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24 February 2025
Two Men Sentenced to 26 and 20 Years in Federal Prison for Multiple Armed Business RobberiesRead the Press Release
Louisville, KY – Two men were sentenced last week after previously pleading guilty to multiple counts of armed robberies that occurred at Louisville and Bullitt County, Kentucky businesses.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Chief Paul Humphrey of the Louisville Metro Police Department made the announcement.
According to court documents, Demarcus Page, 31, of Bullitt County was sentenced to 26 years in federal prison, followed by 5 years of supervised release. Page was convicted of eight counts of interference with commerce by robbery and three counts of brandishing a firearm during and in relation to a crime of violence. Joseph Campbell, 29, of Louisville was sentenced to 20 years in federal prison, followed by 5 years of supervised release. Campbell was convicted of five counts of interference with commerce by robbery and two counts of brandishing a firearm during and in relation to a crime of violence. All the robberies occurred between June 12, 2023, and September 12, 2023.
There is no parole in the federal system.
The case was investigated by the Louisville Metro Police Department.
Assistant U.S. Attorney Emily Lantz prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Twelve Men Sentenced for Conspiring to Distribute Fentanyl, Methamphetamine, and Marijuana in Tennessee and Other StatesRead the Press Release
NASHVILLE – Twelve members of a drug trafficking conspiracy were sentenced last week for their roles in conspiring to distribute and possess with intent to distribute controlled substances in middle Tennessee and elsewhere, announced Acting United States Attorney Robert E. McGuire for the Middle District of Tennessee.
According to court documents, around 2022, agents with Homeland Security Investigations, the Federal Bureau of Investigation and Drug Enforcement Administration began investigating large shipments of counterfeit fentanyl-laced pills that were inscribed “M30,” methamphetamine, and marijuana that someone was shipping to Tennessee and approximately 16 other states from California. Agents reviewed shipping materials, monitored social media accounts, and conducted surveillance before identifying Matthew Cox as the individual who was shipping these packages to members of the drug trafficking conspiracy. In their messages on social media applications and phones, the defendants discussed drug prices, drug shipments, and quality of the drugs. One defendant, Quortez Duncan, told Cox that he wanted stronger pills to get customers hooked on the pills to increase profits. Cox complied and attempted to send Duncan these pills, but Agents seized them. Agents also learned that another defendant, Khyre McClain, attempted to establish and launder money through a limited liability corporation.
In addition to this evidence of shipments to other states, agents seized packages of drugs that were being shipped to Tennessee. Specifically, on July 25, 2022, HSI agents seized a package from a UPS Store in Sebastopol, California, which was destined for Nashville, Tennessee. This package contained thousands of counterfeit fentanyl-laced pills weighing over two kilograms. The package also contained more than eight pounds of methamphetamine. On August 9, 2022, HSI agents intercepted two additional packages from the Santa Rosa, California, area which were destined for residences in Nashville. One package contained 472 grams of counterfeit fentanyl-laced pills, and the other package contained approximately four pounds of methamphetamine.
After collecting an overwhelming amount of evidence, law enforcement officers executed search warrants at multiple residences in California and Tennessee. They recovered handguns, assault rifles, bulk cash, expensive cars, marijuana, and large amounts of counterfeit fentanyl-laced pills.
“Stopping the trafficking of deadly fentanyl is a major priority of the Department of Justice,” said Acting U.S. Attorney Robert E. McGuire, “these successful prosecutions demonstrate our continued commitment to hit fentanyl traffickers with the full force of the law.”
“These defendants took part in a cross-country conspiracy that brought significant amounts of fentanyl, methamphetamine, and marijuana to Tennessee,” said Special Agent in Charge Joseph E. Carrico of the FBI Nashville Field Office. “The FBI and our law enforcement partners remain committed to holding those accountable who attempt to poison our communities.”
Each defendant was convicted of conspiring to distribute controlled substances. Three defendants were also convicted of unlawfully possessing firearms after previously being convicted of felony offenses. The defendants were sentenced as follows:
Quortez Duncan, age 37, was sentenced to 15 years in federal prison
Mathew Cox, age 28, was sentenced to 11 years and 8 months in federal prison
Jonny Rodriguez-Gonzalez, age 26, was sentenced to 11 years and 2 months in federal prison
Ricardo Molinero-Alcarez, age 29, was sentenced to 10 years in federal prison
Khyre McClain, age 23, was sentenced to 10 years in federal prison
Davontay Holt, age 30, was sentenced to 10 years in federal prison
Marcus Johnson, age 27, was sentenced to 5 years in federal prison
Tristain Orr, age 25, was sentenced to 5 years in federal prison
Ethan Kimes, age 22, was sentenced to 2 years in federal prison
Marquitues Sawyers, age 24, was sentenced to 1 year and 8 months in federal prison
Jahari Armstrong, age 22, was sentenced to 3 years of probation
Jaydan Armstrong, age 22, was sentenced to 3 years of probation
This case was investigated by the Drug Enforcement Administration; Homeland Security Investigations; the U.S. Postal Inspection Service; the Federal Bureau of Investigation, Nashville Field Office; the Tennessee Bureau of Investigation; and the Columbia Police Department. Assistant U.S. Attorneys Ahmed Safeeullah and Rachel Stephens prosecuted this case.
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Tower Woman Sentenced to Prison for Embezzling over $300K from ClientsRead the Press Release
ST. PAUL, Minn. – A Tower woman has been sentenced to 28 months in prison, three years of supervised release, and was ordered to pay nearly $430,000 in restitution to more than two dozen former payroll clients and the IRS, announced Acting U.S. Attorney Lisa D. Kirkpatrick.
According to court documents, Jeana Lautigar, a.k.a. Jeana Lautigar-McGowan, 58, owned and operated an accounting and payroll service headquartered in St. Louis Park, Minnesota, where she managed payroll for various small businesses. To facilitate the payroll service, Lautigar-McGowan was granted access to client bank accounts. On multiple occasions between 2016 and 2020, Lautigar-McGowan embezzled funds from her clients’ bank accounts and used the money to cover personal expenses, or to pay back money she had previously embezzled from other clients. To accomplish her scheme, Lautigar-McGowan would electronically transfer funds from a client account into an account she controlled – in an amount appearing to be consistent with clients’ payroll – and spend the money for unapproved purposes. In total, she embezzled $344,813 from her clients over a period of five years.
According to court documents and her guilty plea, on February 6, 2020, Lautigar-McGowan tried to cover her scheme by transferring money from an account she controlled and that had been funded with embezzled money into the account of another payroll client. Lautigar-McGowan also filed false income tax returns in which she failed to report the embezzled income, resulting in a $84,746 tax loss to the United States.
On September 27, 2024, Lautigar-McGowan pleaded guilty in U.S. District Court to one count of engaging in a monetary transaction in criminally derived property and one count of filing a false income tax return. She was sentenced last week by Judge Donovan W. Frank.
This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation.
Assistant U.S. Attorneys Robert Lewis and Esther Soria prosecuted the case.
Three-Time Convicted Felon Sentenced for Unlawful Possession of a FirearmRead the Press Release
WASHINGTON — Devin Devaun, 26, of Washington D.C., was sentenced today in U.S. District Court to 30 months in federal prison for unlawful possession of a revolver and ammunition in December 2023 while he was on supervised release for two prior unlawful firearm possession convictions.
The sentence was announced by U.S. Attorney Edward R. Martin, Jr. and Chief Pamela Smith of the Metropolitan Police Department (MPD).
On November 15, 2024, during a stipulated facts bench trial, U.S. District Court Judge Tanya S. Chutkan found Devaun guilty of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. In addition to imposing the 30-month prison sentence, Judge Chutkan ordered Devaun to serve three years of supervised release.
According to court documents, on December 17, 2023, members of the MPD’s Violent Crimes Suppression Division’s Robbery Suppression Unit were patrolling along the Georgia Avenue corridor in the 4th District based on a spree of robberies that had occurred there. The MPD issued a BOLO or a “be on the lookout for” with regard to one of these particular robberies.
Around 12:10 a.m., the officers observed a group of at least four individuals jaywalking across Georgia Avenue NW at the intersection of Longfellow Street NW, whom the officers believed matched the description of the suspects in the BOLO. One of the officers observed that one of the individuals had a rectangular-shaped object protruding downward in his front groin area, inconsistent with human anatomy and not in a spot where people typically keep cell phones or other objects.
As one of the officers approached that individual, the individual began looking from side to side as if he were attempting to look for an avenue of escape. That individual then took off running southbound on Georgia Avenue NW, tripping as he ran down the sidewalk. Two of the officers quickly caught up with him. The officers handcuffed the defendant, and as an officer patted the defendant down, the officer felt a hard object that he recognized as a firearm. At this point, the firearm had slid down the defendant’s right pants leg. A few minutes later, another officer cut a hole in the defendant’s right pants leg, removing a holstered .357 caliber revolver loaded with six rounds.
The defendant was prohibited from possessing a firearm based on three previous felony convictions: a 2016 robbery conviction, a 2017 conviction for unlawful possession of a firearm, and a 2021 felon conviction for unlawful possession of a firearm.
This case was investigated by the MPD’s Violent Crimes Suppression Division’s Robbery Suppression Unit. It is being prosecuted by Special Assistant U.S. Attorney Monica Svetoslavov. Valuable assistance was provided by former Assistant U.S. Attorney Kyle Mirabelli.
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Three men indicted for distribution of methamphetamineRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned indictments charging three defendants in two separate cases of distribution of methamphetamine.
According to court documents, Yonivert Martinez-Montano, 36, of Wichita is charged with five counts of distribution of methamphetamine and one count of use a telephone to facilitate drug trafficking. Rocio Basurto Ayala, 35, of Wichita was indicted on one count of distribution of methamphetamine.
In a separate, unrelated indictment, Shannon Church, 55, of Wichita, was indicted on three counts of distribution of methamphetamine.
The Sedgwick County Sheriff’s Office and Homeland Security Investigations (HSI) are investigating the cases.
Assistant U.S. Attorney Debra Barnett is prosecuting the cases.
OTHER INDICTMENTS
Wilson Dubon-Melgar, 32, was indicted on one count of unlawful reentry after deportation. U.S. Customs and Immigration Enforcement (ICE) is investigating the case. Assistant U.S. Attorney Trent Krug is prosecuting the case.
Raul Ayon Lizarraga, 24, was indicted on one count of alien in possession of a firearm. U.S. Customs and Immigration Enforcement (ICE) is investigating the case. Assistant U.S. Attorney Ryan Huschka is prosecuting the case.
Miguel Lozoya-Serrano, 50, was indicted on one count of unlawful reentry after deportation. U.S. Customs and Immigration Enforcement (ICE) is investigating the case. Assistant U.S. Attorney Molly Gordon is prosecuting the case.
Anthony Suazo-Brown, 20, was indicted on one count of reentry of removed alien. U.S. Customs and Immigration Enforcement (ICE) is investigating the case. Assistant U.S. Attorney Faiza Alhambra is prosecuting the case.
Dalton Wayne Woods, 32, was indicted on two counts of distribution of child pornography. Homeland Security Investigations (HSI) and the Kansas Internet Crimes Against Children Task Force (ICAC) are investigating the case. Assistant U.S. Attorney Jason Hart is prosecuting the case.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###Three Men Sentenced to Prison for Carjackings and Armed Robberies in ChicagoRead the Press Release
CHICAGO — Three men who committed multiple carjackings and robberies in Chicago, including carjacking a vehicle with an infant in the back seat and pistol-whipping a convenience store clerk, have been sentenced to federal prison terms ranging from 15 to 22 years.
DAMANDRE HENLEY, DWIGHT HASBERRY, TYLER OATES-NELSON, and DAVARIO MCDOWELL engaged in a series of carjackings and robberies in Chicago in the overnight hours of Sept. 28 and 29, 2022. The four defendants pleaded guilty last year to federal carjacking, armed robbery, and firearm charges.
On Thursday, U.S. District Judge Manish Shah sentenced Oates-Nelson, 29, of Chicago, to 15 years in federal prison. On Wednesday, Judge Shah sentenced McDowell, 25, of Chicago, to 18 years. On Feb. 11, 2025, Judge Shah sentenced Henley, 28, of Chicago, to 22 years. Hasberry, 31, of Chicago, is scheduled to be sentenced by Judge Shah on March 20, 2025, at 1:30 p.m.
Four of the carjackings occurred in the early morning hours of Sept. 28, 2022. The carjacking involving the infant occurred late that evening, when the four men carjacked a Volkswagen Tiguan in Chicago’s West Town neighborhood. After the men drove to the neighborhood in Oates-Nelson’s vehicle, Henley, Hansberry, and McDowell pointed guns at the driver and the infant in a rear car seat and ordered them out of the vehicle. One of the carjackers patted down the driver and removed a registered handgun from his pocket. The driver removed the infant from the car before Henley, Hansberry, and McDowell got into the Tiguan and drove away.
A short time later, the four men, now all traveling in the stolen Tiguan, drove to Chicago’s Ravenswood Manor neighborhood, where Henley, McDowell, and Hansberry robbed one victim at gunpoint of their cell phone, wallet, and keys, and another victim of their backpack.
The four men then robbed a nearby 7-Eleven convenience store. With Oates-Nelson waiting in the stolen Tiguan, Henley, McDowell, and Hansberry entered the store carrying guns. Henley used his gun to strike a store clerk in the head while forcing him to open the cash register. The defendants fled the store with cash, cigarettes, and liquor bottles.
The sentences were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and Larry Snelling, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Elie Zenner.
Texas Man Pleads Guilty to Stealing Mail from Albany Postal FacilityRead the Press Release
ALBANY, NEW YORK – Sean A. Walter, age 30, of Humble, Texas, pled guilty today to stealing business checks out of the U.S. Mail by repeatedly and unlawfully entering a mail sorting facility in Albany.
The announcement was made by Acting United States Attorney Daniel Hanlon; Matthew Modafferi, Special Agent in Charge, United States Postal Service, Office of Inspector General (USPS-OIG), Northeast Region; and Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS).
Walter admitted that on six occasions in 2023 and 2024, he unlawfully entered the USPS Albany Processing and Distribution Center (PDC) on Karner Road, in order to steal mail that he believed contained business checks. For instance, at approximately 12:56 a.m. on January 23, 2024, Walter entered the Albany PDC by forcefully pulling up a retractable overhead door to the facility. Once inside, he went to a large room where USPS employees were sorting mail and then stole a variety of mail. Walter placed the stolen mail in his backpack and exited the Albany PDC at around 2:31 a.m. He then re-entered the Albany PDC two more times that night and stole more mail on each occasion.
According to the criminal complaint in this case, Walter was arrested on May 14, 2024, after being confronted by security guards inside of the Albany PDC and fleeing to a nearby motel.
The mail that Walter stole included checks drawn on bank accounts belonging to entities in Upstate New York, including a town government, a bank, a volunteer fire department, and several small businesses. Walter sold these stolen checks to others and understood that these checks would then be altered and forged in ways that allowed them to be successfully negotiated by people other than the checks’ intended payees. In pleading guilty, Walter admitted to causing losses totaling at least $242,159.76.
Walter also admitted that on two occasions in 2022, he unlawfully entered the USPS North Houston PDC (in Texas) and stole business checks.
Walter faces up to 5 years in prison, a fine of up to $250,000, and up to 3 years of post-imprisonment supervised release, when United States District Judge Mae A. D’Agostino sentences him on June 30, 2025. Walter may also be ordered to pay restitution to his victims. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
USPS-OIG and USPIS investigated the case, and Assistant U.S. Attorney Michael Barnett is prosecuting the case.
Sumter Man Sentenced to Federal Prison for $2.8M Wire Fraud SchemeRead the Press Release
COLUMBIA, S.C. — Daniel Criswell Lee, 55, of Sumter, has been sentenced to 33 months in federal prison for wire fraud. He was also ordered to pay $2.8 million in restitution.
Evidence obtained in the investigation revealed that Lee worked as project manager for Agile Infrastructure Service, LLC. As project manager, Lee represented Agile in the bidding process to obtain government contracts. Once Agile was awarded a project, Lee diverted money paid by the government for work on the project to corporations under his control. Lee was then used the funds for his own benefit. The illegally obtained funds totaled at least $2.8 million.
United States District Court Judge Sherri A. Lydon sentenced Lee to 33 months imprisonment, to be followed by a three-year term of court-ordered supervision. He was also ordered to pay $2.8 million in restitution. There is no parole in the federal system.
This case was investigated by Department of the Army Criminal Investigation Division (DACID) and Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, Charleston Resident Agency. Assistant U.S. Attorney John Potterfield is prosecuting the case.
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Stolen Debit Card Numbers, Illicit Purchases Lead to Guilty Plea from Massachusetts ManRead the Press Release
PORTLAND, Maine: A Massachusetts man pleaded guilty in U.S. District Court in Portland today to bank fraud and aggravated identity theft.
According to court records, from January to February 2023, Andre Hill, 25, obtained and used multiple debit card numbers without the knowledge of the account holders. Hill loaded the stolen numbers into a digital wallet application on his phone and then traveled to Maine and other locations to make purchases, request cash back, and purchase money orders payable to himself. The purchases made in Maine took place at multiple retail locations and post offices in the greater Portland area.
Hill faces up to 30 years in federal prison and a maximum fine of $1 million on the bank fraud charge. He faces a mandatory prison term of two years and a maximum fine of $250,000 on the aggravated identity charge. Any sentence imposed on the aggravated identity theft charge will run consecutively to any other sentence imposed. Following a term of incarceration, Hill faces up to five years of supervised release. He will also be required to pay restitution to the victims. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Homeland Security Investigations (HSI) and the U.S. Postal Inspection Service investigated the case.
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Silver Spring Man Indicted for Producing and Possessing Child Sexual Abuse MaterialRead the Press Release
Greenbelt, Maryland – A federal grand jury indicted David Alain Schmidt, 43, of Silver Spring, Maryland, charging him with producing and possessing child sexual abuse material.
Phil Selden, Acting U.S. Attorney for the District of Maryland, announced the indictment with Special Agent in Charge Michael McCarthy, Homeland Security Investigations (HSI) Baltimore, and Chief Marc R. Yamada, Montgomery County Police Department.
According to the indictment, in October 2024, Schmidt enticed a minor to produce child sexual abuse material and he also possessed sexually explicit images of a minor victim.
If convicted, Schmidt faces a mandatory minimum sentence of 15 years in federal prison for producing child sexual abuse material and a maximum of 10 years in federal prison for possessing child sexual abuse material. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. Individuals charged by indictment are presumed innocent until proven guilty at a later criminal proceeding.
Acting U.S. Attorney Selden commended HSI and the Montgomery County Police Department for their work in the investigation. Mr. Selden also thanked Assistant U.S. Attorney Megan S. McKoy who is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc. Learn about Internet safety education by clicking on the “Resources” tab on the left side of the page.
Know2Protect is a Department of Homeland Security national public awareness campaign to educate and empower children, teens, parents, trusted adults and policymakers to prevent and combat online child sexual exploitation and abuse; explain how to report online enticement and victimization; and offer resources for victims and survivors and their supporters. Learn more about Know2Protect at www.dhs.gov/know2protect.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Seven Charged in Central Florida Gun Trafficking SchemeRead the Press Release
Orlando, Florida – Acting United States Attorney Sara C. Sweeney announces the return of an indictment charging six individuals involved in an alleged gun trafficking operation. An additional individual was separately charged by complaint in the same conspiracy. The indictment also notifies the defendants that the United States intends to forfeit specific firearms recovered in the operation.
Name
(Age, City of Residence)
ChargeMaximum PenaltiesVictor Manuel LaFontaine Ruiz
(31, Poinciana)
Gun trafficking conspiracy
Unlicensed gun dealing, aiding and abetting
Possession of machinegun
15 years
5 years
10 years
Jose Emanuel Maldonado Rodriguez
(32, Kissimmee)
Gun trafficking conspiracy
Unlicensed gun dealing, aiding and abetting
Possession of machinegun
15 years
5 years
10 years
Freddie Geovani Cruz Batiz
(36, Kissimmee)
Gun trafficking conspiracy
Unlicensed gun dealing, aiding and abetting
15 years
5 years
Jomar Manuel Lopez Montanez
(30, Kissimmee)
Gun trafficking conspiracy
Unlicensed gun dealing, aiding and abetting
Felon in possession
15 years
5 years
15 years
Derrick Yamil Rivera Robles
(29, Kissimmee)
Gun trafficking conspiracy
Unlicensed gun dealing, aiding and abetting
Possession of machinegun
15 years
5 years
10 years
Leonardo David Joseph Guerra
(23, Orlando)
Gun trafficking conspiracy
Unlicensed gun dealing, aiding and abetting
Alien in possession
15 years
5 years
15 years
Jincheng Shi
(27, St. Cloud)
Unlicensed gun dealing, aiding and abetting
Alien in possession
5 years
15 years
According to court documents, from at least as early as September 2023 onward, Lafontaine and Maldonado operated a gun trafficking ring involving hundreds of firearms, machineguns, machinegun conversion devices, and high-capacity magazines needed for fully automatic weapons. This operation did not involve any federally licensed firearms dealers. Instead, Lafontaine and Maldonado obtained firearms parts, including from Jincheng Shi, a Chinese national. Lafontaine and Maldonado allegedly assembled, manufactured, and modified semi-automatic and automatic firearms using a “ghost gunner” machine and specialized “endmill” drilling devices at a workspace on Maldonado’s property in Kissimmee:
From there, Lafontaine and Maldonado, along with assistance from Batiz, sold firearms, including fully automatic weapons and machine gun conversion devices (“chips” or “buttons”) that are used to convert semi-automatic weapons into machineguns. They sold those items to illegal aliens and convicted felons such as Lopez Montanez, Rivera Robles, and Joseph Guerra, who were often brokering such transactions on behalf of other unknown customers.
On September 17, 2023, for example, Lafontaine showed a fully automatic firearm to a customer that was later sold during this operation and, on October 9, 2023, Lafontaine quoted Rivera Robles (a convicted felon) a price of $150 for a machinegun conversion device known as a “chip,” that Rivera Robles purchased in March 2024.
On February 7, 2025, Lafontaine sold Lopez Montanez (a convicted felon) two firearms falsely branded to appear as though they were legitimate firearms manufactured with engraved fake sequential serial numbers. When Lopez Montanez was stopped, he fled from law enforcement and attempted to hide the weapons that were eventually recovered.
The next day, Lafontaine delivered five similar firearms to Maldonado.
On February 20, 2025, law enforcement executed five search warrants at various locations associated with this conspiracy. The items are still be inventoried. Preliminarily, the Federal Bureau of Investigation (FBI) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) have recovered at least five AR-style pistols with sequential and identical serial numbers at Maldonado’s residence (depicted below), along with at least three machinegun conversion devices, machinery used to assemble, modify, and manufacture the firearms and machine guns sold through this operation.
At Lafontaine’s residence, agents recovered a completed rifle, gun parts, gun manufacturing and modification equipment, and drug distribution paraphernalia with a blender and a powder that field-tested positive for fentanyl, packaged for sale. At Batiz’s residence, agents recovered a handgun and an AR pistol, four machinegun conversion devices, along with drug paraphernalia and powders packaged for distribution that are still being tested. Eight handguns, three rifles, and eight AR-style receivers were recovered from Shi’s residence and storage lockers.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Metropolitan Bureau of Investigation, Orange County Sheriff’s Office, Orlando Police Department, Winter Garden Police Department, Osceola County Sheriff’s Office, Apopka Police Department, Seminole County Sheriff’s Office, and Florida Highway Patrol. It will be prosecuted by Assistant United States Attorney Dana E. Hill.
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 case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Sean Williams Sentenced to 95 Years for Production of Child Pornography and Escape from CustodyRead the Press Release
GREENEVILLE, Tenn. – On February 24, 2025, Sean Christopher Williams, 53, of Johnson City, Tennessee, was sentenced to 95 years imprisonment by the Honorable J. Ronnie Greer, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Greeneville.
In July of 2024, Williams was convicted at trial of escape in violation of 18 U.S.C. § 751(a) and in November of 2024, Williams was convicted at trial of three counts of production of child pornography, in violation of 18 U.S.C. § 2251(a) and (e).
The evidence presented at the escape trial showed that Williams escaped from a transport van enroute to the Greeneville Federal Courthouse on October 18, 2023. His escape resulted in a multistate manhunt that led to the capture of Williams in Pinellas County, Florida, on November 21, 2023.
The evidence presented at the child pornography trial showed that Williams used three minor children to engage in sexually explicit conduct and took photos of the sexually explicit conduct. The conduct occurred at Williams’s apartment in Johnson City. The evidence showed that Williams sexually assaulted each of the victims’ mothers while they were unconscious, around the same time that he took pornographic photos of their children. The criminal conduct extended over a 12-year period. Williams took photos of the first victim in 2008 and the two other victims on separate occasions in 2020. Williams was arrested in 2023 near the campus of Western Carolina University and campus police officers seized flash drives from his car that were later found to contain the photos.
“Sean Williams is a dangerous sexual predator who preyed on our community’s most vulnerable victims,” said United States Attorney Francis M. Hamilton III. “Today’s sentence reflects the severity of the crimes committed and not only ensures that this dangerous individual has been held accountable for the harm he caused, but also prevents him from hurting others again. We thank the dedicated law enforcement officers whose efforts made the convictions and sentence possible.”
“Our children are among the most vulnerable members of our community,” said Special Agent in Charge Joseph E. Carrico of the Federal Bureau of Investigation (FBI) Nashville Field Office. “The FBI will continue to do everything in its power to stop sexual exploitation of children that causes irreparable harm and trauma to the victims and bring to justice those responsible.”“This case shows the impact of collaboration and determination by the Tennessee Bureau of Investigation and our local, state, and federal partners to hold accountable an individual who preyed upon innocent children,” said TBI Director David Rausch. “We hope the outcome of this investigation sends a clear message that we will continue to commit all the necessary resources to find and apprehend those who victimize our most vulnerable residents.”
Law enforcement agencies either participating in a joint investigation, or cooperating in a parallel investigation, which led to the apprehension, indictment and subsequent conviction of Williams included the FBI, the United States Marshal Service, Homeland Security Investigations, the First Judicial District Attorney’s Office, the Tennessee Bureau of Investigation, and the Western North Carolina Police Department.
Assistant U.S. Attorneys Meghan L. Gomez, Emily M. Swecker, and J. Gregory Bowman represented the United States at the trials.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit www.justice.gov/psc.
For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.”
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Richmond felon pleads guilty to illegal firearm possessionRead the Press Release
RICHMOND, Va. – A Richmond man pled guilty today to being a felon in possession of a firearm.
According to court documents, on Aug. 12, 2023, Richmond Police officers responded to a 911 call reporting that Trevon Barfield, 28, had a firearm and was pointing it at his former girlfriend at an apartment complex. Barfield had an outstanding arrest warrant at the time.
When officers found Barfield sitting at the top of a stairwell and informed him of the warrant, Barfield reached for an object in his pocket. After a brief struggle, the officers detained Barfield and recovered a loaded handgun from Barfield’s pocket, as well as a small amount of cocaine.
Barfield is a previously convicted felon, with two prior convictions for being a felon in possession of a firearm, and cannot legally possess a firearm or ammunition.
Barfield is scheduled to be sentenced on May 28 and faces up to 15 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia; Anthony A. Spotswood, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Rick Edwards, Chief of Richmond Police; and Colette Wallace McEachin, Commonwealth’s Attorney for the City of Richmond, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea.
Special Assistant U.S. Attorney Katherine E. Groover, an Assistant Commonwealth’s Attorney with the Richmond Commonwealth’s Attorney Office, is prosecuting the case. Former Assistant U.S. Attorney Jessica L. Wright assisted in the prosecution of this case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-160.
Prolific Alien Smuggler Extradited from Mexico to the United States in Joint Task Force Alpha InvestigationRead the Press Release
Extensive coordination and cooperation efforts between U.S. and Mexican law enforcement authorities culminated in the extradition of an alleged alien smuggler who operated in Mexicali on the U.S.-Mexico border for several years as part of an international alien smuggling conspiracy.
Raul Saucedo-Huipio, 49, was arrested in Mexico on March 2, 2023, pursuant to a U.S. request for his extradition, and was surrendered by Mexico to U.S. authorities on Feb. 21 to face charges previously filed in the District of Arizona. Saucedo-Huipio made his initial appearance on Feb. 21 in the Southern District of California. His co-conspirator, Ofelia Hernandez-Salas, 62, was extradited to the United States from Mexico in 2023 and pleaded guilty on Dec. 18, 2024, to conspiracy to bring an alien to the United States and substantive counts of bringing an alien to the United States.
According to court documents, Saucedo-Huipio conspired with other smugglers, including Hernandez-Salas, to facilitate the travel of large numbers of migrants into the United States from and through Bangladesh, Yemen, Pakistan, Eritrea, India, the United Arab Emirates, Uzbekistan, Russia, Egypt, Brazil, Peru, Ecuador, Colombia, Costa Rica, Nicaragua, El Salvador, Honduras, Guatemala, and Mexico. Saucedo-Huipio and Hernandez-Salas allegedly charged the migrants as much as tens of thousands of dollars to make the journey and directed the migrants where to unlawfully cross the border into the United States, including by providing them with a ladder to climb over the border fence. Saucedo-Huipio and co-conspirators also allegedly robbed the migrants of money and personal belongings while armed with guns and knives.
In June 2023, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed corresponding sanctions on this transnational criminal organization.
Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Acting U.S. Attorney Rachel C. Hernandez for the District of Arizona, and U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) Arizona Special Agent in Charge Francisco B. Burrola, made the announcement.
ICE HSI Yuma is investigating the case with assistance from U.S. Border Patrol, Customs and Border Protection (CBP); U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; FBI; and the U.S. Marshals Service, working in concert with ICE HSI Tijuana, INTERPOL, and the HSI Human Smuggling Unit in Washington, D.C. HSI also received substantial assistance from CBP’s National Targeting Center/Counter Network Division and OFAC.
Trial Attorney Alexandra Skinnion of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Stuart J. Zander for the District of Arizona are prosecuting the case.
The Justice Department’s Office of International Affairs (OIA) provided significant assistance in securing the defendant’s arrest and extradition from Mexico. The Justice Department thanks its Mexican law enforcement partners, who were instrumental in arresting Saucedo-Huipio, and the Mexican Attorney General’s Office and the Mexican Foreign Ministry for making the extradition possible.
The indictments against Raul Saucedo-Huipio and Hernandez-Salas, and their subsequent arrests and extraditions, were coordinated through Joint Task Force Alpha (JTFA). JTFA was created in partnership with the Department of Homeland Security (DHS) to strengthen the Justice Department’s efforts to combat the rise in prolific and dangerous smuggling emanating from Central America and impacting our border communities. JTFA’s goal is to disrupt and dismantle human smuggling and trafficking networks operating in El Salvador, Guatemala, Honduras, and Mexico, with a focus on networks that endanger, abuse, or exploit migrants, present national security risks, or engage in other types of transnational organized crime. The initiative was expanded to Colombia and Panama to combat human smuggling in the Darién in June 2024. JTFA comprises detailees from U.S. Attorneys’ Offices along the southwest border, including the Southern District of California, the District of Arizona, the District of New Mexico, and the Western and Southern Districts of Texas. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by HRSP and supported by the Office of Prosecutorial Development, Assistance and Training; the Narcotic and Dangerous Drug Section; the Money Laundering and Asset Recovery Section; the Office of Enforcement Operations; OIA; and the Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, the Drug Enforcement Administration, and other partners. To date, JTFA’s work has resulted in over 355 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; more than 300 U.S. convictions; more than 245 significant jail sentences imposed; and forfeitures of substantial assets.
This investigation is also supported by the Extraterritorial Criminal Travel Strike Force (ECT) program, a partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or raise grave humanitarian concerns. ECT has dedicated investigative, intelligence, and prosecutorial resources. ECT also coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Princeton, Kentucky Man Sentenced to 24 Years in Federal Prison for Methamphetamine DistributionRead the Press Release
Paducah, KY – A Princeton, Kentucky, man was sentenced last week to 24 years in federal prison for numerous felony offenses, including three counts of distribution of methamphetamine and one count of possession with the intent to distribute methamphetamine.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jim Scott of the DEA Louisville Field Division, Chief Chris King of the Princeton Police Department, and Director David Thompson of the Pennyrile Narcotics Task Force made the announcement.
According to court documents and evidence presented at trial in October of 2024, Micah Gray, 44, of Princeton, Kentucky, sold quantities of methamphetamine on three occasions during a two-day period from August 26th to 27th, 2021. Additionally, on August 27, 2021, investigators searched Gray’s apartment and located approximately one and one-half pounds of methamphetamine and items related to methamphetamine distribution.
There is no parole in the federal system.
The DEA Paducah Post of Duty Office, the Pennyrile Narcotics Task Force, and the Princeton Police Department investigated the case, with assistance from the Kentucky State Police and the Commonwealth Attorney’s Office for the 56th Judicial Circuit.
Assistant U.S. Attorney Seth A. Hancock, Chief of the U.S. Attorney’s Paducah Branch Office, prosecuted the case with assistance from paralegal Cristy Crockett.
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Previously Deported Mexican National with Prior Convictions Arrested for Illegally Possessing a FirearmRead the Press Release
SAN ANTONIO – A Mexican national was arrested in San Antonio on criminal charges related to his alleged illegal possession of a firearm.
According to court documents, Sergio Lopez Rodriguez, 48, was arrested during a surveillance operation conducted by the Lone Star Fugitive Task Force (LSFTF) on Feb. 20. Federal law enforcement agencies had learned that Rodriguez was in the United States illegally and had previously been removed from the country in 2015. In addition to the deportation, Rodriguez was convicted of theft in 2009, of forgery in 2013, and also had been arrested and charged with unlawful possession of a firearm by a felon. A state arrest warrant was issued for Rodriguez on Jan. 28.
A filed criminal complaint alleges that, on Feb. 20, LSFTF members surrounded Rodriguez’s vehicle while he was parked a gas station pump. During the arrest, officers allegedly located a handgun, a magazine and .40 caliber ammunition, along with a glass pipe, torch lighter and .9 grams of a crystal-like substance. The complaint also alleges that Rodriguez informed officers that he possessed an AK-47 magazine inside a bag located in the vehicle.
Rodriguez was booked into the Bexar County Jail for his outstanding warrant and, due to his immigration status, Immigration and Customs Enforcement lodged a detainer. He is federally charged with one count of illegal alien in possession of a firearm. If convicted, he faces up to 15 years in federal prison and a $250,000 fine. 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.
The U.S. Marshals Service, Immigration and Customs Enforcement, and the Bureau of Alcohol, Tobacco, Firearms and Explosives are investigating the case, along with the Office of the Texas Attorney General, Bexar County District Attorney’s Criminal Investigation Division and Bexar County Sheriff’s Office.
Assistant U.S. Attorney Fidel Esparza III is prosecuting the case on behalf of the United States.
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.
U.S. Government A handgun, magazine, and .40 caliber ammunition allegedly seized during the arrest in San Antonio, Feb. 20, 2025.###
Owner of Old Dutch Mustard Co. Pleads Guilty to Violating the Clean Water Act by Polluting the Souhegan RiverRead the Press Release
CONCORD – A New York man and Old Dutch Mustard Co., a mustard and vinegar manufacturing company, pleaded guilty in federal court to knowingly discharging acidic water into the Souhegan River, Acting U.S. Attorney Jay McCormack and Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division announce.
Charles Santich, 59, of New York, and Old Dutch Mustard Co., Inc., d/b/a Pilgrim Foods, Inc. (“Old Dutch Mustard”) pleaded guilty to knowing discharging a pollutant without a permit. U.S. District Court Judge Landya McCafferty scheduled sentencing for June 23, 2025.
The Clean Water Act “CWA” prohibits the discharge of any pollutant into navigable waters of the United States without a National Pollutant Discharge Elimination System permit. Due to a long history of CWA non-compliance dating back to the 1980s, Old Dutch Mustard has been subject to several enforcement actions by the EPA, the New Hampshire Department of Environmental Services (“NH DES”), and the New Hampshire Attorney General’s Office. As a result of these actions, EPA and NH DES have required continuous monitoring of an Unnamed Brook that flows underneath and in front of the facility, eventually flowing into the Souhegan River. The Souhegan River is one of nineteen New Hampshire rivers that the State of New Hampshire has designated as an important natural resource.
Charles Santich is the president and owner of Old Dutch Mustard, a New York corporation with a manufacturing facility in Greenville, New Hampshire. Old Dutch Mustard manufactures vinegar and mustard products, which generates acidic wastewater. In addition, stormwater flows through the property, including an outdoor area where the company stores their product in large tanks. Both the wastewater and stormwater at Old Dutch Mustard becomes acidic and is categorized as a pollutant under the CWA, and Old Dutch Mustard did not have the necessary permit to discharge the acidic wastewater or stormwater into the environment. Instead, Old Dutch was required to store the polluted water in tanks and pay a trucking company to haul all the wastewater off-site to a publicly owned treatment plant.
Beginning in the spring of 2015, Santich hired an excavation company to bury a pipe from the Old Dutch Mustard facility to discharge the acidic wastewater and stormwater in the general direction of the Souhegan River along an abandoned railroad bed. This discharge point was downstream of, and not detectible by, the continuous environmental monitoring required by the EPA and State of New Hampshire.
Santich directed Old Dutch Mustard employees to repeatedly pump acidic wastewater and stormwater through the underground pipe to the abandoned railroad bed. Santich also directed employees not to tell anyone about the pipe.
In May of 2023, state inspectors from NH DES discovered wastewater from the facility, with low pH and smelling of vinegar, flowing from a manmade ditch at the top of the hill on the Old Dutch Mustard property into the Souhegan River. In August 2023, EPA agents executed a search warrant at the Old Dutch Mustard facility and observed liquid that smelled like vinegar discharging from the end of the underground pipe into the ditch. The wastewater discharge had a low pH of 3.6. The agents then conducted a dye test. The dye discharged from the underground pipe at the top of the hill and flowed along the drainage ditch and down to the river.
EPA’s Criminal Investigation Division investigated this case. Valuable assistance was provided by the New Hampshire Department of Environmental Services and the New Hampshire Attorney General’s Office. Assistant U.S. Attorney Matthew T. Hunter and Trial Attorney Ronald A. Sarachan of the Environment and Natural Resources Division are prosecuting the case with the assistance of EPA Senior Regional Criminal Enforcement Counsel Dianne G. Chabot.
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Owner of Charleroi Staffing Agency Pleads Guilty to Harboring Illegal Aliens for Financial Gain and Failing to Pay More Than $3 Million in Employment TaxesRead the Press Release
PITTSBURGH, Pa. – A resident of Belle Vernon, Pennsylvania, pleaded guilty in federal court to charges of harboring illegal aliens for financial gain and failing to pay employment taxes, Acting United States Attorney Troy Rivetti announced today.
Andy Ha, 28, pleaded guilty to two counts before United States District Judge Cathy Bissoon. Ha was charged by a two-count Information filed with the Court on January 28, 2025.
In connection with the guilty plea, the Court was advised that, from September 2022 to April 2024, Ha owned a temporary staffing agency called Prosperity Services, Inc., that provided workers to companies in the Charleroi, Pennsylvania, area. As part of his business, Ha paid for more than 25 workers who were not legally authorized to be in the United States to stay in a former hotel, and his business paid for vans to transport those workers to and from their work. In addition, Ha provided Prosperity’s tax return preparer with spreadsheets listing only workers who were legally authorized to be and work in the United States. That information, in turn, was reflected on the company’s quarterly employment tax returns, representing less than 10% of the actual total number of workers employed by Prosperity. Ha then also signed those returns, knowing them to be false and causing a tax loss of at least $3.1 million.
“The defendant broke the law by harboring and employing individuals not authorized to be in the United States,” said Acting United States Attorney Rivetti. “In addition, defendant Ha cost the U.S. government millions of dollars through his failure to pay taxes related to his business. Our office and our law enforcement partners at all levels will continue to ensure that those who seek to profit from the employment of such workers, and who fail to pay taxes, face appropriate consequences under the law.”
“Business owners have a responsibility to file accurate quarterly employment tax returns and to timely remit withholding taxes for their employees to the Internal Revenue Service,” said Special Agent in Charge Yury Kruty, IRS-Criminal Investigation, Philadelphia Field Office. “The failure to do so is a serious offense.”
“This investigation highlights the commitment of HSI Pittsburgh to protecting our communities from those who seek to exploit undocumented workers for their personal gain,” said Special Agent in Charge of HSI Philadelphia Edward V. Owens. “Andy Ha and his business sought to profit off of the immigrant community. I commend the dedicated prosecutors in the U.S. Attorney’s Office for the Western District of Pennsylvania and our partners at the Internal Revenue Service-Criminal Investigation division and Pennsylvania State Police. Together, we will continue to work to ensure that such illegal activities are met with the full force of the law.”
Judge Bissoon scheduled sentencing for July 22, 2025. The law provides for a total maximum sentence of up to five years in prison, a fine of up to $250,000 or twice the gain from the offense, or both on the tax charge and up to 10 years in prison, a fine of up to $250,000 or twice the gain from the offense, or both on the harboring charge. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney William B. Guappone is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, and Pennsylvania State Police conducted the investigation that led to the prosecution of Ha.
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.
OKX Pleads Guilty to Violating U.S. Anti-Money Laundering Laws and Agrees to Pay Penalties Totaling More Than $500 MillionRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that Aux Cayes Fintech Co. Ltd, d/b/a “OKEx,” d/b/a “OKX” (“OKX”), a Seychelles-based entity, that since at least 2017 has operated OKX, one of the largest cryptocurrency exchanges in the world, pled guilty today to one count of operating an unlicensed money transmitting business. In connection with today’s guilty plea and sentencing, OKX agreed to pay monetary penalties totaling more than $504 million. The case was assigned to U.S. District Judge Katherine Polk Failla, who presided over today’s guilty plea and sentencing.
Acting U.S. Attorney Matthew Podolsky said: “For over seven years, OKX knowingly violated anti-money laundering laws and avoided implementing required policies to prevent criminals from abusing our financial system. As a result, OKX was used to facilitate over five billion dollars’ worth of suspicious transactions and criminal proceeds. Today’s guilty plea and penalties emphasize that there will be consequences for financial institutions that avail themselves of U.S. markets but violate the law by allowing criminal activity to continue.”
FBI Assistant Director in Charge James E. Dennehy said: “For years, OKX flagrantly violated U.S. law, actively seeking customers in the United States—including here in New York—and even going so far as to advise individuals to provide false information to circumvent requisite procedures. Furthermore, in their failure to adhere to U.S. law, significant illicit transactions which furthered other criminal activity went undetected on their platform. Blatant disregard for the rule of law will not be tolerated, and the FBI is committed to working with our partners across government to ensure that corporations that engage in this type of conduct are held accountable for their actions.”
According to court documents and admissions:
OKX is one of the world’s largest cryptocurrency exchange platforms, with billions of dollars’ worth of cryptocurrency transactions occurring daily on its platform. OKX allows registered users to place orders for spot trades in over three hundred cryptocurrencies, including Bitcoin and Ethereum. OKX users can also place orders for derivative products, including futures contracts, tied to the value of Bitcoin and other cryptocurrencies.
Financial institutions that operate wholly or in substantial part in the United States must register with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) as a money services business (“MSB”) and comply with federal anti-money laundering (“AML”) laws, including the Bank Secrecy Act. These laws require the filing of suspicious activity reports and the maintenance of an adequate AML program, including an effective know-your-customer (“KYC”) program. AML programs are critical to ensure that entry-points into the U.S. financial system do not become tools criminals can use to profit from illicit activity.
Since 2017, OKX has had an official policy preventing U.S. persons from transacting on its exchange. But contrary to this official policy, OKX sought out customers in the United States, including in the Southern District of New York.
From in or about 2018 through in or about at least early 2024, OKX served U.S. retail and institutional customers that engaged in over one trillion dollars’ worth of transactions through OKX. Transactions from those U.S. customers generated hundreds of millions of dollars in trading fees and profits for OKX.
Because OKX served U.S. retail and institutional customers, OKX knew it was required by U.S. law to register as a money services business with FinCEN, but OKX chose not to do so.[1] In fact, despite OKX’s official policy prohibiting U.S. persons from transacting on the exchange, OKX was fully aware that individuals in the United States could, and did, easily create and use OKX trading accounts. From OKX’s founding in approximately 2017 through approximately November 2022, OKX allowed retail customers the option to create an account, receive and transfer funds, and place trades without completing a KYC process. This meant that OKX, a large financial institution, facilitated transactions on behalf of customers that it could not identify. Further, while OKX implemented a policy blocking customers with U.S.-located IP addresses from trading or depositing assets onto OKX (the “IP Ban”), OKX knew that the IP Ban could be circumvented through cheap, widely available VPN technology. Also, through at least early 2023, OKX allowed existing accounts to continue to receive and transfer funds, and place trades, all without completing a KYC process. And until approximately early 2024, OKX also allowed customers to place trades on the exchange through third-party entities known as “non-disclosure brokers” without the third-party entity disclosing any identifying information to OKX about the customers on whose behalf the trades were placed.
Even after OKX began requiring all customers to provide some KYC information to trade, OKX employees on certain occasions advised customers how to provide false information to circumvent the company’s KYC process and official policy prohibiting U.S. customers. For example, in April 2023, an OKX employee encouraged a potential U.S. customer to open an account by providing false information about the customer’s nationality during the KYC processing, writing “I know you’re in the US, but you could just put a random country and it should go through. You just need to put Name, nationality, and ID number. You could just put United Arab Emirates and random numbers for the ID number.” At that time, OKX did not verify the information that customers provided to open an account to trade. In January 2024, the same employee wrote to another potential U.S. customer and asked if the individual had “any workaround on KYC outside of the US to make it potentially work.”
During the relevant period, OKX advertised in the United States, sponsoring the Tribeca Film Festival, for example, and used affiliate marketers based in the United States to promote the exchange. OKX also allowed existing customers to promote the exchange, and provided such customers benefits for recruiting additional users. At least one such OKX customer produced a publicly-available, step-by-step instructional video educating U.S. customers about how to register with OKX using a VPN to conceal their U.S. presence.
OKX also focused its efforts on attracting and retaining certain U.S. institutional customers, including large institutions who could provide liquidity and help OKX become one of the world’s largest cryptocurrency exchanges by making a broad range of cryptocurrencies available at competitive rates. OKX’s U.S. institutional customers were some of OKX’s largest customers, with one such firm alone generating more than a trillion dollars in spot and derivatives transactions on OKX during the relevant period. They provided significant liquidity, volume and trading fees for the platform, despite OKX’s knowing failure to register as an MSB and OKX’s “official” policy banning U.S. customers.
Until approximately May 2023, OKX did not adequately or consistently use commercially available software to monitor and detect suspicious activity, including money laundering, and OKX did not have adequate controls to determine whether either party to transactions on the exchange was potentially subject to sanctions imposed by the U.S. Treasury Department. As a result, through at least early 2024, OKX was used by numerous customers as a vehicle for laundering the proceeds of suspicious and criminal activities, including more than five billion dollars of suspicious transactions and illicit proceeds, based on a review of third-party transaction data.
In early 2024, OKX retained an external compliance consultant (the “Consultant”) to advise OKX on policies and controls reasonably designed to prevent U.S. persons from engaging in transactions on OKX’s platform through accounts held at OKX. As part of the plea agreement, OKX is continuing to retain the Consultant, at its own cost, through February 2027, and has agreed to continue to cooperate with the United States Attorney’s Office.
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In addition to the guilty plea, OKX, a Seychelles-based entity, also agreed to criminally forfeit $420.3 million and pay a criminal fine of approximately $84.4 million. OKX received credit for its cooperation with the investigation and timely engaging in remedial measures, resulting in a 25% reduction off the bottom of the otherwise applicable recommended fine range.
Mr. Podolsky praised the outstanding investigative work of the FBI New York Field Office.
This matter is being handled by the Office’s Illicit Finance & Money Laundering Unit. Assistant U.S. Attorneys Christopher D. Brumwell, Eli J. Mark, and Vladislav Vainberg are in charge of the prosecution.
u.s._v._okx_information.pdf u.s._v._okx_plea_agreement_and_attachments.pdf[1] OKX has an affiliate U.S.-based cryptocurrency exchange named OKCoin USA, Inc. (“OKCoin”) which, in contrast with OKX, has registered with FinCEN as a MSB. OKCoin serves customers globally, including in the United States, and offers retail and institutional customers the ability to spot trade, including purchasing cryptocurrency using U.S. dollars. The conduct described herein that gives rise to the charge in the Information, and to which OKX pled guilty, is solely that of the unregistered MSB, Aux Cayes Fintech Co. Ltd., d/b/a “OKEx,” d/b/a “OKX,” the defendant.
Northwest Arkansas Man Sentenced to More Than 4 Years in Prison for Operating an Illegal Money Transmitting Business Using Pandemic FundsRead the Press Release
FAYETTEVILLE - A Northwest Arkansas man was sentenced on February 20, to 51 months in Federal Prison, followed by three years of supervised release. Additionally, he was ordered to pay restitution of $725,558.00 on one count of operating an Illegal Money Transmitting Business. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing, which took place in the United States District Court in Fayetteville.
According to court documents, Richard Harold Stone, age 77, waived indictment by a grand jury and pleaded guilty to a criminal information charging him with conducting an unlicensed money transmitting business in the State of Arkansas. Stone was the President or Chief Officer of numerous businesses registered with the Arkansas Secretary of State, including: Partex Oman Corp., Renewable Energy Campus Arkansas, Inc., Stonetek Global Corp., and Tires 2 Energy, LLC. Stone also was associated with Environmental Energy & Finance Corp., a Delaware corporation. The advertised purpose of these businesses was developing technology and facilities to repurpose waste materials, such as tires, into useable fuel sources. None of these businesses were registered with the State of Arkansas as a money transmitting business, as required by Arkansas law (Arkansas Code, Section 23-55-806(b)&(c)).
Between November 2020 and March 2021, Stone received through various bank accounts associated with the above entities and other accounts under his control, deposits of funds from applications made on behalf of unwitting victims for Paycheck Protection Program (PPP) loans, Economic Impact Disaster Loans (EIDL), and Pandemic Unemployment Assistance (PUA), totaling more than $600,000. After receiving these funds, Stone immediately transferred most of the funds by wire transfer to parties in locations including Berne, Switzerland; London, England; New York, NY; Chennai, India; and Mumbai, India.
At the conclusion of Thursday’s sentencing hearing, Stone was immediately remanded to the custody of the U.S. Marshals Service.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Internal Revenue Service-Criminal Investigation, Federal Bureau of Investigation, and Department of Labor Office of the Inspector General investigated the case.
Assistant U.S. Attorney Hunter Bridges is prosecuting the case.
Related court documents may be found on the Public Access to Electronic Records website at www.pacer.gov.
North Haven Counselor Sentenced to More Than 3 Years in Federal Prison for Defrauding Medicaid of More Than $1.6 MillionRead the Press Release
Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that RACHEL COLLINS, 44, of Hamden, was sentenced today by U.S. District Judge Sarala V. Nagala in Hartford to 37 months of imprisonment, followed by three years of supervised release, for defrauding Medicaid of more than $1.6 million.
According to court documents and statements made in court, Collins was a state-licensed professional counselor and owner of Rachel Collins, LPC Counseling Services LLC, located in North Haven. Collins provided psychotherapy to children, adolescents, and adults, but particularly children and adolescents with a variety of behavioral and mental health issues. She was enrolled individually as a Behavioral Health Clinician provider in the Connecticut Medicaid Program (“Medicaid”).
Between January 2018 and March 2024, Collins submitted and caused to be submitted fraudulent claims to Medicaid for psychotherapy services that were purportedly provided to her Medicaid clients. Specifically, Collins submitted claims under her own billing and performing provider identification number for dates of service when no services of any kind had been provided to the Medicaid clients identified in the claims. Collins submitted claims for purported dates of service when she was purportedly working as a full-time clinician for another provider; billed for 12 hours of purported services in a day and, in some cases, 24 or more hours in a day; submitted false claims for dates when she was traveling out of state, during national holidays, and on weekends; and submitted claims after she had stopped treating the claimed client, had never treated the claimed client, or the claimed client was in the hospital.
For example, during the week of March 9 to March 16, 2023, Collins submitted 96 claims to Medicaid representing that she provided approximately 12 hours of in-person psychotherapy per day. Medicaid paid Collins $9,349.90 for these claims. In truth, Collins did not treat a single patient that week and, as displayed by multiple posts and photos on her public Facebook account, was vacationing at Disney World.
During the scheme, Collins took several other trips around the U.S.; purchased expensive tickets to more than 30 concerts, shows, and sporting events; and, with others, spent more than $150,000 for food delivery services, including Uber Eats, DoorDash, and GrubHub.
Through this scheme, Collins submitted more than 17,000 false claims that defrauded Medicaid of $1,647,031.51.
Judge Nagala ordered Collins to pay full restitution. Collins previously agreed to forfeit $114,085.55 that was seized from a bank account during the investigation.
From January 2020 through May 2023, Collins was the highest paid behavioral health clinician in Connecticut enrolled in Medicaid. The investigation also revealed that from approximately November 2020 and September 2021, during which Collins made $826,355.91 in taxpayer-funded Medicaid reimbursements, she also received $41,182 in unemployment benefits from the state of Connecticut. Collins submitted weekly certifications that she had not performed any work and denied that she was self-employed.
On August 6, 2024, Collins pleaded guilty to one count of health care fraud.
Collins, who is released on a $100,000 bond, is required to report to prison on April 28.
This investigation was conducted by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), with the assistance of the Connecticut Department of Social Services.
This case was prosecuted by Assistant U.S. Attorney David T. Huang.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
New York Woman Charged with Fraudulently Obtaining More Than $1,000,000Read the Press Release
NEWARK, N.J. – A New York woman has been charged with fraudulently obtaining more than $1,000,000, Acting U.S. Attorney Vikas Khanna announced.
Raena Fuller, 28, of Yaphank, New York, had her initial appearance today before U.S. Magistrate Judge José R. Almonte in Newark.
According to the Complaint:
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in or around March 2020 that was designed to provide emergency financial assistance to Americans suffering the economic effects of the COVID-19 pandemic. The CARES Act enabled the Small Business Association (“SBA”) to offer funding through the Economic Injury Disaster Loan (“EIDL”) program to business owners negatively affected by the COVID-19 pandemic.
In or around September 2021, an application was made to the SBA for an EIDL on behalf of a business. In total, the SBA provided approximately $1,200,000 in response to the application. According to a representative of the business, the business did not make the application. Fuller eventually received a portion of SBA funds. In addition, Fuller was involved in additional criminal activity concerning fraudulent checks and received additional proceeds from her criminal acts.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits or twice the gross loss suffered to the victims of his offense.
Acting U.S. Attorney Khanna credited special agents of the Federal Bureau of Investigation, Franklin Township Resident Agency, under the direction of Acting Special Agent in Charge Terence G. Reilly, and special agents of the Internal Revenue Service – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark with the investigation leading to today’s arrest.
The government is represented by Senior Trial Counsel Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
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Defense counsel: A. Charles Peruto, Jr., Philadelphia, PA
fuller.complaint.pdfMuskogee Resident Plead Guilty to Federal Drug ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Christian Deion Larance Smith, age 27, and Kaleel Montrel Smith, age 26, both of Muskogee, Oklahoma, entered a guilty plea to one count of Possession with Intent to Distribute Methamphetamine, and one count of Possession with Intent to Distribute Cocaine.
The Indictment alleged that on July 25, 2024, the defendants knowingly and intentionally possessed with intent to distribute substances containing detectable amounts of methamphetamine and substances containing detectable amounts of cocaine, Schedule II controlled substances.
The charges arose from an investigation by the Oklahoma Bureau of Narcotics, the Muskogee Police Department, the Muskogee County Sheriff’s Department, and the Muscogee (Creek) Nation Lighthorse Police Department.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Kaleel Smith was remanded into the custody of the United States Marshals Service pending sentencing. Christian Smith will remain out on bond pending sentencing.
Assistant U.S. Attorney Jordan Howanitz represented the United States.
Mexican National Charged with Transporting Illegal AliensRead the Press Release
KANSAS CITY, Mo. – A Mexican national who was arrested while transporting five other illegal immigrants through Missouri has been charged in a federal criminal complaint for his role in a conspiracy to transport illegal aliens.
Lisandro Garcia Ramirez, 22, was charged in a seven-count criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Saturday, Feb. 22. Ramirez will have his initial court appearance today. The federal criminal complaint charges Ramirez with one count of conspiracy to transport illegal aliens, five counts of transporting illegal aliens, and one count of illegally entering the United States.
According to an affidavit filed in support of the criminal complaint, troopers with the Missouri Highway Patrol stopped the Honda Pilot Ramirez was driving on the night of Friday, Feb. 22, on Interstate 70 in Mayview, Mo., just south of Marshall, Mo. Ramirez and five passengers told the trooper they were illegally in the United States.
Ramirez told federal investigators that he had been transporting people for approximately six months, twice a month, with three to five people each trip. During the six-month period, Ramirez transported people from Arizona to several locations, including New York, Tennessee, and Chicago. Ramirez stated he was paid approximately $600 per trip with additional payments of up to $3,000.
Each of the five passengers transported by Ramirez told investigators they paid to be smuggled illegally into the United States, where they were picked up by Ramirez.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ken Borgnino. It was investigated by Homeland Security Investigations.
McAllen man enters plea to illegally pointing laser at law enforcement aircraftRead the Press Release
McALLEN, Texas – A 35-year-old local resident has admitted he pointed a laser at a Customs and Border Protection (CBP) helicopter, announced U.S. Attorney Nicholas J. Ganjei.
George Anthony Garza pointed the laser multiple times on the evening of Dec. 29, 2024.
On that date, a CBP aircrew in an official Air and Marine Operations helicopter observed a green laser beam being pointed at the helicopter multiple times during flight, impeding the vision of a pilot. Authorities were able to determine the source originated from Garza’s backyard.
Law enforcement approached Garza at his residence, at which time he surrendered the laser pointer and admitted to aiming the beam at the aircraft that night.
U.S. District Judge Drew B. Tipton will impose sentencing June 3. At that time, Garza faces up to five years in federal prison as well as a possible $250,000 maximum fine.
He was permitted to remain on bond pending sentencing.
The FBI, CBP and Border Patrol conducted the investigation with the assistance of the Federal Aviation Administration and the McAllen Police Department. Assistant U.S. Attorney Amanda McColgan is prosecuting the case.
Man Sentenced After Setting Off Explosive Devices in a MailboxRead the Press Release
TULSA, Okla. – Today, U.S. District Judge Raul M. Arias-Marxuach sentenced Patrick Nile Starkey, 57, for Possession of an Unregistered Destructive Device and Felon in Possession of Ammunition. Judge Arias-Marxuach ordered Starkey to 108 months imprisonment, followed by three years of supervised release.
“With the help of the FLOCK camera system, agents were able to identify the defendant,” said U.S. Attorney Clint Johnson. “Starkey was a threat to public safety, and I commend law enforcement for working together swiftly to detain him.”
According to court documents, on June 12, 2024, the Osage County Sheriff’s Office was investigating a device that exploded in a U.S. Postal Service mailbox. The investigation revealed that Starkey placed two explosive devices and notes inside a mailbox on the private property of an innocent third-party, in an attempt to harass his ex-wife. FLOCK cameras located within the area helped aided law enforcement in initially identifying Starkey as the subject. A search warrant executed on Starkey’s home revealed ammunition and several homemade explosive devices that matched the devices used on the mailbox.
When agents spoke with Starkey, he admitted to setting off the devices and unlawfully possessing ammunition. He will remain in custody pending transfer to the U.S. Bureau of Prisons.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Postal Inspection Service, Osage County Sheriff’s Office, Tulsa Police Department, and the Oklahoma Highway Patrol investigated the case. Assistant U.S. Attorneys Nathan E. Michel and Joshua M. Carmel prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about PSN, please visit Justice.gov/PSN.
Man in Prison for Rape Sentenced to Additional 235 Months for Federal Child Exploitation CrimesRead the Press Release
MIAMI – A federal district judge in Fort Pierce has sentenced a Georgia inmate who engaged in online child solicitation while serving time on a state rape conviction to 19.5 years in federal prison.
During the summer of 2023, Robert Francis Gilbert, 59, was an inmate at the Rutledge State Prison in Columbus, Georgia. He was serving a life-sentence for rape and was eligible for parole. That summer, Gilbert began communicating online with someone he believed was a 14-year-old girl. Gilbert used threats to solicit the creation of pornographic videos and arrange a sexual encounter once Gilbert got out of state prison. Law enforcement learned of Gilbert’s acts and alerted the state prison warden. Further investigation revealed that Gilbert possessed a cell phone with evidence of the crimes.
During a hearing before United States District Judge Robin L. Rosenberg on August 23, 2023, Gilbert pleaded guilty to attempted enticement of a minor and attempted transfer of obscene material to a minor. Judge Rosenberg imposed yesterday’s sentence.
United States Attorney Hayden P. O’Byrne for the Southern District of Florida, Acting Special Agent in Charge Jose Figueroa of Homeland Security Investigations (HSI), Miami Field Division, and Martin County Sheriff John Budensiek announced the sentence.
HSI Fort Pierce and the Martin County Sheriff’s Office investigated the case. Assistant U.S. Attorney Justin Hoover prosecuted it.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at https://www.justice.gov/usao-sdfl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 24-cr-14002.
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Leader of the H-2 Drug Cartel Extradited from Mexico to Face Narcotics Trafficking, Firearms and Money Laundering Charges in Brooklyn Federal CourtRead the Press Release
Jesus Ricardo Patron Sanchez, also known as “H-3,” “Diabolic,” “Vela,” “James Bond” and “Xmen,” was arraigned on February 22, 2025 at the federal courthouse in Brooklyn on an indictment charging him with leading a continuing criminal enterprise, participating in a large-scale narcotics distribution conspiracy and using one or more firearms in connection with narcotic offenses. Sanchez, a Mexican citizen, was arrested in Mexico in February 2019 on a provisional arrest warrant issued based upon charges in the Eastern District of New York and subsequently extradited from Mexico to the United States on February 21, 2025. The arraignment was held before United States Magistrate Judge Peggy Kuo. Sanchez was ordered detained pending trial.
John J. Durham, United States Attorney for the Eastern District of New York, and Matthew Allen, Special Agent in Charge, U.S. Drug Enforcement Administration, Los Angeles Field Division which oversees the Las Vegas District Office (DEA), announced the extradition and arraignment.
“As alleged in the indictment and court filings, Sanchez was one of the principal leaders of the H-2 Drug Trafficking Organization, a brutally violent transnational criminal organization that flooded American streets with dangerous drugs and protected its operations through murder and corruption,” stated United States Attorney Durham. “This Office is committed to working with its federal and international partners to bring leaders of cartels and transnational criminal organizations to justice in the United States and to hold them accountable for the death and destruction they have unleashed here and abroad.”
Mr. Durham extended his appreciation to the DEA’s offices in Las Vegas and Mexico City, Mexico, the United States Marshals Service, the United States Department of State, the Department of Justice’s Office of International Affairs and the Government of Mexico. The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Sanchez.
“Our country is facing an unprecedented drug crisis. Violent drug trafficking organizations, like H-2, fueled by unrelenting and callous greed have been saturating our communities with poison, death, and chronic devastation,” stated DEA Special Agent in Charge Allen. “The DEA continues its unwavering determination to mitigate this evil and eradicate their terror and corruption from our streets.”
According to the indictment and court filings, Sanchez was a leader of the H-2 Drug Trafficking Organization (the H-2 DTO), a violent Mexican drug trafficking organization based in Nayarit and Sinaloa, Mexico. Sanchez’s alias “H-3” is a reference to his status as a successor to Hector Beltran-Leyva, the original “H” and one of the principal leaders of the Beltran Leyva Cartel that was previously part of the Sinaloa Cartel. The H-2 DTO was previously led by the defendant’s brother, Juan Francisco Patron Sanchez, also known as “H-2.” Based on public reporting, after Juan Francisco Patron Sanchez was killed in 2017, the defendant assumed principal leadership over the H-2 DTO. The H-2 DTO had numerous distribution cells in the United States, including in Los Angeles, Las Vegas, Ohio, Minnesota, North Carolina and New York. The DEA estimates that between January 2013 and February 2017, the H-2 DTO distributed, on a monthly basis, hundreds of kilograms of heroin, cocaine and methamphetamine, and thousands of kilograms of marijuana into the United States and earned millions of dollars in illegal proceeds in return. In furtherance of its drug trafficking operation, the H-2 DTO used firearms and physical violence and is associated with numerous homicides.
Between June 2013 and December 2016, the defendant was one of the principal leaders of the H-2 DTO and directed the distribution of large quantities of cocaine, heroin, methamphetamine and marijuana from Mexico into various parts of the United States, including the Eastern District of New York. The defendant also coordinated the money laundering activities of other members of the H-2 DTO to ensure the proceeds of their drug trafficking were transferred back to Mexico. In addition, he conspired with other leaders and members of the H-2 DTO to kill members of rival drug trafficking organizations and other individuals perceived as threats to the H-2 DTO.
The extradition of Sanchez is the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York and the DEA. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the continuing criminal enterprise count, the defendant faces a mandatory life sentence; the defendant faces up to a life sentence on the other counts of the indictment.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Andrew D. Wang and Raffaela S. Belizaire are in charge of the prosecution.
The Defendant:
JESUS RICARDO PATRON SANCHEZ (also known as “H-3,” “Diabolic,” “Vela,” “James Bond” and “Xmen”)
Age: 39
MexicoE.D.N.Y. Docket No. 16-CR-241 (S-2) (CBA)
Jury Convicts St. Louis Man of Drug Trafficking and Charges Connected to Nine MurdersRead the Press Release
ST. LOUIS – A jury in U.S. District Court in St. Louis on Monday found a St. Louis man guilty of a cocaine trafficking charge and charges related to the death of nine people during a nearly six-year period.
Evidence and testimony presented at trial showed that Anthony “TT” Jordan, 38, was the leader of a cocaine trafficking ring. Jordan committed murders to protect that organization and hinder any investigation by law enforcement. He later committed additional murders to retaliate against a St. Louis gang he held responsible for the murder of a friend, gathering information and targeting gang members with the help of associates. Jordan and his co-conspirators also killed several bystanders, to include Clara Walker, a 51-year-old mother of nine, and Keairrah Johnson. Among those who testified were direct witnesses to the murders.
Jordan was convicted of one count of conspiracy to distribute cocaine, one count of possession of firearms in furtherance of a drug trafficking crime and nine counts of use of a firearm in furtherance of a drug-trafficking crime resulting in death. Those counts relate to the following fatal shootings, with details according to trial testimony:
• The April 19, 2008, deaths of Al Walters, Linnie Jackson, and Keith Burks. Walters was Jordan’s target.
• The Feb. 3, 2010, deaths of Marquis Jones and Keairrah Johnson. Jones was the target.
• The June 25, 2013, death of Anthony “Blinky” Clark.
• The Dec. 29, 2013, deaths of Robert “Parker G” Parker and Clara Walker. Parker was the target.
• The Jan. 21, 2014, death of Michail “Yellow Mack” Gridiron.Jordan was also convicted of a nonfatal shooting on Dec. 23, 2013.
“I would like to thank the jury for their service over the last few weeks and commend all of our law enforcement partners, the Assistant United States Attorneys, and the support staff who worked tirelessly over the years to investigate and prosecute this case,” said U.S. Attorney Sayler A. Fleming. “With today’s guilty verdict, justice was served. The evidence proved without a doubt that Anthony Jordan is a violent drug-trafficker and serial murderer who needed to be removed from the streets of St. Louis. Our office remains dedicated to working with our local, state, and federal counterparts to bring at least some measure of comfort and resolution to the families of the victims of such violence, as they deserve nothing less.”
“These murders were committed to benefit a large-scale drug trafficking organization that flooded our communities with poison directly sourced from cartels in Mexico. Anthony Jordan is not only a drug trafficker, but a serial murderer whose job was to eliminate competition from other drug dealers,” said Special Agent in Charge Ashley Johnson of the FBI St. Louis Division. “St. Louis is a safer place with Jordan and his associates off the streets.”
“Today’s verdict is the culmination of countless hours of investigative work,” DEA St. Louis Division Special Agent in Charge Michael Davis said. “Over a span of several years, we uncovered the extent of Anthony Jordan’s reach into our St. Louis neighborhoods. His acts of violence instilled fear in our communities, while the drugs he pushed destroyed lives. Let this serve as a reminder that no one is above the law. The DEA, in partnership with our fellow law enforcement agencies, will go to great lengths to bring justice to the families impacted by those who inflict pain and suffering in our neighborhoods.”
The trial began with jury selection on January 31. Jordan is scheduled to be sentenced on May 29, and faces up to life in prison.
Jordan’s cocaine was supplied by Adrian Lemons, who obtained cocaine in bulk from representatives of a Mexican cartel. Lemons, now 46, of St. Louis, was sentenced in 2020 to 20 years in prison. Lemons, Jordan and 32 others were indicted as part of a long-running investigation by the FBI and the Drug Enforcement Administration, with assistance from Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Louis Metropolitan Police Department and the St. Louis County Police Department. Assistant U.S. Attorneys Erin Granger and Donald Boyce are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Iron River Man Sentenced to 84 Months in Federal Prison for Drug Possession and Drug TraffickingRead the Press Release
GRAND RAPIDS – Acting U.S. Attorney for the Western District of Michigan Andrew Birge today announced that Matthew Joseph Sheehan, 45, of Iron River, was sentenced to 84 months in federal prison for possessing methamphetamine with intent to distribute.
According to court records, investigators received information that Sheehan was traveling out of state to obtain illicit drugs for distribution in the Upper Peninsula, including methamphetamine, MDMA, and cocaine. In June 2023, Sheehan was pulled over in Iron County for a traffic infraction. During the traffic stop, officers found nearly a pound of methamphetamine, a smaller quantity of cocaine, and more than $6,000 in cash. A subsequent search of Sheehan’s residence recovered additional drugs and over $37,000.
The Michigan State Police, Upper Peninsula Substance Enforcement Team (UPSET), Drug Enforcement Administration, Department of Homeland Security Investigations, Iron River Police Department, and Iron County Sheriff’s Office investigated this case.
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Helena man admits unlawful possession of firearm in school zoneRead the Press Release
HELENA — A Helena man accused of carrying a firearm on the campus of the Jim Darcy Elementary School in Helena admitted to a firearm charge today, Acting U.S. Attorney Timothy J. Racicot said.
The defendant, Bryant Nicholas Espinoza, 37, pleaded guilty to unlawful possession of a firearm in a school zone. Espinoza faces a maximum of five years in prison, consecutive to any other count of conviction, a $100,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for June 9. Espinoza was released pending further proceedings.
The government alleged in court documents that on Feb. 7, 2024, the principal of Jim Darcy Elementary School contacted the Lewis and Clark Sheriff’s Office and advised the responding deputy that a staff member had notified her that the day prior, the parent of a student was on campus and was carrying a firearm. The staff member observed Espinoza standing in front of the school with a small dog. The staffer approached to assist Espinoza, and he informed the staffer he was there to pick up his daughter, who was a student. During the conversation, the staffer observed Espinoza was carrying a firearm. The staffer identified Espinoza in a photo, and surveillance video showed Espinoza on school property with a small dog and what appeared to be a pistol in a holster on his hip. On April 9, 2024, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the sheriff’s office executed a federal search warrant at Espinoza’s residence and seized a 9mm pistol, two rifles and ammunition. In an interview, Espinoza identified himself in still photos taken from the surveillance video and said that the item on his hip looked like a firearm. Espinoza told agents where the pistol was located at his residence. Agents asked if there was a reason he had the gun at the school, and Espinoza responded that Montana was an “open carry state.”
The U.S. Attorney’s Office is prosecuting the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Lewis and Clark County Sheriff’s Office conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
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Hartford Man Admits Fraudulently Collecting Social Security, Unemployment, and Food Stamp BenefitsRead the Press Release
Marc. H. Silverman, Acting United States Attorney for the District of Connecticut, announced that RICARDO SANTIAGO, 59, of Hartford, pleaded guilty today before U.S. District Judge Vernon D. Oliver in Hartford to a fraud offense related to a scheme to fraudulently obtain Social Security, unemployment, and Food Stamp benefits.
According to court documents and statements made in court, between 2002 and 2024, Santiago held jobs with more than 20 employers and earned income totaling more than $580,000. Santiago concealed his income from federal and state government agencies by providing to employers false identification, including a Social Security number and card belonging to another individual, and, in at least one instance, a false Social Security card.
In 2002, Santiago applied for Retirement Survivors Disability Insurance (RSDI) benefits, representing to the Social Security Administration that he was unable to work due to disability. As a result, he began receiving RSDI payments in September 2002. In 2017, Santiago completed paperwork to maintain his benefits in which he asserted that he remained disabled and had not worked for the past two years. Santiago ultimately collected more than $316,000 in RSDI payments to which he was not entitled.
In February 2017, Santiago submitted to the Connecticut Department of Social Services (CT-DSS) an application for Supplemental Nutrition Assistance Program (SNAP) benefits (“Food Stamps”), representing to the CT-DSS and the U.S. Department of Agriculture that he earned no income from employment. He began receiving SNAP benefits in March 2017 and subsequently completed forms to renew his SNAP benefits on which he again represented that he had no change in his income and that he earned no money from employment. Santiago made more than $18,000 in purchases with SNAP benefits to which he was not entitled.
In April 2020, Santiago applied to the Connecticut Department of Labor (CT-DOL) for Unemployment Insurance benefits. On the application, Santiago used a Social Security number belonging to another individual, and he represented to the CT-DOL and U.S. Department of Labor that he was unemployed but available for work and physically able to work. He subsequently completed weekly certifications making the same representations. From April 2020 through February 2021, Santiago received more than $36,000 in payments to which he was not entitled.
Santiago has agreed to pay restitution of $371,686.
Santiago pleaded guilty to one count of wire fraud, an offense that carries a maximum term of imprisonment of 20 years. He is released on a $25,000 bond pending sentencing, which is scheduled for May 22.
Santiago was arrested on May 7, 2024.
This matter is being investigated by the Social Security Administration Office of the Inspector General, the U.S. Department of Agriculture Office of the Inspector General, the U.S. Department of Labor Office of the Inspector General, and the U.S. Department of Transportation Office of the Inspector General. The case is being prosecuted by Assistant U.S. Attorney Nathan J. Guevremont.
Hard Money Lender Pleads Guilty to Defrauding Investors Out of $20 Million in Loans Made to Failed Fresno Company Bitwise IndustriesRead the Press Release
FRESNO, Calif. — Andrew Adler, 31, of Greenwich, Connecticut, pleaded guilty today to conspiracy to commit wire fraud when he defrauded investors out of $20 million in loans made to the failed Fresno-based, start-up company Bitwise Industries, Acting U.S. Attorney Michele Beckwith announced.
According to court records, between December 2022 and May 2023, Adler and his business partner, David Hardcastle, 61, of Fresno, gave Bitwise approximately $20 million in hard money loans through their special purpose entity Startop Investments LLC. Adler and Hardcastle used a syndicate of investors to fund the loans. In order to mislead the investors, Adler and Hardcastle altered the original loan documents to make it appear as though Bitwise was obligated to pay significantly less interest on the loans than was true. They also forged the signature of Bitwise’s Co-CEO, Jake Soberal, on the altered documents. This made the loans appear less risky and, therefore, more appealing to the investors.
Adler and Hardcastle received tens of thousands of dollars in origination fees for the loans and stood to make millions more in secret profits from the higher, undisclosed interest rates had the loans been fully repaid. Bitwise, however, did not repay the loans before collapsing, and the investors in the loans lost nearly all of their money. On Feb. 3, 2025, Hardcastle was arrested and arraigned on an indictment charging him with conspiracy to commit wire fraud and wire fraud.
This case is the product of an investigation by the FBI. Assistant U.S. Attorneys Joseph D. Barton and Cody S. Chapple are prosecuting the case.
Adler is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on June 2, 2025. Adler faces maximum statutory penalties of 20 years in prison and a $250,000 fine for the conspiracy to commit wire fraud charge. If convicted, Hardcastle faces a maximum of 20 years in prison and a $250,000 fine for conspiracy to commit wire fraud and for each of the substantive wire fraud charges. Sentences are determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Hardcastle is charged in a separate indictment and those charges remain pending. Those charges are only allegations, and he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Guatemalan national sentenced for illegal reentry in Eastern District of TexasRead the Press Release
BEAUMONT, Texas –A Guatemalan national has been sentenced to federal prison for illegally reentering the United States, announced Eastern District of Texas Acting U.S. Attorney Abe McGlothin, Jr.
Luis Tomas Dionicio-Coche, 43, pleaded guilty to unlawful reentry by deported alien and was sentenced to 12 months in federal prison by U.S. District Judge Michael Truncale on February 24, 2025.
According to information presented in court, on August 30, 2024, Dionicio-Coche was stopped and arrested on Roberts Avenue in Beaumont. Dionicio-Coche is a Guatemalan national illegally present in the United States. Further investigation revealed Dionicio-Coche had been previously deported or removed to Guatemala on November 29, 2012; February 22, 2013; and April 11, 2019. Dionicio-Coche had also been previously convicted of multiple offenses including driving while intoxicated; driving under the influence; hit and run; and driving while license suspended.
This case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney John Ross.
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Fresno Man Sentenced to 3 Years in Prison for a Series of Vehicle Pipe-BombingsRead the Press Release
FRESNO, Calif. — Paul New, 57, of Fresno, was sentenced today to three years in prison for conspiracy to destroy property and malicious destruction by means of an explosive device, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, between November 2022 and February 2023, New committed a series of pipe-bombings on unoccupied vehicles and property in Fresno. The bombings damaged vehicles belonging to two auto-related businesses on Clinton Avenue. On Feb. 19, 2023, a bomb heavily damaged a vehicle used by a home health care business on Fallbrook Avenue.
On October 9, 2024, co-defendant Scott Eric Anderson was sentenced to three years in prison.
This case was the product of an investigation by the Fresno Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Michael G. Tierney prosecuted the case.
Fresno County Man Pleads Guilty to Conspiring to Distribute FentanylRead the Press Release
FRESNO, Calif. — Lakota Tehya Wakley, 21, of Clovis, pleaded guilty today to conspiracy to distribute and possess with intent to distribute fentanyl, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, between Nov. 18, 2024, and Dec. 9, 2024, Wakley conspired with Austin Lloyd Kerns, 53, of Fresno, and others to distribute fentanyl. The investigation began after a fentanyl‑overdose death in Fresno. On Nov. 23, 2024, Wakley connected the overdose victim with Kerns to buy fentanyl pills. Over the next 48 hours, the victim bought fentanyl pills multiple times from Kerns and died soon after of a fentanyl overdose. Wakley received fees for connecting the victim with Kerns.
This case is the product of an investigation by the Fentanyl Overdose Resolution Team (FORT), a multi-agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fresno and Clovis Police Departments. Assistant U.S. Attorneys Calvin Lee and Arin C. Heinz are prosecuting the case.
Charges are pending against Kerns. He is scheduled for a status conference on March 26, 2025, before Magistrate Judge Barbara A. McAuliffe. The charges are only allegations; Kerns is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Wakley is scheduled to be sentenced by U.S. District Judge Kirk E. Sherriff on June 23, 2025. Wakley faces a maximum sentence of 20 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Operation Synthetic Opioid Surge (S.O.S.), a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Fourteen Members of Extensive Alien Smuggling Organization Charged and Eight Arrested for Smuggling Hundreds of Illegal Aliens into the United StatesRead the Press Release
Note: View the indictment here.
Fourteen alleged members of a prolific alien smuggling organization were charged for their roles smuggling aliens from South and Central America into the United States via the southern border.
A grand jury in Las Cruces, New Mexico, returned an indictment on Feb. 19 against 14 individuals for conspiracy to transport, harbor, and bring in illegal aliens to the United States. Eight of those charged were arrested on Feb. 20 and 21.
“Today’s indictment alleges that the defendants engaged in a sophisticated conspiracy to smuggle aliens into and throughout the United States at great danger to the aliens, resulting in the death of one person,” said Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division. “The Justice Department worked with our partners at the Department of Homeland Security (DHS) to dismantle an alien smuggling organization based in Mexico that has allegedly smuggled hundreds of illegal aliens, including unaccompanied children, through New Mexico and South Texas. We are committed to eliminating transnational alien smuggling organizations that exploit migrants purely for profit and undermine our national security.”
According to the indictment unsealed today, the defendants participated in a conspiracy to illegally bring undocumented aliens from Mexico into the United States via the U.S. southern border. The indictment alleges that the defendants were also responsible for transporting the aliens within the United States and concealing them in “stash houses” along the way. During some of the smuggling events, the defendants allegedly evaded law enforcement by travelling at high rates of speed on the road and instructing aliens how to flee U.S. Border Patrol and evade checkpoints. Additionally, the indictment alleges that one undocumented alien died from heat exposure during a smuggling event and was abandoned in the desert.
“Human smuggling organizations threaten our national security and exploit vulnerable individuals for profit, putting their lives at risk and undermining public safety,” said Acting U.S. Attorney Holland S. Kastrin for the District of New Mexico. “The U.S. Attorney’s Office in the District of New Mexico is committed to continuing to work with our federal, state and local partners to dismantle transnational human smuggling organizations, hold their leaders accountable, and seize the illicit proceeds generated by these exploitative enterprises.”
“We are appreciative of our brave law enforcement partners for their continued vigilance in investigating and apprehending members of transnational criminal organizations who conspire to undermine our nation’s immigration laws for their profit, with a callous and reckless disregard for the sanctity of life,” said U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) El Paso Special Agent in Charge Jason T. Stevens. “As this case sadly demonstrates, human smuggling is a crime that takes lives and puts the public at risk. ICE HSI is passionately devoted to using its abundant authority to identify, investigate, and arrest criminals who prey on the vulnerabilities of people they treat as human cargo.”
Michelle Martinez, 29, of El Paso, Texas; Jesus Calvillo, 44, of El Paso; Jorge Calvillo, 25, of El Paso; Abel Aguilar-Cano, 53, of Albuquerque, New Mexico; and Jose Palomino, 27, of El Paso, made their initial court appearances today in the District of New Mexico and remain in U.S. custody. Edna Valdez-China, 48, of El Paso; Leslie Nicole Calvillo, also known as Leslie Jaramillo, 24, of El Paso; and Melissa Vargas, 22, of El Paso, are in U.S. custody and will make their initial appearances on Feb. 25 in the District of New Mexico. Jorge Alberto De La Cruz-Dominguez, also known as Guero, 54, of Juarez, Mexico; Jorge Valdez China, also known as Lolo, 23, of El Paso; Jonathan Valdez-China, also known as China and Dior, 24, of Juarez; and Alma Guadalupe Valdez-China, 41, of Juarez, are also charged in the indictment.
Each defendant is charged with conspiracy to bring to, transport, and harbor illegal aliens in the United States. If convicted, they each face a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
ICE HSI El Paso and the U.S. Border Patrol investigated the case. U.S. Customs and Border Protection’s National Targeting Center, the Drug Enforcement Administration (DEA), ICE HSI’s Human Smuggling Unit in Washington, D.C., and the Texas Department of Public Safety provided substantial assistance with the investigation.
Assistant U.S. Attorney Alyson R. Hehr for the District of New Mexico and Trial Attorney Jenna Reed of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) are prosecuting the case.
These actions are the result of the coordinated efforts of Joint Task Force Alpha (JTFA). JTFA was established in June 2021 to marshal the investigative and prosecutorial resources of the Justice Department, in partnership with DHS, to combat the rise in prolific and dangerous alien smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, Honduras, Panama, and Colombia. JTFA comprises detailees from U.S. Attorneys’ Offices along the southwest border, including the Southern District of California, District of Arizona, District of New Mexico, and Western and Southern Districts of Texas. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by HRSP and supported by the Office of Prosecutorial Development, Assistance and Training; Narcotic and Dangerous Drug Section; Money Laundering and Asset Recovery Section; Office of Enforcement Operations; Office of International Affairs; and Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, DEA, and other partners. To date, JTFA’s work has resulted in more than 355 domestic and international arrests of leaders, organizers, and significant facilitators of alien smuggling; more than 300 U.S. convictions; more than 245 significant jail sentences imposed; and forfeitures of substantial assets.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Tribal Officer Sentenced to 30 Years in Federal Prison for Aggravated Sexual Abuse and Abusive Sexual ContactRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Camela C. Theeler has sentenced an Oglala, South Dakota, man convicted of Aggravated Sexual Abuse of a Child and Abusive Sexual Contact of a Child. The sentencing took place on February 20, 2025.
Oscar Hudspeth, Sr., age 54, was sentenced to 30 years in federal prison for each count to run concurrently, followed by five years of supervised release on each count to run concurrently, and a special assessment to the Federal Crime Victims Fund in the amount of $200. Upon Hudspeth’s release from federal prison, he must register as a sex offender.
Hudspeth was indicted by a federal grand jury in December 2023. He was found guilty following a federal jury trial in October 2024.
The conviction stemmed from disclosures in 2023 by a female juvenile who reported that Hudspeth had sexually abused her while her mother was married to him in the early to mid-2000s. The child was forensically interviewed and disclosed that Hudspeth touched her in a sexual manner on more than one occasion while he was her stepfather. The abuse occurred at their home in Oglala and while the child’s mother was working. At the time, Hudspeth worked as a law enforcement officer for the Oglala Sioux Tribe Department of Public Safety.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This matter is being prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in federal court as opposed to State court.
This case was investigated by the FBI. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Hudspeth was immediately remanded to the custody of the U.S. Marshals Service.
Former Stanford Research Coordinator Convicted for Unlawfully Accessing and Altering Breast Cancer Study Database Hours After She Was FiredRead the Press Release
SAN JOSE – A federal jury convicted Naheed Mangi, 66, a former employee of Stanford University, of accessing a clinical research database for a multisite breast cancer study after her authorization was revoked and altering patient records in the database. The jury reached its verdict late afternoon on Friday, Feb. 21, 2025, following a two-week trial before Senior U.S. District Judge Edward J. Davila.
According to court documents and evidence presented at trial, Mangi was employed as a clinical research coordinator in the Cancer Clinical Trials Office at Stanford’s National Cancer Institute from September 2012 until August 2013. Mangi worked with doctors and patients in the clinical research program, reporting significant patient events, monitoring research, assisting with scheduling patient appointments, and entering data into clinical dataset.
Mangi was assigned to a Genentech-sponsored study being conducted at Stanford for breast cancer patients that was referred to as the “Velvet Breast Cancer MO27782 Study.” The study sought to determine the safety and efficacy of a new, experimental pharmaceutical treatment for patients with metastatic or locally advanced breast cancer. Among other duties, Mangi was responsible for reporting any serious adverse events that a patient may experience during the course of the study and accurately entering patient medical data into the study database.
On Aug. 19, 2013, Mangi was terminated from her employment with Stanford and Mangi’s supervisor attempted to revoke her Stanford-related computer access and privileges. The supervisor emailed Genentech to terminate Mangi’s access to the clinical database, but Mangi’s credentials were not disabled until the following day.
The jury found that later in the evening on Aug. 19, after Stanford had revoked her access, Mangi logged into the clinical database and altered data in the Velvet Breast Cancer MO27782 Study, replacing patient medical data with erroneous information and insults about her former supervisor. As a result of Mangi’s unauthorized actions, Stanford undertook an internal investigation, reentered all of the data about its participants in the study from source documents into the study database, and reported the incident to local and federal regulatory authorities, including the FDA. In addition, Mangi’s criminal conduct caused thousands of dollars in financial loss to Stanford University and the Stanford School of Medicine.
“Naheed Mangi intentionally tampered with a breast cancer research database by entering false information and personal insults. Her senseless actions undermined a study into the safety and efficacy of a new treatment for breast cancer patients,” said Acting United States Attorney Patrick D. Robbins. “The jury’s verdict holds the defendant accountable for her crimes.”
“Naheed Mangi’s actions jeopardized important cancer research and caused thousands in financial loss to Stanford University. The U.S. Secret Service continues to work diligently to investigate these types of crimes to ensure those responsible are held accountable,” said U.S. Secret Service Special Agent in Charge Shawn Bradstreet.
Mangi, who was convicted of two counts of Intentional Damage to a Protected Computer in violation of 18 U.S.C. § 1030(a)(5)(A) and one count of Accessing a Protected Computer Without Authorization in violation of 18 U.S.C. § 1030(a)(2)(C), will be sentenced on July 21, 2025. She faces a maximum penalty of 10 years in prison as to each conviction for Intentional Damage to a Protected Computer and one year in prison as to the conviction for Accessing a Protected Computer Without Authorization. Any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Nikhil Bhagat and Matthew Chang are prosecuting the case with the assistance of Nina Burney, Mimi Lam, Susan Kreider, Sahib Kaur, Fernanda Gonzalez, Maureen French, and Bella Schou. The prosecution is the result of an investigation by the Secret Service.
Former Fort Campbell Soldier Sentenced to over Five Years in Federal Prison for Child Exploitation OffensesRead the Press Release
Paducah, KY – A former Fort Campbell soldier was sentenced last week to 5 years and 4 months in federal prison for receiving and distributing child pornography.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Michael E. Stansbury of the Federal Bureau of Investigation Louisville Field Office made the announcement.
According to court documents, Brett Nicolas Ellison, 24, was sentenced to 5 years and 4 months in prison, followed by 5 years of supervised release, for one count of receipt of child pornography and one count of possession of child pornography. Between November 2019 and June 2022, Ellison received and possessed child sexual abuse material while he was a soldier stationed at the Fort Campbell Army Post, possessing over 90 images and 70 videos containing child sexual abuse material.
Ellison was also ordered to pay $57,000 in restitution to victims.
There is no parole in the federal system.
This case was investigated by the FBI Hopkinsville Satellite Office and Army CID.
Assistant U.S. Attorney Raymond McGee, of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Former Employee Admits Embezzling at Least $300,000 from St. Louis County CompanyRead the Press Release
ST. LOUIS – A man from Charlotte, North Carolina has admitted embezzling at least $300,000 from a St. Louis County company, U.S. Attorney Sayler A. Fleming announced Monday.
Scott H. Foster, 48, pleaded guilty Friday to one count of wire fraud. He admitted as part of his plea that he committed the crime from January 2018 to December 2022, while employed as a mid-level executive of the company. Foster manipulated the human resources systems to create an employee account for his paramour, triggering wages and benefits totaling more than $273,000.00 to be paid to his paramour over nearly five years, despite this individual performing little or no actual work for the company. Foster also used a corporate American Express card to pay for more than $33,000 in personal travel for himself, his paramour and other friends and acquaintances.
Foster is scheduled to be sentenced May 22.
The FBI investigated the case. Assistant U.S. Attorney Jonathan Clow prosecuted the case.
Federal inmate imprisoned for punching and injuring deputy U.S. marshalRead the Press Release
HOUSTON – A 43-year-old man with ties to the Humble area has been sentenced for the assault of federal officer resulting in bodily injury, announced U.S. Attorney Nicholas J. Ganjei.
A federal jury deliberated for approximately two hours before convicting Cedric Tyrone Walker Aug. 20, 2024, following a two-day trial.
U.S. District Judge George C. Hanks has now ordered Walker to serve 97 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court considered the nature and extent of the injuries which caused permanent disfigurement. In handing down the sentence, the court noted that the federal law enforcement officer just showed up for work and then landed in the hospital as a result of Walker’s violent behavior.
“The Southern District of Texas (SDTX) has zero tolerance for violence against law enforcement,” said Ganjei. “They are heroes who put themselves in harm’s way every day. Today’s sentence demonstrates how SDTX will always have their backs.”
On Dec. 27, 2022, authorities learned that on two occasions Walker failed to return in a timely manner to the residential reentry center (RRC), also referred to as a halfway house, where he was serving a federal prison sentence for armed bank robbery.
Law enforcement told the RRC Walker needed to be transported back to a federal detention center. However, Walker was reluctant to comply with instructions from authorities and struck a deputy U.S. marshal (DUSM) in the mouth with a closed fist.
A struggle ensued on the ground, and authorities restrained Walker after two taser deployments. Law enforcement then took Walker to a federal detention center and he refused medical attention.
The injured DUSM arrived at the emergency room where he received treatment for a laceration on his lip which required 12 stitches. As a result of the assault, he also sustained two chipped teeth.
At the time of the trial, the defense attempted to convince the jury Walker did not cause the injury. They did not believe those claims and found him guilty as charged.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney Carrie Wirsing prosecuted the case.
Eureka Chiropractor Convicted of Defrauding Medicare, Insurance Companies Out of More Than $1.5 MillionRead the Press Release
PEORIA, Ill. – A federal jury returned a guilty verdict late Friday evening against Carrie Musselman, 48, of Eureka, Illinois, for defrauding Medicare and other insurance companies out of more than $1.5 million dollars and for five counts of wire fraud in furtherance of her scheme to defraud. Sentencing for Musselman has been scheduled for June 24, 2025, at the U.S. Courthouse in Peoria, Illinois.
Over 13 days of testimony, the government presented evidence establishing that Musselman, a chiropractor in Eureka, engaged in a scheme to defraud Medicare and other insurance companies. As part of the scheme, Musselman disguised the identity of the people providing services and misrepresented the nature of the services that had actually been provided.
For instance, Musselman falsely claimed services were being provided by physicians when they were actually being provided by nurse practitioners and physician’s assistants. This resulted in an automatic pay increase for Musselman and her practice. In addition, one of Musselman’s highest reimbursement services, the placement of an electroacupuncture (which she was falsely billing as a surgically implanted neurostimulator), would not have qualified for any payment but for her deception. Musselman also billed for services that were not actually rendered. This included not only billing for neurostimulators that were never provided, but also for purportedly providing patients with allergy injections when, in reality, no such injections were given. Instead, patients were sent home with oral drops that had not been approved by the Food and Drug Administration, were considered “experimental,” and had not been proven to be effective.
Musselman remains released on bond. At sentencing, Musselman faces statutory penalties of up to 10 years’ imprisonment for the healthcare fraud charge and up to 20 years’ imprisonment for each of the wire fraud charges, to be followed by up to three years of supervised release on each of the counts. Each of the six convictions could also incur up to a $250,000 fine.
The case investigation was conducted by the Federal Bureau of Investigation, Springfield Field Office, and the Department of Health and Human Services, Office of Inspector General, Office of Investigations. Assistant U.S. Attorneys Douglas F. McMeyer, Bryan D. Freres, and Grace J. Hitzeman represented the government at trial.
Eldon Sex Offender Sentenced to 20 Years for Child PornographyRead the Press Release
JEFFERSON CITY, Mo. – An Eldon, Mo., man who is a registered sex offender was sentenced in federal court today for possessing child pornography.
David Arabie, 59, was sentenced by U.S. District Judge Brian C. Wimes to 20 years in federal prison without parole, the statutory maximum sentence for this offense. The court also sentenced Arabie to 25 years of supervised release following incarceration.
Arabie is a registered sex offender with prior felony convictions for statutory sodomy involving a 6-year-old victim and criminal sexual conduct involving the sexual abuse of three children ages 7 to 12.
On Oct. 26, 2023, Arabie pleaded guilty to possessing child pornography. The court found him in breach of his plea agreement at today’s hearing, however, after Arabie filed a motion to withdraw his guilty plea and recanted his previous statements made under oath during the change of plea hearing, claiming to be innocent of the charged conduct. On Dec. 20, 2024, the court denied Arabie’s motion to withdraw his guilty plea.
Arabie admitted that, while visiting his in-laws, he used a peer-to-peer file-sharing network on his computer to share images of child sexual abuse material with an undercover law enforcement officer. Arabie shared a video of the sexual abuse of a child victim approximately 3 to 6 years old.
Arabie also admitted that he possessed more than 600 images of child sexual abuse material on his computer.
This case was prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Missouri State Highway Patrol.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Defendant Pleads Guilty to Selling Fentanyl that Caused Fatal OverdoseRead the Press Release
SAN DIEGO – Danny Nunez pleaded guilty in federal court today, admitting that he supplied the fentanyl that caused the death of a 25-year-old San Diego woman identified in court records as “L.P.” on September 11, 2024.
According to the plea agreement, on September 12, 2024, the young woman’s parents found her deceased in her bedroom. Cell phone evidence and witness statements show that the victim purchased fentanyl from the defendant on September 11, 2024, which she later consumed, resulting in her death.
On October 3, 2024, members of the Homeland Security Investigations (HSI) San Diego – Fentanyl Abatement and Suppression Team (FAST), in conjunction with the Escondido Police Department, conducted an enforcement operation resulting in the arrest of the defendant after he attempted to sell two baggies of fentanyl, weighing 7.67 grams and 1.23 grams, to undercover agents.
Nunez is scheduled to be sentenced on May 19, 2025, at 9:30 a.m. before U.S. District Court Judge Thomas J. Whelan.
This case is being prosecuted by Assistant U.S. Attorney Sean Van Demark.
HSI San Diego FAST is a multiagency task force comprising state, local, and federal partners and was first established in August 2022 focusing on the disruption and dismantlement of criminal organizations that smuggle and distribute fentanyl within San Diego County. HSI’s FAST targets fentanyl smuggling and distribution networks to counter the rising overdose rate and decrease the availability and accessibility of fentanyl.
DEFENDANT Case Number 24-CR-2295-W
Danny Nunez Age: 25 San Diego, CA
SUMMARY OF CHARGES
Attempted Distribution of Fentanyl
21 U.S.C. § 841(a)(1)
Maximum penalty: Twenty years in prison (per count)
INVESTIGATING AGENCIES
Homeland Security Investigations
Escondido Police Department
San Diego Imperial Valley High Intensity Drug Trafficking Areas
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Crofton, Kentucky Man Sentenced to over 6 Years in Federal Prison for Being a Felon in Possession of a FirearmRead the Press Release
Paducah, KY – A Crofton, Kentucky, man was sentenced last week to 6 years and 5 months in federal prison for illegally possessing a firearm after having previously been convicted of a felony offense.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Acting Special Agent in Charge A.J. Gibes of the ATF Louisville Field Division, and Sheriff Tyler DeArmond of the Christian County Sheriff’s Office made the announcement.
According to court documents, Earl Ray Cook, Jr., 27, of Crofton, Kentucky, was sentenced to 6 years and 5 months in prison, followed by 3 years of supervised release, for illegally possessing a Taurus model G3C 9mm handgun, and ammunition, on January 29, 2024, in Christian County, Kentucky. Cook was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses.
On June 8, 2016, in Christian Circuit Court, Cook was convicted of first-degree possession of a controlled substance, methamphetamine, first offense and possession of drug paraphernalia while armed.
On February 12, 2018, in Daviess Circuit Court, Cook was convicted of theft of identity of another without consent, theft of a motor vehicle registration plate or renewal decal, and first-degree possession of a controlled substance, methamphetamine, first offense.
On July 28, 2022, in Daviess Circuit Court, Cook was convicted of third-degree assault and first-degree fleeing or evading police.
There is no parole in the federal system.
This case was investigated by the ATF Bowling Green Field Office and Christian County Sheriff’s Office.
Assistant U.S. Attorney Seth A. Hancock, Chief of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Couple Returned from Puerto Vallarta for Outstanding Warrants in OklahomaRead the Press Release
TULSA, Okla. – Today, Aaron Wilkie Murphy, 51, and Hong Thoa Thi Nguyen, 33, appeared before a Judge in Texas before being returned to the Northern District of Oklahoma for prosecution. The couple fled before being indicted, but Federal Law Enforcement worked in coordination with the Mexican Marines and Police to arrest the couple residing in Puerto Vallarta, Mexico.
In June 2023, Murphy was indicted for Possession of Fentanyl with Intent to Distribute; Possession of Methamphetamine with Intent to Distribute; and Maintaining a Drug-Involved Premises. In December 2023, Nguyen was indicted separately for Drug Conspiracy and Maintaining a Drug-Involved Premises.
“Murphy and Nguyen have avoided prosecution for over two years,” said U.S. Attorney Clint Johnson. “I want to thank our law enforcement partners in Mexico for working diligently with federal agencies on this arrest so that Murphy and Nguyen will face prosecution for their conduct.”
“The successful arrest and expulsion of Mr. Murphy and Mrs. Nguyen were possible because of the cooperation of our national and international partners in both the United States and Mexico,” said Eduardo A. Chavez, Special Agent in Charge of the DEA Dallas Division overseeing Oklahoma. “These arrests have undoubtedly made our communities safer and prevented further destruction that fentanyl and methamphetamine in the Tulsa, Oklahoma. The DEA will continue to work hand in hand with our law enforcement partners in the Tulsa area and across the state to ensure justice is served in this case.”
Beginning in March 2022, it is alleged that Murphy possessed fentanyl and methamphetamine with intent to distribute. Additionally, he was charged with maintaining a residence in Tulsa for drug distribution.
In November 2023, court documents alleged that Nguyen conspired with others to distribute cocaine and maintain a residence in Tulsa for drug distribution. Her three co-defendants, indicted in December 2023, have either pled guilty and are awaiting sentencing or have already been sentenced.
If convicted, Murphy faces 360 months to life imprisonment. Nguyen faces 120 months to life imprisonment.
The Drug Enforcement Administration Tulsa Resident Office, the U.S. Marshal Service Tulsa Field Office, and the Tulsa Police Department are investigating the case. The DEA Mexico City Country Office, along with the Hermosillo Mexico Resident Office, the U.S. Marshal Service Mexico City Field Office, Mexican Marines, and the Mexico Federal Police, assisted in the arrest and return. Assistant U.S. Attorney Adam Bailey is prosecuting both cases.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Both cases are investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Companies That Own and Operate Bulk Carrier Guilty, Sentenced for Environmental CrimesRead the Press Release
NEW ORLEANS, LOUISIANA – Acting United States Attorney Michael M. Simpson announced that two companies that owned and operated the bulk carrier M/V ASL Singapore—ASL Singapore Shipping Limited and Jia Feng Shipping (Fuzhou) Limited — pled guilty on February 20, 2025 to knowingly violating the Act to Prevent Pollution from Ships (APPS), and obstruction of justice related to the falsification of the vessel’s Oil Record Book, a required log.
The guilty pleas occurred before U.S. District Judge Jay C. Zainey. The companies were sentenced during the same proceeding. Pursuant to the court approved plea agreement, the companies were fined a total of $1.85 million and are banned from operating in the United States in the future. Separate charges were filed against Fei Wang, a Chinese national who was the ship’s Chief Engineer. Wang pled guilty and was sentenced on January 24, 2025.
The criminal case stems from a routine U.S. Coast Guard inspection, which revealed that the crew had been using a portable pump and flexible hose—a so-called magic pipe—to dispose of oily bilge water. This action constituted a violation of MARPOL, the International Convention for the Prevention of Pollution from Ships, coupled with the vessel’s failure to use the appropriate pollution prevention equipment and monitoring. Crew members presented the vessel’s Oil Record Books to the Coast Guard knowing they contained fraudulent entries and omitted information about discharging oily bilge water directly overboard before arriving in the United States. The falsified logs were intended to conceal that since at least June 2023, the crew had dumped oily bilge water overboard directly from the bilge holding tank and was non- compliant with international treaties regulating oil pollution from ships.
ASL Singapore Shipping Limited is based in The Republic of the Marshall Islands, and Jia Feng is based in China. The corporations were each charged with two felonies: an APPS violation and obstruction of justice.
The Coast Guard Investigative Service and the EPA Criminal Investigations Division investigated the case with assistance from U.S. Coast Guard Sector New Orleans. Assistant U.S. Attorneys Christine M. Calogero and G. Dall Kammer of the General Crimes Unit are prosecuting the case.
Child Predator Sentenced to 20 Years in Federal Prison after Transporting 14-Year-Old Michigan Girl Across State Lines for Sex and Impregnating HerRead the Press Release
INDIANAPOLIS— Larry Goldsmith., 26, of Indianapolis, has been sentenced to 20 years in federal prison, followed by a lifetime of supervised release after pleading guilty to transportation of a minor with intent to engage in sexual activity.
According to court documents, in 2020, Goldsmith began messaging a 14-year-old girl living in Michigan through the social media applications Spot-a-Friend and Snapchat. Goldsmith knew of the child’s age at the time yet engaged in sexually explicit conversations with her.
At the end of August 2020, the child got into a verbal argument with her mother and expressed to Goldsmith that she wanted to run away from home. Goldsmith drove over four hours to Michigan and picked her up at a business near her home. Goldsmith was 21 years old at the time.
On the way back to Indiana, Goldsmith engaged in sexually explicit conduct with the child at a rest stop in Michigan and then transported her across state lines to a home he rented in Indianapolis. During their time living together, Goldsmith had sex with the child numerous times and impregnated her.
After committing these offenses, Goldsmith continued his sexual abuse of minors by committing essentially the same conduct with another child in Georgia – where he drugged and raped a 13-year-old. In 2022, Goldsmith pleaded guilty to those crimes in Georgia and was sentenced to 15 years in federal prison, which he is currently serving.
“Goldsmith is no longer a danger to children and families in our community,” said John E. Childress, Acting United States Attorney for the Southern District of Indiana. “He is a manipulative, child predator who used the tools of social media to abuse a vulnerable child over and over again. I commend the outstanding work of local law enforcement agencies in Indiana and Georgia, along with the FBI, to bring the victim home safely.”
"The FBI is unwavering in our mission to protect the most vulnerable members of our society – our children. This case highlights the disturbing reality of sexual exploitation, and the sentence ensures this predator will remain behind bars and unable to continue to perpetrate such atrocities,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI and our law enforcement partners remain steadfast in our commitment to work together to ensure no child is victimized in this way.”
“This sentence sends a clear message—those who harm children will be held accountable," said IMPD Chief Chris Bailey. "The dedication and diligence of our IMPD officers, along with law enforcement agencies across the country, played a critical role in getting this predator behind bars.”
The Federal Bureau of Investigation and IMPD investigated this case. The sentence was imposed by U.S. District Judge Matthew P. Brookman. Under federal law, Goldsmith must register as a sex offender wherever he lives, works, or goes to school for life.
Acting U.S. Attorney Childress thanked Assistant U.S. Attorney MaryAnn T. Mindrum, who prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
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Charlotte Sex Trafficker and Co-Conspirator Are Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – A Charlotte man and his co-conspirator were sentenced to prison today for sex trafficking a minor, announced Lawrence J. Cameron, Acting U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina joins Acting U.S. Attorney Cameron in making today’s announcement.
Tawaan Batten, 34, also known as “Slicc,” was sentenced to 34 years in prison followed by 30 years of supervised release. In December 2023, Batten was convicted at trial of conspiracy to commit sex trafficking of a minor, sex trafficking of a minor, and transportation of a minor with the intent to engage in commercial sexual activity. Batten’s co-conspirator, Kristi Heather King, 34, of Locust, N.C., was sentenced to 42 months in prison and a period of supervised release, after pleading guilty to conspiracy to commit sex trafficking of a minor.
“Batten and his then-girlfriend preyed on a vulnerable child and repeatedly subjected her to physical and psychological harm for their profit,” said Acting U.S. Attorney Cameron. “Today’s sentence sends a clear message: federal prosecutors and law enforcement are committed to ensuring that sex traffickers will face the full force of justice.”
“It is difficult to fathom that someone would sell a child for sex. But that is exactly what Batten and King did and now both of them will do federal prison for their crimes,” said Special Agent in Charge DeWitt. “The FBI works tirelessly to hold accountable those who carry out crimes against children, and we devote significant resources to help sex trafficking victims recover from the trauma they suffer.”
According to evidence presented at Batten’s trial, witness testimony, and court documents, from July 2021 to December 2021, Batten, at times assisted by King, sex trafficked a 15-year-old minor victim. Batten met the minor victim, who had run away from her home, in a hotel parking lot in Charlotte. Batten then introduced the minor victim to King, who was Batten’s girlfriend at the time. The minor victim began engaging in commercial sex transactions shortly after meeting Batten.
Trial evidence showed that Batten, at times assisted by King, created and posted advertisements of the minor victim on commercial sex websites and arranged for the minor victim to engage in sexual encounters with customers, usually multiple times a day. Most of these encounters took place in hotel rooms booked by Batten in North Carolina and South Carolina. Other times, Batten and King drove the minor victim to a customer’s location to engage in commercial sex. Batten kept the money the victim earned from these commercial sexual encounters and continued to have the victim work even when she was not feeling well.
According to testimony and evidence at Batten’s trial, Batten gave the minor victim drugs. Batten also controlled the minor victim through intimidation and manipulation, including branding the minor victim with tattoos. Batten also physically assaulted King multiple times.
Batten remains in federal custody pending placement to a Federal Bureau of Prisons facility.
In making today’s announcement, Acting U.S. Attorney Cameron commended the FBI for leading this investigation and thanked the Charlotte-Mecklenburg Police Department for their invaluable assistance.
Assistant U.S. Attorneys Stephanie Spaugh and Daniel Cervantes of the U.S. Attorney’s Office in Charlotte prosecuted the case.
If you are the victim of human trafficking or may have information about a potential trafficking situation, please call the FBI, local law enforcement, or the National Human Trafficking Resource Center (NHTRC) at 1-888-373-7888. NHTRC is a national, toll-free hotline, with specialists available to answer calls from anywhere in the country, 24 hours a day, seven days a week, every day of the year related to potential trafficking victims, suspicious behaviors, and/or locations where trafficking is suspected to occur. To submit a tip to the NHTRC online please visit https://humantraffickinghotline.org/report-trafficking.