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Monday 16 December 2024
Mexican National Sentenced to Prison for Drug Conspiracy Involving More Than 240 Pounds of Fentanyl and Nearly 100 Pounds of CocaineRead the Press Release
CLEVELAND – Ronald Rendon-Luna, 37, a Mexican national residing in Painesville, Ohio, has been sentenced to 151 months in prison by U.S. District Chief Judge Sara Lioi, after he pled guilty to engaging in a drug-trafficking conspiracy and possession with intent to distribute controlled substances and being an alien in possession of firearms. He was also ordered to serve three years of supervised release.
According to court documents, the Cartel, Gangs, Narcotics and Laundering Task Force of the FBI-Cleveland Division conducted a long-term drug-trafficking investigation that led to the arrest and successful prosecution of Rendon-Luna and three other co-conspirators, including two individuals with direct connections to the Sinaloa Cartel based in Culiacán, Mexico.
During the investigation, law enforcement officials discovered that, from about June 2022 through January 2023, the leader of the conspiracy, Nefer Ojeda-Elenes, 32, of Upland, California, conspired with Rendon-Luna to use residences in Cleveland and Painesville, and two storage units in Cleveland and Middleburg Heights, to store illegal drugs and proceeds from the sales of the illegal substances. Rendon-Luna, on behalf of Ojeda-Elenes, traveled to area hotels to meet a third co-conspirator, Cameron Harris, 29, of Dayton, who further distributed the drugs in the Dayton, Ohio area. A fourth individual, Trino Alexander Briceno-Matheus, 31, of Miami Beach, Florida, also participated in the conspiracy and is known to have met with Rendon-Luna at an area hotel to pick up approximately $149,640 in proceeds earned from illegal drug activities.
This organization was responsible for distributing approximately 111 kilograms of fentanyl, and approximately 42 kilograms of cocaine during the course of the conspiracy.
“These criminals used their Mexican Cartel connections to bring millions of doses of fentanyl—each one potentially fatal—into our communities and distribute those poisons across our state,” said U.S. Attorney Rebecca Lutzko for the Northern District of Ohio. “Every day, dangerous drugs like the fentanyl and cocaine that these defendants imported and peddled on our streets destroy lives. Those who seek to expand their illegal drug trade to our District should know that we will use all tools available to stop them from endangering our residents’ lives and the safety of our neighborhoods.”
During a federal search warrant executed at the related residences and storage units, law enforcement officials found illegal drugs in a storage unit, and confiscated several weapons, including an AK-47 and an AR-15 from Rendon-Luna’s Painesville home.
Rendon Luna’s co-conspirators were previously sentenced.
Ojeda-Elenes was sentenced Sept. 17, 2024, to 228 months in prison after pleading guilty to conspiracy and possession with intent to distribute a controlled substance. He was also ordered to serve five years of supervised release.
Harris was sentenced Aug. 20, 2024, to 151 months in prison after pleading guilty to conspiracy and possession with intent to distribute a controlled substance. He was also ordered to serve five years of supervised release.
Briceno-Matheus was sentenced July 23, 2024, to 30 months in prison and three years of supervised release after pleading guilty to conspiracy and possession with intent to distribute controlled substances, and interstate transportation in aid of racketeering.
This case was investigated by the FBI-Cleveland Division, with assistance from the Cleveland Division of Police, U.S. Border Patrol (USBP), U.S. Coast Guard Investigative Services, Moreland Hills Police Department, Ohio Bureau of Criminal Investigation & Identification, Ohio State Highway Patrol, Bedford Police Department, Internal Revenue Service, Parma Police Department, Solon Police Department, Ohio Adult Parole, Ottawa County Drug Task Force, Shaker Heights Police Department, Cuyahoga County Sheriff’s Office, Brooklyn Police Department, North Royalton Police Department, Greater Cleveland Regional Transit Authority Police Department, Lake County Sheriff’s Office, Painesville Police Department, Ohio Narcotics Intelligence Center, Ohio HIDTA, U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
The specific mission of the OCDETF Cleveland Strike Force is to disrupt and dismantle major criminal organizations and subsidiary organizations, including criminal gangs, transnational drug cartels, racketeering organizations, and other groups engaged in illicit activities that present a threat to public safety and national security and are related to the illegal smuggling and trafficking of narcotics or other controlled substances, weapons, humans, or the illegal concealment or transfer of proceeds derived from such illicit activities in the Northern District of Ohio. The OCDETF Cleveland Strike Force is composed of agents and officers from the FBI, DEA, ATF, Homeland Security Investigations, USMS, U.S. Postal Inspection Service, Internal Revenue Service, and USBP, along with task force officers from numerous local law enforcement agencies, including the Cleveland Division of Police. Prosecutions are led by the Office of the United States Attorney for the Northern District of Ohio.
The case was prosecuted by Assistant U.S. Attorney Marc Bullard for the Northern District of Ohio.
Marshall County Man Admits to Child Pornography ChargeRead the Press Release
WHEELING, WEST VIRGINIA – Ryan Bobby Schnettler, 34, of Benwood, West Virginia, admitted today to possessing child pornography.
According to court documents and statements made in court, Schnettler was under supervision because of a prior sex offense conviction. At a home visit, officers found undocumented phones and seized them. Schnettler admitted to going into chat rooms where he pretended to be a 17-year-old male to talk to minors. After Schnettler’s phones were seized, law enforcement obtained a search warrant and searched the phones, locating hundreds of images of child sexual abuse material. The phone also had screenshots of chats with minor females.
Schnettler faces up to 20 years in prison. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Jennifer Conklin is prosecuting the case on behalf of the government.
The Federal Bureau of Investigation and the U.S. Probation Office investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Lowell Man Charged with Sex Trafficking and Transporting Victim Through Four StatesRead the Press Release
BOSTON – A Lowell, Mass. man was arrested on Friday and charged with sex trafficking a victim in Massachusetts, Nevada, Rhode Island and New York.
Melando Streety, a/k/a “Prez,” 41, was charged with sex trafficking by force, fraud, or coercion, and five counts of transporting a person to engage in prostitution. Streety was arrested in Michigan and will make an initial appearance in federal court in Detroit.
According to the indictment, beginning in September 2023, and continuing to December 2023, Streety caused a victim to engage in commercial sex through the use of various means, including force, threats of force, fraud and coercion. During that period, he also transported the victim from Nevada to Massachusetts, and then to Rhode Island and New York, all to cause to the victim to engage in prostitution.
The charge of sex trafficking by force, fraud, or coercion carries a mandatory minimum sentence of 15 years in prison, with a maximum sentence of life in prison, at least five years of supervised release and a fine of up to $250,000. Each count of transporting a person to engage in prostitution provides a maximum sentence of 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Members of the public who have information regarding this case should call 888-221-6023, option 5.
United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Valuable assistance was provided by the Cambridge Police Department and the Lowell Police Department. Assistant U.S. Attorney Brian A. Fogerty of the Human Trafficking & Civil Rights Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
LeFlore County Resident Sentenced for Fentanyl DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jada Marie Ray, age 33, of Poteau, Oklahoma, was sentenced to 6 months in prison for one count of Distribution of Fentanyl.
The charge arose from an investigation by the Oklahoma Bureau of Narcotics, the District 16 Drug Task Force, and the Drug Enforcement Administration.
On July 23, 2024, Ray pleaded guilty to the charge. According to investigators, on January 5, 2023, Ray distributed twenty pills containing fentanyl, a Schedule II controlled substance.
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Ray will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant U.S. Attorney Jordan Howanitz represented the United States.
Kanawha County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Eddie Wayne Chapman Jr., 39, of St. Albans, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on July 18, 2024, Chapman possessed a backpack that was seized by law enforcement. Chapman admitted that the seized backpack contained a loaded Smith & Wesson SD9 VE 9mm pistol and two ammunition magazines. Chapman further admitted that the backpack contained approximately 65 grams of controlled substances containing fentanyl.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Chapman knew he was prohibited from possessing a firearm because of his prior felony convictions for being a felon in possession of a firearm and possession with intent to distribute methamphetamine in United States District Court for the Southern District of West Virginia on October 23, 2017, and for conspiracy to operate a clandestine drug laboratory in Kanawha County Circuit Court on September 30, 2010.
Chapman is scheduled to be sentenced on March 10, 2025, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Kanawha County Sheriff’s Office.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney JC MacCallum is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-193.
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Justice Department Finds Arizona’s Department of Child Safety Discriminates Against Parents and Children with DisabilitiesRead the Press Release
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The Justice Department today announced its findings that the State of Arizona’s Department of Child Safety (DCS) violates Title II of the Americans with Disabilities Act (ADA) by discriminating against parents, including foster parents and other caregivers, and children with disabilities.Following a comprehensive investigation, the department found DCS failed to communicate effectively with parents and children with hearing disabilities, including by not providing interpreters. DCS also failed to reasonably accommodate the needs of parents with disabilities by, for example, not providing information in a simplified form. Finally, DCS denies parents with disabilities an equal chance to participate in and benefit from DCS programs and services.
“Under the ADA, parents and children with disabilities are entitled to fair and equal treatment by child welfare agencies,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Over four million parents with disabilities live in the United States, and discriminatory actions by child welfare agencies can have devastating and permanent consequences for parents and children. The Civil Rights Division is committed to ensuring that unlawful discrimination does not interfere with a parent’s opportunity to stay with or be reunited with their child and that separations are not prolonged because a child welfare agency does not give parents the effective communication and reasonable accommodations that the ADA guarantees.”
“Parents and children with disabilities deserve to be treated with dignity,” said U.S. Attorney Gary M. Restaino for the District of Arizona. “Our office will continue to work with the Civil Rights Division to guarantee that parents and children with disabilities are protected under the law, and to ensure that the Department of Child Safety more meaningfully accommodates disabilities in the pursuit of better outcomes for families.”
The department provided written findings in a letter to Arizona and DCS detailing the minimum steps DCS must take to fix the identified violations. The department’s letter explains DCS violates the ADA by denying effective communication and auxiliary aids and services to parents, caregivers and children with hearing disabilities. For example, DCS did not get American Sign Language (ASL) interpreters for deaf and hard of hearing parents, caregivers and children, including during important meetings and when children were removed from their homes. And DCS did not communicate with parents with vision disabilities and other disabilities that affect communication in ways those parents could understand. As a result, parents, caregivers and children with disabilities could not understand what was happening at times during their DCS cases and interactions with DCS.
The letter also documents DCS’s failure to make reasonable accommodations that parents with disabilities need, even though those accommodations could help parents address DCS’ concerns. For instance, DCS had safety concerns when parents with intellectual and developmental disabilities, one of whom also has a vision disability, had trouble making bottles and testing bath water temperature. But DCS did not consider whether simple accommodations could help the parents safely do those tasks, like a bottle with large-print measurements or a digital thermometer that uses colored lights or beeps to alert parents if bathwater is too hot or cold.
Finally, the department found that DCS also does not give parents with disabilities the chance to equally participate in DCS programs and services. For example, DCS relies on stereotypes and unfounded assumptions about parents with disabilities. In one instance, DCS delayed reunification based only on generalized concerns about whether a mother with autism and attention deficit hyperactivity disorder (ADHD) could safely care for her young child because of her disabilities. But those concerns were based on stereotypes and speculation, not specific things the mother did.
If you or someone you know has a complaint about disability discrimination by DCS, please call 1-888-394-3540 (for TTY, dial 711 first) or file a complaint here. You can find more information about the rights of parents with disabilities here and in joint technical assistance from the Justice Department and Department of Health and Human Services. For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov. For more information on the Civil Rights Division, please visit www.justice.gov/crt.
Justice Department Announces Significant Progress in Policing Reforms by the Baltimore Police Department and the City of BaltimoreRead the Press Release
The Justice Department and City of Baltimore filed a joint motion on Friday seeking court approval to declare the city and the Baltimore Police Department (BPD) in full and effective compliance with key consent decree requirements related to First Amendment-protected activities, community oversight and coordination with Baltimore City school police.
The joint motion is based on BPD’s consistent progress towards achieving the goals of the consent decree. The independent monitor’s reports on these topics found BPD in full and effective compliance with all three sections. If the court grants the motion, BPD must maintain compliance with the provisions for one year before the court can terminate these sections of the consent decree.
“The First Amendment’s protections are fundamental to a free society, and the Baltimore Police Department has successfully implemented reforms proven to protect people’s rights during protests and demonstrations,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The 2020 racial justice demonstrations and protests posed serious challenges to law enforcement nationwide. Because of the hard work done under the consent decree to prepare officers for encounters with the community during demonstrations, the Baltimore Police Department has been able to successfully navigate these moments, while supporting the right to protest and keeping the peace. The Justice Department remains committed to collaboratively working with the Baltimore Police Department and the community to ensure constitutional and fair policing — the people of Baltimore deserve nothing less.”
The Justice Department opened a comprehensive investigation of BPD practices in 2015 after considering requests from city officials and community members in the wake of the death of Freddie Gray. The city agreed to, and the court approved, a consent decree in 2017 to resolve the violations identified by the investigation and their root causes.
Since approval of the consent decree, BPD has revised policies and training to ensure officers respect First Amendment protected activity, including the right to peacefully record police officers performing their duties in public. According to the monitor’s reports, key accomplishments include:
- No evidence that BPD obstructs individuals’ ability to observe or record police activity.
- Almost no incidents in which BPD officers violated the First Amendment between Jan. 1, 2020, and June 30, 2022, though BPD officers have had thousands of interactions with the public during that period.
- BPD demonstrated compliance with the consent decree’s requirements related to protest activity during the 2020 racial justice protests, protests related to a speech by the Vice President of the United States in 2020 and a separate protest in November 2023.
The consent decree also required the city to work with community leaders to better understand challenges to civilian oversight in Baltimore and how to improve accountability when working with the Baltimore City school police. The monitor’s reports show that BPD has achieved those objectives, including implementing certain recommendations from the Community Oversight Task Force and improving transparency and coordination regarding its interactions with the Baltimore City school police.
In addition to these reforms, BPD continues to make significant progress in other key areas of the consent decree. For example:
Stops, Searches and Arrests
- BPD implemented new policies and training on how to make lawful arrests and the independent monitor has determined that BPD makes significantly fewer arrests without probable cause.
- Notably, cases in which people who are arrested by BPD are released without being charged by prosecutors, which can indicate an unlawful arrest, decreased 91% between 2020 and 2022 — from an average of 43 per month to four per month.
Transportation of People in Custody
- BPD successfully implemented reforms to ensure the safe transportation of people in custody and officer assistance and support. If the court grants the parties’ joint motion and finds these additional sections of the decree are in full and effective compliance, nearly 30% of the substantive sections of the consent decree will be in full and effective compliance. If BPD maintains compliance with these sections for one year, the requirements could be successfully terminated.
Responding to and Interacting with People with Behavior Health Issues
- BPD officers now use force less frequently and are improving compliance with constitutional requirements and BPD policy.
- BPD and the city also have worked to divert behavioral health calls that do not require a law enforcement response.
- When BPD does respond to behavioral health calls, BPD has improved its response and more often resolves incidents without use of force or arrest.
Since January 2021, the Justice Department has opened 12 investigations into law enforcement agencies pursuant to 34 U.S.C. § 12601 and has been actively monitoring over a dozen agreements with law enforcement agencies that were secured prior to that period. Since 2021, the department has successfully concluded agreements and portions of consent decrees with the Yonkers, New York Police Department; the Albuquerque, New Mexico, Police Department; the Suffolk County, New York, Police Department; the Portland, Oregon, Police Bureau; and the Seattle Police Department.
The department has issued findings reports concerning several agencies including: Louisville, Kentucky, Metro Police Department; the Minneapolis, Minnesota, Police Department; the Phoenix, Arizona, Police Department; the Lexington, Mississippi, Police Department; the Trenton, New Jersey, Police Department; the Memphis, Tennessee, Police Department; the Worcester, Massachusetts, Police Department, and the Mt. Vernon, New York, Police Department.
In Louisville, the department entered into a court enforceable agreement with Louisville Metro Government to resolve its findings.
Investigations are ongoing regarding the Louisiana State Police; the New York City Police Department’s Special Victims Division; the Oklahoma City, Oklahoma, Police Department; and the Rankin County, Mississippi, Sheriff’s Department.
Irish brothers sentenced to 18 months in prison for defrauding elderly homeowners across the countryRead the Press Release
Seattle – Two brothers from Ireland were sentenced today in U.S. District Court in Seattle to 18 months in prison for conspiracy to commit wire fraud for their theft of more than $400,000 from a Shoreline, Washington, homeowner, and other victims across the country, announced U.S. Attorney Tessa M. Gorman. Patrick McDonagh, 35, and Matthew McDonagh, 34, were arrested by U.S. Customs and Border Protection in mid-June and were charged federally in mid-July. They pleaded guilty in September 2024. At the sentencing hearings U.S. District Judge John H. Chun called their actions, “terrible and serious criminal conduct.”
“The defendants in this case preyed on our elderly neighbors – coming into their homes and peddling lies about repairs that seemed urgent so that the homeowner would write whatever checks were needed to preserve their homes,” said U.S. Attorney Gorman. “In Washington State last year our elderly were defrauded of some $88 million. Our elder fraud prosecutors are doing all they can to hold fraudsters accountable.”
According to records filed in the case, the brothers were part of a group that traveled the country scamming homeowners – especially the elderly – by falsely representing a home needed urgent repairs. One older homeowner in the Shoreline neighborhood north of Seattle, lost about $435,000 to the scheme.
The men first approached the victim in January 2024, claimed they were working in the neighborhood and had noticed that the victim had a hole in his roof. The men offered to fix the hole and remove the moss from the roof. Over the course of a few days, they pressured the victim to write them checks for their “services” of $15,000, $20,000, and $26,000. They also claimed that the victim’s foundation was cracked, and they said they would repair that with a “titanium tie rod system.”
The roof had no hole, and the foundation was not failing. However, the men dug trenches and poured some concrete to make it appear work was done, and each day they pressured the victim to write more checks. They even demanded an extra $20,000 for “taxes.” Ultimately, they demanded the victim wire $200,000 to a third party for building supplies – again far in excess of any work they claimed to have done. In all the brothers stole $435,000 from the victim. Quick work by a Shoreline Detective and the King County Prosecutor’s Office resulted in the recovery of the wired funds.
The FBI investigation connected the brothers to contractor fraud complaints in Oregon and Illinois. In Oregon, Patrick McDonagh represented to three different victims that he was affiliated with a local legitimate construction firm, when in fact he was not. Those homeowners paid as much as $29,000 for foundation work that was never completed as promised. In Illinois, Matthew McDonagh claimed he would repave a victim’s driveway and rebuild a retaining wall for $99,000. After the victim paid $75,000, the work was poorly done and damaged the victim’s house. The value of any work done was significantly less than what was paid.
The defendants have agreed to make restitution to the victims in the case. This includes $235,000 to the Shoreline victim, nearly $50,000 to the three victims in Oregon, $75,000 to a victim in Illinois, and more than $673,000 to a victim in Bellevue, Washington.
Speaking in court today, the Shoreline, Washington victim said, “They were aggressive, relentless in their pursuit of more and more money. They preyed on my trust and my faith…. I feel ashamed, frustrated, and betrayed and now I don’t trust others.”
The FBI is investigating this case and was assisted by the Shoreline Police Department, and the U.S. Border Patrol’s Blaine and Spokane Sector’s Anti-Smuggling Units (ASU).
The FBI reminds the public of red flags for contractor fraud:
- The contractor knocks on your door looking for business because they are “in the area” and uses aggressive sales tactics.
- The contractor pressures you for an immediate hiring decision.
- The contractor accepts only cash as payment and demands full payment before starting any work.
- In the sales pitch, the contractor claims to have materials left over from a previous job.
Tips to avoid contractor fraud:
- Always get multiple estimates for any work you want done.
- Ensure contractors are licensed and insured. Look them up at Washington State’s Department of Labor & Industries website at https://secure.lni.wa.gov/verify/
- Check with consumer protection agencies such as the Better Business Bureau and Federal Trade Commission to search for complaints against a contractor.
The case is being prosecuted by Assistant United States Attorney Lauren Watts Staniar. Ms. Staniar serves as the Criminal Elder Fraud Coordinator for the U.S. Attorney’s Office, Western District of Washington.
To learn more about the department’s elder justice efforts please visit the Elder Justice Initiative page.
Honduran National Guilty of Illegal Re-Entry, Faces Enhanced Sentence for Prior Felony ConvictionRead the Press Release
NEW ORLEANS – U.S. Attorney Duane Evans announced today that ALVARO LUIS ALCERRO-BANEGAS (“ALCERRO-BANEGAS”), age 38, pled guilty on December 10, 2024 to illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a) and Title 8, United States Code, Section 1326(b)(1).
According to court documents, ALCERRO-BANEGAS, reentered the United States after being previously deported on September 2, 2022. ALCERRO-BANEGAS, a Honduran national, came to the attention of Immigration and Customs Enforcement after his arrest by the Jefferson Parish Sheriff’s Office on March 2, 2024. On January 18, 2017, in the United States District Court, Southern District of Florida, ALCERRO-BANEGAS was sentenced to 18 months in federal prison, after previously being found guilty of illegal re-entry after deportation.
ALCERRO-BANEGAS faces up to two years imprisonment, up to a $250,000 fine, up to one year of supervised release, and a mandatory $100 special assessment fee. However, because of his prior felony conviction, ALCERRO-BANEGAS also faces a sentencing enhancement of up to 10 years imprisonment.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Founder of Iranian Company Arrested for Providing Material Support to the Islamic Revolutionary Guard Corps (IRGC), and for Scheme to Procure Sensitive U.S. Technology for Use in IRGC Military Drones, One of Which Killed Three U.S. ServicemembersRead the Press Release
Mahdi Mohammad Sadeghi, 42, a dual U.S.-Iranian national of Natick, Massachusetts, and Mohammad Abedininajafabadi, also known as Mohammad Abedini (Abedini), 38, of Tehran, Iran, have been charged with conspiring to export sophisticated electronic components from the United States to Iran in violation of U.S. export control and sanctions laws. Abedini is also charged with providing material support to a foreign terrorist organization (FTO), that resulted in the deaths of three U.S. service members who were killed by a one-way attack Unmanned Aerial Vehicle (UAV), also known as a drone, on a military base in Jordan.
Sadeghi was arrested and made his initial appearance today in the District of Massachusetts. Abedini was also arrested today in Italy by Italian authorities at the request of the United States.
“Today, the Justice Department has charged, and our foreign partners have taken into custody, Mohammad Abedini, who we allege supplied sensitive technology used by the Iranian military to kill three American servicemembers in Jordan earlier this year,” said Attorney General Merrick B. Garland. “In addition, we have charged and arrested Mahdi Mohammad Sadeghi, a dual U.S.-Iranian citizen, for conspiring with Abedini to export sensitive U.S. technology to Iran. Today’s arrests demonstrate that the Justice Department will hold accountable those who enable the Iranian regime to continue to target and kill Americans and undermine the national security of the United States.”
“Earlier this year, Iran-backed militias murdered three American soldiers and wounded dozens more in a brutal drone attack at the Tower 22 base in Jordan,” said Deputy Attorney General Lisa Monaco. “Today, working with our partners here and abroad, we have charged and arrested two men who conspired to evade U.S. sanctions and supply the Iranian government with the type of drone navigation technology used in that attack. Our message is unmistakable: if you provide support to the Iranian regime’s campaign of terror and violence targeting Americans – we will find you, arrest you, and hold you accountable in a U.S. court, no matter where you are.”
“This case reflects our commitment to pursuing those who unlawfully aid Iran’s military drone program and to seeking justice for the U.S. servicemembers killed at the hands of the IRGC-backed militants earlier this year,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Export laws exist to keep cutting-edge U.S. technology out of the hands of foreign terrorist organizations. When sensitive drone technology is supplied to the IRGC – as alleged in this case – it places our military at risk and imperils American citizens.”
“These defendants are charged with supplying sensitive technology to an Iranian company that develops technology the IRGC uses in its one-way attack drones to commit acts of terror around the world,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Department of Commerce Bureau of Industry and Security (BIS). “Export crimes are much more than just regulatory violations – they enable our adversaries to engage in numerous malign activities harmful to U.S. interests, including the sowing of terror worldwide.”
“The FBI will continue to aggressively use all of our authorities to investigate and arrest anyone who assists the Government of Iran in obtaining technology that can be used for deadly purposes,” said FBI Deputy Director Paul Abbate. “These perpetrators allegedly facilitated the transfer of electronic components to an Iranian company which one of them owned. According to the charges, the company owner then supplied the IRGC with drone technology that was used in various terrorist acts, including an attack on a U.S. military base in Jordan which killed three servicemembers and injured dozens more. Such acts are wholly unacceptable, and the FBI will work tirelessly with our partners to cut off illegal transfers of technology to foreign terrorists and other adversaries.”
“Holding culpable people accountable for the death and maiming of U.S. service men and women bravely serving our nation abroad is about as important a prosecution as there is. These allegations make clear the grievous harm that can result when highly sophisticated American technologies subject to export controls end up in the hands of our adversaries,” said U.S. Attorney Joshua S. Levy for the District of Massachusetts. “These criminal charges are the direct product of the dogged work of the FBI and the Department of Commerce, in close collaboration with DOJ lawyers, as part of the Disruptive Technologies Task Force launched in February 2023, and I commend their outstanding work.”
According to court documents, Abedini is the founder and managing director of an Iranian company, San’at Danesh Rahpooyan Aflak Co. (SDRA or SADRA), that manufactures navigation modules used in the IRGC’s military drone program. SDRA’s main business is the sale of a proprietary navigation system — known as the Sepehr Navigation System — to the IRGC, which the United States designated as an FTO on April 15, 2019. The primary application of SDRA’s Sepehr Navigation System is for use in UAVs, as well as cruise and ballistic missiles. Sadeghi is currently employed by a Massachusetts-based microelectronics manufacturer (U.S. Company 1) and was one of the founders of a Massachusetts-based technology company (U.S. Company 2) that specializes in wearable sensors that provide kinetic monitoring for fitness applications.
As alleged in court documents, Abedini, Sadeghi, and others conspired to evade U.S. export control and sanctions laws by procuring U.S. origin goods, services, and technology from, among others, U.S. Company 1 and causing those goods, services, and technology to be exported or otherwise supplied to Iran and, in particular, Abedini’s Iranian company, SDRA.
As further alleged, in or around 2016, Sadeghi traveled to Iran to request funding for U.S. Company 2 from the Iranian National Elites Foundation (INEF), which is an Iranian governmental organization whose main purpose is to recognize, organize, and support Iran’s elite national talents. In exchange for funding for U.S. Company 2, which Sadeghi’s company ultimately received from the INEF, Sadeghi and others created a second company in Iran (Iranian Company 1). Shortly after forming Iranian Company 1, Sadeghi, through Iranian Company 1, entered into a contract with SDRA for the purchase of SDRA’s technology. It is also alleged that, since in or around 2016, on multiple occasions, Sadeghi has helped Abedini procure U.S. export-controlled electronic components for Abedini’s use in Iran.
Due to U.S. laws restricting exports to Iran, Abedini established a Switzerland front company for SDRA, Illumove SA (Illumove). With Sadeghi’s assistance, Abedini, through Illumove, entered into a contract with U.S. Company 1 to develop a mechanism to evaluate U.S. Company 1’s electronic components, including sophisticated semiconductors. Sadeghi and Abedini subsequently caused U.S.-origin goods, services, and technology to be transferred to Iran, through Illumove, for the benefit of SDRA. Certain of the electronic components that Abedini obtained through Illumove were the same types of electronic components used in SDRA’s Sepehr Navigation System.
Abedini is also charged with providing material support to a foreign terrorist organization, the IRGC, specifically, the IRGC Aerospace Force, which is the strategic missile, air, and space force within the IRGC. Since at least in or about 2014, SDRA has had multiple projects with the IRGC Aerospace Force, including projects for guided rockets and integrated navigation systems. As alleged, between 2021 and 2022, approximately 99% of SDRA’s sales of the Sepehr Navigation System, which are used in IRGC one-way attack drones, were to the IRGC’s Aerospace Force.
On Jan. 28, three U.S. service members were killed, and more than forty others were injured, in a drone attack by IRGC-backed militants on a military base located in northern Jordan, known as Tower 22. According to court documents, FBI analysis of the drone that was recovered from the site of the attack showed that the drone was an Iranian Shahed UAV and that the navigation system used in the drone was the Sepehr Navigation System, which was manufactured by Abedini’s company, SDRA.
Sadeghi and Abedini were charged by criminal complaint with one count of conspiracy to violate the International Emergency Economics Powers Act, which carries a penalty of up to 20 years in prison, three years supervised release, and a fine of up to $1 million. Abedini was also charged with one count of conspiracy to provide material support to a Foreign Terrorist Organization, resulting in death, and one count of provision and attempted provision of material support to a Foreign Terrorist Organization, resulting in death, which carries a penalty of up to life in prison, lifetime supervised release, and a fine of up to $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI, Department of the Army Criminal Investigation Division, and BIS are investigating the case.
U.S. Attorneys Jared Dolan and Alathea Porter for the District of Massachusetts, Trial Attorney Christina Clark of the National Security Division’s Counterintelligence and Export Control Section, and Trial Attorneys Katie Sweeten and David Smith of the National Security Division’s Counterterrorism Section are prosecuting the case. The Justice Department’s Office of International Affairs is providing assistance and is seeking extradition of Abedini from Italy.
This prosecution is being coordinated through the Disruptive Technology Strike Force, an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. Government to enhance the criminal and administrative enforcement of export control laws.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Founder of Iranian Company Arrested for Providing Material Support to the Islamic Revolutionary Guard Corps (IRGC), and for Scheme to Procure Sensitive U.S. Technology for Use in IRGC Military Drones, One of Which Killed Three U.S. ServicemembersRead the Press Release
BOSTON – Mahdi Mohammad Sadeghi, 42, a dual U.S.-Iranian national of Natick, Mass. and Mohammad Abedininajafabadi, A/K/A Mohammad Abedini (Abedini), 38, of Tehran, Iran, have been charged in federal court in Boston with conspiring to export sophisticated electronic components from the United States to Iran in violation of U.S. export control and sanctions laws. Abedini is also charged with providing material support to a foreign terrorist organization (FTO), IRGC, that resulted in the deaths of three U.S. servicemembers who were killed by a one-way attack Unmanned Aerial Vehicle (UAV), also known as a drone, on a military base in Jordan.
Sadeghi was arrested today and made his initial appearance in the District of Massachusetts. He was held pending a detention hearing scheduled for Dec. 27, 2024. Abedini was also arrested today in Italy by Italian authorities at the request of the United States.
According to court documents, Abedini is the founder and managing director of an Iranian company, San’at Danesh Rahpooyan Aflak Co. (SDRA or SADRA), that manufactures navigation modules used in the IRGC’s military drone program. SDRA’s main business is the sale of a proprietary navigation system—known as the Sepehr Navigation System—to the IRGC, which the United States designated as an FTO on April 15, 2019. The primary application of SDRA’s Sepehr Navigation System is for use in UAVs, as well as cruise and ballistic missiles. Sadeghi is currently employed by a Massachusetts-based microelectronics manufacturer (U.S. Company 1) and was one of the founders of a Massachusetts-based technology company (U.S. Company 2) that specializes in wearable sensors that provide kinetic monitoring for fitness applications.
As alleged in court documents, Abedini, Sadeghi, and others conspired to evade U.S. export control and sanctions laws by procuring U.S. origin goods, services, and technology from, among others, U.S. Company 1 and causing those goods, services, and technology to be exported or otherwise supplied to Iran and, in particular, Abedini’s Iranian company, SDRA.
As further alleged, in or around 2016, Sadeghi traveled to Iran to request funding for U.S. Company 2 from the Iranian National Elites Foundation (INEF), which is an Iranian governmental organization whose main purpose is to recognize, organize, and support Iran’s elite national talents. In exchange for funding for U.S. Company 2, which Sadeghi’s company ultimately received from the INEF, Sadeghi and others created a second company in Iran (Iranian Company 1). Shortly after forming Iranian Company 1, Sadeghi, through Iranian Company 1, entered into a contract with SDRA for the purchase of SDRA’s technology. It is also alleged that, since in or around 2016, on multiple occasions, Sadeghi has helped Abedini procure U.S. export-controlled electronic components for Abedini’s use in Iran.
Due to U.S. laws restricting exports to Iran, Abedini established a Switzerland front company for SDRA, Illumove SA (Illumove). With Sadeghi’s assistance, Abedini, through Illumove, entered into a contract with U.S. Company 1 to develop a mechanism to evaluate U.S. Company 1’s electronic components, including sophisticated semiconductors. Sadeghi and Abedini subsequently caused U.S.-origin goods, services, and technology to be transferred to Iran, through Illumove, for the benefit of SDRA. Certain of the electronic components that Abedini obtained through Illumove were the same types of electronic components used in SDRA’s Sepehr Navigation System.
“Today, the Justice Department has charged, and our foreign partners haven taken into custody, Mohammad Abedini, who we allege supplied sensitive technology used by the Iranian military to kill three American servicemembers in Jordan earlier this year,” said Attorney General Merrick B. Garland. “In addition, we have charged and arrested Mahdi Mohammad Sadeghi, a dual U.S.-Iranian citizen for conspiring with Abedini to export sensitive U.S. technology to Iran. Today’s arrests demonstrate that the Justice Department will hold accountable those who enable the Iranian regime to continue to target and kill Americans and undermine the national security of the United States.”
“Earlier this year, Iran-backed militias murdered three American soldiers and wounded dozens more in a brutal drone attack at the Tower 22 base in Jordan,” said Deputy Attorney General Lisa Monaco. “Today, working with our partners here and abroad, we have charged and arrested two men who conspired to evade U.S. sanctions and supply the Iranian government with the type of drone navigation technology used in that attack. Our message is unmistakable: if you provide support to the Iranian regime’s campaign of terror and violence targeting Americans – we will find you, arrest you, and hold you accountable in a U.S. court, no matter where you are.”
“Holding culpable people accountable for the death and maiming of U.S. service men and women bravely serving our nation abroad is about as important a prosecution as there is. These allegations make clear the grievous harm that can result when highly sophisticated American technologies subject to export controls end up in the hands of our adversaries,” said United States Attorney Joshua S. Levy. “These criminal charges are the direct product of the dogged work of the FBI and the Department of Commerce, in close collaboration with DOJ lawyers, as part of the Disruptive Technologies Task Force launched in February 2023, and I commend their outstanding work.”
“This case reflects our commitment to pursing those who unlawfully aid Iran’s military drone program and to seeking justice for the U.S. servicemembers killed at the hands of the IRGC-backed militants earlier this year,” said Assistant Attorney General Matthew G. Olsen of the Justice Department's National Security Division. “Export laws exist to keep cutting-edge U.S. technology out of the hands of foreign terrorist organizations. When sensitive drone technology is supplied to the IRGC – as alleged in this case – it places our military at risk and imperils American citizens.”
“These defendants are charged with supplying sensitive technology to an Iranian company that develops technology the IRGC uses in its one-way attack drones to commit acts of terror around the world,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “Export crimes are much more than just regulatory violations – they enable our adversaries to engage in numerous malign activities harmful to U.S. interests, including the sowing of terror worldwide.”
“The FBI will continue to aggressively use all of our authorities to investigate and arrest anyone who assists the Government of Iran in obtaining technology that can be used for deadly purposes,” said FBI Deputy Director Paul Abbate. “These perpetrators allegedly facilitated the transfer of electronic components to an Iranian company which one of them owned. According to the charges, the company owner then supplied the IRGC with drone technology that was used in various terrorist acts, including an attack on a U.S. military base in Jordan which killed three servicemembers and injured dozens more. Such acts are wholly unacceptable, and the FBI will work tirelessly with our partners to cut off illegal transfers of technology to foreign terrorists and other adversaries.”
“We believe these two men conspired to illegally procure sophisticated U.S. technology, made right here in Massachusetts, for one of the world’s most infamous state sponsors of terrorism – in an effort to help the Government of Iran strengthen its arsenal of weapons,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “With today’s arrests, the FBI has disrupted this Iranian procurement network that was directly involved in the horrific attack on Tower 22 where three U.S. soldiers were killed, and more than 40 others injured. This case demonstrates our ongoing commitment to bring to justice anyone who seeks to commit acts of terror against the United States and our allies.”
“The Office of Export Enforcement vigorously investigates violations of export controls to protect U.S. national security,” said Special Agent in Charge James Guanci of the U.S. Department of Commerce, Office of Export Enforcement, Boston Field Office. “The two defendants are charged with working on behalf of Iran and the IRGC to facilitate the illegal export of high-tech drone components that resulted in a deadly terrorist act targeting U.S. service members.”Abedini is also charged with providing material support to a foreign terrorist organization, the IRGC, specifically, the IRGC Aerospace Force, which is the strategic missile, air and space force within the IRGC. Since at least in or about 2014, SDRA has had multiple projects with the IRGC Aerospace Force, including projects for guided rockets and integrated navigation systems. As alleged, between 2021 and 2022, approximately 99% of SDRA’s sales of the Sepehr Navigation System, which are used in IRGC one-way attack drones, were to the IRGC’s Aerospace Force.
On Jan. 28, 2024, three U.S. service members were killed, and more than 40 others were injured, in a drone attack by IRGC-backed militants on a military base located in northern Jordan, known as Tower 22. According to court documents, analysis of the drone that was recovered from the site of the attack showed that the drone was an Iranian Shahed UAV and that the navigation system used in the drone was the Sepehr Navigation System, which was manufactured by Abedini’s company, SDRA.
Sadeghi and Abedini each face up to 20 years in prison, three years of supervised release and a fine of up to $1 million fine on the conspiracy to violate the International Emergency Economics Powers Act charge. On the conspiracy to provide material support to a Foreign Terrorist Organization, resulting in death charge and provision and attempted provision of material support to a Foreign Terrorist Organization, resulting in death, Abedini faces up to life in prison, up to a lifetime of supervised release and a fine of up to $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant United States Jared Dolan and Alathea Porter of the District of Massachusetts’ National Security Unit; Trial Attorney Christina Clark of the National Security Division’s Counterintelligence and Export Control Section; and Trial Attorneys Katie Sweeten and David Smith of the National Security Division’s Counterterrorism Section are prosecuting the case. The Justice Department’s Office of International Affairs is providing assistance and is seeking extradition of Abedini from Italy.
This prosecution is being coordinated through the Disruptive Technology Strike Force, an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. Government to enhance the criminal and administrative enforcement of export control laws.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.Federal jury convicts Springfield man for crypto financing scheme to ISISRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Springfield man on Dec. 13 on charges relating to his efforts to provide material support to the Islamic State of Iraq and al-Sham (ISIS), which was designated by the United States Secretary of State as a Foreign Terrorist Organization.
According to court records and evidence presented at trial, from at least October 2019 through October of 2022, Mohammed Azharuddin Chhipa, 35, collected and sent money to female ISIS members in Syria to benefit ISIS in various ways, including by financing the escape of female ISIS members from prison camps and supporting ISIS fighters. Chhipa would raise funds online on various social media accounts. He would receive electronic transfers of funds and travel hundreds of miles to collect funds by hand. He would then convert the money to cryptocurrency and send it to Turkey, where it was smuggled to ISIS members in Syria.
His primary co-conspirator was a British-born ISIS member residing in Syria who was involved in raising funds for prison escapes, terrorist attacks, and ISIS fighters.
Over the course of the conspiracy, the defendant sent over $185,000 in cryptocurrency.
The jury found Chhipa guilty of one count of conspiracy to provide material support or resources to a designated foreign terrorist organization and four counts of providing and attempting to provide material support or resources to a designated foreign terrorist organization.
Chhipa faces a maximum penalty of 20 years in prison per count when sentenced on May 5, 2025. 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.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, Matthew G. Olsen, Assistant Attorney General for the Justice Department’s National Security Division; and David Sundberg, Assistant Director in Charge of the FBI Washington Field Office, made the announcement after U.S. District Judge David J. Novak accepted the verdict.
Assistant U.S. Attorneys Anthony T. Aminoff and Amanda St. Cyr for the Eastern District of Virginia and Trial Attorneys Andrea Broach and Andrew John Dixon for the National Security Division’s Counterterrorism Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-97.
Fargo Man Convicted by Jury for Witness Tampering Conspiracy in MurderRead the Press Release
FARGO – United States Attorney Mac Schneider, District of North Dakota, announced that Shaquiel Anthony Mendez, age 31, was convicted at trial of Conspiracy to Tamper with a Witness after a four-day jury trial held before Chief District Court Judge Peter D. Welte in Fargo. Mendez is scheduled to be sentenced on April 21, 2025.
Mendez was convicted for his role in conspiring to tamper with a federal witness after the witness was assaulted and stabbed with a pencil in the Cass County jail. This witness tampering case is related to the investigation into the murder of Santino Marial which occurred on August 28, 2020, in Fargo.
“An attack on a witness is an attack on the rule of law,” Schneider said. “This case is a reminder that anyone who conspires to use violence against a federal witness in the District of North Dakota will make themselves a federal defendant. I want to thank our career prosecutors, the trial team, and our partners in federal and local law enforcement for their work to secure a conviction and ensure justice was done in this case.”
Daniel Saydee Cisse, age 20, is currently serving an eleven-year sentence for his role in the witness tampering conspiracy. Ahmed Abdi Hassan, age 21, has pled guilty for his role in the witness tampering conspiracy and is currently scheduled to be sentenced on January 21, 2025.
Jesse James Burnett, age 31, has been indicted for Murder in Furtherance of a Drug Trafficking Crime and Conspiracy to Tamper with a Witness and is scheduled for trial on April 1, 2025.
This case is being investigated by Fargo Police Department, Cass County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATFE).
The cases are being prosecuted by Assistant U.S. Attorneys Christopher C. Myers, Matthew Kopp, and Jacob Rodenbiker.
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Falmouth Man Pleads Guilty to Tax EvasionRead the Press Release
PORTLAND, Maine: A Falmouth man pleaded guilty today in U.S. District Court in Portland to tax evasion.
According to court records, Jeffrey Riddle, 58, filed federal income tax returns for 2006 through 2014, reporting that he owed substantial federal tax. Despite reporting that he owed taxes, Riddle did not pay.
The IRS began trying to collect Riddle’s back taxes in 2010, filing notices of federal tax liens on property and levies on his bank account. In 2015, while still owing substantial back taxes, Riddle created a new business, Silica Marketing LLC, and entered into a lucrative consulting agreement with a large tire retailer. Riddle put the ownership of the company under his then-wife’s name despite the company’s sole revenue coming from his consulting work and using the proceeds to pay personal expenses. When meeting with the IRS revenue officer assigned to collect his back taxes, Riddle stated that he earned $6,000 a month in wages from Silica and provided the IRS with a falsified letter showing he would be paid a $3,000 bi-monthly salary. He failed to disclose that he had signed a consulting agreement as Silica’s president and CEO and that Silica was receiving substantial income from that contract. Riddle also failed to disclose that money paid to Silica was being used to pay his personal expenses. Among the expenses paid for with Silica funds was the down payment on a home on Great Diamond Island in 2016, purchased in Silica’s name.
In 2017, Riddle created a new company to replace Silica, continuing to consult with the same tire retailer. In 2020, Riddle sold part of the company for $400,000, and $250,000 was placed in escrow for the purpose of satisfying Riddle’s tax debt. None of the funds were paid to the IRS. On the day the partial sale of his company closed, Riddle purchased a Corvette, titling it in his company’s name.
Riddle faces up to five years imprisonment and a fine up to $250,000 to be followed by up to three years of supervised release.
IRS Criminal Investigation investigated the case.
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El Departamento de Justicia halla que el Departamento de Seguridad del Niño de Arizona discrimina contra los padres y niños con discapacidadesRead the Press Release
El Departamento de Justicia anunció hoy sus hallazgos que el Departamento de Seguridad del Niño del Estado de Arizona (DCS, por sus siglas en inglés) viola al Título II de la Ley para Estadounidenses con Discapacidades (ADA, por sus siglas en inglés) a través de discriminar contra los padres, incluso los padres de acogida y otros cuidadores, y niños con discapacidades.
Después de una investigación comprehensiva, el departamento halló que DCS no comunicó efectivamente con los padres y niños con discapacidades auditivas, incluso a través de no proporcionar interpretadores. DCS tampoco hizo acomodaciones razonables para las necesidades de los padres con discapacidades a través de, por ejemplo, no brindar información en una forma simplificada. Por fin, DCS niega a los padres con discapacidades una oportunidad igualitaria para participar en y beneficiarse de los programas y servicios de DCS.
“Bajo la ADA, los padres y niños con discapacidades tienen el derecho a tratamiento justo y igualitario por las agencias del bienestar del niño,” comentó la Fiscal General Auxiliar Kristen Clarke de la Sección de Derechos Civiles del Departamento de Justicia. “Más de cuatro millones de padres con discapacidades viven en los Estados Unidos y las acciones discriminatorias pueden tener consecuencias devastadoras y permanentes para los padres y los niños. La División de Derechos Civiles está comprometido con asegurar que la discriminación ilegal no interfiera con la oportunidad del padre ser reunificado con su hijo y que las separaciones no sean prolongadas porque la agencia del bienestar del niño no brinda a los padres la comunicación efectiva y las acomodaciones razonables que la ADA garantiza.”
“Los padres y niños con discapacidades merecen ser tratados con dignidad.” comentó Gary M. Restaino, Fiscal de los Estados Unidos para el Distrito de Arizona. “Nuestra oficina seguirá trabajando con la División de Derechos Civiles para asegurar que los padres y niños con discapacidades estén protegidos bajo la ley y que el Departamento de Seguridad del Niños haga más significativamente acomodaciones a las personas con discapacidades en búsqueda de mejores resultados para las familias.”
El departamento brindó sus hallazgos escritos en una carta dirigida a Arizona y DCS que detalla los pasos mínimos que DCS tiene que tomar para arreglar las violaciones identificadas. La carta del departamento explica que DCS viola a la ADA a través de negar comunicación efectiva y ayudas y servicios auxiliares a los padres, cuidadores, y niños con discapacidades auditivas. Por ejemplo, DCS no proporcionó interpretadores de Lengua de Signos Estadounidense (ASL, por sus signas en inglés) a los padres, cuidadores, y niños sordos y con discapacidad auditiva, incluso durante reuniones importantes y cuando se trasladaban a niños de sus hogares. Y DCS no comunicó con los padres con discapacidades visuales y otras discapacidades que afectan la comunicación en maneras que los padres pudieron entender. Como resultado, los padres, cuidadores, y niños con discapacidades a veces no podían entender lo que estaba pasado durante sus casos de DCS e interacciones con DCS.
La carta también documenta cómo DCS no hizo acomodaciones razonables que los padres con discapacidades necesitaban, a pesar de que esas acomodaciones podrían ayudar atender a las preocupaciones de DCS. Por ejemplo, DCS se preocupaba por motivo de seguridad cuando padres con discapacidades intelectuales y del desarrollo, uno de los que tenía discapacidad visual, tenían dificultad preparando botellas y probando la temperatura de agua de la bañera. Pero DCS no consideró si las acomodaciones sencillas pudieran haberles ayudado realizar estas tareas de manera segura, como una botella con medidas en letra grande o un termómetro digital adaptivo que utiliza luces colorados o tonos para alertar a los padres si el agua de bañera está demasiado caliente o fría.
Por fin, el Departamento halló que DCS no brinda a los padres con discapacidades una oportunidad igualitaria participar en los programas y servicios de DCS. Por ejemplo, DCS confía en estereotipos y suposiciones infundadas sobre los padres con discapacidades. En una instancia, DCS retrasó la reunificación basado solamente en preocupaciones generalizadas sobre si una madre con autismo y trastorno por déficit de atención con hiperactividad (TDAH, o ADHD por sus siglas en inglés) pudiera cuidar de manera segura a su niño joven por consecuencia de sus discapacidades. Pero estas preocupaciones se basaban en estereotipos y especulación, y no en acciones especificas que tomó la madre.
Si usted o alguien que conoce tiene una queja sobre la discriminación de discapacidad por parte de DCS, por favor llame al 1-888-394-3540 (para TYY, marque 711 primero) o hacer una querella aquí. Usted puede conocer más sobre los derechos de padres con discapacidades aquí y a través de asistencia técnica colectiva del Departamento de Justicia y el Departamento de Salud y Servicios Humanos. Para conocer más sobre la ADA, por favor llame la línea gratuita del Departamento para información sobre la ADA al 1-800-514-0301 (voz) o al 1-833-610-1264 (TTY) o bien visite el sitio web de la ADA en www.ada.gov Para conocer más sobre la División de Derechos Civiles, por favor visite a www.justice.gov/crt.
Drug trafficker, with two prior convictions, sentenced to more than 5 years in prison for distributing cocaine, methamphetamine, and heroinRead the Press Release
Seattle – A Mexican national, who has twice been convicted of drug trafficking, was sentenced for his third conviction to 70 months in prison, announced U.S. Attorney Tessa M. Gorman. Francisco Capado-Gonzales, 39, has been in custody since his arrest in SeaTac, Washington, on October 19, 2023. Judge Kymberly K. Evanson imposed the 70-month sentence emphasizing the large amount of drugs in the case.
According to records filed in the case, in the fall of 2023, Capado-Gonzalez approached someone he believed would be a drug customer, who was actually a person working with law enforcement. Capado-Gonzalez and his co-conspirators claimed they could provide pound quantities of methamphetamine. On October 19, 2023, the person working with law enforcement was scheduled to pick up the drugs at a SeaTac motel. Instead, law enforcement arrived at the room. Capado-Gonzalez attempted to flee into a wooded area near the hotel but was arrested.
Capado-Gonzales was indicted by the grand jury on November 1, 2023. He pleaded guilty on September 6, 2024. This is Capado-Gonzalez third conviction for drug offenses. He was arrested and convicted in Las Vegas in 2007 with heroin and cocaine. In 2013 he was arrested and convicted a second time while possessing heroin and methamphetamine. He served a 41-month sentence.
In asking for an 84-month sentence, prosecutors emphasized that methamphetamine is present in many drug overdoses, writing to the court, “In 2023, 58% of all overdose deaths in King County involved methamphetamine.And here, Capado-Gonzalez had a leadership role in a conspiracy to distribute at least 44 pounds of a mixture or substance containing methamphetamine, as well as 542 grams of a mixture or substance containing heroin and 591 grams of a mixture or substance containing cocaine. Such quantities pose an increased danger to the community and warrant a heavier sentence...”
The case was investigated by Homeland Security Investigations (HSI).
The case is being prosecuted by Assistant United States Attorneys Amanda McDowell and Michael Harder.
Dominican Man Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Dominican pleaded guilty today in federal court in Boston for illegally reentering the United States after deportation.
Jose De La Rosa Rosario, 50, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for March 14, 2025. In October 2024, De La Rosa was indicted by a federal grand jury.
De La Rosa is a citizen of the Dominican Republic who entered the United States in 2006 through Puerto Rico using false identification. He was convicted of federal conspiracy and cocaine distribution charges in 2011. Following completion of his federal sentence, in July 2018, De La Rosa was removed from the United States and deported to the Dominican Republic pursuant to a court order. Thereafter, at an unknown time and place, he illegally reentered the United States without permission. In September 2024, De La Rosa was arrested on new state drug charges and later detained by U.S. Immigration and Customs Enforcement. A copy of his fingerprint from his removal document was compared to his fingerprint when he entered federal custody in September 2024 and they were identical to each other.
The charge of unlawful reentry of a deported alien provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Joshua S. Levy and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Special Assistant U.S. Attorney James J. Nagelberg of the Major Crimes Unit is prosecuting the case.
Doctor Pleads Guilty in $5.5M COVID-19 Fraud SchemeRead the Press Release
A Texas physician pleaded guilty today in connection with his role in a $5.5 million over-the-counter (OTC) COVID-19 test fraud scheme.
According to court documents, Mark Mazzare M.D., 57, of Tyler, purchased Medicare beneficiary identifiers (BINs) that were used to bill Medicare millions of dollars for OTC COVID-19 test kits, many of which had not been requested by the beneficiaries. Mazzare entered into a sham agreement with a purported marketer to conceal the purchase of BINs as “lead packages,” which in reality consisted of BINs and fraudulently generated audio recordings purporting to be the voices of the beneficiaries requesting the OTC COVID-19 tests. Mazzare caused OTC COVID-19 tests to be shipped to Medicare beneficiaries whose BINs had been purchased, regardless of whether the Medicare beneficiaries had requested or needed the tests. From in or around November 2022 to in or around June 2023, Mazzare caused more than $5.5 million in claims to be submitted to Medicare for OTC COVID-19 tests that were medically unnecessary and ineligible for reimbursement. Medicare paid approximately $3.44 million on those claims.
Mazzare pleaded guilty to conspiracy to defraud the United States and to purchase, sell, and distribute Medicare beneficiary identification numbers. He faces a maximum penalty of five years in prison. A sentencing hearing will be set at a later date, when a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Damien M. Diggs for the Eastern District of Texas; Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Regional Office; and Inspector-in-Charge Kai Pickens of the U.S. Postal Inspection Service (USPIS) Fort Worth Division made the announcement.
HHS-OIG and USPIS are investigating the case, with significant assistance provided by the Texas Attorney General’s Medicaid Fraud Control Unit.
Assistant Chief Brynn Schiess of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Robert Austin Wells for the Eastern District of Texas are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Council Bluffs Man Sentenced for Receipt and Distribution of Child PornographyRead the Press Release
United States Attorney Susan T. Lehr announced that Cameron S. Hurd, age 34, of Council Bluffs, Iowa, was sentenced on December 13, 2024, in federal court in Omaha, Nebraska for distribution and receipt of child pornography. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Hurd to 84 months’ imprisonment. There is no parole in the federal system. After his release from prison, Hurd will be placed on a 5-year term of supervised release. Hurd was also ordered to pay restitution in the amount of $12,000.00 to four identified victims of his crimes.
This investigation by the Nebraska State Patrol (NSP) began with a “cyber tip” received by the National Center for Missing and Exploited Children (NCMEC) regarding suspicious internet activity. NCMEC’s resulting report to the NSP indicated that 16 files containing child pornography were uploaded from Hurd’s internet protocol (IP) address to Kik, a free instant messaging mobile app, on or about November 19, 2021, during a chat with another user.
On August 25, 2022, NSP served a warrant to search for child pornography at Hurd’s residence in Douglas County, Nebraska. Investigators seized Hurd’s cellphone for forensic examination. Forensic examination of the Hurd’s phone revealed approximately 30 videos of child pornography associated with the Kik Messenger application on the device, including at least one video depicting a toddler being sexually assaulted by an adult male.
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 United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol.
Convicted Felon Found Guilty of Armed Robbery of Armored Vehicle Courier at Gunpoint While on Supervised Release for Bank RobberyRead the Press Release
LOS ANGELES – An Inglewood man, who in 2022 was granted compassionate release after serving 26 years in federal prison for armed robberies of armed couriers, has been found guilty by a jury of robbing a Brinks courier at gunpoint in a bank parking lot near LAX in August 2023, the Justice Department announced today.
Markham David Bond, 61, was found guilty late Thursday of one count of interference with commerce by robbery (Hobbs Act), one count of using a firearm during a crime of violence, and one count of being a felon in possession of a firearm and ammunition.
Bond has been in federal custody since November 2023.
“After being given a second chance in life, this defendant sadly chose a path of violent crime,” said United States Attorney Martin Estrada. “Through our strong partnerships with federal and local law enforcement, we will continue to use our resources to protect our community by holding accountable violent offenders who use guns.”
According to evidence presented at a five-day trial, on the morning of August 18, 2023, Bond stole approximately $145,000 in cash from a Brinks armored carrier outside a Chase bank near LAX. The armored vehicle was parked in the bank parking lot as one of its employees got out of the vehicle with a blue duffle bag on a rolling cart and which contained the cash. Bond approached the driver, pointed a handgun at him, and demanded the money.
Fearing for his life, the Brinks employee dropped the duffle bag. Bond then ordered the victim to get down on the ground. After the victim complied with this order, Bond grabbed the blue Brinks duffle bag then fled the area.
Bond was arrested on November 22, 2023, and police seized at his residence a .40-caliber pistol containing 10 rounds of ammunition, the shirt he used during the robbery, and cash hidden inside of a mini-refrigerator. Police also found the robbery getaway car parked around the block from Bond’s residence. Inside the car, police found the empty Brinks bag and the hat Bond used during the robbery, among other evidence linking Bond to the robbery.
Bond has multiple felony convictions dating from the 1980s and 1990s, including for Hobbs Act robbery, armed bank robbery, use of a firearm in furtherance of a crime of violence, and conspiracy to possess with intent to distribute heroin. As a convicted felon, Bond is not permitted to possess firearms or ammunition.
In January 1995, Bond was sentenced to 562 months (46 years and 10 months) in prison after being convicted of bank robbery and firearms offenses by a federal jury in Los Angeles. But in January 2022, Bond was granted compassionate release and was released early from prison. He was on supervised release when he robbed the Brinks employee at gunpoint on August 18, 2023.
United States District Judge Wesley L. Hsu scheduled a July 11, 2025, sentencing hearing, at which point Bond will face a statutory maximum sentence of life in federal prison.
Operation Safe Cities establishes strategic enforcement priorities with an emphasis on prosecuting the most significant drivers of violent crime. Across this region, the most damaging and horrific crimes are committed by a relatively small number of particularly violent individuals. This strategic enforcement approach is expected to increase the number of arrests, prosecutions and convictions of recidivists engaged in the most dangerous conduct. It is designed to improve public safety across the region by targeting crimes involving illicit guns, prohibited persons possessing firearms, or robbery crews that cause havoc and extensive losses to retail establishments.
The FBI and the Los Angeles Police Department’s Robbery Homicide Division investigated this case.
Assistant United States Attorneys Haoxiaohan H. Cai of the Corporate and Securities Fraud Strike Force and Daniel H. Weiner of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.
Connecticut Man Sentenced to Prison for Role in Grandparent SchemeRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Matthew Ramos-Soto, 27, Hartford, Connecticut, was sentenced today by Chief U.S. District Judge James D. Peterson to 41 months in federal prison for his role in a wire fraud scheme targeting elderly victims. Ramos-Soto pled guilty to the charge on April 4, 2024. He was also ordered to pay restitution.
Ramos-Soto was part of a network of individuals perpetrating related grandparent schemes across the United States. Coconspirators operating outside the United States called elderly victims posing as a relative or relative’s attorney. Victims were told that their relative had been arrested for causing an accident that severely injured or killed another person. Victims were asked to provide bail money in cash so their relative could be released immediately.
Once victims obtained the funds, a courier posing as a bail bondsman picked up the funds from the victims’ residences. Defendant was one of the couriers posing as a bail bondsman. Between October 24, 2022, and October 28, 2022, Ramos-Soto and the other couriers picked up more than $250,000 from victims throughout Wisconsin.
Law enforcement was able to identify Ramos-Soto and he was ultimately arrested attempting to pick up money from a victim in Ottawa County, Michigan, on June 28, 2023. A subsequent search of Ramos-Soto’s cellphone data showed that from October 11, 2022, through his arrest on June 28, 2023, he picked up money from victims in 18 different locations around the United States.
Additional federal cases against this fraud network have been brought in the District of Vermont, District of Rhode Island, Southern District of California, Western District of Pennsylvania, Central District of Illinois, and the Western District of Kentucky.
At sentencing, Judge Peterson described the crime as “cruel and devastating,” acknowledging the significant financial and emotional impact on the victims. Judge Peterson also said that with the sentence, he hoped to deter Ramos-Soto and others from engaging in these types of schemes in the future.
“Unfortunately, scams targeting the elderly or vulnerable are proliferating. If someone demands money over the phone or internet, always reach out to a trusted advisor, law enforcement agency, or the fraud hotlines described below,” said U.S. Attorney O’Shea. “My office is committed to working with local, state, and federal law enforcement partners to investigate and prosecute those who target vulnerable individuals for financial gain.”
“The Wisconsin Department of Justice is committed to combating scams and holding perpetrators accountable,” said Attorney General Josh Kaul. “Thank you to the law enforcement officers from a number of different agencies who assisted with this investigation.”
“I want to acknowledge the many local and state law enforcement partners who worked to bring this perpetrator to justice,” said FBI Milwaukee Special Agent in Charge Michael Hensle. “Elder fraud preys upon the vulnerabilities of our senior citizens and inflicts financial and emotional harm. The FBI will continue to work with our partners to investigate those who commit these crimes.”
If you suspect fraud has occurred or been attempted, report it to authorities so that those who commit fraud can be identified. The U.S. Justice Department operates the National Elder Fraud Hotline which can be reached at 1-833-FRAUD-11 (1-833-372-8311), which is staffed by case managers who provide personalized support to callers. Wisconsin residents can also contact their local police department or the Wisconsin Elder Abuse Hotline at 1-833-586-0107.
The charge against Ramos-Soto was the result of an investigation led by the Wisconsin Department of Justice Division of Criminal Investigation and the Federal Bureau of Investigation, following a Statewide Crime Alert by the Columbia County Sheriff’s Office that connected several investigations across Wisconsin. The other Wisconsin agencies involved in the investigation are the Outagamie, Shawano, Manitowoc, and Brown County Sheriffs’ Offices; and the New Lisbon, Wrightstown, Fitchburg, Reedsburg, Randolph, Fox Valley Metro, Hobart Lawrence, Green Bay, Oshkosh, and Fond du Lac Police Departments. Law enforcement in Ottawa County, Ionia County, and Kent County in Michigan also assisted with the investigation. The government would also like to acknowledge the assistance provided by local, state, and federal victim/witness personnel. Assistant U.S. Attorney Meredith Duchemin prosecuted the case.
Cold Case Murder Investigation from 2005 Leads to Arrest and Indictment of Maryland ManRead the Press Release
WASHINGTON – Michael Wells, 53, of Hyattsville, Maryland was arraigned by Superior Court of the District of Columbia Judge Michael O’Keefe on one count of first degree while armed, premeditated murder, one count of second degree murder while armed, one count of arson, one count of tampering with physical evidence and related weapons offenses. The indictment was announced by U.S. Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department.
According to the indictment and related court documents, Wells shot Makia Mosby with a firearm and set her body on fire in an incident that occurred on November 24, 2005, causing injuries from which Makia Mosby would not survive. Following the indictment, Wells was arrested on December 12, 2024.
If convicted, Wells faces a maximum sentence of 30 years in prison, a fine of up to $250,000, and five years of supervised release.
In announcing the indictment and arraignment, U.S. Attorney Graves, commended the work of the Metropolitan Police Department and acknowledged the work of Assistant U.S. Attorney Vinet Bryant, who is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty.
Choctaw County Resident Pleads Guilty to MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Bryson Noel Miller, age 19, of Fort Towson, Oklahoma, entered a guilty plea to one count of Murder in Indian Country.
The Indictment against Miller alleged that on December 23, 2020, Miller killed the victim willfully, deliberately, maliciously, with premeditation and malice aforethought.
According to investigators, on the afternoon of December 22, 2020, Miller, Ashlie Nicole Rose Martin, and Chad Jon’Dale Voyles planned the murders of Martin’s parents, then set their plan into motion. As part of that plan, Miller participated in bludgeoning Martin’s father to death. The crimes occurred in Choctaw County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The charge arose from an investigation by the Federal Bureau of Investigation, the Oklahoma State Bureau of Investigation, the Oklahoma Highway Patrol, and the Choctaw County Sheriff’s Office.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma in Muskogee, Oklahoma, accepted Miller’s plea, ordered the completion of a presentence investigation report, and remanded Miller to the custody of the U.S. Marshals pending sentencing.
Assistant U.S. Attorney Benjamin D. Traster represented the United States.
Chinese National Sentenced to Ten Years in Prison for Laundering $62 Million in Drug Proceeds on Behalf of Mexican TraffickersRead the Press Release
CHICAGO — A federal judge in Chicago has sentenced a Chinese national to a decade in prison for laundering $62 million in illegal drug proceeds on behalf of traffickers in Mexico.
From 2016 to 2018, HAIPING PAN schemed with others to launder up to $3 million per month in drug proceeds using secretive money pickups in Chicago, New York, Los Angeles, and other parts of the United States, followed by a series of currency swaps between the United States and China, and China and Mexico. Pan played a significant role in the money laundering process, using his international financial expertise and relationships with members or associates of Mexican drug cartels to facilitate the clandestine flow of drug money through businesses and banks around the world. The illicit proceeds ultimately were remitted to the traffickers in Mexico.
During the conspiracy, Pan and his co-conspirators completed an average of one to two pickups per week, with the amounts ranging from $150,000 to $1 million per pickup. In total, Pan knowingly participated in the laundering and attempted laundering of approximately $62 million in drug proceeds.
Pan, 44, is a Chinese national who facilitated the money transfers while residing in Guadalajara, Mexico. He was arrested in Mexico and extradited to the U.S. in 2022. U.S. District Judge Sharon Johnson Coleman imposed the ten-year prison sentence during a hearing on Thursday in federal court in Chicago.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Sean Fitzgerald, Special Agent-in-Charge of Homeland Security Investigations in Chicago, and Ramsey E. Covington, Acting Special Agent-in-Charge of IRS Criminal Investigation Chicago Field Office. The government was represented by Assistant U.S. Attorney Richard M. Rothblatt.
“The defendant was a significant part of a recent phenomenon in which a relatively small network of Chinese money brokers based in Mexico have come to dominate international money laundering markets,” the government argued in its sentencing memorandum. “Defendant’s crimes allowed his drug trafficking clients to secure the fruits of their pernicious trade faster, cheaper, and more securely than ever before.”
Numerous other money launderers were convicted as part of the federal investigation, including Pan’s co-conspirators XIANBING GAN, who was sentenced to 14 years in prison, and HUANXIN LONG, who was sentenced to five and a half years.
Charleston Man Sentenced to Federal Prison for Weapons ViolationRead the Press Release
CHARLESTON, S.C. — Anthony Cobbs, 26, of Charleston, was sentenced to more than six years in federal prison after pleading guilty to being a felon in possession of a firearm.
Evidence presented to the court showed that on Sept.21, 2022, Charleston Police Department officers initiated a traffic stop on a sedan for an expired temporary tag. A female was driving and Anthony Cobbs, the defendant, was the front passenger. During the stop, an officer observed Cobbs attempt to conceal a black handgun from his waistband. After Cobbs was removed from the vehicle and taken into custody, officers recovered the firearm and ammunition under the front passenger seat where Cobbs was seated.
United States District Judge David C. Norton sentenced Cobbs to 78 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
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 investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Charleston Police Department. Assistant U.S. Attorney Lee Holmes is prosecuting the case.
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Carlos Watson, Founder and Former CEO of Ozy Media Inc., Sentenced to 116 Months in Prison for Leading Multi-Million Dollar Fraud SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Carlos Watson, the founder and former Chief Executive Officer of Ozy Media, Inc. (Ozy), was sentenced by United States District Judge Eric R. Komitee to 116 months in prison for conspiracy to commit securities fraud, conspiracy to commit wire fraud and aggravated identity theft. Watson was convicted in July 2024 following an eight-week trial. Ozy, which was also convicted at trial, was sentenced to one year probation. Additional penalties of forfeiture and restitution will be imposed at a later date.
Breon Peace, United States Attorney for the Eastern District of New York and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentences.
“Carlos Watson orchestrated a years-long, audacious scheme to defraud investors and lenders to his company, Ozy Media, out of tens of millions of dollars,” stated United States Attorney Peace. “His incessant and deliberate lies demonstrated not only a brazen disregard for the rule of law, but also a contempt for the values of honesty and fairness that should underlie American entrepreneurship. On far too many occasions, Watson chose deceit over candor, grasping for the illusion of business success and personal acclaim at any cost. Today’s sentence should serve as a warning to those who would engage in fraud that justice will be swift and certain.”
“Carlos Watson masqueraded his former company’s composition and purported success to entice investors, but ultimately cost them millions when the curated façade collapsed,” stated FBI Assistant Director in Charge Dennehy. “Watson abused his official capacity to ensnare subordinates to serve as lackies and perpetuate these fraudulent actions. May today’s sentencing deter any individual from implementing deceptive business practices to avoid a similar fate.”
According to court filings and as proven at trial, between 2018 and 2021, Watson and his co-conspirators orchestrated a scheme to defraud investors out of tens of millions of dollars through fraudulent misrepresentations and omissions about Ozy’s financial performance, including revenue, cash on hand and profit, ongoing business relationships with celebrities, acquisition prospects from high- profile technology and media corporations, contract negotiations and other corporate metrics. For example, Watson and his co-conspirators lied to prospective investors about who else might be investing in Ozy, the existence and size of acquisition offers received by Ozy, the existence and timing of financing rounds, and the existence and terms of Ozy’s business contracts — going so far as to direct Ozy employees to create fake contracts with forged signatures to provide in due diligence. On multiple occasions, when faced with questions from lenders or potential investors, Watson and his co-conspirators assumed the identities of and impersonated actual media company executives to cover up their prior fraudulent misrepresentations. Watson’s scheme caused actual investor losses in excess of $60 million and intended to deprive potential investors of hundreds of millions more on the basis of his and his co-conspirators’ lies and misrepresentations.
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace plays a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including securities fraud, wire fraud and identity theft.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Jonathan Siegel, Gillian Kassner and Dylan A. Stern are in charge of the prosecution. Assistant United States Attorney Laura Mantell of the Asset Recovery Section is assisting with forfeiture matters.
The Defendants:
Carlos Watson
Age: 55
Mountain View, CaliforniaOzy Media, Inc.
Mountain View, CaliforniaE.D.N.Y. Docket No. 23-CR-82 (EK)
Austin Man Sentenced to Federal Prison for $1.5 Million Wire Fraud SchemeRead the Press Release
AUSTIN, Texas – An Austin man was sentenced in federal court to 41 months in prison for defrauding multiple investors in a $1.5 million Ponzi scheme.
According to court documents, Nurnepes Nurjanov, 34, was an informal day trader who, in September 2019, began soliciting funds from investors, drafting agreements that promised minimum returns, the split on profits between him and his investors, and investor access to the trading accounts. He also promised to use investment funds only for stock trades and agreed to pay “50% of clean profit” to the investor. To entice potential investors, Nurjanov created false documents indicating favorable investment returns and, using a trading simulator template, showed them alleged gains he was making.
One investor agreed to invest $50,000 in October 2019, and was shown a fraudulent investment statement reflecting a significant return. Another investor provided $50,000 in December 2020, followed by $142,500 in February 2021. That investor made several other large investments with Nurjanov over the next several months before selling their business in June 2022 and investing the proceeds of $325,000 with Nurjanov. Subsequentially, that investor referred a friend to Nurjanov, who in-turn was convinced by multiple false statements to wire Nurjanov $200,000. While they did receive alleged investment returns, the funds were proceeds from money invested by other victims of Nurjanov’s scheme.
Nurjanov spent other portions of the fraudulently acquired cash and assets for his personal living expense. In total, Nurjanov defrauded victims of $1,524,500.
Nurjanov was summoned to appear in court and made his initial appearance June 13, 2024, at which time he pleaded guilty to one count of wire fraud. In addition to imprisonment, Nurjanov was ordered to pay $1,505,500 in restitution.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
The FBI investigated the case.
Assistant U.S. Attorney Dan Guess prosecuted the case.
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Armed Drug Trafficker Sentenced to More Than 14 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DONALD HILL, also known as “Man Man,” 39, of Waterbury, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 170 months of imprisonment, followed by four years of supervised release, for drug distribution and firearm possession offenses.
According to court documents and statements made in court, on November 29, 2022, Waterbury Police officers patrolling in response to recent shots-fired incidents attempted to stop a car Hill was driving on Englewood Avenue. Hill accelerated but was blocked by another police vehicle. He reversed his car, struck a police vehicle behind him that stopped his exit, and was subsequently forcibly removed from his car. A search of the car revealed a loaded handgun with an obliterated serial number; additional rounds of ammunition; more than 500 grams of crack cocaine; more than 1,600 baggies of fentanyl mixed with other substances, including cocaine and xylazine; six cellphones; and $2,489 in cash.
Analysis of the firearm using the National Integrated Ballistic Information Network (NIBIN) connected it to a shooting in New Haven on January 21, 2022, and a shots-fired incident in Wolcott on October 29, 2022.
Hill’s criminal history includes convictions for weapon possession, narcotics distribution, escape, and other offenses.
Hill has been detained since his arrest on November 29, 2022. On May 14, 2024, he pleaded guilty to one count of possession with intent to distribute controlled substances, and one count of possession of a firearm in furtherance of a drug trafficking crime.
This investigation was conducted by the Waterbury Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by Assistant U.S. Attorney Natasha M. Freismuth through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn.
Saturday 14 December 2024
Law Enforcement Announces Drones Are Not Allowed Near Saturday's Army-Navy GameRead the Press Release
Baltimore, Maryland – Today, there is a Temporary Flight Restriction (TFR) in place for the Army-Navy Game taking place at Northwest Stadium in Landover, Maryland. This area is considered a No Drone Zone.
The Federal Aviation Administration (FAA) has implemented the TFR which extends for a two-nautical mile radius around the stadium and up to 2,000 feet above ground level. The U.S. Attorney's Office for the District of Maryland and the Federal Bureau of Investigation (FBI) Baltimore Field Office are reminding the public to heed these restrictions, along with local and federal partners including the Prince George's County Police Department, Prince George's County Fire/EMS Department, Naval Criminal Investigation Service, Department of the Army Criminal Investigation Division, and the United States Secret Service. Law enforcement will enforce local and federal laws regarding Unmanned Aircraft Systems (UAS), commonly known as drones.
“Drone operators need to know that we take seriously any incursion in the restricted airspace around the Army-Navy Game. Such incursions threaten the safety of those involved. We will investigate and prosecute anyone who violates the no drone zone,” said U.S. Attorney Erek L. Barron.
"The Army-Navy game is a time-honored tradition among our nation's military, anticipated by both armed forces and football fans alike. We are committed to keeping everyone safe as they enjoy Saturday's game," said William J. DelBagno, Special Agent in Charge of the FBI's Baltimore Field Office. "Please be aware that no drones are allowed in or near the stadium for the safety of all participants and spectators."Members of the public are encouraged to report all suspicious activity. Law enforcement will be actively monitoring the airways for illegal UAS/drones and is committed to identifying, investigating, disrupting, and prosecuting the careless or criminal use of drones in the area.
There is a zero-tolerance policy regarding any UAS/drone use anywhere within the No Drone Zone established by the FAA. Anyone who attempts to fly a UAS/drone in any prohibited manner may be subject to arrest, prosecution, fines, and/or imprisonment.Learn more about all federal UAS/drone regulations on the FAA website.
Friday 13 December 2024
Whitefish doctor sentenced for defrauding Medicare and other federal health programsRead the Press Release
Note: This release has been updated to include a quote from the U.S. Department of Health and Human Services Office of Inspector General.
MISSOULA — A Whitefish doctor who admitted defrauding Medicare and other federal government health programs through a telemedicine conspiracy that resulted in more than $31 million in false billing was sentenced today to six months in prison, to be followed by six months of home confinement, fined $100,000 and ordered to pay $780,509 restitution, the U.S. Attorney’s Office said.
The defendant, Ronald David Dean, 64, pleaded guilty in July to conspiracy to commit wire fraud. The case was part of the Justice Department’s 2024 National Health Care Fraud Enforcement Action.
U.S. District Judge Donald W. Molloy presided. The court also ordered Dean to be placed on one year of supervised release after his confinement.
“Submitting false claims for medical services that were not provided will not be tolerated,” said Special Agent in Charge Dimitriana Nikolov with the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “Today’s sentencing is a testament to VA OIG’s dedication to investigating those who commit fraud and seek to benefit improperly from programs that are meant for deserving veterans.”
“Our office will continue to work alongside other federal agencies investigating crimes like this. The efforts of the VA-OIG, HHS-OIG and RRB-OIG agents, and the supporting personnel, combatted this fraudulent activity. We have an obligation to protect federal funds, and the abuse of our Medicare system will not be tolerated,” said Railroad Retirement Board Deputy Assistant Inspector General for Investigations Douglas Williams.
“Every American pays for healthcare fraud, potentially through higher health insurance premiums, exposure to unnecessary medical procedures, and increased taxes” said Special Agent in Charge Shohini Sinha of the Salt Lake City FBI. “Ronald Dean put profit before patients. This case, along with the coordinated nationwide effort, reaffirms the FBI’s commitment to investigating fraud, protecting patients, and maintaining the integrity of government funded programs.”
“Holding health care professionals accountable for causing the submissions of false claims to Medicare is crucial for maintaining public trust and ensuring critical resources are appropriately used, “ said Special Agent in Charge Linda T. Hanley of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We are committed to protecting the integrity of federal health care programs and the people who rely on those programs, including investigating schemes that undermine the legitimate delivery of telehealth services.”
The government alleged in court documents that Dean, a licensed physician, was paid by a telemedicine company to sign orders for durable medical equipment that patients did not need. Dean then fraudulently charged Medicare, CHAMPVA and the Railroad Retirement Board programs for telemedicine office visits that did not occur. The telemedicine company also used Dean’s information to prescribe unneeded and unnecessary covid tests to patients. The conspiracy ran from about January 2022 until July 2023. The total amount billed to Medicare, the VA and the Railroad Retirement Board based on orders Dean signed was $31,432,001, and the total amount paid from those programs was $13,785,724.
As part of the scheme, Dean relied on information provided by people he did not know, with an unknown amount of training or experience, to prescribe braces for beneficiaries he did not see or evaluate himself. Dean frequently did not even talk to the beneficiaries, and when he did it was merely to tell them the braces were approved. Dean had no idea if those people who received braces actually needed them. With the covid tests, Dean provided blanket authorization for the telemedicine company to send out tests to anyone and bill Medicare for as many covid tests as the company desired.
The case was part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 193 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.75 billion in alleged false billings. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets, and the Government, in connection with the enforcement action, seized over $231 million in cash, luxury vehicles, gold, and other assets.
The U.S. Attorney’s Office for the District of Montana worked with the Department’s Criminal Division and the following law enforcement organizations to investigate and prosecute the case filed during the enforcement period: the Department of Health and Human Services Office of Inspector General (HHS-OIG), Department of Veterans Affairs Office of Inspector General (VA-OIG), Railroad Retirement Board Office of Inspector General and FBI.
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Vacaville Man Pleads Guilty to Illegal Firearm Possession and Manufacturing DMTRead the Press Release
SACRAMENTO, Calif. — Robert Charles Crist, 58, of Vacaville, pleaded guilty today to being a felon in possession of a firearm and manufacturing a controlled substance, United States Attorney Phillip A. Talbert announced.
According to court documents, on Sept. 20, 2022, law enforcement officers executed a search warrant at Crist’s home and found a lab he used to manufacture N,N‑Dimethyltryptamine, or “DMT,” a Schedule I controlled substance. Crist traveled to Hawaii to obtain plant materials for manufacturing DMT, which he mailed back to California. From the plant materials, Crist extracted DMT liquid, which he then converted into a smokable crystalline form for distribution. Officers also found Crist in possession of a firearm. Crist is prohibited from possessing firearms because he has five prior felony convictions.
This case was the product of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco and Firearms; the U.S. Postal Inspection Service; and the Solano County Sheriff’s Office. Assistant United States Attorney Emily G. Sauvageau is prosecuting the case.
Crist is scheduled to be sentenced by Judge Dena Coggins on March 21, 2025. Crist faces a maximum statutory penalty of 15 years in prison and a $250,000 fine on the firearm count and a maximum of 20 years in prison for the manufacturing a controlled substance count. 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 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.
University Club of Milwaukee Agrees to Pay over $1 Million to Resolve Claim that It Wrongfully Obtained Paycheck Protection Program LoanRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that the University Club of Milwaukee has agreed to pay $1,003,993.86 to settle claims that the club improperly obtained a loan through the Paycheck Protection Program (“PPP”) administered by the United States Small Business Administration (“SBA”).
The PPP loan program, enacted in March 2020, provided emergency financial assistance to Americans suffering from the economic effects of the COVID-19 pandemic. The program allowed eligible businesses and non-profits to receive loans guaranteed by the federal government and, if the borrower spent the funds on qualified expenses, the federal government would repay the loan on the borrower’s behalf.
Congress directed the SBA to guarantee PPP loans “under the same terms, conditions, and processes” as ordinary small business loans administered by the agency. 15 U.S.C. § 636(a)(36)(B). With respect to loan eligibility, Congress expressly endorsed the SBA’s regulation explaining what entities would be ineligible for loans. 15 U.S.C. § 636(a)(37)(A)(iv)(III)(aa). For decades, this regulation has explained that “[p]rivate clubs and businesses which limit the number of memberships for reasons other than capacity” are not eligible for loans through the SBA. 13 C.F.R. § 120.110(i).
The University Club of Milwaukee operates a private country club and dining facilities, which are not open to the general public. According to the government, at the time the University Club of Milwaukee applied for a PPP loan and for loan forgiveness, the club limited its membership for reasons other than capacity and, therefore, was ineligible to participate in the PPP.
“The Paycheck Protection Program was an important but limited resource made available by Congress to assist small businesses around the country suffering the financial impacts of the COVID-19 pandemic,” said United States Attorney Haanstad. “But in making this resource available, Congress made a legislative determination that public funds would not be provided to private clubs that restricted their membership for reasons other than capacity. This settlement represents the continued efforts of the Small Business Administration and the Department of Justice to enforce Congress’s legislative determination and protect the public fisc.”
Assistant United States Attorney Aaron R. Wegrzyn represented the government in connection with this matter, in coordination with Kandace Zelaya in the SBA’s Office of Litigation and Office of General Counsel. While the settlement resolves the government’s allegations against the University Club of Milwaukee with respect to its PPP loan, the club does not admit liability and no court has made any determination as to liability.
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United States Settles False Claims Act Allegations Against Pharmaceutical Distributor for Paying Kickbacks Through Inventory Management SystemsRead the Press Release
ASD Specialty Healthcare LLC (ASD), doing business as Besse Medical (Besse), has agreed to pay $1.67 million to resolve allegations that it violated the Anti-Kickback Statute and False Claims Act by providing inventory management systems to retina practices at no cost to induce them to purchase drugs from Besse. ASD, headquartered in Carrollton, Texas, distributes specialty medical and pharmaceutical products nationwide, including ophthalmological injections that treat neovascular age-related macular degeneration (wet AMD).
As part of the settlement agreement, ASD admits that it acquired a commercially available inventory management system, known as PODIS, in May 2017. Through November 2023, ASD offered PODIS at no cost to customers who met certain purchase requirements, including that they purchase branded Wet AMD drugs from ASD and convert to an ASD customer if not a current customer. The government alleges that ASD caused physicians to submit false claims to Medicare, TRICARE and the Department of Veterans Affairs induced by these kickbacks.
The Anti-Kickback Statute prohibits any person, including specialty medical and pharmaceutical suppliers, from offering or paying, directly or indirectly, any remuneration — which includes money or anything of value, such as free inventory management systems — to induce the purchase of a drug that Medicare pays for.
“According to the allegations in today’s settlement, ASD purchased a commercially available product and leveraged it to gain business in violation of the AKS,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will pursue kickbacks at all levels of the distribution chain to preserve the integrity of federal health care programs.”
“Pharmaceutical distributors cannot violate the law to gain a financial advantage,” said U.S. Attorney Joshua S. Levy for the District of Massachusetts. “Offering improper incentives to health care customers can increase health care costs and disadvantage competitors who are playing by the rules. Our office is committed to continue pursuing these investigations with our federal law enforcement partners.”
“Improper financial inducements can compromise medical judgement and threaten the integrity of the Medicare program,” said Special Agent in Charge Roberto Coviello of the U.S. Department of Health and Human Services Office of Inspector General. “We are committed to pursuing allegations of kickbacks and false claims as we work to protect the integrity of the taxpayer-funded Medicare program, and we encourage the public to come forward with information about such conduct.”
“Investigating schemes that undermine the integrity of TRICARE, the healthcare system for military members and their families, is a top priority for the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “Today’s announcement demonstrates our commitment to work with our partner agencies and the Justice Department to pursue those individuals and corporations that submit false claims to the TRICARE system.”
“Investigations such as these help safeguard the integrity of the healthcare industry marketplace and protect taxpayer funds,” said Special Agent in Charge Christopher Algieri of the Department of Veterans Affairs Office of Inspector General (VA OIG)’s Northeast Field Office. “The VA OIG thanks the Justice Department and our federal law enforcement partners for their collaboration in this joint investigation.”
The settlement resolves claims brought under the whistleblower or qui tam provisions of the FCA by Julianne Nunnelly and Matthew Shanks. Ms. Nunnelly and Mr. Shanks are former employees of Regeneron Pharmaceuticals Inc., which manufactures and sells a drug to treat wet AMD. Under the FCA, private parties may sue on behalf of the government for false claims for government funds and receive a share of any recovery. Mr. Shanks and Ms. Nunnelly will receive $250,705.20 from the proceeds of the settlement. The lawsuit is captioned United States ex rel. Nunnelly et al. v. Regeneron Pharmaceuticals, Inc. et al., No. 20-cv-11401-PBS (Dist. Mass.). The United States filed a complaint in intervention against Regeneron Pharmaceuticals, Inc., on March 28, that remains pending.
The investigation of this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorneys’ Offices for the District of Massachusetts, with assistance from the Department of Health and Human Services Office of Inspector General, FBI, DCIS, VA-OIG and the Office of Personnel Management Office of Inspector General.
The investigation and resolution of these matters illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Trial Attorneys Douglas Rosenthal and Samuel Lehman of the Justice Department’s Civil Division and Assistant U.S. Attorneys Diane Seol and Lindsey Ross for the District of Massachusetts handled the matter.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
United States Obtains Consent Decree Against Lilmor Management, Morris Lieberman, and Others to Abate Lead Paint and Improve Housing Conditions Across More Than 2,500 Apartments in Largely Low and Moderate-Income NeighborhoodsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Lisa F. Garcia, the Regional Administrator for Region 2 of the U.S. Environmental Protection Agency (“EPA”); Matthew Ammon, the U.S. Department of Housing and Urban Development (“HUD”) Office of Lead Hazard Control and Healthy Homes; and Rae Oliver Davis, the Inspector General of the HUD Office of the Inspector General (“HUD OIG”), announced today that the United States, together with the State of New York, filed a civil lawsuit against LILMOR MANAGEMENT LLC (“LILMOR”), MORRIS LIEBERMAN (“LIEBERMAN”), and related LLCs (the “LLC DEFENDANTS”) (collectively, the “Defendants”), alleging that since 2012 the Defendants have violated federal law relating to lead-based paint safety and maintained a public nuisance in approximately 2,700 apartments, including more than 2,500 still owned by the LLC Defendants and more than 2,400 apartments currently managed by LILMOR and LIEBERMAN. Among other things, the U.S. and the State of New York allege that the Defendants’ apartments are riddled with peeling lead paint and lead dust; infested by rats, mice, and roaches; damp from perpetual leaks and covered with growing mold; and otherwise a danger to human health. More than 130 children living in the Defendants’ apartments have tested positive for elevated blood-lead levels since 2012.
The parties simultaneously filed a Consent Decree that would resolve the lawsuit and impose extensive relief, including requiring the Defendants to pay $3.575 million in penalties and $2.925 million in restitution to affected tenants, and requiring Defendants to identify and abate all lead-based paint (at an estimated cost of $10 million) and remediate substandard housing conditions across more than 2,500 apartments, subject to the oversight of an independent Housing Specialist selected by the U.S. and New York State.
U.S. Attorney Damian Williams said: “New Yorkers are entitled to protection from lead-paint hazards and other unsafe conditions in their homes. Landlords must comply with federal lead paint laws, and they cannot neglect their residential properties in ways that create a public nuisance. The consent decree we filed today, if entered by the Court, would provide the most extensive relief ever achieved in a case of this kind, including requiring the defendants to make 2,500 apartments safe and sanitary and to pay $6.5 million, including nearly $3 million in restitution to impacted tenants.”
EPA Regional Administrator Lisa F. Garcia said: “Our message to housing authorities, landlords, and renovators is loud and clear – Follow The Law – if you persist in cutting corners and putting public health at risk, we will pursue a violation and you will pay a hefty fine. There is no excuse for these violations. Rather than protecting children from lead poisoning, Lilmor Management Company LLC and the other named defendants systematically violated lead paint safety regulations. EPA appreciates the partnership with HUD, the U.S. Department of Justice and New York State officials on this action that underscores our joint commitment to protect our children and families from lead hazards.”
HUD Director Matthew Ammon said: “Today’s settlement means that thousands of families in New York City will have their apartments tested for lead and made lead safe. HUD’s partnering with DOJ and EPA on this case is part of the whole-of-government approach that is vital for addressing lead hazards in homes nationally.”
HUD-OIG Inspector General Rae Oliver Davis said: “The defendants’ failure to maintain safe and healthy living conditions for tenants, particularly the hundreds of children who have tested positive for elevated blood-lead levels, is simply unacceptable. This consent decree holds the defendants accountable for its egregious conduct. It provides important relief for victims and will require the defendant to take meaningful action to protect tenants from future exposure to health hazards. My office will continue to work with DOJ, HUD, EPA, and our local partners such as the New York Attorney General in addressing critical health and safety issues and safeguarding the well-being of families nationwide from preventable hazards such as lead poisoning.”
Exposure to lead-based paint dust is the most common cause of lead poisoning, which can lead to severe, irreversible health problems, particularly in children. Lead poisoning can affect children’s brains and developing nervous systems, causing reduced IQ, learning disabilities, and behavioral problems. Federal law seeks to protect tenants from these grave threats. In particular, the federal Lead Disclosure Rule requires landlords and their agents to inform tenants about the risks of lead exposure in their apartments before entering lease agreements and to disclose known facts about the presence of lead paint and lead paint hazards in their housing. The federal Renovation, Repair, and Painting Rule (“RRP Rule”) provides work-practice standards and related requirements to minimize the risk of lead exposure during renovation projects.
As alleged in the U.S. and New York State’s Complaint filed in the district court, LIEBERMAN is the co-owner and principal of LILMOR, which currently manages a portfolio of more than 2,400 apartments and previously managed others. Many of the apartments are owned by the LLC DEFENDANTS. The apartments are largely located in communities where families have low to moderate incomes and are disproportionately burdened by environmental and other health hazards. For years, the Defendants systematically failed to provide their tenants with disclosures about lead-based paint and lead-based paint hazards in their apartments, as required by the Lead Disclosure Rule. LILMOR and LIEBERMAN also failed to protect tenants when conducting renovation work as required by the RRP Rule, creating risks of exposure to toxic dust. Furthermore, the Defendants failed to properly maintain their residential properties, leading to apartments that were so unsafe and unsanitary as to present a public nuisance.
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In the Consent Decree, LILMOR and LIEBERMAN admit, acknowledge, and accept responsibility for the following, among other things:
- Defendants own, control, or manage, in whole or in part, 49 residential buildings containing 2,539 units in New York City, all of which were built prior to 1978.
- Government records show that, since 2012, more than 130 children have tested positive for elevated blood-lead levels while living in an apartment owned or controlled by one or more of the Defendants.
Disclosures
- Prior to November 2020, LILMOR and LIEBERMAN failed to provide tenants entering new and renewal leases with known information relating to lead-based paint or lead-based paint hazards and/or records in the possession or control of the Defendants relating to lead-based paint or lead-based paint hazards, as required by the federal Lead Disclosure Rule.
- In hundreds of apartments they rented, LILMOR and LIEBERMAN knew of lead-based paint or previous lead-based paint hazards because of prior lead-based paint hazard violations issued by the New York City Department of Housing Preservation and Development (“HPD”) or the New York City Department of Health and Mental Hygiene (“DOHMH”), but LILMOR and LIEBERMAN did not disclose this fact to tenants as required by the Lead Disclosure Rule.
- Prior to the dates upon which government records show that children tested positive for elevated blood-lead levels while residing in the Defendants’ apartments, LILMOR and LIEBERMAN had received citations for lead-based paint hazard violations from HPD or DOHMH for at least 18 of these apartments but did not disclose the fact that these apartments contained lead-based paint to the tenants when they signed their leases or lease renewals.
Lead-Safe Work Practices
- LILMOR and LIEBERMAN lacked federal certification to conduct repairs and renovations that required lead-safe work practices pursuant to the RRP Rule, did not provide maintenance staff with equipment necessary to perform RRP-Rule-compliant work, and did not train maintenance staff on lead-safe work practices. LILMOR and LIEBERMAN provided no instructions to its maintenance staff to prevent them from conducting work that was required to be performed in accordance with lead-safe work practices. Their work-order database nevertheless reflects that work subject to the RRP Rule was conducted by their maintenance staff.
- Through at least 2020, LILMOR and LIEBERMAN failed to follow lead-safe work practices required by federal and local law in covered repair and renovation projects for which they engaged an entity that worked solely or principally for them. During this time, the entity did not employ lead-safe work practices.
- Furthermore, although LILMOR had arranged for this entity to receive EPA certifications required by the RRP Rule in 2010 and 2020, the entity was not certified to conduct work covered by the RRP Rule from 2015 to 2020.
- In a period spanning from 2019 to the present, HPD issued violations to Defendants under applicable housing code provisions:
- more than 966 times for lead-based paint hazards,
- more than 2331 times for rodent or roach infestations,
- more than 1465 times for mold,
- more than 1492 times for leaks, and
- more than 85 times for lack of heat.
The Consent Decree agreed upon by the parties requires the Defendants, among other things, to do the following:
- Identify and abate all lead-based paint across 49 buildings containing more than 2,500 apartments.
- Eliminate substandard conditions throughout this housing portfolio.
- Engage an independent Housing Specialist, selected by the U.S. and the State of New York, to oversee the Defendants’ work under the consent decree.
- Pay a $3.25 million civil penalty to the U.S.
- Pay $3.25 million to New York State, of which $325,000 will be a civil penalty and $2.925 million will be used to pay restitution to tenants harmed by Defendants’ conduct.
- Provide rent-abatement credits for tenants affected by lead-based paint violations and substandard conditions.
- Provide tenant education efforts to tenants related to the hazards of lead-based paint.
To provide public notice and afford members of the public the opportunity to comment on the Consent Decree, the decree will be lodged with the District Court for a period of at least 30 days before it is submitted for the Court’s approval.
Mr. Williams thanked EPA and HUD attorneys and staff and HUD OIG for their critical work in this matter. Mr. Williams also thanked the Housing Protection Unit of the New York Attorney General’s Office for coordinating in pursuing the federal and state claims resolved in the Consent Decree.
This case is being handled by the Environmental Protection Unit of the Office’s Civil Division. Assistant U.S. Attorneys Zack Bannon and Jacob Lillywhite are in charge of the case.
U.S. Attorney's Office Alerts Consumers on Common Holiday ScamsRead the Press Release
CHARLOTTE, N.C. – The U.S. Attorney’s Office is warning the public of a potential uptick in cyberscams during the holiday season and is cautioning everyone to remain alert against cybercriminals targeting online consumers, particularly older adults.
“The holiday season is a time for joy and generosity, but it’s also a time when cybercriminals seek to target unsuspecting consumers and exploit increased online activity,” said U.S. Attorney Dena J. King. “Whether you’re buying gifts, donating to charity, or searching for a seasonal job, staying vigilant against online scams is the best way to keep the spirit of the season merry and bright.”
2023 Holiday Scams
According to the FBI’s 2023 Internet Crimes Report (IC3) North Carolina ranked in the top 15 states for online financial fraud, both in filed complaints and monetary losses. The report indicates that last year $12.5 billion in financial losses were reported to the FBI. The report also indicates that IC3 received complaints about online shopping and “non-delivery” schemes, which generally spike during the holiday season.
Here are the most common scams that consumers may come across this time of the year:
Fake Online Stores or “Lookalike Stores.” Be on the lookout for online stores that are either entirely fake or made to look like legitimate stores. Watch out for red flags, such as deeply discounted prices especially for in-demand items, like electronics, jewelry, and clothing. Be particularly careful with social media ads that link to bogus online stores or product listings. These scams target shoppers looking to buy luxury or hard-to-find items at an affordable price. Consumers may end up with stolen credit card information or paying for an item that is never received.
Missed Delivery/Non-Delivery Notification. With the rise in online shopping, lots of packages arrive at our front door during the holiday season. Beware of fake delivery notification emails or text messages alerting you of a missed package delivery. Think twice before clicking on the link provided in a text or email, as it may direct you to a website designed to steal your information. Make sure you pay attention to the domain address of the link to ensure it is a reputable delivery site and be especially cautions with delivery websites that ask for your personal or payment information to complete a package delivery.
Gift Card Scams. Gift card scams involve either scamming consumers into buying fake gift cards or tricking consumers into using gift cards to pay for fraudulent goods or services. For example, avoid online stores or advertisements that purport to sell commercial gift cards at deeply discounted prices. While they may have you believe you are buying a gift card on sale, in fact you may end up receiving a gift card with zero money value. Instead, purchase gift cards from reputable retailers.
Fake Charities. During the holidays, cybercriminals seek to take advantage of consumers’ generosity through fraudulent charities, GoFundMe campaigns, and other charitable causes. These types of scams can be particularly difficult to decipher, so before donating money be extra cautious about selecting a charity. If donating online, research the charity thoroughly, check with the Better Business Bureau, and take a look at the charity’s URL and website for telltale signs of fraud, including misspellings, bad grammar, and no contact information. For GoFundMe type of donations research the organizer or the group behind the campaign making a donation.
Phishing Emails or Texts. Cybercriminals take advantage of the hustle and bustle of the holiday season to dupe consumers via phishing emails or texts that contain suspicious links. Be particularly mindful of purported communications from your bank or credit card company, warning you that your account has been compromised. These phishing emails or texts generally prompt you to click on the provided link to log into your account to update your compromised information, so scammers can steal your information. Also avoid clicking on emails that promise free giveaways, prompt you to claim a prize, or ask you to confirm a reservation or other booking. If you receive this type of communication do not use the provided link. For example, if it’s an email related to a compromised bank account, instead of using the link in the email, go to your bank’s main website to log into your account.
Fraudulent Seasonal Jobs. Employment scams tend to increase during the holiday season, as scammers prey on individuals seeking to make extra money. Be mindful of fake job ads, especially online job listings that offer really good money for very little work. Do not ever pay upfront for any equipment or training you need for a new job. Also, do not readily provide your personal identifying information (social security number, date of birth, address, etc.) or your financial and banking information without confirming the job is legitimate. Be particularly mindful of money mule schemes, in which a fake employer asks you to cash a check through your bank, keep a portion of the money, and then send the rest of the money back to the employer.
Scams Targeting Older Adults
The U.S. Attorney’s Office also cautions that older adults are particularly vulnerable of becoming victims of online fraud, not only during the holidays, but throughout the year. According to the FBI’s IC3 2023 report, adults 60 years and older reported the highest monetary losses, with a combined $3.4 billion lost to financial fraud.
As part of the ongoing efforts to educate older adults about online scams and financial fraud, today the U.S. Attorney’s Office co-hosted a scam alert seminar in Charlotte, during which participants received important information about financial fraud. Following the presentation, attendees participated in a game of “Fraud Bingo,” a fun activity designed to deliver information and practical tips on how to prevent the financial exploitation and victimization by scammers.
“Online scams targeting the elderly remain a growing concern in North Carolina,” said U.S. Attorney King. “It’s our duty to protect our vulnerable older population from financial fraud and prevent its devastating financial impact on seniors. Fraud Bingo is a fun and engaging way to deliver information that can help older adults understand how scammers operate, learn the tactics they use, and find out how to protect themselves from financial harm.”
Some examples of financial fraud targeting older Americans are:
- Lottery Phone Scams – in which the callers convince seniors that a large fee or taxes must be paid before they can receive lottery winnings.
- Grandparent Scams – which convince seniors that their grandchildren are in trouble and need money to make rent, repair a car, or even money for bail.
- Romance Scams – which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose.
- Tech Support Scams – which convince victims to pay for non-existent problems with their computers.
- IRS Imposter Scams – which defraud victims by posing as IRS agents and claiming that victims owe back taxes.
- Sham Business Opportunities – which convince victims to invest in lucrative business opportunities or investments.
Here are some tips that can help avoid falling victim to a financial scam:
- Don’t share personal information with anyone you don’t know.
- Don’t pay a fee for a prize or lottery winning.
- Don’t click on pop-up ads or messages.
- Delete phishing emails and ignore harassing phone calls.
- Don’t send gift cards, checks, money orders, wire money, or give your bank account information to a stranger.
- Don’t fall for a high-pressure sales pitch or a lucrative business deal.
- If a scammer approaches you, take the time to talk to a trusted friend or family member.
- Keep in mind that if you send money once, you’ll be a target for life.
- Remember, it’s not rude to say, “NO.”
- A good rule of thumb is, if it’s too good to be true, it’s likely a scam.
To report elder fraud please call the Justice Department’s Elder Fraud Hotline at 1-833-FRAUD-11 (833-372-8311).
If you believe you are the victim of an online scam call the FBI and file a report with the FBI’s Internet Crime Complaint Center at IC3.gov or contact local law enforcement.
Trio Pleads Guilty in Reservation MurderRead the Press Release
Jackson, Miss. – Three individuals pled guilty today to their roles in a murder on the Mississippi Band of Choctaw Indians’ Reservation.
According to court documents, in September 2023, Michael Jeffrey Shaffer, Sr., 48, and Montero Ray Willis, 22, used a firearm to shoot and kill a tribal member in the Pearl River Community of the Mississippi Band of Choctaw Indians’ Reservation. Deyonkia Alice Willis, 30, acted as an accessory after the fact to the murder. The defendants were indicted by a federal grand jury in November of 2023.
The defendants will be sentenced at a later date to be determined by the court. Michael Jeffrey Shaffer, Sr., and Montero Ray Willis both face up to life in prison for murder in the second degree. Deyonkia Alice Willis faces up to fifteen years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee and Acting Special Agent in Charge Robert A. Eikhoff of the Federal Bureau of Investigation made the announcement.
The Choctaw Police Department and the Federal Bureau of Investigation investigated the case as part of the Project Safe Neighborhoods Tribal Initiative.
Assistant U.S. Attorneys Kevin J. Payne and Brian K. Burns prosecuted the case.
Project Safe Neighborhood’s Tribal Initiative refers to the inclusion of tribal law enforcement officials and community leaders within the Project Safe Neighborhoods (PSN) program, a national initiative by the U.S. Department of Justice that aims to identify and address the most pressing violent crime issues in a community by bringing together federal, state, local, tribal law enforcement, prosecutors, and community partners to develop comprehensive solutions; essentially, it signifies the program's efforts to actively involve tribal entities in combating crime within their jurisdictions.
Third Former NYCHA Superintendent Convicted of Bribery and Extortion Offenses at TrialRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that Corey Gilmore, a former NYCHA superintendent, was convicted of bribery and extortion under color of official right for taking thousands of dollars from contractors in exchange for awarding those contractors no-bid contracts or approving payment on previously awarded contracts at NYCHA developments for approximately six years. The verdict followed a four-day trial before U.S. District Judge Lewis J. Liman.
U.S. Attorney Damian Williams said: “Corruption is an insidious crime—difficult to detect, corrosive in its effect on government agencies, and damaging to the public’s trust in government institutions. As a NYCHA Superintendent, Corey Gilmore abused his position of public trust by demanding thousands of dollars of bribes from contractors, betraying his duty to NYCHA residents, the City of New York, and taxpayers. The jury’s unanimous verdict sends a clear message that those who use their public offices for personal gain will be held accountable.”
According to the evidence presented in court during the trial:
NYCHA is the largest public housing authority in the country, providing housing to New Yorkers across the City and receiving over $1.5 billion in federal funding from the U.S. Department of Housing and Urban Development (“HUD”) every year. When repairs or construction work at NYCHA housing require the use of outside contractors, services must typically be purchased via a bidding process. However, when the value of a contract was under a certain threshold, designated staff at NYCHA developments, including superintendents, could hire a contractor of their choosing without soliciting multiple bids. With either type of contract, a NYCHA employee needed to certify that the work was satisfactorily completed in order for the contractor to receive payment from NYCHA.
GILMORE, a superintendent at three NYCHA developments in the Bronx between 2016 and 2023—Bronx River Houses, Eastchester Gardens, and Forest Houses—demanded and received cash in exchange for NYCHA contracts. GILMORE typically demanded $1,000 for each contract he awarded. In total, GILMORE demanded and received tens of thousands of dollars in bribes in exchange for hundreds of thousands of dollars in NYCHA contracts.
Of the 70 individual NYCHA employees charged with bribery and extortion offenses in February 2024, 59 have pled guilty, and three have been convicted after trial.
If you believe you have information related to bribery, extortion, or any other illegal conduct by NYCHA employees, please contact [email protected] or (212) 306-3356. If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at [email protected].
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GILMORE, 46, of Garnerville, New York, was convicted of one count of federal program bribery, which carries a maximum term of 10 years in prison, and one count of extortion under color of official right, which carries a maximum term of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the New York City Department of Investigation, U.S. Department of Homeland Security – Homeland Security Investigations (“HSI”), the HUD Office of Inspector General, and the U.S. Department of Labor – Office of Inspector General, which work together collaboratively as part of the HSI Document and Benefit Fraud Task Force, as well as the special agents and task force officers of the U.S. Attorney’s Office for the Southern District of New York.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Emily Deininger, Matthew King, and Derek Wikstrom are in charge of the prosecution, with the assistance of Paralegal Specialist Braden Florczyk.
Texas Man Pleads Guilty to Federal Dogfighting OffensesRead the Press Release
Jesus Allen Stephens, of Waskom, Texas, pleaded guilty yesterday to felony charges related to his participation in a major dogfighting event in November 2021 in Waskom.
According to court documents, Stephens organized and hosted a large-scale dogfighting event on family-owned property in Harrison County, Texas, on Nov. 13, 2021. Stephens and others arranged to fight dogs at the event for gambling and entertainment purposes. Prior to the event, Stephens announced a series of up to 14 matches and sent multiple individuals GPS coordinates to the property. The fight included out-of-state participants.
Law enforcement personnel who disrupted the event found a dogfighting pit structure, a severely injured dog and other dogfighting evidence. Several pit bull-type dogs were also found at Stephens’s residences in addition to items commonly used for dog fighting purposes, such as treadmills and heavy chains.
Under federal law, it is illegal to fight dogs in a venture that affects interstate commerce and to possess, train, transport, deliver, sell, purchase or receive dogs for fighting purposes. Stephens pleaded guilty to conspiracy, sponsoring and exhibiting a dog in a dogfight and possessing a dog for dogfighting purposes. Stephens faces up to five years in prison and a $250,000 fine for each count.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD), U.S. Attorney Damien M. Diggs for the Eastern District of Texas and Special Agent in Charge Lyonel Myrthil of the FBI’s New Orleans Field Office made the announcement.
The FBI’s Shreveport, Louisiana, and Tyler, Texas, Resident Agencies are investigating this case. Deputies with the Harrison County, Texas, Sheriff’s Office have also provided invaluable assistance.
Trial Attorney Sarah Brown and Senior Trial Attorney Ethan Eddy of ENRD’s Environmental Crimes Section are prosecuting the case with assistance from James Noble of the U.S. Attorney’s Office for the Eastern District of Texas.
Texas Man Indicted on Child Sexual Exploitation ChargesRead the Press Release
An indictment was unsealed today in the Middle District of Tennessee charging a Texas man for child sexual exploitation offenses.
According to court documents, between October 2018 and May 2019, Philip Taylor Sobash, 34, of Austin, then a practicing physician, engaged in an online sexually explicit relationship with Minor Victim 1, who resided in the Middle District of Tennessee. This online relationship allegedly began after they connected on a dating website that facilitates “sugar daddy” relationships. Although Minor Victim 1 represented that she was 18 when she signed up for the website, the site did not verify the age of its users. As alleged, after their communications moved to text message, Minor Victim 1 quickly informed Sobash of her true age and sent him a photo of her driver’s license, which confirmed that she was a minor.
Sobash allegedly requested that Minor Victim 1 produce and send him sexually explicit images of herself and provided her thousands of dollars in cash and gifts to entice her to do so. Over the course of more than seven months, Minor Victim 1 allegedly sent hundreds of sexually explicit photos and videos to Sobash, most of which constituted child sexual abuse material (CSAM). Although Sobash allegedly assured Minor Victim 1 that the images she sent him would remain private between them, he distributed the images online. This led to unknown persons contacting Minor Victim 1 and attempting to blackmail her to produce more CSAM.
Court filings indicate that the FBI discovered in 2024 that Minor Victim 1’s CSAM was available for sale on a publicly accessible website and was labeled with Minor Victim 1’s first and last name. The CSAM was part of a larger collection of sexually explicit images and videos of about 70 young women and girls called the “DiscreetGent” collection.
According to court documents, evidence from various sources that indicates Sobash is “DiscreetGent” and is responsible for the sexually explicit imagery found in the online collection. The court filings further allege that in addition to Minor Victim 1, at least four other victims featured in the “DiscreetGent” collection were minors at the time they created CSAM for Sobash. Sobash allegedly sent electronic payments to Minor Victim 1 and the other minor victims, sometimes with sexual comments attached, and Sobash’s Apple iCloud account contained copies of Minor Victim 1’s CSAM.
Sobash was arrested earlier today in the Western District of Texas. He is charged with one count of sexual exploitation of a minor, one count of coercing a minor to engage in prostitution or unlawful sexual activity, and one count of receipt of child pornography. If convicted, he faces a mandatory minimum penalty of 15 years in prison and a maximum penalty of 30 years in prison on the sexual exploitation of a minor count, a mandatory minimum penalty of 10 years in prison and a maximum penalty of life in prison on the coercing a minor to engage in prostitution or unlawful sexual activity count, and a mandatory minimum penalty of five years in prison and a maximum penalty of 20 years in prison for the receipt of child pornography count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Anyone who believes they or their minor dependent was victimized by Sobash is asked to visit the following FBI website and complete a short online questionnaire: www.fbi.gov/SobashVictims.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Criminal Division; Acting U.S. Attorney Thomas J. Jaworski for the Middle District of Tennessee; and Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division made the announcement.
The FBI’s Child Exploitation Operational Unit is investigating the case.
Trial Attorney Adam Braskich of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Monica R. Morrison for the Middle District of Tennessee are prosecuting the case.
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, please visit www.justice.gov/psc.
An indictment is merely an allegation. The defendant is presumed innocent until proven guilty in a court of law.
Texas Man Indicted on Child Sexual Exploitation ChargesRead the Press Release
NASHVILLE - An indictment was unsealed today in the Middle District of Tennessee charging a Texas man for child sexual exploitation offenses.
According to court documents, between October 2018 and May 2019, Philip Taylor Sobash, 34, of Austin, then a practicing physician, engaged in an online sexually explicit relationship with Minor Victim 1, who resided in the Middle District of Tennessee. This online relationship allegedly began after they connected on a dating website that facilitates “sugar daddy” relationships. Although Minor Victim 1 represented that she was 18 when she signed up for the website, the site did not verify the age of its users. As alleged, after their communications moved to text message, Minor Victim 1 quickly informed Sobash of her true age and sent him a photo of her driver’s license, which confirmed that she was a minor.
Sobash allegedly requested that Minor Victim 1 produce and send him sexually explicit images of herself and provided her thousands of dollars in cash and gifts to entice her to do so. Over the course of more than seven months, Minor Victim 1 allegedly sent hundreds of sexually explicit photos and videos to Sobash, most of which constituted child sexual abuse material (CSAM). Although Sobash allegedly assured Minor Victim 1 that the images she sent him would remain private between them, he distributed the images online. This led to unknown persons contacting Minor Victim 1 and attempting to blackmail her to produce more CSAM.
Court filings indicate that the FBI discovered in 2024 that Minor Victim 1’s CSAM was available for sale on a publicly accessible website and was labeled with Minor Victim 1’s first and last name. The CSAM was part of a larger collection of sexually explicit images and videos of about 70 young women and girls called the “DiscreetGent” collection.
According to court documents, evidence from various sources that indicates Sobash is “DiscreetGent” and is responsible for the sexually explicit imagery found in the online collection. The court filings further allege that in addition to Minor Victim 1, at least four other victims featured in the “DiscreetGent” collection were minors at the time they created CSAM for Sobash. Sobash allegedly sent electronic payments to Minor Victim 1 and the other minor victims, sometimes with sexual comments attached, and Sobash’s Apple iCloud account contained copies of Minor Victim 1’s CSAM.
Sobash was arrested earlier today in the Western District of Texas. He is charged with one count of sexual exploitation of a minor, one count of coercing a minor to engage in prostitution or unlawful sexual activity, and one count of receipt of child pornography. If convicted, he faces a mandatory minimum penalty of 15 years in prison and a maximum penalty of 30 years in prison on the sexual exploitation of a minor count, a mandatory minimum penalty of 10 years in prison and a maximum penalty of life in prison on the coercing a minor to engage in prostitution or unlawful sexual activity count, and a mandatory minimum penalty of five years in prison and a maximum penalty of 20 years in prison for the receipt of child pornography count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Anyone who believes they or their minor dependent was victimized by Sobash is asked to visit the following FBI website and complete a short online questionnaire: www.fbi.gov/SobashVictims.
Acting U.S. Attorney Thomas J. Jaworski for the Middle District of Tennessee; Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Criminal Division; and Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division made the announcement.
The FBI’s Child Exploitation Operational Unit is investigating the case.
Assistant U.S. Attorney Monica R. Morrison and Trial Attorney Adam Braskich of the Criminal Division’s Child Exploitation and Obscenity Section are prosecuting the case.
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, please visit www.justice.gov/psc.
An indictment is merely an allegation. The defendant is presumed innocent until proven guilty in a court of law.
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Ten-Time Convicted Felon Pleads Guilty to Possessing A FirearmRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Loranzia Outin, III (48, Middleburg) has pleaded guilty to possessing two firearms as a convicted felon. Outin faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been scheduled.
According to court documents, on March 22, 2024, the Clay County Sheriff’s Office and their SWAT team executed a search warrant at Outin’s residence. During the search of Outin’s room, law enforcement officers located a 9mm pistol and a .22 caliber revolver. Outin had 10 prior felony convictions, including selling methamphetamine, possession of cocaine, and possession of a weapon or ammunition by a convicted felon. As a convicted felon, Outin is prohibited from possessing firearms under federal law.
This case was investigated by the Clay County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Brenna Falzetta.
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.
Tax Return Preparer Sentenced to 30 Months in Prison for Filing False Tax ReturnsRead the Press Release
TUCSON, Ariz. – Nour Abubakr Nour, 34, of Tucson, was sentenced on December 3, 2024, by United States District Judge Scott H. Rash to 30 months in prison. Nour pleaded guilty to Aiding and Assisting in the Preparation and Presentation of a False Tax Return on December 21, 2023.
Nour operated a tax return preparation business, known as Skyman Tax, LLC, located in Tucson. For tax years 2016 through 2018, Nour prepared and filed at least 27 false individual federal income tax returns for his clients, which included falsely claimed business income. Using the business income, Nour inflated tax refunds so that he could pay himself large tax return preparation fees. Nour’s clients had no knowledge that Nour was filing false tax returns under their names. Nour was ordered to pay restitution to the United States Treasury in the amount of $150,154.00 for the false tax refunds.
IRS Criminal Investigation conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-23-00516-TUC-SHR
RELEASE NUMBER: 2024-174_Nour# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Suffolk County Corrections Officers Charged with COVID Unemployment and Loan FraudRead the Press Release
BOSTON – Two corrections officers employed by the Suffolk County Sherriff’s Department were arrested today for allegedly submitting fraudulent information in an effort to obtain loans through CARES Act programs like the Pandemic Unemployment Assistance (PUA) program and the Paycheck Protection Program (PPP).
Christnel Orisca, 25, of Boston, was indicted by a federal grand jury on five counts of wire fraud and one count of making a false statement to a financial institution, arising out of PUA, traditional Unemployment Insurance (UI) and PPP loan benefits obtained prior to his employment at the Suffolk County Sherriff’s Department. Jasmine Murphy, 38, also of Boston, was indicted on seven counts of wire fraud and one count of making a false statement to a financial institution, arising out of PUA and PPP loan benefits obtained prior to her employment at the Suffolk County Sherriff’s Department and UI benefits obtained prior to and during her employment there.
The defendants were arrested this morning and will appear in federal court in Boston at 1:30 PM and 1:45 PM today.
“This case highlights the critical importance of protecting taxpayer-funded programs like the CARES Act from fraud and abuse,” said United States Attorney Joshua S. Levy. “These defendants, who hold positions of public trust as corrections officers, are alleged to have knowingly exploited pandemic relief programs intended to support small businesses and unemployed workers during a time of unprecedented crisis. Such conduct not only undermines the integrity of these programs but also betrays the public’s trust. My office remains steadfast in holding accountable those who engage in such schemes and ensuring that federal relief funds are used for their intended purpose – helping those in genuine need.”
“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud involving COVID-19 pandemic unemployment insurance programs. We will continue to work with our law enforcement partners to investigate these types of allegations,” said Special Agent-in-Charge Jonathan Mellone, U.S. Department of Labor, Office of Inspector General.
“Today’s arrest sends a clear message that those seeking to fraudulently receive benefits will be investigated and prosecuted. DHS OIG is grateful for our continued partnership with our law enforcement partners as we continue fighting corruption,” said Inspector General Joseph V. Cuffari, Ph.D., U.S. Department of Homeland Security, Office of Inspector General.
According to the charging document, Orisca has been a Corrections Officer with the Suffolk County Sherriff’s Department since late 2021. It is alleged that Orisca fraudulently applied for pandemic unemployment and small business loan benefits while working full-time, initially for a security company and later for a delivery company. While employed full-time, it is alleged that Orisca collected approximately $54,700 in unemployment benefits and small business loan funds.
According to the indictment, Murphy has been a Corrections Officer with the Suffolk County Sherriff’s Department since approximately January 2022. It is alleged that Murphy fraudulently applied for pandemic unemployment and small business loan benefits while working for trucking and workforce services companies. It is alleged that Murphy collected approximately $44,346 in unemployment benefits and small business loan funds to which she was not entitled.
In both of their PUA applications, it is alleged that Orisca and Murphy made fraudulent representations about their employment status and thereafter falsely claimed, on a weekly basis, that they did not work and did not receive any income during the prior week. In their PPP loan applications, it is alleged that Orisca and Murphy submitted false statements to SBA-approved lenders, including about the income and/or payroll of their purported small businesses, in order to obtain their loans. According to the charging documents, they also made false representations on forms submitted to request that their PPP loans be forgiven.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a $250,000 fine. The charge of making false statements to a financial institution provides for a sentence of up to 30 years in prison, five years of supervised release and a $1 million fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Levy, DOL-OIG SAC Mellone and DHS-OIG Inspector General Cuffari made the announcement today. The U.S. Postal Inspection Service, Boston Police Department and the Suffolk County Sheriff’s Department provided valuable assistance with the investigation. Assistant U.S. Attorneys Adam Deitch and Dustin Chao of the Public Corruption Unit are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus and https://www.justice.gov/coronavirus/combatingfraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form.
The details contained in the charging document are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Spokane Business Owner Pleads Guilty to Conspiracy to Violate the Clean Air Act and Stealing COVID-19 Relief FundsRead the Press Release
Spokane, Washington - Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Pavel Ivanovich Turlak, and his Spokane-based trucking companies; PT Express, LLC, Spokane Truck Service, LLC, and Pauls Trans, LLC pleaded guilty to conspiring to illegally violate Clean Air Act emissions controls and to fraudulently obtaining hundreds of thousands of dollars in COVID-19 relief funding. Turlak is scheduled to be sentenced on April 2, 2025, at 9:30 a.m. in Spokane, Washington.
Under the Clean Air Act, diesel trucks are required to maintain systems and components that limit harmful emissions of dangerous pollutants such as diesel particulates. Exposure to diesel exhaust can lead to serious health conditions like asthma and respiratory illnesses. Exposure also can worsen existing heart and lung disease, especially in children and the elderly. Heavy-duty diesel trucks are also required under the Clean Air Act to maintain an onboard-diagnostic system which monitors the functionality of the hardware emissions control components. To ensure that the required emissions control systems are functioning properly, if the system detects that an emissions control component is not working, or has been removed, it will ultimately put the truck into what is known as “limp mode,” which limits the top speed to as low as 5 miles per hour.
Based on the plea agreement accepted by the court and information disclosed during court proceedings, between August 2017 and November 2023, Turlak purchased illegal “delete tune” files from Florida-based Ryan Hugh Milliken and his company, Hardaway Solutions, LLC. The files were designed to disable and defeat required emissions controls and monitoring systems. Turlak loaded the delete tunes into his own trucks used in his businesses, as well as trucks of co-conspirators who were customers of Spokane Truck Service, LLC. Milliken and Hardway Solutions, LLC pleaded guilty to violating the Clean Air Act in November 2024.
In addition to violating the Clean Air Act, Turlak also admitted to fraudulently obtaining hundreds of thousands of dollars in COVID-19 Relief funding. Between March 2020 and August 2021, Turlak falsely and fraudulently applied for and received more than $300,000 in federal funding that was designated to go to eligible small businesses during the COVID-19 pandemic. Turlak and his businesses were not eligible to receive this funding due to their ongoing participation in a conspiracy to violate the Clean Air Act; yet, Turlak and his businesses falsely certified that they were eligible for this funding.
As a condition of the plea agreement, Turlak and his companies entered a compliance agreement to ensure that their trucks protect the public health and comply with Clean Air Act requirements going forward.
“Mr. Turlak pursued a business of profiting from pollution. By installing emission defeat devices in his own vehicles and the vehicles of others, he sought an illegal competitive advantage and evaded important safeguards designed to protect public health and the environment,” stated U.S Attorney Waldref. “Families in Eastern Washington deserve to breathe cleaner air, and I am grateful for our partners on our Environmental Task Force who are committed to protecting our community. Working together we will continue to ensure a healthy, high quality of life and keep our region safe and strong.”
This case was investigated by the EPA’s Criminal Investigation Division with assistance from EPA’s National Enforcement Investigations Center, the Small Business Administration, Office of Inspector General, and the Spokane Police Department. Assistant United States Attorneys Dan Fruchter and Jacob E. Brooks, and Special Assistant United States Attorney Gwendolyn Russell, are prosecuting the case.
2:24-cr-00057-TOR
Six Defendants Guilty of Drug, Firearms, and Robbery Crimes Related to Robbery of Undercover ATF AgentRead the Press Release
NEW ORLEANS, LOUISIANA – Over the past few months, MICHAEL LOTT, DIANTA TROPEZ, VERNELL WOODARD, QUINDELE ADDISON, SHEENA RUDOLPH, and CORIS ADDISON, all of New Orleans, pled guilty before United States District Judge Ivan L.R. Lemelle to charges stemming from a controlled purchase of methamphetamine as well as an attempted controlled purchase of methamphetamine, during which a Alcohol, Tobacco, Firearms and Explosives (ATF) undercover agent, and another individual, were armed robbed, announced U.S. Attorney Duane A. Evans.
According to court records, on August 29, 2023, VERNELL WOODARD, QUINDELE ADDISON, SHEENA RUDOLPH, and CORIS ADDISON, conspired to distribute, methamphetamine to an undercover ATF agent and another individual, at a Westbank, New Orleans apartment. The plan came to fruition when VERNELL WOODARD, QUINDELE ADDISON, and SHEENA RUDOLPH sold the undercover ATF agent approximately seven grams of pure methamphetamine.
After this methamphetamine distribution deal was completed, VERNELL WOODARD arranged for the undercover ATF agent and the other individual to return to the apartment the following day to purchase more drugs. When the undercover ATF agent and the other individual arrived at the apartment complex the next day, WOODARD told them to return to the same apartment. As they were coming upstairs, MICHAEL LOTT, armed with an AR-15 style weapon,hid in a closet inside the apartment. Once the undercover ATF agent and the other individual were inside the apartment, DIANTA TROPEZ entered, pointed a Glock pistol at the undercover ATF agent and the other individual, and demanded they get down and hand over their possessions. Simultaneously, MICHAEL LOTT emerged from the closet, pointed the AR-15 style weapon at them, and also demanded they turn over their possessions.
Other agents monitoring the deal, realized something was wrong and began responding. MICHAEL LOTT and DIANTA TROPEZ heard the law enforcement response, which stopped the robbery, and everyone in the apartment tried to flee. The undercover ATF agent and the other individual went onto the third-floor apartment balcony and began climbing down to escape. During their climb, the agent fell and sustained severe injuries.
As a result of this criminal conduct, MICHAEL LOTT, DIANTA TROPEZ, VERNELL WOODARD, QUINDELE ADDISON, SHEENA RUDOLPH, and CORIS ADDISON were indicted on eleven-counts related to the drug trafficking and armed robbery.
On August 14, 2024, SHEENA RUDOLPH pleaded guilty to the methamphetamine conspiracy and the distribution of methamphetamine on August 29, 2023. On August 29, 2024, CORIS ADDISON pleaded guilty to the methamphetamine conspiracy. On September 13, 2024, DIANTA TROPEZ pleaded guilty to conspiring to rob a person of money belonging to the United States, armed robbery of a person of money belonging to the United States, brandishing a firearm during and in relation to a crime of violence, assaulting an officer of the United States with a deadly weapon, and being a felon in possession of a firearm. On October 2, 2024, MICHAEL LOTT pleaded guilty to the same charges as TROPEZ. On November 22, 2024, VERNELL WOODARD pleaded guilty to the methamphetamine conspiracy and distribution charges, as well as the charges related to his participation in the armed robbery and to maintaining a drug involved premises. Finally, on December 5, 2024, QUINDELE ADDISON pleaded guilty to the methamphetamine conspiracy, the distribution of methamphetamine, in addition to being a felon in possession of a firearm, possessing a firearm in furtherance of drug trafficking, and maintaining a drug involved premises.
SHEENA RUDOLPH and CORIS ADDISON are set for sentencing on January 22, 2025. RUDOLPH faces at least five years up to forty years in prison, a fine of up to $5,000,000, at least four years of supervised release, and a $100 per count mandatory special assessment. CORIS ADDISON faces a potential penalty of up to twenty years, a fine of up to $1,000,000, and at least three years of supervised release.
DIANTA TROPEZ, MICHAEL LOTT, and VERNELL WOODARD are set to be sentenced on February 18 and 19, 2025. On the drug counts, WOODARD faces at least five years up to forty years in prison, a fine of up to $5,000,000, and at least four years of supervised release. All three defendants face the following potential penalties on the armed robbery counts: for the conspiracy, a maximum penalty of five years in prison, a fine of up to $250,000, and up to three years of supervised release; for the robbery of a person of money belonging to the United States, a penalty of up to twenty-five years in prison, a fine of up to $250,000, and up to three years of supervised release; for brandishing a firearm during a crime of violence, a mandatory minimum of at least seven years up to life in prison, that must run consecutive to every other term of imprisonment, a fine of up to $250,000, and up to five years of supervised release; and, or the assault on a federal officer, up to twenty years in prison, a fine of up to $250,000, and up to three years of supervised release. LOTT and TROPEZ also face up to fifteen years in prison, a fine of up to $250,000, and up to three years of supervised release, on the felon in possession of a firearm counts.
QUINDELE ADDISON is set to be sentenced on March 26, 2025. On the drug counts, he faces up to twenty years in prison, a fine of up to $1,000,000, and at least three years of supervised release. For the possession of a firearm in furtherance of drug trafficking, he faces a mandatory minimum of at least five years up to life in prison, that must run consecutive to every other term of imprisonment, a fine of up to $250,000, and up to five years of supervised release. Finally, on the felon in possession of a firearm count, QUINDELE ADDISON faces up to fifteen years in prison, a fine of up to $250,000, and up to three years of supervised release.
As to every charged count to which a defendant has pled guilty, that person would also face payment of a mandatory $100 special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The investigation of this case was conducted, primarily, by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, that was assisted by the Louisiana State Police, the Federal Bureau of Investigation, the New Orleans Police Department, and Crimestoppers GNO. The case is being prosecuted by Assistant United States Attorneys David Haller, Senior Litigation Counsel and PSN Coordinator, and Nolan Paige, Chief of the Narcotics Unit.
Sequoyah County Resident Sentenced Federal Drug and Firearm Related CrimesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Beau Don Morton, age 42, of Muldrow, Oklahoma, was sentenced to 30 months in prison for one count of illegal possession of a firearm and ammunition by a user of controlled substances, and 30 months for one count of maintaining a drug-involved premises.
The charges arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sequoyah County Sheriff’s Office.
On June 3, 2024, Morton pleaded guilty to the charges. According to investigators, on April 6, 2022, deputies with the Sequoyah County Sheriff’s Office executing a search warrant on Morton’s Muldrow residence discovered two small plastic baggies containing white crystalline methamphetamine, a metal canister of heroin, a small plastic bag containing 43 amphetamine tablets, a plastic container containing fentanyl tablets, multiple baggies containing sealed syringes, a set of digital scales, and an AR-15-style firearm with twelve loaded magazines of ammunition.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Morton will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant U.S. Attorneys Edith Singer and Rachel Geizura represented the United States.
Seattle man pleads guilty to wire fraud and aggravated identity theft for schemes to steal from employer, disaster relief program, and former significant otherRead the Press Release
Seattle – A 31-year-old Seattle man pleaded guilty today in U.S. District Court in Seattle to two counts of wire fraud and one count of aggravated identity theft for three different fraud schemes between 2019 and 2022, announced U.S. Attorney Tessa M. Gorman. Westcott Francis-Curley has been in custody since March 2024, following his indictment in August 2023. U.S. District Judge Ricardo S. Martinez scheduled sentencing for March 21, 2025.
The schemes began in 2019, when Francis-Curley embezzled money from his then-employer by misusing cloud computing resources and accounts available to him as an employee. Francis-Curley used employer bank accounts and his employee work authorizations to purchase cloud computing resources, then sell them back to the company—paying himself with company money—at many times their market value. Through this scheme he obtained more than $550,000, and he was caught while attempting to obtain another half-million dollars. He spent significant portions of the proceeds on extravagances, such as private jets.
In 2020, Francis-Curley defrauded the Paycheck Protection Program, a COVID assistance program designed to help small businesses and their employees weather the pandemic. Francis-Curley filed paperwork claiming that two companies he controlled had large payrolls that qualified for assistance, when in fact they had no operations, had no payroll, and did not qualify for relief. He obtained nearly $100,000 and spent much of it on personal goods and services.
Finally, in October 2022, Francis-Curley applied for and obtained a credit card in the name of his former significant other. Francis-Curley used the card for more than $1,000 in personal expenditures.
For the totality of that conduct, prosecutors and Francis-Curley’s attorneys will recommend a three-year prison term. Judge Martinez is not bound by the recommendation and can impose any sentence allowed by law. Francis-Curley has agreed to pay restitution to his former employer, to the Small Business Administration, and to the person whose identity he used to obtain the credit card.
Wire fraud is punishable by up to 20 years in prison. Wire fraud in connection with a national disaster is punishable by up to 30 years in prison. Aggravated identity theft is punishable by a mandatory two years in prison to run consecutive to any other sentence imposed in the case.
The case was investigated by the FBI. The case is being prosecuted by Assistant United States Attorney David T. Martin.
Robert McLane Imprisoned for Defrauding Auto Dealer EmployerRead the Press Release
Burlington, Vermont – The United States Attorney’s Office announced that Robert McLane, 36, of Websterville, Vermont was sentenced yesterday in United States District Court in Burlington to 18 months of imprisonment following his guilty plea to a charge of mail fraud. Chief U.S. District Judge Christina Reiss ordered that McLane serve three years of supervised release following completion of his prison term and also pay restitution in the amount of $566,000. The court ordered McLane to surrender to the United States Bureau of Prisons on April 4, 2025 to begin serving his sentence.
According to court records, between approximately March 2019 and September 23, 2022, McLane was employed by Formula Nissan, Inc., an automobile sales and service dealership located in central Vermont, where McLane served as the Parts Manager and then the Director of Parts and Service. In his positions, McLane oversaw the parts and service departments; supervised other employees; and ordered, received and paid for automotive parts needed in the dealership’s operations. In ordering, receiving and paying for parts, McLane typically communicated with Formula Nissan’s parts supplier, Nissan North America, using the Dealer Management System software.
Beginning in about January 2021 and continuing until September 2022, McLane defrauded the dealership by ordering certain vehicle parts from the dealership’s parts supplier, including vehicle suspension lift kits. The cost to the dealership of each lift kit was in the $2300 to $2900 range. The supplier billed, and the dealership subsequently paid, for the lift kits McLane had ordered.
As part of the scheme, McLane caused the lift kits not to be entered into the dealership’s inventory of parts-on-hand.
Instead of selling the lift kits for the benefit of the dealership, McLane advertised them for sale on Facebook at prices substantially discounted from their wholesale cost to the dealership. Over the course of the scheme, McLane sold more than 200 lift kits to persons around the United States, and he shipped the kits to his own customers by using the dealership’s Federal Express account. Purchasers paid McLane for the lift kits via transfers of funds to a personal PayPal account that McLane maintained in his own name and for his own benefit.
As a result of McLane’s fraud, Formula Nissan and its insurance company suffered an out-of-pocket loss of at least $575,000.
This case was investigated by the Federal Bureau of Investigation.
McLane is represented by Assistant Federal Public Defender Steven Barth. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Rhode Island Man Sentenced to 10 Years in Prison for his Role in Wide-Ranging Fentanyl Trafficking Conspiracy that Spanned Across the CountryRead the Press Release
BOSTON – A Rhode Island man was sentenced in federal court in Boston for his role in a fentanyl trafficking organization involved in the manufacturing and distribution of fentanyl pills that spanned across Massachusetts, Rhode Island, New York, Texas and North and South Carolina.
Erik Ventura, 36, was sentenced by U.S. District Court Judge Leo T. Sorokin to 10 years in prison, to be followed by five years of supervised release. In May 2024, Ventura pleaded guilty to a superseding indictment charging him with conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl. In July 2024, Jasdrual Perez pleaded guilty and is scheduled to be sentenced on Dec. 16, 2024. Ventura and Perez were arrested and charged in February 2022 and have remained in custody since.
In September 2019, an investigation began into a drug trafficking organization (DTO) lead by Jasdrual Perez, based in Providence, Rhode Island, known to manufacture large quantities of fentanyl pills designed to appear like pharmaceutical grade oxycodone/Percocet pills and distribute them and other controlled substances throughout the United States. Ventura was a trusted member of the DTO and maintained one of the drug stash locations. Ventura transported cash and kilogram quantities of drugs to and from New York on behalf of the DTO, distributed thousands of fentanyl pills to wholesale customers in Massachusetts and was paid by the DTO for his work as a drug distributor. Ventura also distributed fentanyl and cocaine to his own customers, including one who suffered a non-fatal overdose at a DTO stash house where Ventura resided. In February 2022, two industrial grade pill presses, approximately 20 kilograms of powdered fentanyl, pressed fentanyl pills and other items, including kilograms of pill binder used in the large-scale manufacturing of clandestinely pressed fentanyl pills, were seized.
United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Jonathan Wlodyka, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Special assistance in the investigation was provided by the United States Attorney’s Office for the District of Rhode Island; the Federal Bureau of Investigation, Providence Resident Agency; the Drug Enforcement Administration, Providence Field Office; Rhode Island State Police; and the Cranston, Warwick and West Warwick Police Departments. Assistant U.S. Attorneys Lindsey E. Weinstein and Kunal Pasricha of the Narcotics & Money Laundering Unit are prosecuting the case.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Revere Man Pleads Guilty to Ammunition Offense in Connection with Everett ShootingRead the Press Release
BOSTON – A Revere man pleaded guilty yesterday in federal court in Boston to illegally possessing ammunition in connection with a January shooting in a residential neighborhood of Everett.
Kenneth Munoz, 27, pleaded guilty to one count of being a felon in possession of ammunition. U.S. Senior District Court Judge William G. Young scheduled sentencing for April 9, 2025.
On the afternoon of Jan. 2, 2022, three individuals fired over 20 shots in an Everett neighborhood causing ballistic damage in the surrounding area, including bullet holes inside of bedrooms and living rooms in surrounding residences. The shooting was captured on video surveillance from nearby residences. Munoz was identified as one of the two shooters. Munoz is prohibited from possessing firearms and ammunition due to prior convictions.
The charge of being a felon in possession of ammunition provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Joshua S. Levy, James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, Everett Police Chief Paul Strong and Chelsea Police Chief Keith E. Houghton made the announcement. Assistant U.S. Attorney Sarah Hoefle of the Organized Crime & Gang Unit is prosecuting the case.