law enforcement officers arrested Cathey on an outstanding warrant from Ohio after conducting a traffic stop of a vehicle Cathey was driving in Huntington. Officers searched the vehicle following the arrest and found a loaded SCCY model CPX-1 9mm pistol under the vehicle’s center console. Cathey admitted to possessing the firearm.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Cathey knew he was prohibited from possessing a firearm because of his prior felony convictions for aggravated robbery in Franklin County, Ohio, Court of Common Pleas on August 28, 2006, being a felon in possession of a firearm and attempting to commit a felony in Cabell County Circuit Court on January 17, 2013, and being a felon in possession of a firearm in United States District Court for the Southern District of West Virginia on December 11, 2017.
Officers executed a search warrant for the vehicle after it was towed. Officers seized approximately 75 grams of fentanyl, 6 grams of methamphetamine, and 2 grams of cocaine base, also known as “crack,” from the vehicle.
At the time of this offense, Cathey was serving a term of supervised release as a result of his 2017 conviction for being a felon in possession of a firearm. Today’s sentence includes one year and three months in prison for committing a crime while on supervised release.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie Taylor prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the result
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 Nos. 3:23-cr-179 and 3:17-cr-73.
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New Orleans Man Sentenced for Federal Drug and Weapons ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA –GEOURVON SEARS (“SEARS”), age 27, was sentenced on January 16, 2025 by Chief U.S. District Judge Nannette Jolivette Brown to 111 months in prison followed by five years of supervised release, along with a $200 mandatory special assessment fee, after previously pleading guilty to possession with intent to distribute methamphetamine, tapentadol, and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D), and possessing a firearm in furtherance of that drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i).
According to court documents, on June 6, 2024, New Orleans Police Department officers executed a search warrant at SEARS’s residence. Officers recovered SEARS’s backpack, which contained methamphetamine, tapentadol, and marijuana that SEARS intended to sell. Officers also recovered two loaded firearms—a Romarm/Cugir Model Mini Draco semi-automatic pistol and a Norinco Model SKS rifle—that SEARS possessed, in furtherance of his possession with intent to distribute controlled substances.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
New Haven Man Sentenced to More Than 5 Years in Federal Prison for Possessing Gun While on Supervised ReleaseRead the Press Release
Marc H. Silverman, Acting United States Attorney for the District of Connecticut, today announced that SHAQUIL GARY, 31, of New Haven, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 66 months of imprisonment, followed by three years of supervised release, for unlawfully possessing a firearm while on federal supervised release.
According to court documents and statements made in court, in January 2016, Gary was sentenced in New Haven federal court to 96 months of imprisonment and five years of supervised release for committing an armed robbery of an ATF informant in August 2014. After pleading guilty to the offense and while awaiting sentencing, Gary attempted to send a copy of a non-public case report to friends and family members with instructions to post it on Facebook and tell others that an individual identified in the report was cooperating with law enforcement officers.
In April 2022, a white SUV was identified as being involved in shooting incidents in New Haven and Hamden. On April 19, 2022, investigators saw Gary exit the SUV after parking it on Shelton Avenue. Gary ran from pursuing officers and discarded a firearm during the chase. Gary was apprehended on Hazel Street, and officers recovered a loaded Glock model 17, 9mm pistol, that he had thrown.
The handgun had been reported stolen in Waterbury in 2018. Subsequent analysis of the gun using the National Integrated Ballistic Information Network (NIBIN) connected it to multiple gang-related shooting incidents in early 2019 while Gary was incarcerated in federal custody, including a shooting near Eastern Street in New Haven on January 23, 2019, where a suspected member of the Exit 8 gang of New Haven was found suffering from a gunshot wound; a shots fired incident near Eastern Street in New Haven on January 28, 2019, where a witness observed a male firing a handgun from a car and into the front window of an apartment; and the shooting of two individuals near Shelton Avenue in New Haven on February 5, 2019.
Gary’s criminal history also includes state felony convictions for the sale and possession of narcotics. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On September 4, 2024, Gary pleaded guilty to unlawful possession of a firearm by a felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the New Haven Police Department, and the Hamden Police Department. The case was prosecuted by Assistant U.S. Attorney Robert S. Dearington.
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. In May 2021, the Justice 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 www.justice.gov/psn.
New Britain Man Admits Recording His Sexual Abuse of a ChildRead the Press Release
Marc H. Silverman, Acting United States Attorney for the District of Connecticut, and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations (HSI), New England, announced that ORLANDO GUZMAN, 73, of New Britain, pleaded guilty today before U.S. District Judge Victor A. Bolden in New Haven to child exploitation offenses stemming from his sexual abuse of a minor and his using an app to share and receive child sexual abuse material.
According to court documents and statements made in court, HSI has been investigating a network of individuals who have been using private groups on an internet chat application to share images and videos of child sexual abuse. The investigation revealed that an account associated with Guzman was an active member of two of these groups. The investigation further revealed that, between February and August 2022, Guzman sexually abused a minor female and used mobile devices to record and store images and videos of the abuse.
On September 2, 2022, investigators conduct a court-authorized search of Guzman’s mobile devices. Analysis of the devices revealed more than 4,000 video files and more than 7,000 image files of child pornography, including images and videos depicting Guzman’s abuse of the minor victim.
Guzman has been detained since his arrest on September 7, 2022.
Guzman pleaded guilty to production of child pornography, an offense that carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years, and possession of child pornography, an offense that carries a maximum term of imprisonment of 20 years. A sentencing date is not scheduled.
This matter has been investigated by HSI with the assistance of the New Britain Police Department. The case is being prosecuted by Assistant U.S. Attorney Daniel E. Cummings.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Money Launderer Tied to Nigerian Sextortion Scheme Pleads GuiltyRead the Press Release
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney for the Western District of Michigan Andrew Birge today announced that Dinsimore Guyton Robinson, 29, of Huntsville, AL, pleaded guilty to conspiracy to commit money laundering, after he laundered money for Nigerian sex extortionists. Sentencing before U.S. District Judge Robert J. Jonker, is scheduled for April 24, 2025.
The indictment alleges this group used online payment systems to collect sextortion proceeds and send them to Nigerian sextortionists. According to the indictment, the sextortionists had boys and young men create nude images. After the sextortionists received those images, they allegedly had the victims send funds to the U.S.-based money launderers through online payment systems like Apple Pay, Cash App, and Zelle. The money launderers would keep about 20 percent of the money, convert the rest to bitcoin, and send the bitcoin back to Nigeria.
The indictment alleges that Robinson laundered the funds of Jordan DeMay. In November 2022, the U.S. Attorney’s Office for the Western District of Michigan charged three Nigerian nationals in a sextortion scheme that resulted in the death of Jordan DeMay, a 17-year-old high school student from Marquette, Michigan, and targeted more than 100 other victims. Two of the three defendants in that case were extradited to the United States in August 2023 and pled guilty in April 2024 and were later sentenced.
"Dinsimore Robinson's guilty plea to conspiracy to commit money laundering in connection with a sextortion scheme underscores the alarming lengths to which criminals will go, preying on the most vulnerable members of our society," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "Robinson's criminal activities were thwarted through the tireless investigative efforts of the FBI in Michigan, Atlanta, and Birmingham, in partnership with the Economic and Financial Crimes Commission of Nigeria and the U.S. Attorney's Office for the Western District of Michigan. This case serves as a powerful reminder that no matter where criminals are located, the FBI is relentless in its pursuit of justice."
Safety Tips and Resources for Victims, Teens, and Parents
The FBI provides the following tips on how people can protect themselves from sextortion schemes:
- Be selective about what you share online. If your social media accounts are open to everyone, a predator may be able to figure out a lot of information about you.
- Be wary of anyone you encounter for the first time online. Block or ignore messages from strangers.
- Be aware that people can pretend to be anything or anyone online. Videos and photos are not proof that people are who they claim to be. Images can be altered or stolen. In some cases, predators have even taken over the social media accounts of their victims.
- Be suspicious if you meet someone on one game or app and that person asks you to start talking on a different platform.
- Be in the know. Any content you create online—whether it is a text message, photo, or video—can be made public. And nothing actually “disappears” online. Once you send something, you don’t have any control over where it goes next.
- Be willing to ask for help. If you are getting messages or requests online that don’t seem right, block the sender, report the behavior to the site administrator, or go to an adult. If you have been victimized online, tell someone. Being a victim of sextortion is not your fault. You can get through this challenge, even if it seems scary and overwhelming. There are people who want to help.
If you have information about or believe you are a victim of sextortion, contact your local FBI field office, call 1-800-CALL-FBI, or report it online at http://tips.fbi.gov. This FBI PSA and National Center for Missing and Exploited Children PSA share survivor stories and resources for individuals to get help. More FBI sextortion resources are available here.
This case was investigated by the Federal Bureau of Investigation and the Economic and Financial Crimes Commission of Nigeria. Assistant U.S. Attorney Daniel Mekaru represented the government at the hearing.
The charges in an indictment are merely accusations, and the remaining defendants are presumed innocent until and unless proven guilty in a court of law.
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- Be selective about what you share online. If your social media accounts are open to everyone, a predator may be able to figure out a lot of information about you.
Missouri Man Convicted of Recording Minor Victim in BathroomRead the Press Release
CAPE GIRARDEAU – U.S. District Audrey G. Fleissig on Tuesday found a southeastern Missouri man guilty of attempted sexual exploitation of a minor after a one-day bench trial.
Rayford Evans, 52, used his cell phone on Nov. 17, 2022, to record a 15-year-old girl while she was bathing and using the bathroom by holding it up to a window above the bathroom door, evidence and testimony at trial showed. The victim saw the phone and told a friend, the friend’s father and then her own father, who contacted police.
Evans, of Doniphan, in Ripley County, will be sentenced later this year. The charge carries a penalty of 15 to 30 years in prison.
The FBI and the Doniphan City Police Department investigated the case. Assistant U.S. Attorney Julie Hunter is 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 the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Mission Man Sentenced to 25 Years in Federal Prison for Aggravated Sexual Abuse and KidnappingRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Eric C. Schulte has sentenced a Mission, South Dakota, man convicted of Aggravated Sexual Abuse and Kidnapping. The sentencing took place on January 21, 2025.
Canku Martinez, age 22, was sentenced to 25 years in federal prison, followed by 15 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Martinez was indicted by a federal grand jury in February 2024. He was found guilty following a four-day jury trial in October of 2024.
In the early morning hours of October 29, 2023, Martinez agreed to give the juvenile victim a ride home from a party near Rosebud, South Dakota. Rather than give her a ride home, however, Martinez drove the victim to a secluded area outside of Rosebud and made sexual advances. When the victim rejected his advances, Martinez produced a knife. Martinez then forced the victim to engage in sexual activity. Martinez subsequently dropped the victim off at her residence and told her not to tell anyone what he had done. Martinez left the local area shortly thereafter. The offenses occurred within the Rosebud Indian Reservation.
“Bringing this defendant to justice is the result of tremendous cooperation between federal and tribal law enforcement,” said U.S. Attorney Alison J. Ramsdell. “Mr. Martinez engaged in a despicable course of conduct in this case and subjected the victim to unthinkable sexual violence. The sentence he received today reflects the seriousness of his crimes.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the FBI. Senior Litigation Counsel Kirk Albertson prosecuted the case.
Martinez was immediately remanded to the custody of the U.S. Marshals Service.
Member of Lummi Nation convicted of Assault by StrangulationRead the Press Release
Seattle – A member of Lummi Nation was convicted today in U.S. District Court in Seattle of Assault by Strangulation, announced U.S. Attorney Tessa M. Gorman. Joseph Michael Quincy Jefferson, 35, was found guilty following a seven- day jury trial. Jurors deliberated about ninety minutes before reaching the guilty verdict. U.S. District Judge Lauren King scheduled sentencing for April 10, 2025.
According to records filed in the case and testimony at trial, on the night of April 8, 2023, Jefferson punched, pushed, and strangled his live-in partner. Sitting on her back he used the crook of his elbow to apply pressure to her neck, strangling her and causing her to black out twice. When the victim regained consciousness, she ran from the home barefoot and in her underwear, calling a friend and a neighbor requesting help. The victim went to the Lummi Nation Police Department and to the hospital. The victim made consistent statements to police and to those giving medical care, that she had been strangled. Medical providers documented her injuries that were consistent with being punched, pushed into a metal bookcase, and strangled. Her nose was broken.
At trial, Jefferson claimed he acted in self-defense. During her testimony, the victim minimized Jefferson’s conduct.
In closing arguments prosecutors detailed how the medical records and recorded statements proved the defendant’s guilt beyond a reasonable doubt. “He was the aggressor... There is no evidence that he faced immediate use of unlawful force,” Assistant U.S. Attorney Celia Lee said in her closing argument. “This is a case of gratuitous, intentional violence from someone who was jealous, angry, and drunk.”
Jefferson has been in custody since his bond was revoked in late October 2024 due to his ongoing contact with the victim in violation of his conditions of pretrial release. He remains in custody pending sentencing.
Assault by Strangulation is punishable by up to ten years in prison.
The case was investigated by the Lummi Nation Police Department and the FBI.
The case was prosecuted by Assistant United States Attorneys Celia Lee and Erika Evans. Ms. Lee serves as a Tribal Liaison for the U.S. Attorney’s Office. Ensuring public safety on tribal lands is a critical responsibility of the U.S. Attorney’s Office, Western District of Washington.
Man who Defrauded Investors in Sports Betting Fund Sentenced to 48 Months in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Wednesday sentenced a man who stole $650,000 from investors in a sports betting fund to 48 months in prison and ordered him to repay the money.
Elijah A. Goshert, 48, defrauded investors in the “Magellan Sports Fund” from at least Feb. 1, 2017, through Nov. 15, 2023. Goshert falsely claimed that he was using a “sophisticated computer algorithm” that substantially reduced betting risks. Goshert sent false performance updates claiming substantial investment profits while spending most of the victims’ investments on unauthorized expenses. Goshert stole about $654,861 from at least 12 victims.
In a letter to the court, one of Goshert’s victims said he lost $60,000 and spent another $20,000 in legal fees over years trying to get his money back. Another, who invested $50,000, wrote that he’d suffered severe emotional and psychological damage due to chronic anxiety and stress and the betrayal of trust by someone he considered a close friend. Goshert repeatedly lied to the victim about why he couldn’t access his money, even falsely claiming that he’d sold the betting fund to a private equity firm.
In court, Assistant U.S. Attorney Derek Wiseman said Goshert’s crime was “a yearslong sophisticated scheme” not a “one-off lapse in judgment.”
“Scamming people who trust you is especially loathsome,” said Special Agent in Charge Ashley Johnson of the FBI St. Louis Division. “Unfortunately, the way Elijah Goshert targeted his victims is not unique. When white-collar criminals exploit the trust that already exists within their social circles, it’s known as affinity fraud.”
Goshert pleaded guilty in October in U.S. District Court in St. Louis to three counts of wire fraud.
The FBI investigated the case. Assistant U.S. Attorney Derek Wiseman prosecuted the case.
Man who Aided and Abetted False Statements in the Purchase of Multiple Firearms Sentenced to over Twenty Years in Federal PrisonRead the Press Release
A man who used his girlfriend to purchase guns for others and himself was sentenced today to 260 months in federal prison.
Levi Allen Doolin, age 22, from Cedar Rapids, Iowa, received the prison term after a June 26, 2024 guilty plea to three counts of aiding and abetting false statements during the purchase of a firearm. In September 2023, Doolin aided and abetted his then girlfriend, Jasmin Fox, who was previously sentenced in federal court, when she attempted to and did successfully purchase multiple firearms on behalf of others. The evidence at the sentencing hearing showed that Doolin used one of the firearms purchased by Fox in two different shots fired incidents in Cedar Rapids as well as in a robbery. The evidence at the hearing also showed that Doolin had previously possessed firearms as a drug user while on high-risk supervision. In imposing its sentence, and in reflecting on Doolin’s serious criminal history, the sentencing judge noted that Doolin was “out of control.”
Doolin was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Doolin was sentenced to 120 months on two counts and 20 months on the third count, with the sentences to run consecutively for a total of 260 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Doolin is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Nicole L. Nagin, and it was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cedar Rapids Police Department, and the Iowa Division of Narcotics Enforcement.
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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR- 00026.
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Man Indicted for Involuntary Manslaughter on Bois Forte ReservationRead the Press Release
DULUTH, Minn. – A man has been indicted for involuntary manslaughter after the death of a woman on the Bois Forte Reservation, announced Acting U.S. Attorney Lisa D. Kirkpatrick.
According to court documents, on December 17, 2024, the St. Louis County 911 Center received several calls regarding an apparently intoxicated woman walking on Tibbets Trail near the Fortune Bay Resort and Casino. Officers were dispatched to the scene and discovered an unconscious woman lying in the snow. The victim was transported from the scene and pronounced dead. Vehicle debris at the scene included pieces from a dark blue vehicle and pieces of plastic that appeared to be headlights or turn signals. Given this information and the location of the accident, law enforcement contacted the Fortune Bay Resort and Casino for any surveillance footage that may show blue vehicles departing the casino around the time of the 911 calls. Casino staff was able to identify a dark blue Dodge Durango departing the casino. Eric Scott Peterson, 50, was determined to be the registered owner of the vehicle. A search warrant was executed at his residence, where a blue Dodge Durango was found in the driveway with damage consistent with the debris collected from the accident scene.
Peterson was indicted on two counts of involuntary manslaughter. He was arraigned yesterday in U.S. District Court before Magistrate Judge Leo I. Brisbois.
This case is the result of an investigation conducted by Bois Forte Police Department, Minnesota State Patrol, and the FBI.
Assistant U.S. Attorney Nichole J. Carter is prosecuting the case.
Lululemon Burglar Sentenced in Crime Spree at Northwest StoresRead the Press Release
WASHINGTON – Avante Greene, 23, of Washington, D.C. was sentenced today to 60 months in prison for three brazen burglaries he committed at Lululemon stores in July 2024, announced U.S. Attorney Edward R. Martin, Jr. and Chief Pamela Smith of the Metropolitan Police Department (MPD).
In addition to the prison term, Superior Court Judge Andrea Hertzfeld, also ordered one year of supervised probation. Greene pleaded guilty on October 31, 2024, to three counts of attempted second degree burglary.
According to the government’s evidence, on July 10, 2024, Avante Greene walked into the Lululemon store located on F Street, NW, carrying a large empty bag that he proceeded to fill with merchandise and fled in a nearby getaway car. Two days later, Greene brought two unidentified co-conspirators with him to the Lululemon store in Georgetown, again carrying empty bags that he proceeded to fill with merchandise and flee the store. Greene continued his spree on July 16, 2024, when he returned to the Lululemon store on F Street NW, with one unidentified co-conspirator. He repeated his practice of filling empty bags with merchandise and fleeing the store in a getaway car. In total, Greene stole well over $10,000 in merchandise.
Greene was arrested on July 19, 2024, while driving the getaway vehicle. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Edward R. Martin, Jr. and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of Assistant U.S. Attorney Katelyn Benton who investigated and prosecuted the case.
Long Island Man Charged with Sexual Exploitation of ChildrenRead the Press Release
Jacob Israel Walden was arraigned this afternoon at the federal courthouse in Central Islip on a six-count indictment charging him with sexual exploitation of children, receipt of child pornography, possession of child pornography and access with intent to view child pornography. Walden was arrested on a complaint on July 31, 2024. Today’s proceeding was held before United States District Judge Gary R. Brown who ordered the defendant detained pending trial.
John J. Durham, United States Attorney for the Eastern District of New York and Spiros Karabinas, Acting Special Agent in Charge, Homeland Security Investigations, New Jersey (HSI), announced the indictment.
“As alleged, the defendant enticed minors to produce sexually explicit photographs and videos of themselves and send them to him via the internet in exchange for payment,” stated United States Attorney Durham. “Protecting children from predators who sexually exploit them will always be a priority of my Office.”
“We are determined to dismantle the insidious network of online child sexual exploitation and abuse – no child’s innocence should be for sale,” stated HSI Newark Acting Special Agent in Charge Karabinas. “Every day HSI Newark and our partners work tirelessly to protect children from exploitation by predators who produce, distribute and possess child sexual abuse material. The public can help us in that fight by notifying HSI immediately if they suspect someone is exploiting or abusing a child by calling our HSI tip line, 1-877-4-HSI-TIP.”
As set forth in court filings, law enforcement first identified Walden, a healthcare executive and Long Island resident, as a repeat purchaser of child sexual abuse material (CSAM) from a large-scale production and distribution ring that advertised, sold and distributed CSAM to adult male buyers. Subsequent investigation determined that Walden also used social media and encrypted messaging services to engage in sexually explicit conversations with minors. During these conversations, Walden enticed the minors to produce child pornography of themselves for payment. In his chat conversations with these victims, Walden insisted that he be addressed as “daddy,” provided directions for what content the minors were to produce (e.g., “take off your top”) and paid the minors via electronic payment after he received the requested content. Walden was also a prolific purchaser of CSAM from online producers and distributors of child pornography. Law enforcement agents recovered numerous images and videos of child pornography from the defendant’s iPhone.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Walden faces a mandatory minimum sentence of 15 years in prison and up to 30 years in prison.
The government’s case is being handled by the Office’s Criminal Section of the Long Island Criminal Division. Assistant U.S. Attorney Leonid Sandlar is in charge of the prosecution.
The Defendant:
JACOB ISRAEL WALDEN
Age: 38
Valley Stream, New YorkE.D.N.Y. Docket No.: 24-CR-521 (GRB)
jacob_walden_indictment.pdfLondon Man Pleads Guilty to Money Laundering Conspiracy Involving COVID Relief LoansRead the Press Release
LONDON, Ky. – A London man, Joshua Pennington, 50, pleaded guilty on Tuesday, before U.S. Magistrate Judge Hanley Ingram, to conspiracy to commit money laundering of fraudulently obtained Economic Injury Disaster Loans and Payment Protection Loans. His co-defendant, Nicole Pennington, 48, was indicted in December 2024, on 16 counts of wire fraud, one count of conspiracy to commit money laundering, and one count of money laundering.
According to Joshua Pennington’s plea agreement, his co-defendant made materially false statements on applications for Small Business Administration (SBA) loans. Six of the loan applications were approved for a total of $1,090,398.35 in fraudulently obtained SBA loan proceeds. Between May 2020 and June 10, 2021, Joshua Pennington and his co-defendant knowingly laundered over $1,000,000 in criminally derived funds, via transactions over $10,000. They used the money to renovate their kitchen, pay for plastic surgery, purchase a Viking River Cruise trip, withdraw cash, purchase vehicles, and pay off loans and mortgages.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Kelly K. Moening, Special Agent in Charge, Treasury Inspector General for Tax Administration, Great Lakes Field Division; and Karen Wingerd, Special Agent in Charge, IRS-Criminal Investigations, Cincinnati Field Division, jointly announced the sentencing.
The investigation was conducted by the Treasury Inspector General for Tax Administration and the IRS-CI. Assistant U.S. Attorney Brittany Dunn-Pirio is prosecuting the case on behalf of the United States.
Joshua Pennington is scheduled to be sentenced on May 20, 2025. He faces up to ten years in prison, plus any restitution or fines ordered by the Court. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Leader of Caribbean Arms Trafficking Ring Charged with Conspiracy to Smuggle Firearms from the United StatesRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Shem Wayne Alexander (35, Port of Spain, Trinidad) with conspiracy to commit unlawful export smuggling and conspiracy to traffic firearms. If convicted, Alexander faces a maximum penalty of 20 years in federal prison. Alexander was arrested in Jamaica on November 15, 2024, pursuant to a U.S. provisional arrest request with a view towards extradition to the United States. On December 20, 2024, Alexander was extradited to the United States. Alexander is detained pending trial.
According to the indictment, Alexander was the leader of a group that unlawfully exported firearms, firearms components (including upper/lower receivers and gun parts kits), and related items from Florida to Trinidad and Tobago between 2019 and 2022. Alexander is a national of Trinidad and Tobago. The firearms, which included pistols and rifles, and related equipment were concealed within boxing/fight equipment, speakers, and other household items to avoid detection by law enforcement and customs authorities. Conspirators also acquired firearms in the Tampa area from different sellers through straw purchases, falsely representing the identities of the actual purchasers and recipients of the firearms, as well as their ultimate destination.
On April 7, 2021, Alexander directed conspirators to ship a package concealing and containing various firearms and related equipment, including a Taurus G2C 9mm pistol, a SAR Arms SAR-9 9mm pistol, a Taurus G3 9mm pistol, and a Ruger Security-9 9mm pistol, from Miami to Trinidad and Tobago. On April 22, 2021, authorities at the Piarco International Airport in Trinidad seized those firearms and other related items that had been concealed in the shipment.
This case was investigated by Homeland Security Investigations, including HSI’s Attaché Caribbean, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Trinidad and Tobago Police Service (Transnational Organized Crime Unit and Special Investigations Unit), United States Citizenship and Immigration Services, the Florida Department of Law Enforcement, United States Customs and Border Protection, and the Bureau of Industry and Security - Office of Export Enforcement as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious transnational criminal organizations. The Department of Justice’s Office of International Affairs provided critical support in the extradition of Alexander. This case will be prosecuted by Assistant United States Attorney David W.A. Chee.
Jury Convicts District Man of First Degree Murder While Armed and Related Charges for Killing Ex-Girlfriend in Northwest, D.C.Read the Press Release
WASHINGTON – Idrissa Fall, 37, of Washington, D.C., has been found guilty by a jury of first-degree murder while armed and related charges stemming from an early morning shooting on July 18, 2021, in the 6100 block of 4th Street, NW, announced U.S. Attorney Edward R. Martin, Jr. and Pamela A. Smith, Chief of the Metropolitan Police Department (MPD).
The jury rendered a verdict on January 22, 2025, following a trial in the Superior Court of the District of Columbia. The jury unanimously convicted Fall of first-degree premeditated murder while armed, possession of a firearm during a crime of violence, and unlawful possession of a firearm. The Honorable Rainey Brandt scheduled sentencing for March 19, 2025.
According to the government’s evidence, just before 1:30 a.m. on July 18, 2021, the victim, Dara Northern, walked out of her home and headed towards her best friend’s car for a night on the town. When Northern left her home, the defendant followed her out of her house and tried to stop her. Northern had recently broken up with the defendant and kicked him out of her home. As Northern got into the front seat of her friend’s waiting vehicle, the defendant started reaching for his waistband. As Northern close the door, the defendant shot her in the head as she sat next to her best friend and fled the scene. Northern suffered one gunshot wound to her right eye. The victim was declared brain dead that same day and died as a result of her injuries.
Fall was arrested for Northern’s murder on August 2, 2021. He has been in custody ever since.
In announcing the verdict, U.S. Attorney Martin and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the U.S. Marshals Service. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including; Investigative Analyst Zachary McMenamin; Victim/Witness Advocate Jennifer Allen and Latrice Washington-Williams; Paralegal Specialists Alyssa Schroeder and Sharon Newman; and Litigation Technology Specialist Sigourney Jackson.
Finally, they commended the work of Assistant U.S. Attorneys Kristian L. Hinson and Yasmin Emrani, who prosecuted the case.
Jacksonville Repeat-Offender Sentenced to Seven Years in Prison for Possessing Machine GunRead the Press Release
Jacksonville, Florida – Chief U.S. District Judge Marcia Morales Howard has sentenced Markee Washington (34, Jacksonville) to seven years in federal prison for possessing a firearm as a convicted felon. Washington entered a guilty plea on August 19, 2024.
According to court documents, on February 11, 2023, at approximately 10:45 p.m., a trooper from the Florida Highway Patrol conducted a traffic stop of a car that Washington was driving. The trooper was quickly joined at the scene by two officers from the Jacksonville Sheriff’s Office. Based on Washington’s statements that he had been smoking marijuana, as well as the smell of the drug emanating from him and the car, officers searched the car. Inside the gap between the car’s ceiling and roof (which was accessible by removing the overhead sunglasses compartment), an officer located a bundle of cash and a 9mm Glock pistol.
The pistol was loaded with 31 rounds of ammunition in an extended magazine. It also was outfitted with a Glock-switch, a device installed on the pistol that converted it into a fully automatic machinegun. Washington surrendered to the officers a small bag of marijuana that he had hidden down his pants. He also had a stack of cash in his pants’ pocket. In total, $2,447 was seized.
An investigator later obtained a search warrant authorizing law enforcement to obtain a DNA sample from Washington. Laboratory testing determined that his DNA was both on the exterior of the Glock pistol and on ammunition loaded inside the pistol’s magazine.
On the day of the traffic stop, Washington had various prior felony convictions, including multiple drug-trafficking offenses. As a convicted felon, he is prohibited by law from possessing firearms and ammunition.
This case was investigated by the Florida Highway Patrol, the Jacksonville Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Kelly S. Milliron and Michael J. Coolican.
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.
J.H. Baxter Wood Treatment Companies and President Plead Guilty to Hazardous Waste and Air Pollution ChargesRead the Press Release
EUGENE, Ore.-- The companies responsible for the J.H. Baxter wood treatment facility in Eugene, Oregon, and their president pleaded guilty today in federal court to hazardous waste and Clean Air Act violations and agreed to pay a total of $1.5 million in criminal fines.
The corporations -- J.H. Baxter & Co. Inc. and J.H. Baxter & Co., A California Limited Partnership (collectively J.H. Baxter) -- both pleaded guilty to charges of illegally treating hazardous waste and knowingly violating the Clean Air Act's pollution control regulations. The companies' president, Georgia Baxter-Krause, 61, of Deschutes County, Oregon, pleaded guilty to two counts of making false statements in violation of the Resource Conservation and Recovery Act (RCRA), the federal statute governing hazardous waste management.
According to court documents, J.H. Baxter used hazardous chemicals to treat and preserve wood at its Eugene facility. The wastewater from the wood preserving processes was hazardous waste.
To properly treat wastewater from its wood treatment process, J.H. Baxter operated a legal wastewater treatment unit to treat and evaporate the waste. For years, however, when J.H. Baxter had too much water on site, including process wastewater and precipitation, J.H. Baxter's employees at the facility would transfer hazardous process wastewater to an available wood treatment retort to "boil it off," greatly reducing its volume. J.H. Baxter would then remove the remaining waste from the retort, label it as hazardous waste and ship it offsite for disposal.
State and local regulators were not made aware of this process and J.H. Baxter did not have a permit to treat its hazardous waste in this manner, as required by RCRA. Additionally, J.H. Baxter's facility was subject to certain Clean Air Act emissions standards for hazardous air pollutants, which required it to minimize air pollution emissions. However, employees were directed to open all vents on the retorts, allowing discharge to the surrounding air.
Oregon inspectors requested information about J.H. Baxter's practice of boiling off hazardous wastewater. On two separate occasions, Baxter-Krause gave false information in response, which included information about the dates the practice took place and which retorts were used. The investigation determined that Baxter-Krause knew J.H. Baxter maintained detailed daily production logs for each retort. From approximately January to October 2019, J.H. Baxter boiled off hazardous process wastewater in its wood treatment retorts on 136 known days. Baxter-Krause was also aware that during this time J.H. Baxter used four of its five retorts to boil off wastewater.
On November 22, 2024, J.H. Baxter was charged by criminal information with illegal treatment of hazardous waste and knowingly violating the Clean Air Act's pollution control regulations, and Baxter-Krause was charged with two counts of making false statements in violation of the RCRA.
As part of their plea agreements, the companies and Baxter-Krause have agreed to pay a total of $1.5 million in criminal fines. Baxter-Krause also faces up to two years in federal prison and three years of supervised release. They are scheduled to be sentenced on April 22, 2025, before U.S. District Court Judge Michael J. McShane.
This case was investigated by the EPA Criminal Investigation Division with assistance from the Oregon Department of Environmental Quality, Lane Regional Air Protection Agency, EPA Region 10, and the Oregon State Police. It is being prosecuted by Assistant U.S. Attorney William M. McLaren for the District of Oregon, Trial Attorneys Rachel Roberts and Stephen J. Foster of the Environment and Natural Resources Division's Environmental Crimes Section, and EPA Regional Criminal Enforcement Counsel Karla G. Perrin.
This case was an Environmental Crimes Task Force (ECTF) investigation. ECTF is an initiative in the District of Oregon that identifies, investigates, and prosecutes significant environmental, public lands, and wildlife crimes. ECTF leverages the resources and effort of federal, state, and local regulatory agencies and law enforcement to protect human health, safeguard natural resources and wildlife, and hold violators accountable. If you witness an event that may lead to an immediate threat to human health or the environment, please call 9-1-1. After alerting local emergency authorities, please also report incidents to the EPA's Report a Violation website (https://echo.epa.gov/report-environmental-violations) or by calling the National Response Center at 1-800-424-8802.
Ivory Coast Man Charged with Participating in a Sextortion Scheme that Caused the Death of a North Dakota TeenagerRead the Press Release
BISMARCK – United States Attorney Mac Schneider announced that a federal grand jury has returned an Indictment charging Aly Cherif, a/k/a Australien Choco, a/k/a Australien Ch’co, a/k/a Michael Jhonson, a/k/a Ali Aly, age 23, from the Ivory Coast, with 1) Cyberstalking Resulting in Death; 2) Wire Fraud; 3) Conspiracy to Commit Wire Fraud; 4) Extortion; and 5) Distribution of Child Pornography, which resulted in the death of a North Dakota teenager.
The Indictment unsealed today alleges that Cherif, and other individuals located in the Ivory Coast, participated in a well-organized sextortion group that targeted victims throughout the world. “Sextortion” is a term used to describe a scheme to defraud where individuals use the threat of releasing photographs or videos which depict people’s private, intimate, or sexual acts to fraudulently coerce those people to send money based upon falsehoods, blackmail, and threats, in exchange for the sextortioners’ promise to not release these photographs or videos. Specifically, sextortioners perpetrating sextortion schemes utilize false claims to induce victims to send photographs or videos of themselves—or to engage in video chats where the sextortioners record victims—nude or engaged in private, intimate, or sexual acts, and then the sextortioners threaten to release these photographs or videos to friends, family, work colleagues, or threaten to post these photographs or videos on the internet, unless the victim pays money to the sextortioners.
Additionally, as alleged in the Indictment, Cherif and others in the sextortion group targeted a North Dakota teenager by obtaining publicly available photographs of an attractive woman from the internet and then fraudulently used these photographs to create or modify a Facebook account to falsely pose as a woman named “Emily Thompson.” Thereafter, the sextortion group contacted the minor victim through Facebook chat and falsely stated that they were “Emily Thompson,” and that “Emily Thompson” was twenty (20) years old and lived in Montana, when in fact, Cherif and the sextortion group were operating this Facebook account, not a woman named “Emily Thompson.” Next, the sextortion group obtained a video recording and photographs of the minor victim engaging in a private, intimate, or sexual act, and used extortion tactics to attempt to force the minor victim to pay money so that “Emily Thompson” would not release videos and photographs of the minor victim engaging in these acts. When the minor victim informed “Emily Thompson,” that the minor victim did not have any money, the sextortion group distributed images of the minor victim’s genitalia on Facebook. Shortly thereafter, the minor victim committed suicide.
“The United States Attorney’s Office and our partners in law enforcement are committed to obtaining a measure of justice for this family,” Schneider said. “The indictment alleges greed, deception, and child exploitation that led to a heartrending tragedy. As we pursue justice in this case, we want to deter similar conduct and remind kids and families that help is available if they become victims of sextortion.”
"This case is a stark reminder of the dangers children face online, where predators use deception and technology to exploit the most vulnerable among us," said Special Agent in Charge Alvin M. Winston Sr." The FBI and our partners will continue working tirelessly to protect children and bring those who seek to harm them to justice."
An indictment is an accusation and notice of charges. The defendant is presumed innocent under the law unless and until proven guilty.
To report a sextortion scam, contact your local FBI field office at 1-800-CALL-FBI.
To learn more about identifying and preventing sextortion scams, please visit the FBI’s website: https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-frauds-and-scams/sextortion
Further, please visit the U.S. Department of Justice, Office of Justice Programs, Resource for Sextortion Victims: https://www.ojp.gov/library/publications/resources-sextortion-victims
This case is being investigated by the Federal Bureau of Investigation, Department of Homeland Security-Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Jonathan J. O’Konek.
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Investment Professional Sentenced for Multimillion-Dollar Investment Fraud SchemeRead the Press Release
ATLANTA - Craig Allen, executive officer of C.M. Allen Capital Management, Inc., has been sentenced to seven years in federal prison for operating an investment scheme involving a private fund called “the Cheetah Fund,” which defrauded dozens of investors of more than $9 million.
“Allen lied to investors when he sent them account documents that intentionally inflated the Cheetah Fund’s performance,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Allen abused the investors’ trust by failing to invest their money as promised and diverting these funds to maintain his lifestyle. For some victims, these stolen funds comprised their life savings.”
“While it is easy to dismiss financial fraud cases as being almost benign because of their lack of violence, there is however, a very real victimization felt and lives are changed forever,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta. “The FBI is hopeful that Allen’s sentencing will send a strong message to anyone who would try to take advantage of unsuspecting investors for their own personal greed.”
According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: Allen, the sole shareholder and executive officer of C.M. Allen Capital Management, Inc., defrauded dozens of investors across the country out of millions of dollars through his management of the Cheetah Fund. In his roles with C.M. Allen Capital Management, Allen was responsible for managing Cheetah and its investment portfolio. Prospective investors received tear sheets that reported Cheetah achieved annual investment returns as high as 73%. Once invested in Cheetah, investors received fraudulent monthly account statements showing false investment gains, and fake tax documents reporting the false gains. In reality, Allen reported gains even as the Fund continuously lost money.
In addition, Allen at times used investors’ money to write checks payable to himself to fund his lifestyle. Cheetah investors lost more than $9 million due to Allen’s investment fraud scheme.
Craig Allen, 53, of Atlanta, Georgia, was sentenced by U.S. District Judge Thomas W. Thrash, Jr. to seven years, two months in prison followed by three years of supervised release. He was also ordered to pay restitution in the amount of $9.2 million to the victims.
This case was investigated by the Federal Bureau of Investigation. The SEC provided valuable assistance. The SEC’s separate civil case is SEC v. Craig Allen, Case Number 1:24-cv-01771-SDG.
Assistant U.S. Attorney Natasha Cooper and former Assistant U.S. Attorney Christopher J. Huber prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Houston Woman Sentenced for $800,000 Covid Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Houston, Texas, woman was sentenced in federal court today for fraudulently receiving more than $800,000 in Missouri and Coronavirus Aid, Relief, and Economic Security (CARES) Act unemployment benefits using the identity information of numerous other persons.
Prayshana Washington, 37, was sentenced by U.S. Chief District Judge Beth Phillips to three years and one month in federal prison without parole. The court also ordered Washington to pay $808,019 in restitution to the Missouri Division of Employment Security and $28,350 in restitution to the California Employment Development Department, for a total of $836,369 in restitution.
On May 23, 2024, Washington pleaded guilty to one count of theft of government property. Washington admitted she facilitated the filing of false claims in her name and the names of other persons, thereby fraudulently receiving unemployment benefits paid through the state of Missouri. These benefits included benefits from the CARES Act.
Washington fraudulently filed 38 successful claims for unemployment benefits, using the name and personal identifying information of individuals in the state of Missouri and elsewhere. These persons were not eligible to receive Missouri and enhanced unemployment benefits. The scheme lasted over a year and required repeated false statements by Washington to the Missouri Department of Employment Services.
This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the Department of Homeland Security, Office of Inspector General and the Department of Labor, Office of Inspector General – Office of Investigations & Labor Racketeering Fraud.
Horizon City Man Sentenced to Federal Prison for Lead Role in Human Smuggling OrganizationRead the Press Release
EL PASO, Texas – A Horizon City man was sentenced to 54 months in federal prison for charges related to his involvement in a human smuggling conspiracy.
According to court documents, Isai Orona aka Panda, 35, was the organizer of a human smuggling scheme. He had been identified in WhatsApp communications, which the organization used for coordinating criminal activity. Additionally, when U.S. Border Patrol agents apprehended a co-conspirator who had been transporting nine undocumented noncitizens in El Paso, the vehicle used was registered to Orona.
Orona was arrested Nov. 20, 2023. He pleaded guilty July 12, 2024, to one count of conspiracy to transport aliens and one count of transporting aliens. Orona admitted to smuggling over 2,500 undocumented noncitizens within approximately six months in 2023. Many car loads of undocumented noncitizens were transported to Albuquerque, New Mexico and on to other locations. He also admitted to having a network of drivers to transport the undocumented noncitizens in at least 12 vehicles, which he obtained or helped others to obtain. In addition to Orona’s imprisonment, the court entered a money judgment against him in the amount of $250,000.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
USBP investigated the case with assistance from the Texas Department of Public Safety.
Assistant U.S. Attorneys Richard Watts and Patricia Acosta prosecuted the case.
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Hell’s Kitchen Aesthetician Arrested for Unlawfully Injecting Counterfeit BotoxRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York, announced the unsealing of a Complaint charging JOEY GRANT LUTHER with wire fraud, smuggling, and other crimes related to misbranded and counterfeit drugs. As alleged in the Complaint, from in or about April 2023 through at least in or about July 2024, LUTHER shipped counterfeit drugs, including counterfeit Botox, from countries in Asia, including China, and injected them, without the required license, into his clients at his medical spa, JGL Aesthetics. None of the counterfeit Botox that LUTHER injected was approved for sale or dispensing in the U.S. by the FDA. LUTHER was arrested this morning and will be presented later today before U.S. Magistrate Judge Sarah L. Cave.
U.S. Attorney Danielle R. Sassoon said: “As alleged, Joey Grant Luther, who does not possess the licensing required by New York State to perform injections of Botox, knowingly purchased counterfeit Botox from China, injected it into his clients, and represented that the counterfeit Botox that he was peddling was genuine. Luther continued to purchase and inject the counterfeit Botox even after he learned that clients had fallen ill or experienced strange symptoms after Luther injected them. Luther’s disregard for the health of his clients put all of his victims in harm’s way and, in some cases, caused life-threating injuries. Luther will now face criminal charges for this conduct.”
As alleged in the Complaint:[1]
From at least in or about January 2021 through at least in or about July 2024, LUTHER ran a medical spa called JGL Aesthetics in the Hell’s Kitchen neighborhood of Manhattan. In or about September 2021, an individual (“Victim-1”) went to JGL Aesthetics to receive Botox treatments to treat excessive sweating as well as fine lines on her face. Victim-1 learned that LUTHER performed Botox injections from a friend. Between in or about September 2021 and in or about February 2024, LUTHER injected counterfeit drugs labeled as Botox® 150 Units manufactured by Allergan into Victim-1’s armpit, forehead, and face on approximately eight occasions. Victim-1 never provided LUTHER with a prescription to receive Botox injections.
On or about February 27, 2024, LUTHER injected Counterfeit Botox into Victim-1’s armpits and eyebrow area at JGL Aesthetics. Approximately three days after Victim-1’s February 27, 2024, visit to JGL Aesthetics, Victim-1 began experiencing double vision, light headedness, difficulty swallowing and chewing, heart palpitations, and slurring of speech. Victim-1 also could not lift her arms and experienced weakness from the waist up. Victim-1 went to three hospitals to seek medical assistance for these symptoms. On or about March 20, 2024, Victim-1 was diagnosed with Botulism toxin.
From between in or about April 2023 and in or about January 2024, U.S. Customs and Border Patrol (“CBP”) seized parcels intended for JGL Aesthetics, including one which lists a return address in Hong Kong. These parcels contained significant quantities of counterfeit drugs, including Counterfeit Botox. Below is a photo of the contents of the parcel—including the exterior of cartons of Counterfeit Botox.
From at least in or about March 2024 through at least in or about April 2024, during which time LUTHER negotiated an additional purchase of Counterfeit Botox from one of his suppliers, multiple individuals who received injections of Counterfeit Botox from LUTHER messaged LUTHER about the negative side effects from the injections, including lazy eyes, double vision, and drooping eyelids. In response to these complaints, LUTHER typically assured his clients that the side effects were temporary, represented that he was unaware that counterfeit Botox had been found circulating in the U.S., and assured clients that the Counterfeit Botox was from Allergan, the veritable maker. As alleged, LUTHER was well aware that the Counterfeit Botox was, in fact, counterfeit.
Neither CBP’s seizure of packages intended for LUTHER, the defendant, nor his clients informing LUTHER of injuries related to his injecting Counterfeit Botox stopped LUTHER from continuing to procure the Counterfeit Botox and injecting it into his clients. Between March 13, 2024—the date that Victim-1 contacted LUTHER about the injections of Counterfeit Botox—and October 2, 2024—after law enforcement officers and special agents executed a search warrant of JGL Aesthetics, JGL Aesthetics had at least approximately 700 appointments logged in its client and service management application that were coded with having provided Botox-related services. Data contained in the client and services management application also revealed that JGL Aesthetics provided Botox-related services as early as January 2021.
* * *
LUTHER, 54, of New York, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of dispensing of a misbranded drug while held for sale, which carries a maximum sentence of one year in prison; one count of holding counterfeit drugs for sale and for dispensing, which carries a maximum sentence of 10 years in prison; one count of receiving misbranded drugs in interstate commerce and delivery or proffered delivery thereof, which carries a maximum sentence of three years in prison; and one count of smuggling, which carries a maximum sentence of 20 years in prison.
The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Ms. Sassoon praised the outstanding investigative work of the Food and Drug Administration Office of Criminal Investigations, the Federal Bureau of Investigation, the CBP – New York Field Office, and the Special Agents and Task Force Officers assigned to the U.S. Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorney Brandon C. Thompson is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation.
Harvey Man Guilty of Possession of Intent to Distribute TapentadolRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on January 16, 2025, TYRAN ADAMS (“ADAMS”), age 34, of Harvey, Louisiana, pled guilty before U.S. District Judge Eldon E. Fallon to possession, with intent to distribute, tapentadol.
According to court documents, ADAMS, was arrested on June 18, 2024, for possession of 200 tablets of tapentadol. ADAMS faces up to twenty (20) years imprisonment, up to a $1,000,000 fine, up to three (3) years of supervised release, and a $100 mandatory special assessment fee. He is scheduled for sentencing on April 24, 2025.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation - New Orleans Gang Task Force. Special Assistant United States Attorney James Ollinger and Assistant United States Attorney Mike Trummel of the Violent Crimes Unit are in charge of the prosecution.
Hartford Man Pleads Guilty to Federal Gun ChargeRead the Press Release
Marc H. Silverman, Acting United States Attorney for the District of Connecticut, today announced that JASON BARBER, 40, of Hartford, pleaded guilty yesterday in Hartford federal court to unlawful possession of a firearm by a felon.
According to court documents and statements made in court, on March 2, 2022, law enforcement received information that Barber, while seated in a vehicle, was streaming on Facebook Live and showing off a loaded pistol magazine. Officers located the vehicle, which parked on Barbour Street, and then followed Barber into a package store. Officers approached Barber and retrieved from his coat pocket a Kahr Arms P45 handgun containing a magazine with five rounds of .45 caliber ammunition.
Barber’s criminal history includes state felony convictions for firearm, robbery, drug, and escape offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
At sentencing, which is not scheduled, Barber faces a maximum term of imprisonment of 15 years. He is released on a $100,000 bond.
The investigation was conducted by the Federal Bureau of Investigation and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
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. In May 2021, the Justice 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 www.justice.gov/psn.
Fort Wayne Man Convicted at Trial of Firearm OffenseRead the Press Release
FORT WAYNE – Neon L. Frazier, 50 years old, of Fort Wayne, Indiana, was found guilty of being a convicted felon in possession of a firearm following a two-day jury trial presided over by United States District Court Chief Judge Holly A. Brady, announced Acting United States Attorney Tina L. Nommay.
A sentencing hearing will be scheduled by separate order. Any specific sentence to be imposed will be determined by the District Court Judge after consideration of federal statutes and the United States Sentencing Guidelines.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorneys Stacey R. Speith and Dawn Ransom.
This case was also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Former School Bus Driver Admits Recording Sexual Abuse of MinorsRead the Press Release
ST. LOUIS – A former school bus driver on Wednesday admitted recording his sexual abuse of two young children.
Robert W. Stillwell, 67, of St. Peters, Missouri, pleaded guilty to two counts of production of child pornography. Stillwell admitted filming his sexual abuse of one girl, born in 2016, and another, born in 2022. Stillwell abused the victims while they were both asleep and awake, and coerced the older girl into complying with his demands by promising toys and money as well as by threatening her. She said Stillwell would become angry and scream when she did not cooperate. He also modified his voice to resemble that of two elementary school-aged girls and recorded messages to the older victim in which the “girls” encourage her to comply with his demands.
The parents of the older victim contacted the St. Peters Police Department in December 2023 after their daughter said Stillwell was drinking her urine, claiming it was medicine for him. Investigators then found recordings of his abuse of the victims.Stillwell is scheduled to be sentenced on April 22. The government will recommend a sentence of 30 years in prison.
The FBI, the St. Charles County Cyber Crime Task Force and the St. Peters Police Department investigated the case. Assistant U.S. Attorney Jillian Anderson is 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 the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Marine and Wife Charged with Involuntary ManslaughterRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Kodi Glenn Simon (30, Cleveland, OH) and Kateri Ann Simon (30, Avon Lake, OH) with involuntary manslaughter. If convicted, each faces a maximum penalty of eight years in federal prison.
According to the indictment, in 2022, Kodi and Kateri Simon unlawfully kill Victim 1, without malice, while at MacDill Air Force Base in Tampa.
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 the Naval Criminal Investigative Service. It will be prosecuted by Assistant United States Attorneys Abigail K. King and Michael C. Sinacore.
Former Corrections Officer Sentenced to Prison for Providing Firearm to FelonRead the Press Release
ALBANY, NEW YORK – Brian Mills, age 39, a resident of Dannemora, New York, was sentenced today to serve 21 months in prison for knowingly providing a firearm to a felon. United States Attorney Carla B. Freedman and Erin Keegan, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo Field Office, made the announcement.
As part of his guilty plea, Mills admitted that at various times during summer 2022, he traded a New England Firearms Company Model Pardner-SP1 .410-gauge shotgun, an Armalite rifle, ammunition, an ammunition magazine and two body armor vests to Dustin J. Manor at Manor’s apartment in Plattsburgh, New York, knowing that Manor was a felon. On October 20, 2022, the Plattsburgh Police Department seized the shotgun, one (1) .44 magnum round of ammunition, shotgun rounds, and a set of RTS Tactical Level IV ceramic body armor from Manor’s Plattsburgh apartment after responding to a domestic incident there.
Manor was federally prohibited from possessing the firearms and ammunition due to 2014 drug felony convictions for which he was sentenced to 5 years in state prison.
Mills had been employed as a corrections officer at Clinton Correctional Facility but resigned his position following his arrest.
Senior United States District Judge Lawrence E. Kahn also imposed a 2-year term of supervised release to begin after Mills is released from prison.
Manor was sentenced in August to 57 months in prison and 3 years’ supervised release for possessing the .410-gauge shotgun and ammunition as a felon.
HSI and the Plattsburgh Police Department investigated the case. Assistant U.S. Attorney Douglas G. Collyer prosecuted the case.