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26 February 2025
Simi Valley Couple Arrested for Abusing Asylum-Seeking Immigrants, Operating Illegal “Work for Smuggling” SchemeRead the Press Release
LOS ANGELES – A Simi Valley couple were arrested today on charges that they abused asylum-seeking immigrants from Latin American countries by forcing them to do domestic labor around the house and hand over money they earned working outside the home.
Carolina Rojas, 50, and her husband Jairo John Gastelo, 45, were each charged with one count of conspiracy to commit forced labor and four counts of forced labor.
Rojas was separately charged with an additional four counts of trafficking with respect to forced labor, three counts of giving immigration documents to unauthorized persons, one count of encouraging and inducing illegal entry, and one count of witness tampering.
During initial appearances Wednesday afternoon in U.S. District Court in downtown Los Angeles, a federal magistrate judge ordered them detained and scheduled a trial for April 8.
“As described in the indictment, the defendants smuggled individuals into the United States and exploited them for their own financial gain,” said Acting United States Attorney Joseph McNally. “The enforcement of our immigration laws is critical to preventing forced labor and human trafficking. We will hold accountable those that violate these laws.”
“Today’s indictment shows the great lengths that the defendants went through to enrich themselves off smuggled aliens,” said HSI Los Angeles Special Agent in Charge Eddy Wang. “Labor trafficking continues to be an ongoing problem in our communities and HSI remains committed to holding traffickers accountable for their deplorable actions.”
According to the indictment, no later than November 2021 and continuing until at least March 2024, Rojas and Gastelo allegedly worked with each other and others to recruit foreign nationals from specifically Latin American countries to come to the United States for the purpose of providing forced labor upon arrival to their house in Simi Valley.
Rojas allegedly facilitated the foreign nationals’ entry into the United States by providing initial financial assistance and by making travel arrangements for each victim. Once successfully in the U.S., Rojas helped the victims get transportation to California and eventually to Rojas and Gastelo’s house in Simi Valley.
After arriving at the house, the defendants allegedly forced the victims to provide around-the-clock childcare for a child with special needs and perform other domestic labor. The victims received no pay for their services and were told by Rojas and Gastelo that their work was performed in exchange for rent at the home.
The defendants allegedly charged the foreign nationals a fee for being smuggled into the U.S. In some cases, Rojas connected victims with a nearby McDonald’s in Simi Valley where she had an arrangement with the manager to hire individuals she brought to work there. Rojas and Gastelo would then collect money from the victims’ jobs as repayment for their smuggling fee debt.
Before getting outside-the-house employment, Rojas allegedly helped procure fraudulent social security cards and permanent resident cards for the victims to use when seeking jobs. Rojas would then bring the victims to a check cashing company, where they could cash their checks in order to pay Rojas and Gastelo.
If convicted, Rojas and Gastelo face a statutory maximum of five years for conspiracy to commit forced labor and a statutory maximum of 20 years for each charge of forced labor.
Rojas faces an additional statutory maximum of 20 years for each charge of trafficking with respect to forced labor, a statutory maximum of 10 years for each charge of giving immigration documents to unauthorized persons, a statutory maximum of 10 years for encouraging and inducing illegal entry, and a statutory maximum of 20 years for witness tampering.
Indictments contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Homeland Security Investigations and Immigration and Customs Enforcement investigated this matter.
Assistant United States Attorneys K. Afia Bondero of the Major Frauds Section and Matt Coe-Odess of the General Crimes Section are prosecuting this case.
Shelbyville Woman Pleads Guilty to Employment Tax and Wire Fraud Charges; Agrees to Pay More Than $1.1 Million in RestitutionRead the Press Release
CHATTANOOGA, Tenn. - On February 26, 2025, Rebekah Proctor, 33, of Shelbyville, Tennessee, pleaded guilty in the United States District Court for the Eastern District of Tennessee in Chattanooga to one count of willful failure to collect, account for, and pay over a tax, in violation of Title 26, United States Code, Section 7202, and one count of wire fraud, in violation of Title 18, United States Code, Section 1343.
Proctor will be sentenced on July 11, 2025, by the Honorable Travis R. McDonough, United States District Judge. She faces up to five years of imprisonment on the tax offense and up to 30 years of imprisonment for wire fraud.
According to the plea agreement filed in this case, Proctor operated Franklin Springs Academy, a daycare business in middle Tennessee. Although she withheld income taxes and Federal Insurance Contributions Act (“FICA”) taxes (commonly known as Social Security and Medicare taxes) from her employees’ paychecks and additionally owed the employer’s portion of the FICA taxes, Proctor willfully failed to truthfully account for and pay such taxes to the IRS for the first quarter of 2022. For that quarter alone, she owed tens of thousands of dollars in unpaid taxes.
Proctor also fraudulently applied for and received a COVID-relief Paycheck Protection Program (“PPP”) loan to which she was not entitled. Proctor made several false certifications on her April 4, 2020, application for over $100,000 in PPP funds, including that she was current on her federal tax obligations and that the loan funds would be used to retain workers and for other business expenses. In fact, Proctor used the funds for her own personal expenses and for her husband’s personal expenses.
As set forth in her plea agreement with the government, Proctor agreed that the restitution owed to the IRS, for her employment taxes only, is $893,232.26, which includes unpaid taxes plus penalties and interest required by law. She further agreed that the restitution owed to the Small Business Association is $223,800, which is comprised of the $105,800 in PPP loan proceeds she received in April 2020 and $118,000 in additional fraudulently obtained PPP loan proceeds she received in February 2021.
United States Attorney Francis M. Hamilton III of the Eastern District of Tennessee and Special Agent in Charge Donald “Trey” Eakins of IRS Criminal Investigation, Charlotte Field Office, made the announcement.
Assistant United States Attorney Joseph G. DeGaetano represents the United States.
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Sex Predator Sentenced to 15 Years for Sexually Abusing a Minor ChildRead the Press Release
TULSA, Okla. – Today, U.S. District Judge Sara E. Hill sentenced Damon Michael Dozier, 41, for Sexual Abuse of a Minor in Indian Country. Judge Hill ordered Dozier imprisoned for 180 months, followed by 15 years of supervised release. Upon release, he will be required to register as a sex offender.
In June 2023, Dozier took a minor child behind a shopping mall to engage in sexually explicit activity. Dozier admitted that he knew the child was only 13 years old.
Dozier is a citizen of the Muscogee (Creek) Nation and will remain in custody pending transfer to the U.S. Bureau of Prisons. The FBI and Tulsa Police Department investigated the case, and Assistant U.S. Attorneys Stephen Scaife and Steve Briden prosecuted the case.
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.
Seventeen OMB Gang Defendants Sentenced to a Total of 2,538 Months in Federal PrisonRead the Press Release
DES MOINES, Iowa – On Wednesday, February 26, 2025, the final defendant in a multi-Indictment, 17-defendant gang investigation involving the Only My Brothers (OMB) street gang was sentenced to federal prison. All 17 defendants had previously pled guilty or been found guilty following a jury trial. The defendants were charged with various crimes in federal court, including RICO conspiracy, fentanyl distribution, possessing machineguns, straw purchasing firearms, firearms trafficking, and illegally possessing firearms.
According to public court documents and evidence presented in court, the charged defendants were members and associates of a criminal organization or Enterprise known as “Only My Brothers” or “OMB.” OMB originated in early- to mid-2021. Prior to that, some members and associates of OMB referred to themselves as various other names, including C-Block, 600, East Side Crips, Crips, and Gangster Disciples. From at least 2021, and continuing until their arrests, OMB’s members and associates engaged in a plethora of criminal activity in an attempt to earn and maintain respect in the neighborhood. This included attempted murders, including at least 30 gang-related shootings, the distribution of over 22 kilograms of fentanyl, as well as a number of convenience store armed robberies in the Des Moines metro.
Some of the shootings OMB has been held responsible for include a November 2021 shooting at a celebration of life party being held at a residence in Des Moines, Iowa; a second November 2021 shooting at a residence on Southeast 9th Street in Des Moines, during which over 20 shots were fired; a February 2022 shooting in and around Good Park in Des Moines; an April 2022 shooting at a rival gang member’s home in Des Moines, during which over 70 shots were fired; a July 2022 shooting at an apartment complex in Sixth Avenue in Des Moines, during which at least 40 shots were fired; an August 2022 shooting at a residence on 23rd Street in Des Moines; and an August 2022 shooting at an apartment complex on Southeast 22nd Street in Des Moines, during which over 36 shots were fired.
In order to obtain the firearms used to commit their criminal activity, OMB utilized a network of firearms straw purchasers, most of whom were drug customers or family members of the OMB members. This included Dawn Ellease Robinson, who purchased guns for her son, OMB member Santiz Langford. Langford then either personally used the guns himself to conduct OMB activity, or he trafficked the guns to other OMB members. One of those guns was later found in the possession of a victim in the January 2023 Starts Right Here double homicide in Des Moines. Deon Cooper, Langford’s sister, also straw purchased firearms for Langford, and Johnetta Strode, OMB member Deadrian Nelson’s mother, straw purchased firearms for Nelson.
The straw purchasers purchased guns for the OMB members, who then used those guns to commit violent acts against rival gang members and other victims. OMB members and associates were also prolific possessors of machinegun conversion devices (also known as automatic selector switches). These devices convert semi-automatic pistols into fully automatic firearms and are considered machineguns under federal law. During the investigation, law enforcement was able to identify over 90 guns involved in the OMB-involved shootings, with over 70 of the involved guns seized.
The defendants involved in this investigation include:
- Awot Tsegaye Baliho, 23, pled guilty to felon in possession of a firearm and was sentenced to 30 months’ imprisonment.
- Armani Eugene Gates, 21, pleaded guilty to conspiracy to distribute at least 400 grams of fentanyl, unlawful drug user in possession of a firearm, two counts of conspiracy to traffic firearms, conspiracy to straw purchase firearms, and possession of a firearm in furtherance of a drug trafficking crime, and was sentenced to 276 months’ imprisonment.
- Bakier Mohamd Esmaeil, 20, pled guilty to one count of being an unlawful drug user in possession of a firearm, and was sentenced to 63 months’ imprisonment.
- Dontavius Rashaun Sharkey, 28, was found guilty by a jury of two counts of straw purchasing conspiracy, two counts of felon in possession of a firearm, illegal possession of a machinegun, possession of a firearm with an obliterated serial number, and supervised release violations, and was sentenced to 384 months’ imprisonment.
- Deadrian Maurice Nelson, 20, pled guilty to two counts of being a felon and unlawful drug user in possession of a firearm, and was sentenced to 121 months’ imprisonment.
- Johnetta Marie Strode, 37, pled guilty to straw purchasing conspiracy, and two counts of unlawful drug user in possession of a firearm, and was sentenced to 54 months’ imprisonment.
- Christopher Scott Eason, 43, pled guilty to false statement during purchase of a firearm, and was sentenced to 18 months’ imprisonment.
- Raleigh John Potter, 30, pled guilty to false statement during purchase of a firearm and unlawful drug user in possession of a firearm, and was sentenced to 42 months’ imprisonment.
- Deon Ellease Cooper, 28, pled guilty to racketeering conspiracy, false statement during purchase of a firearm, straw purchasing conspiracy, and straw purchasing of a firearm, and was sentenced to 30 months’ imprisonment.
- Dawn Ellease Robinson, 45, pled guilty to racketeering conspiracy, straw purchasing conspiracy, straw purchasing of a firearm, and two counts of unlawful drug user in possession of a firearm, and was sentenced to 120 months’ imprisonment.
- Avontae Lamar Tucker, 21, pled guilty in two federal cases to racketeering conspiracy, conspiracy to distribute more than 400 grams of fentanyl, two counts of unlawful drug user in possession of a firearm and ammunition, two counts of interference with commerce through robbery, and two counts of brandishing and possessing a firearm in furtherance of a crime of violence. He was sentenced to 444 months’ imprisonment.
- Santiz Cortez Langford, 21, pled guilty to racketeering conspiracy, conspiracy to distribute more than 400 grams of fentanyl, two counts of straw purchasing conspiracy, two counts of firearms trafficking, possession of a firearm in furtherance of a drug trafficking crime, illegal possession of a machinegun, and two counts of unlawful drug user in possession of a firearm, and was sentenced to 295 months’ imprisonment.
- Semaj Johnson, 20, pled guilty under two separate cases to illegal possession of a machinegun, racketeering conspiracy, conspiracy to distribute more than 400 grams of fentanyl, firearms trafficking conspiracy, and possession of a firearm in furtherance of a drug trafficking crime, and was sentenced to 211 months’ imprisonment.
- Majok Majok, 20, pled guilty to racketeering conspiracy, conspiracy to distribute more than 400 grams of fentanyl, firearms trafficking conspiracy, possession of a firearm in furtherance of a drug trafficking crime, and illegal possession of a machinegun, and was sentenced to 195 months’ imprisonment.
- Trent Douglas Brown Jr., 20, pled guilty to conspiracy to distribute more than 400 grams of fentanyl and possession of a firearm in furtherance of a drug trafficking crime, and was sentenced to 90 months’ imprisonment.
- Dahaba Bahari Lula, 20, pled guilty to racketeering conspiracy and conspiracy to distribute more than 400 grams of fentanyl, and was sentenced to 144 months’ imprisonment.
- Derrick Dwayne Smith, 41, pled guilty to four counts of false statement during purchase of a firearm, and was sentenced to 21 months’ imprisonment.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. Assistant United States Attorneys Kristin Herrera and Mallory Weiser prosecuted the case.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Des Moines Police Department, and the United States Postal Inspection Service, with assistance from the Iowa Department of Public Safety-Division of Narcotics Enforcement (DNE), Iowa State Patrol, and Iowa Division of Intelligence and Fusion Center.
This effort 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.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Russian National Charged in Federal Criminal Complaint Alleging He Bit and Injured Deportation Officer Who Arrested HimRead the Press Release
LOS ANGELES – A Russian national was charged today in a federal criminal complaint alleging he bit and injured an immigration officer who had detained and arrested him on Tuesday in downtown Los Angeles.
Maksim Zaitsev, 35, of Costa Mesa, is charged with assault on a federal employee resulting in bodily injury.
Zaitsev is expected to make his initial appearance today in United States District Court in downtown Los Angeles.
“The men and women of Immigration and Customs Enforcement are critical to protecting national security and public safety and upholding the rule law,” said Acting United States Attorney Joseph T. McNally. “As alleged in the felony criminal complaint, the defendant attacked a deportation officer. He will be held accountable for his actions.”
According to an affidavit filed with the complaint, on the morning of February 25, two Immigration and Customs Enforcement (ICE) officers announced themselves and arrested Zaitsev pursuant to an administrative arrest warrant issued by the U.S. Department of Homeland Security.
After handcuffing Zaitsev, the officers attempted to escort him to be processed. Zaitsev became agitated while the agents walked him through a hallway. Zaitsev then resisted. While the officers attempted to regain control of him, Zaitsev bit one officer on the left pinky finger. The bite broke skin, drew blood, and broke the finger.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Zaitsev would face a statutory maximum sentence of 20 years in federal prison.
The Department of Homeland Security’s Federal Protective Service is investigating this matter.
Assistant United States Attorney Joseph S. Guzman of the General Crimes Section is prosecuting this case.
Rhode Island Man Admits to Possessing Multiple Machine Guns and Unregistered FirearmsRead the Press Release
PROVIDENCE – A Florida man who frequently resided in Coventry, RI admitted to a federal judge today that he illegally possessed a semi-automatic weapon modified to function as a fully automatic machine gun, announced Acting United States Attorney Sara Miron Bloom.
Joshua Pavao, 44, pleaded guilty in U.S. District Court in Providence to a charge of possession of a machine gun and a charge of possession of an unregistered firearm. The unregistered firearm was also modified to be a machine gun and had a barrel length of 10 and 5/8 inches, substantially less than the 16 inches required by law.
In December 2023, Pavao engaged East Providence Police in a high-speed car chase that resulted in multiple motor vehicle crashes as they were investigating a report of shots fired. Pavao fled on foot from his vehicle but was quickly apprehended. During the chase officers discovered a total of three loaded firearms and a multitude of ammunition and loaded pistol magazines from inside the vehicle, spilled out onto the roadway, and in a bag Pavao stashed near a residence.
Shortly after Pavao’s arrest, Coventry Police Department and East Providence Police Department Detectives and ATF agents executed a court-authorized search of a duffle bag belonging to Pavao that was stored inside a garage at the Coventry residence where Pavao was staying. From inside the duffle bag, law enforcement seized eight long guns, four of which were outfitted with an auto sear machine gun conversion device rendering them machine guns.
Pavao is scheduled to be sentenced on June 5, 2025. The sentence imposed will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant United States Attorney Paul F. Daly, Jr.
The matter was investigated by the East Providence Police with valuable assistance from Coventry Police and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Repeat Sex Offender Sentenced to 8 Years for Transporting Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that James H. Hornung, 73, Newbold, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 100 months in federal prison for transporting obscene material in interstate commerce on two separate occasions. Hornung pleaded guilty to these charges on December 2, 2024.
On September 17, 2023, an individual called law enforcement to report that he had found a duffel bag along a logging trail in the Town of Newbold. An officer seized the duffel bag and brought it to the Sheriff’s office.
The duffel bag contained approximately 27 USB flash drives, SD cards, and several CDs, and other electronics. Officers identified the profile on a laptop found in the bag as Hornung’s. Agents analyzed the laptop and 6 flash drives that were submitted from the duffel and located almost 3500 media files that appeared to be child pornography.
Officers interviewed Hornung who admitted that he owned the duffel bag and said there was child pornography on the discs and flash drives. Hornung said that he searched and collected child pornography, put it into the duffel bag, and hid it because he was paranoid that he would get caught with it.
In sentencing Hornung, Judge Conley believed that Hornung left the duffel bag so that he could retrieve it after he was released from custody and keep possession of his child pornography collection. Judge Conley also found it aggravating that Hornung was accessing child pornography while on bond on another child pornography case. Judge Conley observed that Hornung was a sexual predator who was either unwilling or unable to address his long-standing attraction to minors.
In addition to this federal conviction, Hornung was convicted of second-degree sexual assault in 1979, sexual assault of child in 1997, and possession of child pornography in 2023.
The charges against Hornung were the result of an investigation conducted by the Oneida County Sheriff’s Office and the Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Kathryn Ginsberg prosecuted this case.
This investigation was a part of Project Safe Childhood (PSC), a nationwide initiative to combat child sexual exploitation and abuse. 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.
Previously Convicted Sex Offender Sentenced to 114 Months for Distribution of Child Sexual Abuse MaterialsRead the Press Release
WASHINGTON – Rashid Lamont McFadden, 29, of Baltimore, Maryland, was sentenced yesterday in U.S. District Court to 114 months in prison for distributing videos depicting the violent rape of prepubescent children by adults, images of young children engaged in sadistic and masochistic acts, and images of children engaging in sexual acts with animals.
The sentence was announced by U.S. Attorney Edward R. Martin, Jr., and FBI Special Agent in Charge Sean T. Ryan of the Washington Field Office Criminal and Cyber Division.
McFadden pleaded guilty on May 29, 2024, to one count of distribution of child pornography. In addition to the 141-month prison term, U.S. District Court Judge Carl J. Nichols ordered McFadden to serve 15 years of supervised release.
According to court documents, on February 16, 2023, an undercover officer (UC) from the FBI Washington Field Office was monitoring an online messaging application where individuals met, discussed, and traded sexually explicit images and videos of children. The UC observed an individual identified as “tng6” post a video of child sexual exploitation to the group. Shortly thereafter, tng6 responded to a conversation about meeting other likeminded pedophiles and their children. At that point, the UC initiated a private chat with tng6, who was later identified as McFadden.
As the UC chatted with McFadden, McFadden continued to post child sex videos to the group. McFadden told the UC that he knew the children in the videos and had produced some of the videos himself. The UC then claimed to be the father of an 8-year-old daughter and that he would show McFadden images of the purported girl on FaceTime.
On February 17, 2023, Baltimore Police arrested McFadden on an unrelated matter. On February 21, law enforcement executed a search warrant at McFadden’s home in Baltimore and seized McFadden’s cell phone. McFadden refused to provide the passcode for the phone. Law enforcement reviewed the contents of McFadden’s cloud storage account and found several videos and images of children being sexually abused by adults.
McFadden is currently facing additional criminal charges for possession of child pornography in a separate case pending in the Circuit Court for Maryland in Baltimore County.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force in cooperation with the Metropolitan Police Department’s Youth Division, and the Baltimore Police Department. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
The matter was prosecuted by Assistant U.S. Attorneys Karen Shinskie.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Pitt County Man Pleads Guilty in Multi-Million Dollar Ponzi Scheme that Defrauded Eastern North Carolina InvestorsRead the Press Release
WILMINGTON, N.C. – Willard Timothy Sutton, age 64, pled guilty to one count of mail fraud today for running a Ponzi scheme that resulted in more than 60 investors suffering net losses in excess of $8 million. At sentencing later this year, Sutton faces a statutory maximum sentence of 20 years, a $250,000 fine, and three years of supervised release. Sutton will also be required to pay restitution to victims.
According to court documents and other information presented in court, between approximately 2019 and 2023, Sutton operated a largescale Ponzi scheme in connection with an investment program offered through Greenville Auto World, LLC (GAW), a car dealership located in Greenville. GAW was a “buy here pay here” (BHPH) dealership. BHPH dealerships enable customers with poor or no credit history to finance the purchase of a vehicle directly through the dealership, rather than through a bank or credit union. Such loans typically carry significantly higher interest rates than traditional car loans. Between approximately 2012 and 2023, as part of an investment program sponsored, promoted, and administered by GAW, Sutton sold BHPH finance contracts to outside investors through direct solicitation, referrals, and word-of-mouth advertisement.
Beginning in approximately 2019, Sutton falsely and fraudulently led BHPH investors to believe that their investments were safe and secure, and that GAW was collecting sufficient repayments from loan customers to be able to fully pay the principal and interest owed to them. In truth, GAW was collecting millions from investors, but it did not have the means to service the debt through BHPH revenue or any legitimate business income. Between approximately October 2018 and August 2023, the FBI estimates that GAW collected investor funds in excess of $60 million. However, GAW’s gross receipts were a small fraction of the total.
In order to conceal GAW’s financial condition, and avoid the collapse of the business, Sutton operated the BHPH program as a Ponzi scheme in which he would (in a typical transaction) sell a legitimate loan contract to one investor and then sell one or more false and fabricated versions of that same contract to other investors without their knowledge. Sutton then used the proceeds of the fraudulent sales to pay off earlier investors. Among other things, Sutton forged loan customer signatures to the fake contracts and, in some instances, provided fake title documents to investors to convince them that their investments were appropriately secured.
In approximately 2022, in order to generate additional funds to meet GAW’s mounting debts to investors, Sutton solicited some BHPH investors to help finance GAW’s vehicle inventory. Sutton falsely and fraudulently represented to these investors that he was using their funds to purchase vehicles when, in fact, Sutton was using their funds to conceal and perpetuate the Ponzi scheme.
“Over the course of years, instead of helping so-called investors, this defendant bilked his victims out of millions of dollars of their hard earned money,” said Acting U.S. Attorney Daniel P. Bubar. “Fraudsters should know that they will be held accountable for their crimes in the Eastern District of North Carolina.”
"Mr. Sutton ran a local business for many years, purporting to help those with poor or no credit get much needed vehicle loans. When he ran into financial trouble, rather than admitting his business was failing, he resold those loans over and over again to outside investors to protect his own reputation at the expense those who trusted he was legitimately investing their hard earned money," said Robert M. DeWitt the FBI Special Agent in Charge in North Carolina.
Daniel P. Bubar, Acting United States Attorney for the Eastern District of North Carolina, made the announcement after Chief Judge Richard E. Myers, II accepted the plea. The Federal Bureau of Investigation, Charlotte Field Office, investigated the case. Assistant United States Attorney Adam F. Hulbig prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:24-CR-83-M.
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Pair of Charlotte Businessmen Convicted of Failing to Account for and Pay over Trust Fund Taxes Are SentencedRead the Press Release
CHARLOTTE, N.C. – A pair of Charlotte businessmen were sentenced today in federal court for failing to account for and pay over to the Internal Revenue Service (IRS) more than $150,000 in trust fund taxes over five quarters in 2016 and 2017, announced Lawrence J. Cameron, Acting U.S. Attorney for the Western District of North Carolina.
Donald “Trey” Eakins, Special Agent in Charge of the IRS, Criminal Investigation (IRS-CI), Charlotte Field Office, joins Acting U.S. Attorney Cameron in making todays’ announcement.
Richard Brasser, 58, and Gregory Gentner, 54, were sentenced to 12 months and 1 day in prison, respectively, followed by a one-year term of supervised release. In March 2024, a federal jury found Brasser and Gentner guilty of multiple counts of failing to account for and pay over trust funds taxes.
According to today’s sentencing hearing, evidence presented at trial, and other court documents, rFactr was a company with offices in Charlotte, that sold software that leveraged social media for sales platforms. Brasser was rFactr’s Chief Executive Officer and Gentner the Chief Operating Officer. Trial evidence established that from 2015 through 2017, Brasser and Gentner caused rFactr to collect more than $600,000 in trust fund taxes from the wages of its employees but did not account for the taxes by filing Forms 941 with the IRS. Moreover, the defendants did not pay over the withheld taxes to the IRS in a timely manner.
According to trial evidence, Brasser and Gentner had a history of noncompliance with rFactr’s employment tax obligations. Specifically, between 2013 and 2017, Brasser and Gentner failed to comply with rFactr’s employment tax obligations by failing to timely file rFactr’s employment tax returns and failing to timely pay over to the IRS rFactr’s employment taxes. In total, between 2015 and 2017, Brasser and Gentner caused rFactr to owe more than $1.1 million in employment taxes.
In making today’s announcement, Acting U.S. Attorney Cameron commended IRS-Criminal Investigation for their investigation of the case.
Assistant U.S. Attorney Caryn Finley and Special Assistant U.S. Attorney Eric Frick of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Ohio Man Charged with Smuggling Body Armor from China to Sell to Law Enforcement Customers as American MadeRead the Press Release
CLEVELAND – Vall Iliev, 69, of Stow, Ohio, has been charged in a three-count information with smuggling foreign-made body armor and then selling it to law enforcement agencies and others, as legitimate, domestically-made certified products. From around 2017 to October 2023, the defendant allegedly imported body armor from the People’s Republic of China (PRC) and sold it under claims of being made in the United States and bearing a falsified trademarked label. Body armor is commonly used by those in law enforcement and other agencies for protection from ballistic threats to the torso area.
According to court documents, in May 2023, U.S. Customs and Border Protection agents at the Blaine, Washington port of entry (POE) intercepted a Canadian-registered truck found to be carrying more than 200 ballistic body armor plates in boxes marked with the PRC as the origin. Cargo inspectors were unable to determine the manufacturer’s name. The plates were concealed in pre-packaged boxes within a larger shipping container which is a technique known as “Master Carton Smuggling” and typically used in attempts to evade detection by POE officials. The hidden boxes of the unmanifested cargo were pre-labeled and addressed to a business in Stow, Vallmar Studios, which Iliev owned and operated. Investigators found that Vallmar’s business location was used as a warehouse to process the PRC-manufactured body armor before selling to the public through a second business, ShotStop Ballistics, which Iliev also owned and operated in Stow.
ShotStop Ballistics conducted business through its website and sold body armor to the public and law enforcement agencies across the country. The company marketed their Level III and Level IV body armor as “Made in Stow, Ohio” and “NIJ Certified.” The National Institute of Justice, or NIJ, is the research, development, and evaluation arm of the U.S. Department of Justice (DOJ), which has published performance standards for ballistic-resistant police body armor for more than 50 years. It utilizes a standard process by which rounds of ammunition are fired at a distance to certify body armor along a range of established threat levels. Manufacturers and distributors are permitted to use the NIJ trademarked symbol that indicates that the product meets its established standards for protection.
However, inspectors who examined the intercepted body armor originating from the PRC, found that none of the items were shipped with related documentation that stated that the product met standards for NIJ certification. The seized ballistic plates were sent to Oregon Ballistic Laboratories for testing, which is one of five approved NIJ certified facilities in the United States. The final test results report from the laboratory showed that the panels failed to meet NIJ standards for Level III certification. Test failure for Level III indicates that the same plates would not have passed the more rigorous testing required for Level IV.
Throughout the course of the years-long conspiracy, Iliev worked with a PRC broker company to find inexpensive manufacturers to make Level III and Level IV body armor. Once orders were placed, manufacturers were directed to ship the items to the defendant’s Vallmar business. When the PRC shipments arrived at the Summit County business, the defendant instructed employees to affix labels to the body armor plates stating “NIJ Certified” and “Made in Stow, Ohio” before going on sale to the public, to law enforcement departments, and to other agencies that rely on ballistic-resistant body armor for protection.
Investigators found thousands of Chinese-produced body armor plates at Vallmar and ShotStop, which served as warehouses to receive, but had no means of producing, Level III or Level IV body armor. The ShotStop location housed a laser printer which was used to print the fake DOJ certification labels that Iliev’s employees were instructed to place on the sub-standard body armor before selling and shipping to customers.
Investigators also found marketing videos produced by Iliev which he used to advertise the body armor products he sold with claims of being manufactured in Ohio and certified by the NIJ. The NIJ certification labels included fictitious “patent pending” on some products such as “Level III+” and “Level IV+HD” certified, which are non-existent designations.
Although Iliev’s companies initially obtained and held valid NIJ certifications, he never sought to confirm through NIJ-certified testing that the body armor quality he imported through co-conspiring Chinese business associates met NIJ performance standards for ballistic resistance. These standards are crucial for buyers to make informed purchases about a product’s safety levels.
These charges are merely allegations, and the defendant is presumed innocent and entitled to a fair trial. It will be the government’s burden to prove guilt beyond a reasonable doubt. If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to the case, including the defendant’s prior criminal record, if any, their role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and, in most cases, it will be less than the maximum.
This case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Cleveland Office alongside the Ohio Attorney General’s Bureau of Criminal Investigation with assistance from U.S. Customs and Border Protection. The case is being prosecuted by Assistant U.S. Attorney Duncan T. Brown for the Northern District of Ohio.
If you have purchased ShotStop Ballistics body armor from 2018 onward, for product safety reasons, HSI recommends discontinuing use. For those who purchased items in question from ShotStop Ballistics, please email a copy of your invoice to [email protected] with “ShotStop Invoice” in the subject line no later than Monday, April 7, 2025.
Ohio County Man Sentenced to Decade for Role in Drug Trafficking OperationRead the Press Release
WHEELING, WEST VIRGINIA – Daryl Smith, 50, of Wheeling, West Virginia, was sentenced today to 120 months in federal prison for the distribution of cocaine base.
According to court documents and statements made in court, Smith was selling cocaine base in Ohio County and was involved with a drug trafficking operation that spanned from Las Vegas, Nevada to the Ohio Valley. Smith has prior drug and assault convictions.
Smith will serve three years of supervised release following his prison sentence.
Assistant U.S. Attorney Carly Nogay prosecuted the case on behalf of the government.
The Ohio Valley Drug Task Force, Marshall County Drug Task Force, and the Hancock-Brooke-Weirton Drug Task Force, all HIDTA-funded initiatives; Drug Enforcement Administration; Bureau of Alcohol, Tobacco and Firearms; West Virginia State Police; Wheeling Police Department; Ohio County Sheriff’s Office; and the Belmont County Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.
Press release on the associated case: www.justice.gov/usao-ndwv/pr/federal-grand-jury-indicts-twenty-six-drug-trafficking
Ohio Company Pleads Guilty in Worker Death CaseRead the Press Release
A Delaware corporation with a manufacturing facility in Ohio pleaded guilty today in federal court in the Southern District of Ohio to a charge of willfully violating an Occupational Safety and Health Administration (OSHA) rule. The criminal charge is related to an incident where an employee was killed when a pneumatic door closed on his head.
Fabcon Precast LLC (Fabcon) operates several facilities in the United States, including one in Grove City, Ohio, that manufactures precast concrete panels. At Fabcon, employees known as batch operators were responsible for the operation and cleaning of the facility’s only concrete mixer. Concrete was discharged from the bottom of the mixer through a pneumatic door. By design, the mixer had an exhaust valve that released the pneumatic energy powering the discharge door, rendering it inoperable. Some months prior to June 6, 2020, the handle that operated the valve broke off and was not replaced.
On June 6, 2020, Zachary Ledbetter, 20, a batch operator since January 2020, was on duty when the discharge door failed to close after releasing a batch of concrete. Because the valve was broken, Ledbetter could not perform the proper procedure to make the door safe to work around. When he attempted to free the door it closed on his head, trapping him. Eventually, Ledbetter was freed and transported to a hospital where he died five days later.
Federal law makes it a class B misdemeanor to willfully fail to follow an OSHA safety standard, where the failure causes the death of an employee. The class B misdemeanor is the only federal criminal charge covering such workplace safety violations.
Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division, Acting U.S. Attorney Kelly A. Norris for the Southern District of Ohio, and Acting Special Agent-in-Charge Megan Howell of the Department of Labor’s Office of Inspector General, Great Lakes Region, made the announcement.
The Department of Labor’s Office of Inspector General investigated the case.
Senior Trial Attorney and Special Assistant U.S. Attorney Adam Cullman, of the Environment and Natural Resources Division’s Environmental Crimes Section and for the Southern District of Ohio respectively, prosecuted the case.
Nine buckets of narcotics: trafficker heads to prison for importing $340,000 of liquid meth in fuel tankRead the Press Release
LAREDO, Texas – A 41-year-old resident of Monterrey, Mexico, has been sentenced for his role in conspiring to import 300 pounds of meth, announced U.S. Attorney Nicholas J. Ganjei.
Allan Alberto Moreno Trevino pleaded guilty March 5, 2024.
U.S. District Judge Diana Saldaña has now ordered Trevino to serve 87 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. At the hearing, the court heard additional evidence that Trevino had worked with drug traffickers in the past including removing a fuel tank containing drugs from another vehicle for which he was paid $1,000. In handing down the sentence, the court noted that although this was Trevino’s first offense, a significant sentence would be appropriate under the circumstances and the degree of his involvement.
On Nov. 22, 2o23, Trevino drove an older model Ford F-250 from Mexico across the Laredo Colombia Solidarity International Bridge. Law enforcement subsequently referred him to secondary inspection where an x-ray revealed anomalies within the vehicle’s fuel tank.
While inspecting the vehicle, authorities noticed Trevino pacing and appearing nervous, eventually asking them if they had found something.
They discovered the fuel tank was filled with liquid meth mixed with gasoline. Law enforcement extracted nine buckets of the mixture with an approximate gross weight of 137.2 kilograms and an estimated street value of $340,000.
As part of his plea, Trevino stated he expected to be paid between $1,500 and $2,000 for transporting the drugs from Mexico.
He also admitted knowing the fuel tank contained a controlled substance which he was to deliver to others in San Antonio where the liquid meth would then be extracted.
Trevino will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Homero Ramirez is prosecuting the case.
New York Man Indicted in Connection with 2023 Shooting Using “Ghost Gun”Read the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York; Michael Alfonso, the Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”); and Jessica S. Tisch, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an Indictment charging TERRY BROOKS with three counts of possessing firearms and ammunition after a felony conviction. The charges relate to a November 12, 2023, shooting and the subsequent seizures of the defendant’s firearms and ammunition on August 14 and August 21, 2024. The case is assigned to U.S. District Judge Margaret M. Garnett.
Acting U.S. Attorney Matthew Podolsky said: “As alleged, on November 12, 2023, while on a public sidewalk in the Bronx, Terry Brooks reached into his waistband, pulled out a gun, and began shooting. Brooks missed his target but struck a nearby bystander, causing serious injury. Brooks had purchased more than 50 firearm components online and possessed privately manufactured and unregistered ‘ghost guns,’ but this did not stop law enforcement from catching him. Thanks to the work of the career prosecutors in this Office and our partners at HSI and the NYPD, Brooks has been arrested and will face trial.”
HSI Acting Special Agent in Charge Michael Alfonso said: “The defendant’s indictment today underscores the HSI New York El Dorado Task Force’s ability to aggressively pursue investigative leads in whatever forms they take. Violent crime precursors no longer fit one specific mold, and HSI, alongside the NYPD, continues to adapt to target alleged bad actors and predicate felons determined to commit crimes. New York City is a safer place with Terry Brooks off the streets.”
NYPD Police Commissioner Jessica S. Tisch said: “This indictment makes one thing clear: Untraceable ghost guns will not be tolerated in our city. Thanks to the meticulous work of the NYPD investigators, along with our law enforcement partners at HSI and the office of the U.S. Attorney for the Southern District of New York, this armed perpetrator—who terrorized our streets and injured an innocent bystander—will be held fully accountable. Every New Yorker deserves to feel safe, and removing every illegal firearm, whether trackable or disguised, brings us one step closer to achieving that goal.”
As alleged in the Indictment returned today and the Complaint unsealed on January 30, 2025:[1]
On November 12, 2023, a man—subsequently identified as BROOKS—fired a gun in the Bronx, New York, near the corner of E. 180th St. and Bathgate Ave. The bullet struck a bystander, who was rushed to a hospital, received medical treatment, and survived. Approximately three minutes after the shooting, officers responded. Officers immediately found a shell casing at the scene of the crime.
After obtaining surveillance video footage from several sources, officers were able to track the shooter, together with a female companion, from a particular hotel room to the scene of the shooting and back to the same hotel room. Hotel records identify BROOKS as someone who was staying in the hotel room at that time. BROOKS drove a red Toyota Corolla to and from the scene of the shooting, and the license plate is visible in some of the surveillance footage. BROOKS has received moving violations while driving that Corolla, which is registered to a woman with whom BROOKS sometimes resides.
Officers obtained search warrants for two premises where BROOKS sometimes resides. On August 14, 2024, while executing the warrants, officers encountered guns, firearm parts, and ammunition in close proximity to objects and documents bearing BROOKS’s name and likeness. Ballistics testing established that the shell casing found immediately after the shooting in November 2023 had been fired by one of the ghost guns recovered pursuant to these warrants.
Finally, on August 21, 2024, officers arrested BROOKS in the same hotel where he had been staying on the night of the shooting. The officers recovered yet another firearm, which was in plain view on a nightstand.
* * *
BROOKS, 58, of New York, New York, is charged with one count of possessing ammunition on or about November 12, 2023; one count of possessing firearms and ammunition on or about August 14, 2024; and one count of possessing a firearm and ammunition on or about August 21, 2024. Each count carries a maximum sentence of 15 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Podolsky praised the outstanding investigative work of HSI and the NYPD.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Kevin Grossinger and James Mandilk are in charge of the prosecution.
u.s._v._brooks_indictment.pdf[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
New Orleans Man Pleads Guilty to Federal Controlled Substances Act ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – KEVIN TYLER, II a/k/a “City,” (“TYLER”) age 48, a New Orleans resident, pled guilty on February 12, 2025, before United States District Judge Jane Triche Milazzo to two counts of a superseding indictment charging him with conspiracy to distribute, and possession with intent to distribute, five kilograms or more of cocaine (Count 1) and possession with intent to distribute, five kilograms or more of cocaine (Count 2), in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846, announced Acting U.S. Attorney Michael M. Simpson.
According to court documents, TYLER, and other co-conspirators, distributed multi-kilogram quantities of cocaine within the Eastern District of Louisiana.
For Counts 1 and 2, TYLER faces a mandatory minimum term of imprisonment of 10 years up to a maximum term of life, a fine of up to $10,000,000.00, at least five years of supervised release, and a mandatory special assessment fee of $200.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case was investigated by the Drug Enforcement Administration, the Louisiana State Police, and the Lafourche Parish Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorney Lynn E. Schiffman of the Narcotics Unit.
New Jersey Man Sentenced to 3 Years for Alien SmugglingRead the Press Release
ALBANY, NEW YORK – Kenneth Moore, age 42, of New Jersey, was sentenced yesterday to serve 3 years in prison after being convicted at trial of two counts of alien smuggling for private financial gain. Acting United States Attorney Daniel Hanlon and Chief Patrol Agent Robert N. Garcia, United States Border Patrol, Swanton Sector, made the announcement.
At trial in October 2024, the government established that on June 20, 2023, Moore traveled from New Jersey to an area just south of the border in Clinton County, New York, to pick up several aliens who had illegally crossed into the United States at a place other than a Port of Entry. Moore anticipated being paid $3,000 for his services but was quickly apprehended by agents from the United States Border Patrol.
Jurors could not reach a verdict on one count of conspiracy to commit alien smuggling, and that count was dismissed at sentencing.
In addition to the 36-month prison term, Moore was sentenced to a 3-year term of supervised release.
United States Border Patrol investigated this case with assistance from the Royal Canadian Mounted Police. Assistant U.S. Attorneys Allen J. Vickey and Joseph S. Hartunian prosecuted this case.
New Jersey Man Pleads Guilty to Filing A False Tax Return; Avoided Paying More Than $1 Million in TaxesRead the Press Release
NEWARK, N.J. – A New Jersey man admitted to filing a false tax return and causing more than $200,000 in tax losses for tax year 2018, Acting United States Attorney Vikas Khanna announced.
Francis Esposito, 66, of Red Bank, New Jersey, pleaded guilty before United States District Court Judge Georgette Castner in Trenton federal court today to an Information charging him with one count of filing a false tax return.
According to documents filed in this case and statements made in court:
Esposito was the sole or majority owner of numerous entities. For tax years 2015 through 2018, Esposito derived certain income through these entities that he failed to report on his Form 1040.
For tax year 2018, Esposito had approximately $719,272 of unreported income, which resulted in a tax loss of approximately $216,635. For tax year 2017, Esposito had approximately $940,978 of unreported income, which resulted in a tax loss of approximately $383,806. For tax year 2016, Esposito had approximately $746,886 of unreported income, which resulted in a tax loss of approximately $304,640. For tax year 2015, Esposito had approximately $589,929 of unreported income, which resulted in a tax loss of approximately $244,291. In total, Esposito’s unreported income resulted in a tax loss of approximately $1,149,372.
The filing a false tax return charge has a maximum term of three years, and a maximum fine of $250,000 or twice the gain or loss resulting from the offense.
Acting United States Attorney Khanna credited special agents of the Internal Revenue Service – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark.
The government is represented by Assistant U.S. Attorneys Vinay Limbachia and Andrew Kogan of the Cybercrime Unit in Newark.
esposito.information.pdf
Morgantown Physician Sentenced for Tax FraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – David M. Anderson, age 64, of Morgantown, West Virginia, was sentenced to six months in federal prison for filing false tax returns.
According to court documents and statements made in court, Anderson, a physician, filed false tax returns that understated his taxable income and made false claims to lessen his tax burden, causing a loss to the IRS of $143,599 over a four-year period.
Anderson will serve three years of supervised release following his prison sentence.
Assistant U.S. Attorney Eleanor Hurney prosecuted the case on behalf of the government.
The Internal Revenue Service Criminal Investigation investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Montgomery Man Sentenced to More than Nine Years in Prison for Armed Robbery of a U.S. Postal CarrierRead the Press Release
BIRMINGHAM, Ala. – A federal judge sentenced a Montgomery man for the robbery of a U.S. Postal carrier, announced U.S. Attorney Prim F. Escalona and U.S. Postal Inspection Service Acting Inspector-in-Charge Mona Hernandez, Houston Division.
U.S. District Court Judge Corey L. Maze sentenced Anthony Darryl Barber, Jr., 24, to 109 months in prison. In October 2024, Barber pleaded guilty to robbery of a U.S. Postal carrier and using or carrying a firearm during a violent crime.
According to the plea agreement, on May 3, 2023, a U.S. Postal carrier was delivering mail at an apartment complex in Huntsville. Barber approached the carrier, pointed a gun, and took the arrow key – a specialized key used by postal carriers to open U.S. Postal Service mailboxes. Barber then fled the scene. A Morgan County Sheriff’s Office sergeant was on patrol in the area when dispatchers advised of a stolen car tag affixed to a white Nissan Altima. The tag had been reported stolen in Montgomery, Alabama, on April 30, 2023. The sergeant conducted a traffic stop on the white Altima, which Barber was driving. When the sergeant asked Barber to pull the vehicle into a gravel driveway to clear the roadway, Barber sped away. The sergeant pursued Barber in a high-speed chase, which ended with Barber stopping and getting out of the car at the officer’s command. The sergeant found a Glock 27, Gen 5 .40 caliber pistol in the right front pocket of Barber’s pants. A search of the vehicle revealed a beige ski mask and postal arrow key.
The USPIS investigated the case along with the Morgan County Sheriff’s Office. Assistant U.S. Attorney Davis Barlow prosecuted the case.
Mishawaka Man Sentenced to 75 Months in PrisonRead the Press Release
SOUTH BEND – Makai Boyce, 19 years old, of Mishawaka, Indiana, was sentenced by United States District Court Judge Cristal C. Brisco after pleading guilty to possessing a machinegun, announced Acting United States Attorney Tina L. Nommay.
Boyce was sentenced to 75 months in prison followed by 2 years of supervised release.
According to documents in the case, in December 2023, Boyce possessed a stolen handgun with an extended magazine and a machinegun conversion device, or “switch,” capable of firing multiple bullets automatically. Boyce fired the machinegun and struck an occupied residence. Two days later, he led police on a lengthy foot chase during which he discarded the machinegun in a backyard doghouse surrounded by children’s toys.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Indiana State Police, the South Bend Police Department, and the St. Joseph County Prosecutor’s Office. The case was prosecuted by Assistant United States Attorneys Joseph P. Falvey and Katelan McKenzie Doyle.
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.
Miami Man Charged with Conspiracy to Distribute Fentanyl Connected to Overdose DeathRead the Press Release
MIAMI – This week, South Florida’s United States Attorney charged a 20-year-old Miami man with one count of conspiracy to distribute fentanyl resulting in death, and with one count of possession of a machinegun in the form of a “Glock switch” machine gun conversion device. (A Glock switch is a small device that, when attached to the rear or slide of a semi-automatic pistol, can convert the pistol into a fully automatic weapon).
According to allegations in the information, from at least as early as January 2024, through October 30, 2024, Domenic Pedre conspired to distribute fentanyl in South Florida, including the fentanyl dose associated with the August 2024 overdose death of a victim in Miami-Dade County.
Pedre faces a minimum of 20 years and up to life in prison for distribution of a controlled substance resulting in death or serious bodily injury. The United States has further alleged that Pedre is subject to forfeiture of $105,563 in cash proceeds related to the fentanyl distribution conspiracy.
Pedre also faces a maximum term of up to 10 years in prison for possession of the Glock switch machinegun conversion device.
The charges contained in the information are merely accusations and the defendants are presumed innocent unless and until proven guilty.
United States Attorney Hayden P. O’Byrne for the Southern District of Florida and Special Agent in Charge Deanne L. Reuter of the DEA, Miami Field Office, made the announcement.
This case was investigated by the DEA, Miami-Dade Sheriff’s Office and the City of Miami Police Department’s Gang Intelligence Unit, with assistance from the Miami-Dade State Attorney’s Office and the Florida Department of Corrections, Probation Services. The case is being prosecuted by Assistant U.S. Attorney Sterling M. Paulson.
Synthetic drugs such as fentanyl are poisoning the nation. Fentanyl has proven to be a deadly poison that does not discriminate. Its victims include every gender, race, age, and economic background, and its debilitating effects are the same across all demographics. Fentanyl is a synthetic opioid that is up to 50 times stronger than heroin and 100 times stronger than morphine. Even in small doses, fentanyl can be deadly. Just one fentanyl pill can kill, as noted in DEA’s One Pill Can Kill campaign. As little as two milligrams, about the size of 5 grains of salt, can be fatal. According to the Centers for Disease Control and Prevention (CDC), fentanyl and other synthetic opioids are the most common drugs involved in overdose deaths. Over 150 people die every day from overdoses related to synthetic opioids like fentanyl. The State of Florida has also seen an exponential increase in overdoses associated with fentanyl. In 2022, more than 5,622 people died from overdoses involving fentanyl and fentanyl analogs in Florida.
For more information visit: https://www.fdle.state.fl.us/MEC/Publications-and-Forms/Documents/Drugs-in-Deceased-Persons/2022-Annual-Drug-Report-FINAL-(1).aspx; https://www.cdc.gov/opioids/basics/fentanyl.html#; and https://www.dea.gov/factsheets/fentanyl.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 25-CR-20077.
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Mexican National Sentenced to 27 Months in Federal Prison for Immigration OffenseRead the Press Release
BOISE – Jose Salvador Alcaraz-Curiel, 31, a Mexican national, was sentenced to 27 months in federal prison for being a deported alien found in the United States, Acting U.S. Attorney Justin Whatcott announced today.
According to court records, Alcaraz-Curiel is a native and citizen of Mexico and is not a citizen of the United States. The United States lawfully removed Alcaraz-Curiel from the country in October 2018 and September 2020. After his second removal from the United States, Alcaraz-Curiel again re-entered the United States illegally and without lawful authority. Special agents with U.S. Immigration and Customs Enforcement (ICE) encountered Alcaraz-Curiel in Canyon County in March 2024. Alcaraz-Curiel has history of state misdemeanor and felony convictions in Idaho, as well as a 2020 federal conviction in the District of Arizona for being a deported alien found in the United States.
Acting U.S. Attorney Whatcott commended the efforts of ICE for their work on this case. Assistant U.S. Attorney Francis J. Zebari prosecuted this case.
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Meridian Man Sentenced to 220 Months in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Jackson, MS – A Meridian, Mississippi, man was sentenced today to 220 months in prison for possession with intent to distribute methamphetamine.
According to court documents, Jarvis Jermaine Hampton, 28, sold methamphetamine on two occasions in January and February of 2024. After those sales, a search warrant was executed at Hampton’s residence where agents discovered pounds of methamphetamine, cocaine, a pill press, and a machinegun.
Hampton was indicted by a federal grand jury on April 10, 2024. He pled guilty on October 22, 2024, to possession with intent to distribute methamphetamine.
Acting U.S. Attorney Patrick A. Lemon of the Southern District of Mississippi; and Assistant Special Agent in Charge Anessa Daniels-McCaw of the Drug Enforcement Administration made the announcement.
The Drug Enforcement Administration and the Mississippi Bureau of Narcotics investigated the case with assistance from the Lauderdale County Sheriff’s Office and the Mississippi Attorney General’s Office.
Assistant U.S. Attorney Samuel Goff prosecuted the case.
Man Convicted of Fraud Offenses in 2017 Sentenced to 2 More Years in Prison for Violating Conditions of Supervised ReleaseRead the Press Release
Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that MARC ANTHONY ALEXANDER, 44, recently residing in Milford, was sentenced today by U.S. District Judge Vernon D. Oliver in Hartford to 24 months of imprisonment, the statutory maximum sentence, for violating the conditions of his supervised release that followed prior convictions for conspiracy offenses related to two separate fraud schemes.
According to court documents and statements made in court, in April 2017, Alexander was sentenced in New Haven federal court to 96 months of imprisonment and three years of supervised release for his involvement in a scheme related to the theft and negotiation of postal money orders that defrauded the U.S. Postal Service of more than $300,000, and his role in a separate scheme that involved the fraudulent sale of financed vehicles, which defrauded lenders of more than $1 million. Alexander was released from federal prison in February 2023.
In February 2024, while on supervised release, Alexander was arrested by Stamford Police for illegal operation of a motor vehicle under the influence of alcohol/drugs, illegal operation of a motor vehicle under suspension, illegal operation of a motor vehicle without minimum insurance, and failure to drive in a proper lane. In November 2024, Alexander is alleged to have used a bank statement he manipulated with false information to facilitate the purchase of a vehicle from a car dealership in Dartmouth, Massachusetts. Alexander also falsely reported his address to his probation officer, left Connecticut without permission, and opened nine new lines of credit, all in violation of the terms and conditions of his supervised release.
Alexander, whose criminal history includes convictions for additional fraud offenses, has been detained in federal custody since January 13, 2025.
This case was prosecuted by Assistant U.S. Attorney Ray Miller.
Local felon sentenced for sexual exploitation of pregnant minor and conspiracies for drug trafficking and alien smugglingRead the Press Release
LAREDO, Texas – A 30-year-old Laredo man has been ordered to prison for sexual exploitation of a pregnant 16-year-old while in custody for other crimes, announced U.S. Attorney Nicholas J. Ganjei.
Luis Andres Serna pleaded guilty to sexual exploitation of a minor Sept. 23, 2024, and to the human transportation and drug conspiracies June 23, 2023.
U.S. District Judge Diana Saldaña has now ordered Serna to serve a total of 15 years in federal prison. Serna must also register as a sex offender pursuant to the Sex Offender Registration and Notification Act. At the hearing, the court heard additional information that the minor victim had had given birth to a child which she claimed Serna fathered. Serna disputed that claim.
“The defendant’s conduct in this case was absolutely reprehensible, and that the fact that it continued even while he was in custody underscores just how dangerous he is,” said Ganjei. “From alien smuggling, to drug trafficking, to sexual exploitation of a minor, the defendant took every opportunity to harm his community. Fortunately for the people of Laredo, he is now behind bars for a long while.”
“Today’s sentencing should serve as a deterrent to those involved in sexual exploitation, alien smuggling and drug trafficking,” said Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) San Antonio Special Agent in Charge Craig Larrabee. “ICE-HSI remains committed to investigating and bringing to justice criminals which harm individuals and communities. Through our dedicated efforts and strong partnerships with law enforcement, we will continue to hold perpetrators accountable and protect vulnerable victims from exploitation and abuse.”
On April 5, 2022, law enforcement encountered Serna after he picked up an illegal alien from downtown Laredo and transported him to an apartment building. At that time, a 16-year-old pregnant minor was his passenger.
Later that day, authorities discovered 37 illegal aliens and approximately 1,032 kilograms of marijuana within several apartments linked to Serna and others and eventually arrested him for drug trafficking and conspiracy to transport and harbor illegal aliens.
While in federal custody for the pending charges, he gained access to a tablet video system and contacted the same pregnant girl. The investigation revealed Serna provided the minor’s name and a phone number to initiate video calls but did not disclose she was a minor.
The facility’s communication system automatically records the displays of both parties during every video call. Law enforcement reviewed several hundred telephone calls and tablet video visits Serna initiated while detained.
The investigation revealed he was in regular video communication with the minor victim.
On June 24, 2022, he had her perform sexual acts while he watched. The minor victim used her personal cellphone to record herself performing the acts and played the video for Serna over the course of several days.
Serna will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with assistance from the U.S. Marshals Service, Border Patrol and other private companies.
Assistant U.S. Attorneys (AUSA) Homero Ramirez prosecuted the case along with the assistance of former Special AUSA Terence A. Check Jr. and former AUSA April Ayers-Perez, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. 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 link on that page.
Lexington Man Sentenced for Armed Fentanyl Trafficking and Illegal Firearm PossessionRead the Press Release
FRANKFORT, Ky. – A Lexington man, Sam Connor, Jr., 30, was sentenced on Wednesday by U.S. District Judge Gregory Van Tatenhove to 180 months, for possession with intent to distribute 40 grams or more of fentanyl, possession of a firearm in furtherance of drug trafficking, and possession of a firearm by a convicted felon.
According to his plea agreement, on April 27, 2023, law enforcement officers received information that Connor was a possible supplier of fentanyl in Fayette County and had arranged a sale of 500 pills containing fentanyl. Upon contacting Connor, law enforcement found a stolen firearm on his person, and Connor admitted to possessing drugs as well. Officers then found a plastic bag on Connor’s person containing pressed fentanyl pills, and located an unloaded firearm and digital scales in his vehicle.
Connor admitted to being in possession of the firearm and knew that he had been convicted of a felony, robbery second degree in Fayette Circuit Court in 2015, and was prohibited from possessing the firearm.
Under federal law, Connor must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for eight years.
Paul McCaffrey, Acting United States Attorney for the Eastern District of Kentucky; AJ Gibes, Acting Special Agent in Charge, ATF, Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence.
The investigation was conducted by ATF and Lexington Police Department. Assistant U.S. Attorney Cynthia Rieker is prosecuting the case on behalf of the United States.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, Acting U.S. Attorney McCaffrey coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Laredoan and two illegals charged in firearms and related conspiracyRead the Press Release
LAREDO, Texas – A federal grand jury has returned a 14-count indictment against three people on various federal firearms, drug trafficking and immigration offenses, announced U.S. Attorney Nicholas J. Ganjei.
Fernando Patinio, 31, Laredo, and Albert Garcia-Guajardo, 32, and Jose Hernandez-Garza, 25, both illegal aliens unlawfully residing in the country, were previously in custody on charges originally filed in a criminal complaint. They are expected to make an appearance on the allegations in the indictment before a U.S. magistrate judge in the near future.
The charges allege Patinio and Garcia-Guarjardo had allegedly sold cocaine and a large number of weapons, to include several machine guns, over the course of an approximately month-long undercover investigation.
During the initial transaction involving a pistol, Garcia-Guajardo had also indicated he and Patinio could also offer drugs for sale, according to the charges.
On Jan. 2, Patinio and Garcia Guajardo allegedly sold the first of two machine guns - a model 22 Glock equipped with a machine gun conversion device. The charges further allege that in the following weeks, Patinio and Garcia-Guajardo arranged to sell cocaine and another machine guns.
On Jan. 31, authorities executed a search warrant on the 3000 block of Monterrey Street in Laredo where they found Garcia-Guajardo and Hernandez-Garza, according to the charges. Law enforcement also allegedly discovered several more firearms, various narcotics, a scale and many more rounds of ammunition.
The charges allege Garcia-Guajardo and Hernandez-Garza were both determined to be illegally present in the United States. Garcia-Guajardo was allegedly ordered removed from the country two times, most recently in July 2024. According to the allegations, Hernandez-Garza originally had a B1/B2 visa issued to him, but it had expired. Both not lawfully in the United States, they are not permitted to possess any firearms per the charges.
Over the course of the undercover investigation, law enforcement has allegedly seized two machine guns, eight pistols - one of which had a filed-off serial number – drum-style magazines, cocaine, crack cocaine, marijuana and several rounds of .40 S&W caliber and 9 mm caliber rounds.
If convicted, Garcia-Guajardo and Patino face a mandatory minimum of 30 years and up to life in federal prison for conspiracy to traffic machines guns in the course of drug trafficking offenses and use of a machine gun in drug trafficking, while Hernandez-Garza faces up to 15 years in prison if convicted of being an illegal alien in possession of a firearm. All could also be ordered to pay up to a $250,000 fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration and Laredo Police Department conducted the investigation with the assistance of Homeland Security Investigations, Border Patrol, Immigration and Customs Enforcement’s Enforcement and Removal Operations and Texas Department of Public Safety. Assistant U.S. Attorney Tory R. Sailer and Brandon Scott Bowling are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Lake Charles Man Sentenced to 12 Years in Prison for Drug TraffickingRead the Press Release
LAFAYETTE, La. – Acting United States Attorney Alexander C. Van Hook announced that Jeremy Wade Denegall, 45, of Lake Charles, Louisiana, has been sentenced by United States District Judge David C. Joseph to 144 months (12 years) in prison, followed by 5 years of supervised release, on drug trafficking charges.
On February 22, 2022, law enforcement officers conducted a traffic stop of Denegall’s vehicle for a traffic violation on Interstate 10. Denegall was the sole occupant and driver of the vehicle. When officers approached the vehicle, they detected the odor of marijuana coming from inside and a search was conducted. Inside the vehicle they found a plastic baggie with a substance consistent with crack cocaine, a plastic bag containing a large amount of a crystal-like substance determined to be methamphetamine and also fentanyl. In addition, two firearms and a magazine with 19 rounds of ammunition and two digital scales were found.
Denegall was charged and pleaded guilty on November 15, 2024, to one count of possession with intent to distribute methamphetamine and one count of possession with intent to distribute fentanyl.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Calcasieu Parish Sheriff’s Office and Lafayette Parish Sheriff’s Office, and prosecuted by Assistant United States Attorney LaDonte A. Murphy.
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Kokomo Woman Ordered by Federal Court to Repay over $200,000 in Stolen Retirement Benefits from Deceased Husband’s AccountRead the Press Release
INDIANAPOLIS— Rebecca Fields, 70, of Kokomo, has been sentenced to three years’ probation after pleading guilty to making a false statement to illegally receive Social Security benefits. Fields has also been ordered to pay $231,203.10 in restitution.
According to court documents, beginning around July 1985, Rebecca Fields’ husband, “L.F.” began receiving Social Security retirement benefits. On December 4, 2002, Rebecca requested to be added as L.F.’s representative payee, which the Social Security Administration (SSA) ultimately approved.
When a qualified retirement beneficiary lacks the capacity to manage his or her own benefits, the SSA may approve a “representative payee” to receive the beneficiary’s benefits and to use them for the beneficiary. In such an instance, the SSA requires the representative payee to annually certify a continuing relationship with the beneficiary and how the representative used the beneficiary’s program benefits on his or her behalf.
On April 10, 2006, L.F. died. Nonetheless, not only did Fields fail to report that fact to the SSA, but she also completed at least 13 Representative Payee Reports between 2007 and 2022 on which she falsely claimed that L.F continued to live with her. These reports also contained false claims that she had spent his retirement benefits on his behalf to maintain his health and well-being. The lies were aimed at deceiving the SSA into continuing to pay her money that she was not owed. As a result, Rebecca Fields received approximately $231,203.10 in L.F.’s social security benefits- of which she was not entitled after he passed away.
“For over a decade, Fields brazenly stole not only from the United States government, but also indirectly from taxpayers who diligently pay into the Social Security retirement fund. Fields’ conduct also indirectly preyed on the vulnerable, elderly beneficiaries who ultimately depend on the program’s payments upon their retirement from the workforce,” said John E. Childress, Acting U.S. Attorney for the Southern District of Indiana. “This sentence should serve as a stark warning to potential fraudsters who may believe they can cheat the system- you will pay the price.”
The Social Security Administration, Office of Inspector General, investigated this case. The sentence was imposed by U.S. District Judge James P. Hanlon.
Acting U.S. Attorney Childress thanked Assistant U.S. Attorney Corbin D. Houston, who prosecuted this case.
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KC Man Sentenced for Illegal Ammunition, Assaulting OfficerRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man who rammed into a federal agent’s vehicle while attempting to escape arrest was sentenced in federal court today for illegally possessing ammunition and assaulting a federal law enforcement officer.
Charles D. Jackson, also known as “Grove Street” and “C Jackem,” 31, was sentenced by U.S. Chief District Judge Beth Phillips to five years and 10 months in federal prison without parole.
On June 13, 2024, Jackson pleaded guilty to one count of being a felon in possession of ammunition and one count of assaulting a federal law enforcement officer.
On Aug. 24, 2023, agents and task officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives executed a search warrant at Jackson’s residence, one of multiple residential search warrants being executed for evidence related to federal violations committed by various individuals associated with an alliance of three street gangs: the Click Clack Gang, the Park Side Greasies and the South Benton Gang.
As several officers approached Jackson’s residence on foot, an ATF agent pulled her Jeep into the driveway to pin in a black Kia sedan that was backed into the driveway and still running. All of the agents and officers were wearing clearly marked body armor identifying them as “ATF Police.”
The officers announced themselves and the ATF agent activated the red and blue flashing lights on her Jeep, which was hood-to-hood with the Kia. Jackson, who was fully reclined in the driver’s seat, popped up and put the car in drive. He rammed into the front of the ATF vehicle, then backed up and drove forward several times in an apparent attempt to escape, nearly striking another ATF agent on foot. However, the ATF agent pushed the Kia into the garage with her Jeep, immobilizing it. Jackson must pay restitution for the damage he caused to the government vehicle.
On the floorboard of the front’s driver’s seat where Jackson had been sitting, agents located a loaded AR-style 5.56-caliber pistol with no serial number and with an extended magazine, which contained 39 rounds of ammunition.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Jackson has a prior felony conviction for first degree robbery.
This case was prosecuted by Assistant U.S. Attorney John C. Constance. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Organized Crime and Drug Enforcement Task Force
This case 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.
Jury Finds District Man Guilty of Assault with Significant Bodily Injury & Obstruction of JusticeRead the Press Release
WASHINGTON – John Brown III, 32, of Washington, D.C., has been found guilty by a jury of assault with significant bodily injury related to an incident that took place in Southeast Washington, D.C., on July 4, 2023, announced U.S. Attorney Edward R. Martin, Jr. and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
The verdict was returned on February 25, 2025, following a trial in the Superior Court of the District of Columbia, where the defendant was also found guilty of three counts of obstructing justice and seven counts of contempt for coordinating subsequent coercive outreach in an attempt to discourage the victim’s participation in the court process, The Honorable Deborah Israel scheduled sentencing for May 16, 2025.
According to the government’s evidence, on July 4, 2023, the victim hosted a small game night attended by Brown, the father of her five-year-old son. When the party ended, all of the victim’s friends, but one, went home. While the remaining friend prepared to sleep on the couch, the victim went into her room and found Brown waiting for her. When she came in, the defendant started to berate her—even though Brown and the victim were no longer a couple, he was furious she had had a relationship with one of his friends. He repeatedly punched the victim in the face, then started to strangle her. The victim’s friend heard the noise and came running, tackling Brown and urging the victim to run. The victim tried but the defendant grabbed her ankle. Brown chased after the victim and struck her, causing her to fall onto the floor of her bathroom where she hit her head and passed out. Even after she woke up, the defendant continued to assault her until she and her friend were able to escape and call police. The complainant was taken to the hospital, where she was treated for injuries to her face, neck, and the blood vessels in her eye.
Although a Court ordered Brown to have no contact with the victim, directly or through third parties, he quickly started urging friends and family members to contact the victim and pressure her to drop the charges. He told one friend to tell the victim he would CashApp her that day if the charges were dropped; asked a family member to reach out to the victim daily to tell her to get the case thrown out; and even spent months urging his five-year-old son to “tell mommy to drop the case so dada can come home.” This pressure campaign against the complainant resulted in multiple convictions for obstructing justice and for violating the Court’s Stay Away Order.
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 acknowledged the work of Assistant U.S. Attorneys Sarah Roessler and Amanda Swanson, from the Domestic Violence Felonies Unit, who prosecuted the case.
Jefferson County Man Sentenced for Cocaine ChargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jamie Green, age 47, of Harpers Ferry, West Virginia, was sentenced to 70 months in prison for conspiracy to possess with the intent to distribute and to distribute cocaine.
According to court documents and statements made in court, the United States Postal Service Office of Inspector General intercepted a package containing more than two pounds of cocaine mailed from Los Angeles, California, to Green’s address in Jefferson County, West Virginia. Investigators arrested Green at his home. He has prior convictions for drugs, aggravated assault by a vehicle while under the influence of alcohol, and firearms convictions.
Green will serve three years of supervised release following his prison sentence.
Assistant U.S. Attorney Kyle Kane prosecuted the case on behalf of the government.
Investigative agencies include the United States Postal Service Office of Inspector General, the West Virginia State Police, and the Jefferson County Sheriff’s Office.
U.S. District Judge Gina M. Groh presided.
Jamaican Felon Facing Federal Charges in El Paso for Illegal Re-EntryRead the Press Release
EL PASO, Texas – A Jamaican national with multiple felonies was arrested at the Paso Del Norte Port of Entry on criminal charges related to his alleged illegal re-entry.
According to court documents, Dwight Donovan Moulton, 43, allegedly presented a Texas identification card to a Customs and Border Protection officer (CBPO) and claimed that he was a United States citizen traveling to El Paso after visiting his girlfriend in Mexico. The CBPO recognized facial discrepancies between Moulton and the photo ID, and escorted Moulton to the Passport Control Secondary (PCS) office for further inspection. At the PCS, he allegedly stated his true identity and admitted to being a citizen of Jamaica. A criminal complaint also alleges that Moulton admitted to finding the ID card he had presented and intended to use it to travel to El Paso.
Further investigation revealed that Moulton had been previously removed to Jamaica from Houston, most recently on or about Sept. 22, 2005. Additionally, his criminal record included three felonies, including a firearm offense and sale of a controlled substance.
If convicted, Moulton faces up to 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Margaret Leachman for the Western District of Texas made the announcement.
Customs and Border Protection is investigating the case.
Assistant U.S. Attorney Patricia Aguayo is prosecuting the case.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Jackson Man Sentenced to Three Years in Prison for Illegal Possession of a MachinegunRead the Press Release
Jackson, Miss – A Jackson man was sentenced to 3 years in federal prison for illegal possession of a machinegun.
According to court documents, Johnny Ragsdale, 21, was found in possession of an illegal machinegun after an attempted traffic stop on a vehicle in Jackson. Ragsdale, the driver, failed to yield to law enforcement and led Capitol Police on a high-speed chase. The chase ended after Ragsdale collided with a train car on Mill Street. A Glock pistol was recovered from the vehicle, and a machinegun conversion device, also known as a switch, was attached to the pistol.
Ragsdale was indicted by a federal grand jury on February 21, 2024, for illegal possession of a machinegun. He pled guilty on October 24, 2024.
The U.S. Attorney’s Office has seen an increase in cases involving illegal firearm conversion devices, commonly known as “switches” or “auto sears,” which convert semi-automatic handguns into fully automatic weapons (i.e., machineguns) in a matter of seconds. The rapid fire of firearms converted to machineguns presents a significant danger in our community to both the public and law enforcement. According to a 2023 report by the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF), there was a 570% increase in the number of machinegun conversion devices taken into ATF custody between 2017 and 2021.
Acting U.S. Attorney Patrick A. Lemon of the Southern District of Mississippi and Special Agent in Charge Robert Eikhoff of the Federal Bureau of Investigation made the announcement.
The case was investigated by the ATF and the Capitol Police Department.
Assistant U.S. Attorney Amber Jones prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Honduran National with Three Violent Crime Convictions Arrested for Illegal Re-Entry in Del RioRead the Press Release
DEL RIO, Texas – A Honduran national was arrested near Eagle Pass on criminal charges related to his alleged illegal re-entry.
According to court documents, Daniel Antonio Borjas-Flores, 29, was previously removed from the United States through Alexandria, Louisiana on Nov. 4, 2024. Borjas-Flores has three prior convictions—two for assault, including one domestic violence charge, and a third for cruelty toward a child.
If convicted, Borjas-Flores faces up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Margaret Leachman for the Western District of Texas made the announcement.
Homeland Security Investigations and the U.S. Border Patrol are investigating the case.
Assistant U.S. Attorney Brett Miner is prosecuting the case.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Honduran National Indicted for Illegal Re-EntryRead the Press Release
NEW ORLEANS – AMANDO ANTONIO VELASQUEZ-GUEVARA (“VELASQUEZ-GUEVARA”), age 29, was indicted on February 14, 2025 for reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a), announced Acting U.S. Attorney Michael M. Simpson.
According to the indictment, VELASQUEZ-GUEVARA, reentered the United States after being previously deported on October 28, 2019. If convicted, VELASQUEZ-GUEVARA faces a maximum term of imprisonment of two years, a maximum fine of up to $250,000, a maximum term of supervised release of up to one year, and a mandatory $100 special assessment fee.
Acting U.S. Attorney Simpson reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Simpson praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Honduran Man Sentenced to Prison for Illegally Reentering the United StatesRead the Press Release
DES MOINES, Iowa – A Honduran citizen was sentenced today to six months in federal prison for illegally returning to the United States after being deported.
According to public court documents, Francisco Antonio Santos Martinez, 35, had previously been deported three times from the United States. In February 2024, Minnesota law enforcement encountered Santos Martinez when he was arrested for disorderly conduct. He was released from Minnesota state custody. In August 2024, Santos Martinez was encountered by Iowa law enforcement and later convicted for public intoxication in the Iowa District Court for Polk County.
After completing his term of imprisonment, Santos Martinez will be surrendered to the custody of Immigration and Customs Enforcement for removal proceedings and will also be required to serve a one-year term of supervised release.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Honduran Man Indicted for Violations of Federal Controlled Substances Act, Federal Gun Control Act, and Reentry of Removed AlienRead the Press Release
NEW ORLEANS, LA – Acting United States Attorney Michael M. Simpson announced that on February 14, 2025, MIGUEL ANGEL SOLORZANO-DOMINGUEZ (“SOLORZANO-DOMINGUEZ”), age 37, was indicted for possession with intent to distribute cocaine, in Count One of the indictment, possession of a firearm in furtherance of a drug trafficking crime, in Count Two, possession of a firearm and ammunition by a convicted felon in Count Three and, reentry of a removed alien in Count Four, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), Title 18, United States Code, Sections 924(c),924(a)(2), 922(g), and Title 8, United States Code, Sections 1326(a), and 1326(b)(2), respectively.
According to the indictment, on or about January 29, 2025 SOLORZANO-DOMINGUEZ possessed a mixture and substance containing a detectable amount of cocaine; possessed a firearm, a Taurus Model G2C, nine-millimeter semi-automatic pistol, in furtherance of a drug trafficking crime; knowingly, unlawfully possessed a firearm, having been previously convicted of a felony in the State of Mississippi, and was officially deported and removed from the United States on or about July 9, 2010.
If convicted of Count One, SOLORZANO-DOMINGUEZ faces up to twenty years imprisonment , a fine of up to $1,000,000, and at least three years of supervised release, and a $100 mandatory special assessment fee. If convicted of Count Two, SOLORZANO-DOMINGUEZ faces a minimum term of five years up to life imprisonment, to run consecutive to any other term of imprisonment, a fine of up to $250,000, and up to five years of supervised release. If convicted of Count Three, SOLORZANO-DOMINGUEZ faces up to fifteen years imprisonment , a fine of up to $250,000, and up to three years of supervised release. If convicted of Count Four, SOLORZANO-DOMINGUEZ faces up to twenty years imprisonment , a fine of up to $1,000,000, and at least three years of supervised release. As to each count, SOLORZANO-DOMINGUEZ also faces payment of a $100 mandatory special assessment fee.
Acting U.S. Attorney Simpson reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the 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.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case was investigated by the Drug Enforcement Administration, Homeland Security Investigations, ICE Enforcement and Removal Operations, United States Border Patrol, Kenner Police Department, Jefferson Parish Sheriff’s Office, and Gretna Major Crimes Task Force. It is being prosecuted by Assistant U.S. Attorney Lynn E. Schiffman of the Narcotics Unit.
High-Ranking Sinaloa Leader Extradited to El Paso, Faces up to Life in Federal PrisonRead the Press Release
EL PASO, Texas – A high-ranking member of the Sinaloa Cartel was extradited from Mexico to El Paso, indicted for criminal charges related to his alleged federal racketeering, narcotics, money laundering, firearms, and continuing criminal enterprise offenses.
According to court documents, Daniel Franco Lopez aka “Micha” aka “Neon” aka “Fer,” 40, of Mexico, allegedly coordinated the shipments of hundreds of kilograms of cocaine and thousands of kilograms of marijuana into the United States, along with the pickup of drug proceeds, and kidnappings and murders.
Lopez was indicted in April 2012 along with Joaquin Guzman Loera aka “Chapo,” Ismael Zambada Garcia “Mayo,” and over a dozen other codefendants. He was arrested Aug. 14, 2012, and remained in Mexican custody until his extradition. Lopez made his initial appearance in federal court Monday.
“The extradition of this defendant is one of many significant pieces in a very large cartel case that spans more than a decade,” said Acting U.S. Attorney Margaret Leachman for the Western District of Texas. “Not only are we grateful for the enduring and successful efforts of our federal law enforcement partners at the DEA, FBI and ATF, but I want to emphasize our goal to put an end to these organizations is shared by this U.S. Attorney’s Office, the Justice Department and our counterparts in Mexico.”
“Daniel Franco Lopez was defendant #16 on DEA’s RICO indictment that included Joaquin ‘Chapo’ Guzman and Ismael ‘Mayo’ Zambada,” said Special Agent in Charge Towanda Thorne-James for the Drug Enforcement Administration’s El Paso Division. “This extradition demonstrates that the men and women of DEA will never tire of pursuing the most violent, drug traffickers responsible for thousands of deaths in our country. We thank our domestic and international partners for their assistance on this case.”
“The extradition is one more step towards dismantling and ending violence perpetrated by criminal drug trafficking organizations such as the Sinaloa Cartel,” said Special Agent in Charge John Morales for FBI El Paso. “The FBI and our partners will endlessly pursue and prosecute cartel members and associates who attempt to control and intimidate their communities through violence. This extradition starts the justice process to all of those who have suffered as a result of Franco Lopez’s criminal actions as a member of the Sinaloa Cartel.”
“This case reads like a Hollywood movie script. You know the film…cartels, guns, drugs, money, feds,” said Special Agent in Charge Jeffrey C Boshek II for the Bureau of Alcohol, Tobacco, Firearms and Explosives Dallas Field Division. “Fortunately for the citizens of the United States, the good guys prevailed in this one. Mr. Lopez, an alleged underground criminal mastermind, left a path of destruction in his path. The American people are safer with this bandit in handcuffs and behind bars.”
Lopez is charged with one count of RICO conspiracy; two counts related to conspiracy to possess and import over five kgs of cocaine and over 1,000 kgs of marijuana; one count of conspiracy to launder monetary instruments; one count of conspiracy to possess firearms in furtherance of drug trafficking crimes and aid and abet; and one count of engaging in a continuing criminal enterprise in furtherance of drug trafficking. If convicted, Lopez faces up to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The DEA, FBI, and ATF are investigating the case.
Assistant U.S. Attorneys Antonio Franco, Kyle Myers and Susanna Martinez are prosecuting the case for the Western District of Texas. The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Lopez.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Hardin County, Kentucky Man Sentenced to 4 Years in Federal Prison for Mailing Threats to Kill and ExtortRead the Press Release
Louisville, KY - A Hardin County, Kentucky man was sentenced yesterday to 4 years in prison for mailing letters with threats to kill and extort.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Kentucky Attorney General Russell Coleman, Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office, Commissioner Phillip Burnett, Jr. of the Kentucky State Police, and Chief Jeremy Thompson of the Elizabethtown Police Department made the announcement.
According to court documents, Kyle Miller, 21, was sentenced to 4 years in federal prison, followed by 3 years supervised release, for mailing threatening communications with threats to kill and extort. On July 6, 2023, August 28, 2023, and October 16, 2023, Miller mailed letters to a victim containing threats to kill. On January 28, 2024, Miller mailed letters to a victim containing threats to kill and extort. On October 13, 2023, Miller mailed a letter to a victim containing a threat to kill.
There is no parole in the federal system.
This case was investigated by the FBI, KSP and Elizabethtown Police Department.
Assistant U.S. Attorney Erwin Roberts prosecuted the case.
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Guatemalan Citizen Indicted for Illegal Re-Entry into U.S.Read the Press Release
PITTSBURGH, Pa. – A citizen of Guatemala has been indicted by a federal grand jury in Pittsburgh on a charge of illegal re-entry of a removed alien, Acting United States Attorney Troy Rivetti announced today.
The one-count Indictment named Anastacio Hernandez-Us, 46, as the sole defendant.
According to the Indictment, on February 7, 2025, Hernandez-Us was found in western Pennsylvania after having been removed from the United States in September 2010.
The law provides for a maximum total sentence of up to two years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Kelly M. Locher is prosecuting this case on behalf of the United States.
U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations conducted the investigation leading to the Indictment.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to achieve the total elimination of cartels and transnational criminal organizations, combat illegal immigration, and protect our communities from the perpetrators of violent crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Founder of Cryptocurrency Financial Services Firm “Gotbit” Extradited to the United States to Face Charges of Market Manipulation and Fraud ConspiracyRead the Press Release
BOSTON – A Russian national residing in Portugal has been extradited to the United States for his role in a wide-ranging conspiracy to allegedly manipulate cryptocurrency markets on behalf of client cryptocurrency companies.
Aleksei Andriunin, 26, was arrested in Portugal on Oct. 8, 2024 and extradited to the United States on Feb. 25, 2025. He appeared in federal court in Boston today and was ordered detained pending a hearing to be scheduled at a later date. On Oct. 31, 2024, Andriunin was indicted by a federal grand jury in Boston on charges of wire fraud and conspiracy to commit market manipulation and wire fraud. The indictment also charges Gotbit and two of its directors, Fedor Kedrov and Qawi Jalili.
According to court documents, Gotbit was a well-known “market maker” in the cryptocurrency industry. It is alleged that between 2018 and 2024, Gotbit provided market manipulation services to create artificial trading volume for multiple cryptocurrency companies, including companies located in the United States. Aleksei Andriunin was Gotbit’s Founder and Chief Executive Officer. In a 2019 interview, Andriunin allegedly described how he developed a code to “wash trade” cryptocurrencies to artificially inflate trading volume for the purpose of getting cryptocurrencies listed on CoinMarketCap (a website that published information about “trending” cryptocurrencies) and trading on larger cryptocurrency exchanges. Andriunin and Gotbit’s employees, including Jalili (Gotbit’s Director of Sales) and Kedrov (Gotbit’s Director of Market Making), allegedly marketed these wash trading tactics to prospective clients and explained how Gotbit used multiple accounts to avoid detection of the wash trades on the public blockchain. Gotbit allegedly made wash trades worth millions of dollars on behalf of clients and received tens of millions of dollars in proceeds in connection with these fraudulent services. It is alleged that Andriunin transferred millions of dollars of Gotbit’s proceeds into his personal Binance account.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release, a fine of up to $250,000 or twice the gross gain or loss from the offense, restitution and forfeiture. The charge of conspiracy to commit market manipulation and wire fraud provides for a sentence of up to five years in prison, up to three years of supervised release, a fine of up to $250,000 to twice the gross gain or loss from the offense, restitution and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah B. Foley and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the FBI’s Legal Attaché (Madrid) and Portugal’s Policia Judiciaria European Network of Fugitive Active Search Team (ENFAST). The Justice Department’s Office of International Affairs coordinated with Portuguese authorities to secure the arrest and extradition of Andriunin. Assistant U.S. Attorneys Christopher J. Markham and David M. Holcomb of the Securities, Financial & Cyber Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Former School District Employee Charged with Using AI Technology to Produce Sexual Abuse Images of Children in his Care, and Possession and Receipt of Child PornographyRead the Press Release
MINNEAPOLIS – Defendant William Michael Haslach, 30, a former employee of Independent School District #622 (North St. Paul—Maplewood—Oakdale) and ISD #834 (Stillwater), has been charged with receipt and possession of child pornography as well as production of an obscene visual representation of child sexual abuse, announced Acting U.S. Attorney Lisa D. Kirkpatrick.
According to court documents, defendant Haslach, of Maplewood, Minnesota, occupied several positions of trust with children. From August 2021 until January 2025, Haslach, 30, served as a lunch monitor and traffic guard for Independent School District #622 (North St. Paul—Maplewood—Oakdale). From 2021 through 2024, Haslach also served as a paraprofessional and later as a youth summer programs assistant for Independent School District #834 (Stillwater). Haslach used his access to children to take non-explicit photos of children in his care. Haslach then used those images to produce morphed/AI photos of those minors engaging in sexually explicit conduct. As detailed in the indictment, Haslach also possessed and received child pornography involving children that were abused by others.
“Prosecuting the predators who walk amongst us—in our neighborhoods, our communities, and particularly in our schools—will always be the top priority in the District of Minnesota,” said Acting U.S. Attorney Lisa D. Kirkpatrick. “My thoughts are with the many Minnesota parents who will be horrified to learn how Haslach used AI advances to victimize schoolchildren in his care. Rest assured, my office will prosecute this case to the fullest extent of the law.”
“Every child is entitled to a secure upbringing, and this case highlights the powerful collaboration among local, state, and federal law enforcement agencies in their mission to safeguard them,” said Special Agent in Charge Matthew Cybert, U.S. Secret Service – Minneapolis Field Office.
The federal indictment charges Haslach with five counts of receipt of child pornography, five counts of possession of child pornography, and one count of production of an obscene visual representation of child sexual abuse. Haslach made his initial appearance today in U.S. District Court before Judge Tony N. Leung. He was ordered to remain in custody pending a formal detention hearing on Monday, March 3, before Judge Douglas L. Micko.
Investigators believe there may be other victims relevant to this investigation. If your child has been in close contact with Haslach, and/or if you or your child is aware of Haslach taking a photo of your child, please contact the Minnesota BCA’s Tip Line at 651-793-2465 or email [email protected].
If you are a parent of a child that has at any point been under the care of Haslach, the U.S. Attorney’s Office has set up a website to provide you with resources and further information about this case: Haslach Child Exploitation 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. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit.
This case is the result of an investigation conducted by the United States Secret Service, Minnesota Bureau of Criminal Apprehension, and the Maplewood Police Department.
Assistant U.S. Attorney Carla J. Baumel is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
haslach_indictment_2.26.25.pdf
Former NYCHA Superintendent Sentenced to 41 Months in Prison for Bribery and ExtortionRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that JOY HARRIS, a former superintendent for the New York City Housing Authority (“NYCHA”), was sentenced today to 41 months in prison for soliciting and accepting over $50,000 in bribes from contractors in exchange for awarding those contractors at least approximately $500,000 in contract work. HARRIS’s sentence was imposed by U.S. District Judge Lewis A. Kaplan, who also presided over a one-week trial after which HARRIS was convicted of bribery and extortion under color of official right.
Acting U.S. Attorney Matthew Podolsky said: “Joy Harris was given a position of public trust in New York City. She used that position to demand bribes in exchange for approving important repair work at NYCHA buildings. As today’s sentence shows, those who abuse positions of public trust—at any level of government—to seek personal gain will face a harsh penalty.”
According to the Indictment, public court filings, statements made in court, and evidence presented during trial:
NYCHA is the largest public housing authority in the country, providing housing to New Yorkers across the City and receiving over $1.5 billion in federal funding from the U.S. Department of Housing and Urban Development (“HUD”) every year. When repairs or construction work at NYCHA housing require the use of outside contractors, services must typically be purchased via a bidding process. However, when the value of a contract was under a certain threshold, designated staff at NYCHA developments, including superintendents, could hire a contractor of their choosing without soliciting multiple bids. With either type of contract, a NYCHA employee needed to certify that the work was satisfactorily completed in order for the contractor to receive payment from NYCHA.
HARRIS, an assistant superintendent and superintendent at four different NYCHA developments in Manhattan from 2015 through 2021, demanded and accepted cash bribes in exchange for NYCHA contracts. She demanded contractors to pay bribes up front in order to be awarded the contracts and accepted bribe payments after the contractor finished the work and needed a NYCHA employee to sign off on the completed job so that the contractor could be paid by NYCHA. HARRIS typically demanded 10% of the contract value—between $500 and $1,000 depending on the size of the contract. In total, HARRIS demanded and accepted more than $54,150 of dollars in bribes in exchange for awarding no-bid contracts or approving payment on previously awarded contracts worth more than $500,000.
Of the 70 individual NYCHA employees charged with bribery and extortion offenses who were arrested in February 2024, 61 have pled guilty, and three have been convicted after trial. HARRIS is the first of the three NYCHA employees convicted after trial to be sentenced. The cases of the six remaining defendants, who are each presumed innocent unless and until proven guilty, remain pending.
If you believe you have information related to bribery, extortion, or any other illegal conduct by NYCHA employees, please contact [email protected] or (212) 306-3356. If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at [email protected].
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In addition to the prison term, HARRIS, 49, of Bushkill, Pennsylvania, was sentenced to three years of supervised release and ordered to pay restitution in the amount of $54,150 and forfeit $54,150.
Mr. Podolsky praised the outstanding investigative work of the New York City Department of Investigation, U.S. Department of Homeland Security – Homeland Security Investigations (“HSI”), the HUD Office of Inspector General, and the U.S. Department of Labor – Office of Inspector General, which work together collaboratively as part of the HSI Document and Benefit Fraud Task Force, as well as the Special Agents and Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jerry J. Fang, Jacob R. Fiddelman, Catherine Ghosh, and Meredith C. Foster are in charge of the prosecution, with the assistance of Paralegal Specialists Jayda Foote and Nandita Vasantha.
Former Missoula credit union employee sentenced to prison for embezzling $389,000 by swapping real money for fake currencyRead the Press Release
MISSOULA — A former Missoula credit union employee who admitted to embezzling approximately $389,000 from the vault by swapping real money with fake funds was sentenced yesterday to six months in prison, to be followed by five years of supervised release, and ordered to pay $389,000 restitution, Acting U.S. Attorney Timothy J. Racicot said.
The defendant, Edward Arthur Nurse, 35, of Missoula, pleaded guilty in October 2024 to an indictment charging him with theft from a credit union.
U.S. District Judge Donald W. Molloy presided. The court also sentenced Nurse to six months of home confinement and to perform 600 hours of community service. The court allowed Nurse to self-report to prison.
In court documents, the government alleged that from about July 2023 to June 2024, Nurse embezzled from his employer, Park Side Credit Union in Missoula. In June 2024, an employee discovered $340,000 in cash in the credit union’s vault had been replaced with fake funds from a company that provides fake currency as props for movies and entertainment productions. Nurse used his position as “team lead” for the vault to swap the credit union’s cash with fake money he purchased specifically for this purpose. Nurse hid his conduct from security cameras, auditors and his colleagues by putting real money at the front and back of bundles of fake money. Nurse made multiple purchases of fake money and stole the real cash from his work at different times over a seven-month period.
After the credit union discovered the thefts, Nurse claimed to an FBI special agent that he did not usually carry much cash and, aside from a vacation to Las Vegas, Nevada, he had not made any recent large purchases or cash deposits. However, records show that Nurse made at least nine cash deposits of over $10,000 each in 2024 into his personal account. The investigation also determined that during the first six months of 2024, Nurse had purchased $410,000 in fake currency from a prop money company. The credit union was later informed that approximately $50,000 in fake money had been received by the Federal Reserve in July 2024. Those funds were returned and determined to be fake bills from the prop money company.
The U.S. Attorney’s Office prosecuted the case. The FBI, with assistance from the Missoula Police Department, conducted the investigation.
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Former Middle School Teacher Admits Child Pornography ChargeRead the Press Release
ST. LOUIS – A former St. Louis County, Missouri middle school teacher on Wednesday admitted possessing hundreds of images and videos containing child sexual abuse material.
Scott R. Ellis, 38, pleaded guilty to one felony count of possession of child pornography. Ellis admitted possessing 72 images containing child abuse material on his cell phone and about 700 videos and more than 900 images in his Mega cloud storage account.
The investigation began with two cyber tipline reports to the National Center for Missing and Exploited Children about child pornography in Ellis’ Google account.
Ellis is scheduled to be sentenced on June 3. The charge carries a penalty of up to 20 years in prison.
The FBI and the St. Louis County Police Department Bureau of Special Investigations 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 Executive Director Is Sentenced for Stealing Thousands of Dollars from Gastonia Non-ProfitRead the Press Release
CHARLOTTE, N.C. – Stephanie L. Roberts, 55, of Gastonia, N.C., was sentenced today to 18 months in prison for stealing thousands of dollars from a non-profit corporation for cancer patients, announced Lawrence J. Cameron, Acting U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Roberts was ordered to serve two years under court supervision, and to pay $157,722.69 in restitution to the non-profit victim and $62,612 to the Internal Revenue Service.
Acting U.S. Attorney Cameron is joined by Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Charlotte Field Office (IRS-CI), Jason Krizmanich, Acting Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, and Chief Trent Conard of the Gastonia Police Department in making today’s announcement.
“Roberts treated a nonprofit organization meant to support cancer patients as her personal piggy bank, stealing funds intended to help those in need of resources and services during a health crisis. Roberts will now be held accountable for her reprehensible actions,” said Acting U.S. Attorney Cameron.
According to court documents and court proceedings, Roberts was the executive director of Cancer Services of Gaston County, a non-profit corporation that provides support and resources for cancer patients. Beginning no later than January 8, 2016, through January 21, 2022, Roberts embezzled more than $136,000 from the non-profit corporation. Roberts also admitted that she failed to pay more than $200,000 withheld from the paychecks of the non-profit corporation’s employees for federal income, Medicare, and Social Security taxes to the IRS. In addition to the embezzlement scheme, Roberts made and subscribed, under penalty of perjury, U.S. Income Tax Returns that falsely stated the amount of tax withheld from her wages, and falsely claimed that amount was paid to the IRS.
On March 22, 2024, Roberts pleaded guilty to theft in connection with health care; failure to truthfully account for and pay over trust fund taxes; and making and subscribing a false tax return. Roberts will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Cameron commended IRS-CI, USPIS, and the Gastonia Police Department for their investigation of the case.
Assistant U.S. Attorney Michael E. Savage of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Former CBP Officer Convicted of Smuggling Cocaine from the U.S. Virgin Islands to AtlantaRead the Press Release
ATLANTA – Following a five-day jury trial, Ivan Van Beverhoudt, 45, of St. Thomas, U.S. Virgin Islands, has been convicted of importing and possessing with intent to distribute more than 16 kilograms of cocaine.
“Van Beverhoudt used his trusted position as a U.S. Customs and Border Protection officer to circumvent the law and smuggle dangerous drugs into our community,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Thanks to the diligent efforts of our law enforcement partners, Van Beverhoudt is now being held accountable and faces time in federal prison.”
According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: On January 10, 2020, Van Beverhoudt, a former U.S. Customs and Border Protection officer, boarded a commercial flight from St. Thomas, U.S. Virgin Islands to Atlanta with 16 bricks of cocaine in two carry-on bags. To avoid TSA screening in St. Thomas, Van Beverhoudt traveled in his official capacity with his loaded CBP-issued firearm. Upon arriving at the Atlanta Hartsfield-Jackson International Airport, en route to his final destination of Baltimore, Maryland, a trained narcotics K-9 officer in the jetway alerted to Van Beverhoudt’s luggage, resulting in the discovery of the cocaine.
At the conclusion of his jury trial, Van Beverhoudt was convicted of conspiracy to import cocaine into the United States, importation of cocaine into the United States, conspiracy to possess with intent to distribute cocaine, and possession with intent to distribute cocaine. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with valuable assistance provided by the U.S. Customs and Border Protection and Department of Homeland Security, Office of the Inspector General.
Assistant U.S. Attorneys Bethany L. Rupert and Bret R. Hobson are prosecuting the case. Assistant U.S. Attorney Laurel B. Milam also contributed to the prosecution of the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Florida Financial Advisor Pleads Guilty to Promoting Illegal Tax Shelter and Stealing Client FundsRead the Press Release
A Florida man pleaded guilty today to orchestrating a nearly decade-long scheme to promote an illegal tax shelter and commit wire fraud. He also pleaded guilty to assisting in the preparation of false tax returns for tax shelter clients.
According to court documents and statements made in court, Stephen T. Mellinger III, of Delray Beach, was a financial advisor, insurance salesman, and securities broker operating in Florida, Michigan, Mississippi, and elsewhere. Beginning in late 2013, Mellinger conspired with others to promote an illegal tax shelter whereby clients would claim false tax deductions for so-called “royalty payments” to fraudulently reduce their taxes.
In reality, as Mellinger knew, the “royalty payments” were merely a circular flow of money designed to give the appearance of genuine business expenses. Typically, a client would send money to bank accounts controlled by Mellinger and other co-conspirators, who then sent the money — less a fee — right back to a different bank account that the client controlled. In this way, tax shelter participants retained control of the money they transferred, while falsely deducting the transfers as business expenses on their tax returns.
In total, Mellinger and his co-conspirators helped clients prepare tax returns that claimed over $106 million in false tax deductions, which caused a tax loss to the IRS of approximately $37 million.
Mellinger and a co-conspirator who was a relative, collectively earned approximately $3 million in fees from promoting the scheme.
In January 2016, Mellinger learned that several of his clients were being investigated and that the United States had started seizing their funds. Mellinger and a relative subsequently stole more than $2.1 million of funds from some of those clients, some of which he used to buy a home in Delray Beach.
Mellinger is scheduled to be sentenced on Sept. 16, and faces a maximum penalty of five years in prison for conspiring to defraud the IRS and commit wire fraud, and three years in prison for aiding in the preparation of false tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, Supervisory Official Antoinette T. Bacon of the Justice Department's Criminal Division, and Acting U.S. Attorney Patrick A. Lemon for the Southern District of Mississippi made the announcement.
IRS Criminal Investigation and the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service are investigating the case.
Trial Attorneys Richard J. Hagerman, William Montague, and Matthew Hicks of the Tax Division, Assistant U.S. Attorney Charles W. Kirkham for the Southern District of Mississippi, and Trial Attorneys Emily Cohen and Jasmin Salehi Fashami of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) are prosecuting the case.