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30 January 2025
Mexican Citizen Pleads Guilty to Illegally Transporting Undocumented AliensRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Angel Ramon Lopez-Hernandez (36), a citizen of Mexico, has pleaded guilty to being paid to transport undocumented aliens to further their illegal presence in the United States. He faces a maximum penalty of five years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, on December 11, 2024, a trooper with the Florida Highway Patrol stopped a Ford Explorer on I-75 in Columbia County. Lopez-Hernandez was driving the vehicle, which contained four passengers. Because Lopez-Hernandez and the passengers did not appear to speak English and because the trooper suspected that Lopez-Hernandez was transporting aliens who were unlawfully present in the United States, he contacted U.S. Border Patrol agents for assistance. At the scene, the agents questioned Lopez-Hernandez and the passengers about their citizenship and immigration status. Lopez-Hernandez and two of the passengers stated that they were citizens of Mexico and that they were illegally present in the United States.
The vehicle’s odometer showed that the mileage at the time of the stop was 401,996. Database checks reflected that Lopez-Hernandez had purchased the vehicle on September 22, 2022, and that the mileage at the time of the purchase was 158,016, meaning that the vehicle had been driven more than 9,000 miles per month since Lopez-Hernandez had purchased it.
During later questioning, Lopez-Hernandez stated that he was being paid to transport the passengers and admitted that he had previously been paid to transport undocumented aliens, including from North Carolina to Florida. The passengers stated that they had entered the United States illegally and that they had paid for assistance in crossing the Mexican border and being transported to Florida, where they expected to find work.
This case was investigated by the U.S. Border Patrol and the Florida Highway Patrol. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Marshall County Woman Sentenced to 52 Months in Prison for COVID IRS FraudRead the Press Release
Oxford, MS – Today U.S. District Court Judge Michael P. Mills sentenced Lakisha Pearson, age 48, of Holly Springs, Mississippi, to a 52-month jail sentence for mail fraud in connection with falsely claimed IRS Employee Retention Tax Credit for others. Judge Mills also ordered Pearson to repay $15,942,586.77 in restitution.
Pearson, who owns Unity Tax Express, pled guilty to using the internet to file false tax credit claims for numerous persons totaling nearly $47 million and taking kickbacks from those persons. The IRS mailed Treasury checks totaling $15,942,586.77 in ERC credits to the claimants who thought they were given a government grant and were not aware that Pearson had filed tax returns on their behalf.
The Coronavirus Aid, Relief, and Economic Security Act ("CARES" Act), enacted on March 27, 2020, provided for an IRS Employee Retention Credit ("ERC") designed to encourage businesses to keep employees on their payroll during the pandemic. Subsequent legislation (the Taxpayer Certainty and Disaster Tax Relief Act of 2020, the American Rescue Plan Act, and the Infrastructure Investment and Jobs Act) modified and extended the ERC.
“Employee Retention Credits were tax credits designed to provide critical assistance to business owners struggling during the COVID-19 pandemic, but fraudsters and thieves infuriatingly decided to use the credits to line their own pockets during this emergency,” said U.S. Attorney Clay Joyner. “This office plans to pursue charges against all of those who decided to steal from American taxpayers, and we thank the IRS for the investigation of this case.”
“Unscrupulous tax preparers are put on notice that there is a price to pay for using their trusted position to defraud the federal government,” said Assistant Special Agent in Charge, Lisa Fontanette, IRS Criminal Investigation, Atlanta Field Office. “While IRS Criminal Investigation special agents will find and investigate these tax crimes, this case is an important reminder to filers during this tax season to do their research when choosing a tax preparer.”
The scheme in the instant case was initially uncovered during a separate criminal investigation which resulted in Pearson’s conviction for Payroll Protection loans. Pearson awaits sentencing in that case. Assistant U.S. Attorney Paul Roberts prosecuted the case on behalf of U.S. Attorney’s Office for the Northern District of Mississippi. The case was investigated by the IRS Criminal Investigation Division Special Agent T.J. Mitchell.
MS-13 member sentenced to life in prison for murders in Virginia and MassachusettsRead the Press Release
ALEXANDRIA, Va. – A Salvadoran national and member of the Uniones Locos Salvatrucha (ULS) clique of the violent Mara Salvatrucha 13 (MS-13) gang was sentenced today to six concurrent life prison sentences and additional terms of years following his conviction on charges relating to his participation in the gang’s criminal enterprise, including six murders and additional murder conspiracies.
According to court documents, on Aug. 25, 2018, Elmer De Jesus Alas Candray, aka German Alexander Ramirez Lopez, Buky, and Desquiciado, 27, met other MS-13 members in New Bedford, Massachusetts, to murder an associate of MS-13's Directos Locos Salvatrucha clique, identified in court records as K.A.C. MS-13 leadership in El Salvador had approved the murder because they believed K.A.C. had betrayed MS-13. That evening, they met K.A.C. at the residence of an MS-13 member in New Bedford. After the group ate dinner together, they beat and strangled K.A.C. to death. The conspirators then dismembered K.A.C.’s body, placed his remains in trash bags, and buried the remains in a wooded area near New Bedford. Alas Candray and other conspirators were promoted in the MS-13 ranks for their participation in the murder.
In June 2019, Alas Candray and others conspired to murder individuals who frequently gathered to drink in a wooded area in the clique’s perceived territory in Reston. On June 23, 2019, Alas Candray and other members and associates armed themselves with a 9mm firearm, a .45 caliber firearm, and two machetes and traveled to the Hunters Woods area of Reston. The group murdered an individual, identified as J.L.G.M., shooting him and slashing him with a machete.
On Sept. 17, 2020, Alas Candray and others devised a plan to lure a young woman, identified as I.J.P.G., to Colts Neck Road in Reston under false pretenses and kill her because they believed she was associated with a rival gang and had disparaged MS-13 on social media. A co-conspirator exchanged messages with I.J.P.G. via Snapchat, pretending to be a member of MS-13’s rival gang. He and another co-conspirator later picked up I.J.P.G. and drove her to Colts Neck Road, where Alas Candray and another MS-13 member were waiting for them. The four co-conspirators killed I.J.P.G. by taking turns shooting her, primarily in the face.
In March 2021, MS-13 members and associates conspired to murder an individual, identified as S.A.T.L., because they believed he was a member of a rival gang. On March 11, 2021, Alas Candray and other MS-13 members and associates, surveilled S.A.T.L. in Fairfax County and waited for an opportunity to murder him. Alas Candray and his co-conspirators went to an apartment complex on Winterthur Court in Reston where Alas Candray fatally shot S.A.T.L.
On May 30, 2022, Alas Candray and co-conspirators travelled to the Lerner Springs at Reston Apartment Homes and joined others on a footpath behind the complex to patrol the clique’s perceived territory. Shortly thereafter, the conspirators encountered an individual, identified as R.A.P.S., on the footpath. Alas Candray and others murdered R.A.P.S. by kicking him and dropping a large rock on his head as he lay on the footpath.
On June 18, 2022, Alas Candray and a co-conspirator picked up an individual, identified as F.R.A.R., from Reston and drove him to Seneca Regional Park in Fairfax County. Alas Candray, and his co-conspirators believed that F.R.A.R. had disrespected MS-13 and violated its rules. After arriving at a pre-selected location in the park, Alas Candray and several co-conspirators murdered F.R.A.R. by beating him with a baseball bat and stabbing him. They then dismembered F.R.A.R.’s body and buried F.R.A.R.'s remains in a clandestine grave.
On Aug. 17, 2022, Alas Candray instructed a relative to relay a message to other ULS members and associates. Using coded language, Alas Candray instructed a co-conspirator to get rid of ammunition, warned ULS members and associates that law enforcement had pictures of them, and advised them to move. The relative relayed the message the following day.
The jury convicted Alas Candray of conspiracy to participate in a racketeering enterprise, five counts of conspiracy to commit murder in aid of racketeering, five counts of murder in aid of racketeering, and three counts of use of a firearm during a crime of violence causing death.
Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia; Sean Ryan, Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division; and Kevin Davis, Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Michael S. Nachmanoff.
Assistant U.S. Attorneys John Blanchard, Megan Braun, and Natasha Smalky prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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. 1:22-cr-1789.
Mexican National Residing in Georgia Charged with Attempted Production of Child Pornography and Attempted Transfer of Obscene Material to a MinorRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that a federal grand jury recently returned a two-count indictment charging Victorino De La Cruz, age 42, of Mableton, Georgia, with attempted production of child pornography and attempted transfer of obscene material to a minor. De La Cruz appeared for his arraignment and pled not guilty to the pending charges.
According to the indictment, between August 8, 2024 and November 22, 2024, De La Cruz knowingly attempted to employ, use, persuade, entice, and coerce an individual he believed was a minor to engage in sexually explicit conduct for the purpose of producing child pornography. Additionally, according to the indictment, on August 11, 2024, De La Cruz, using a means of interstate commerce, knowingly attempted to transfer obscene material to an individual he believed had not attained the age of 16 years old.
Attempted production of child pornography is punishable by a maximum penalty of 15 – 30 years in prison, depending on sentencing enhancements. Attempted transfer of obscene material to a minor is punishable by a maximum penalty of 10 years in prison. De La Cruz also faces potential sex offender registration, supervised release, restitution, and monetary penalties.
This matter is being investigated by the Federal Bureau of Investigation and U.S. Immigration and Customs Enforcement and is being prosecuted by Assistant United States Attorney Benjamin Anderson.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Luchese Crime Family Soldier and Four Associates Plead Guilty to Crimes Including Racketeering, Money Laundering and Illegal GamblingRead the Press Release
Earlier today and throughout the past few weeks, in federal court in Brooklyn, five members and associates of the Luchese organized crime family of La Cosa Nostra pleaded guilty to multiple crimes, including racketeering, money laundering and illegal gambling related to criminal activities throughout New York City. The proceedings were held before United States District Judge Kiyo A. Matsumoto. Today, Luchese crime family soldier Anthony Villani pleaded guilty to racketeering, money laundering and illegal gambling. As part of Villani’s plea agreement, he will pay $4 million in forfeiture. His co-defendants have agreed to pay an additional approximately $1 million in forfeiture. Villani and his co-defendants operated a large-scale, illegal online gambling business (the Gambling Business) that operated under the protection of the Luchese crime family across the New York metropolitan area. The gambling business, known as “Rhino Sports,” operated since the early 2000s and brought millions in illicit profits annually.
John J. Durham, 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 guilty pleas.
“These guilty pleas represent a victory for the rule of law over the pernicious activities of organized crime that undermine the safety of our communities,” stated United States Attorney Durham. “Illegal gambling businesses require enforcement and protection from mob rivals that carry the persistent threat of violence. However, the defendants’ luck ran out and, thanks to the hard work of the team of prosecutors and investigators, they will be held accountable for their crimes and pay their debt to society.”
FBI Assistant Director in Charge Dennehy stated: “Our investigations involving members of the Five Families don't make the same headlines as they have historically. However, the men pleading guilty in this case illustrate how entrenched the traditional mafia are in their noxious and familiar criminality. They are less flashy these days - and a lot of that is due to the incredible cunning and tenacity agents and investigators on our FBI New York Westchester Organized Crime Task Force use to pursue members of these organizations.”
As detailed in the indictment and court filings, for over 25 years, Villani has been involved in significant gambling operations, principally based in the Bronx and Westchester, New York, that were affiliated with multiple organized crime families. Villani owned and operated the Gambling Business since at least 2004. The Gambling Business was hosted using servers in Costa Rica and employed local bookmakers to pay and collect winnings. Villani’s bookmakers included members and associates of the Luchese crime family and other La Cosa Nostra families. As part of the scheme, Villani employed trusted individuals, including defendants Louis Tucci, Jr. and Dennis Filizzola, to assist in operating the business and collecting at least $1 million annually. Records obtained of the Gambling Business’s website indicated that Villani’s illegal gambling operation regularly took bets from between 400 and 1,300 bettors each week, most of whom were based in New York City and the metropolitan area. At Villani’s direction, Filizzola took proceeds from the Gambling Business and used them to purchase U.S. Postal Service money orders in false names, which were then made payable to one of Villani’s property companies to appear as legitimate rental payments.
When sentenced, Villani faces up to 20 years in prison. Louis Tucci, Jr., pleaded guilty on January 27, 2025 to illegal sports betting and faces up to five years in prison. Filizzola pleaded guilty on January 21, 2025 to illegal sports betting and money laundering and faces up to five years in prison and up to 20 years in prison on those counts respectively. James Coumoutsos pleaded guilty on January 21, 2025 to illegal sports betting and faces up to five years in prison. Michael Praino pleaded guilty on January 10, 2025 to illegal sports gambling and faces up to five years in prison. A sixth defendant remains at large.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Antoinette N. Rangel is in charge of the prosecution. Assistant United States Attorney Claire S. Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendants:
ANTHONY VILLANI
Age: 60
Elmsford, NYJAMES COUMOUTSOS (also known as “Quick”)
Age: 62
Bronx, NYDENNIS FILIZZOLA
Age: 61
Cortlandt Manor, NYMICHAEL PRAINO (also known as “Platinum”)
Age: 47
Lake Worth, FloridaLOUIS TUCCI, JR. (also known as “Tooch”)
Age: 61
Tuckahoe, NYE.D.N.Y. Docket No. 22-CR-405 (KAM)
Lincoln County Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Jason L. Norman, 42, of Ranger, was sentenced today to one year one day in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on March 10, 2023, Norman possessed a Smith & Wesson model M&P 15 .223-caliber rifle and a Mossberg model 500A 12-gauge shotgun at his residence in Ranger.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Norman knew he was prohibited from possessing a firearm following his felony conviction for possession with intent to deliver a controlled substance in Lincoln County Circuit Court on April 13, 2017.
The investigation of the current offense revealed that Norman also possessed a third firearm, a Glock semi-automatic pistol, that he sold to another individual.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorney Timothy D. Boggess and former Assistant United States Attorney Troy D. Adams prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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. 2:23-cr-94.
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Lexington Attorney Indicted for Embezzling at Least $2.5 MillionRead the Press Release
BOSTON – An attorney working as a bookkeeper for three Massachusetts companies has been indicted by a federal grand jury for embezzling at least $2.5 million from the companies.
David Smerling, 74, of Lexington, was indicted on three counts of wire fraud and two counts of money laundering. He was previously charged by criminal complaint on Jan. 13, 2025.
According to the indictment, between January 2016 and May 2020, Smerling embezzled more than $2.5 million from the companies by transferring funds first to a bank account owned by one of the victims that Smerling controlled before moving the money to bank accounts in his own name, or directly from the companies’ accounts to bank accounts in his own name. The indictment also alleges that Smerling concealed his scheme by changing the mailing address on the victims’ bank statements to his home address and refusing to share the online banking password for the victims’ accounts.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. The charge of money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $500,000 or twice the value of the property involved in the transaction, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah B. Foley and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Kristen A. Kearney of the Securities, Financial & Cyber Fraud 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.
Leader of Brockton-Area Drug Trafficking Organization Pleads Guilty to Fentanyl ConspiracyRead the Press Release
BOSTON – A Braintree man pleaded guilty yesterday in federal court in Boston to fentanyl conspiracy charge.
Jonathan Melendez Decatro, a/k/a “Jacha,” 32, of Braintree, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for May 12, 2025. Pursuant to a plea agreement filed in court, Melendez Decatro will face a sentence of 10 years in prison and five years of supervised release. Melendez Decatro was indicted in June 2023.
During an investigation that began in 2019, Melendez Decatro was identified as the leader of a large-scale fentanyl and cocaine trafficking organization (DTO) operating in the Brockton area, who sourced drugs directly from Colombia, Mexico and the Dominican Republic. On two dates in 2021, packages intended for Melendez Decatro were intercepted by law enforcement and each found to contain a kilogram of cocaine. Additionally, on several dates in the spring of 2023, Melendez Decatro conspired with an individual who resided in the Dominican Republic to distribute in total 1.5 kilograms of fentanyl to another individual in Braintree. It was later determined that the purity of the fentanyl exceeded 50% and also contained xylazine. During of search of Melendez Decatro’s residence, over $10,000 in drug proceeds and clothing worn during the fentanyl transactions were recovered.
The charge of conspiracy to distribute and to possess with intent to distribute controlled substances provides for a sentence of at least 10 years and up to life years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah B. Foley; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Valuable assistance was provided by the Drug Enforcement Administration in Bogota; United States Postal Inspection Service; Massachusetts State Police; and the Brockton Police Department. Assistant U.S. Attorney Lindsey E. Weinstein of the Criminal Division is 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.
Lawton Couple Charged with Child Sex TraffickingRead the Press Release
OKLAHOMA CITY – A federal Grand Jury has charged JACKIE ANTONIO DUNCAN, 35, and NIA HALL, 30, both of Lawton, with sex trafficking of children, sex trafficking by force, fraud, or coercion, and conspiracy to commit sex trafficking, announced U.S. Attorney Robert J. Troester.
According to public record, in May 2024, two juveniles ran away from a juvenile group home in Lawton, Oklahoma, and were entered into law enforcement databases as missing juveniles. One of the juveniles was located by officers with the Plano Police Department on July 16, 2024, at a motel in Collin County, Texas, where she disclosed she and the other missing juvenile had been sex-trafficked. The juvenile told officers that after she and the other juvenile had fled the group home, they were approached by two people, later identified as Hall and Duncan, at a gas station. The juveniles began living with Hall and Duncan, who soon after transported the juveniles to various cities in Texas, where they performed sex acts for money, which Hall and Duncan kept. In return, the juveniles were provided food and shelter. The juvenile told authorities she had recently escaped Hall and Duncan’s car in the Dallas area. On September 30, 2024, the second juvenile was found and recovered in San Antonio, Texas. She recounted a similar story of being sex-trafficked by Hall and Duncan in exchange for food and shelter. During the investigation, local and federal law enforcement reviewed sex advertisements associated with Hall. These advertisements contained photos of the juveniles.
Public record further reflects that Hall and Duncan were arrested on December 16, 2024. On January 21, 2025, a federal Grand Jury returned a three-count Indictment against Duncan and Hall, charging them with sex trafficking of children; sex trafficking by force, fraud, or coercion; and conspiracy to commit sex trafficking. If found guilty, Hall and Duncan face up to life in federal prison and fines of up to $250,000 on each count.
The public is reminded these charges are merely allegations, and that the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is the result of an investigation by the Bureau of Indian Affairs, Federal Bureau of Investigation, Lawton Police Department, Choctaw Nation Lighthorse Police Department, Oklahoma Highway Patrol, Oklahoma Bureau of Narcotics & Dangerous Drugs Control, Fort Smith Police Department, Arkansas State Police, San Antonio Police Department, Plano Police Department, and Fort Worth Police Department. Assistant U.S. Attorneys Jordan Ganz and Brandon Hale are prosecuting the case.
Reference is made to public filings for additional information.
LaPorte Brothers Sentenced to PrisonRead the Press Release
SOUTH BEND – Raymond Calvin Smith, 27 years old, and Bruce Milik Smith, 25 years old, brothers from LaPorte, Indiana, were sentenced by United States District Court Judge Cristal C. Brisco after pleading guilty to federal felony charges, announced Acting United States Attorney Tina L. Nommay.
Raymond Smith was sentenced to 70 months in prison and 2 years of supervised release. Bruce Smith was sentenced to 39 months in prison and 2 years of supervised release. The two brothers were ordered to pay $723,832.64 in restitution to the victims of their offense. Raymond Smith was also ordered to pay $162,928.62 in restitution to the IRS.
According to documents in the case, from about January 2021 to December 2021, the Smith brothers operated an elaborate fraud scheme using Indiana mobile sports wagering applications. Using personal information of victims, such as bank account numbers and passwords, they set up dozens of accounts in victims’ names on at least 8 different sports wagering applications. Using sports wagering applications, they funneled money from victims’ bank accounts to themselves. With the personal information of approximately 60 victims, the Smith brothers stole a total of $723,832.64, and unsuccessfully attempted to steal an additional $930,782.00. Both Smith brothers pled guilty to the mail fraud scheme while Raymond Smith also pled guilty to evading taxes on the proceeds he received in 2021.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation Division, the United States Postal Inspection Service, and the Indiana Gaming Commission. The case was prosecuted by Assistant United States Attorney Luke N. Reilander.
Justice Department Sues to Block Hewlett Packard Enterprise’s Proposed $14 Billion Acquisition of Rival Wireless Networking Technology Provider Juniper NetworksRead the Press Release
Note: View the complaint here.
The Justice Department today sued to block Hewlett Packard Enterprise Co.’s (HPE) proposed $14 billion acquisition of rival wireless local area network (WLAN) technology provider Juniper Networks Inc. (Juniper). HPE and Juniper are the second- and third- largest providers, respectively, of enterprise-grade WLAN solutions in the United States. The complaint, filed in the Northern District of California, alleges that the proposed transaction would eliminate fierce head-to-head competition between the companies, raise prices, reduce innovation, and diminish choice for scores of American businesses and institutions, in violation of Section 7 of the Clayton Act.
“HPE and Juniper are successful companies. But rather than continue to compete as rivals in the WLAN marketplace, they seek to consolidate — increasing concentration in an already concentrated market,” said Acting Assistant Attorney General Omeed A. Assefi of the Justice Department's Antitrust Division. “The threat this merger poses is not theoretical. Vital industries in our country — including American hospitals and small businesses — rely on wireless networks to complete their missions. This proposed merger would significantly reduce competition and weaken innovation, resulting in large segments of the American economy paying more for less from wireless technology providers.”
WLAN technology — which includes hardware, software, and advanced artificial intelligence — is critical for the modern workplace. Millions of Americans today create and share company resources and access the internet from wireless-enabled devices. Retail employees wirelessly process payments and log inventory. Doctors access medical records on phones and tablets and track life-saving patient care on the go. University students take notes on their laptops and access course materials from their dorm rooms. Wireless networking is the primary means by which many employees connect to their employer’s computer network and the internet.
As alleged in the complaint, Juniper has been a disruptive force that has grown rapidly from a minor player to among the three largest enterprise-grade WLAN suppliers in the U.S. Juniper has also introduced innovative tools that have materially decreased the cost of operating a wireless network for many customers. This competitive pressure has forced HPE to discount its offerings and invest in its own innovation. HPE recognized and tracked Juniper’s growing significance and engaged in a campaign, including mandatory training for its engineers and salespeople, to “beat” Juniper when competing for contracts. Indeed, just a month before the proposed acquisition was announced, front-line HPE salespeople were concerned that “[t]he Juniper threat [was] dire” because in dozens of opportunities Juniper was “trying to unseat” HPE. Senior HPE executives shared this view; one former HPE executive reminded his team that “there are no rules in a street fight” with Juniper and encouraged them to “kill” Juniper when going head-to-head for sales opportunities.
Now, HPE seeks to acquire its smaller, innovative rival. The proposed transaction between HPE and Juniper, if allowed to proceed, would further consolidate an already highly concentrated market — and leave U. S. enterprises facing two companies commanding over 70% of the market: the post-merger HPE and market leader Cisco Systems Inc. This substantial lessening competition in a critically important technology market poses the precise threat that the Clayton Act was enacted to prevent.
Hewlett Packard Enterprise Company is headquartered in Spring, Texas. Its WLAN-focused business unit is located in Santa Clara, California.
Juniper Networks Inc. is headquartered in Sunnyvale, California.
Justice Department Resolves Lawsuit Against Pennsylvania Township and Sewage Authority over Allegations They Substantially Burdened Amish Residents’ Religious ExerciseRead the Press Release
Note: View the complaint here and the proposed consent order here.
WASHINGTON — The Justice Department today announced an agreement with Sugar Grove Township, Pennsylvania, and the Sugar Grove Area Sewage Authority (SUGASA), to resolve allegations that they violated the Religious Land Use and Institutionalized Persons Act (RLUIPA) by enacting and enforcing two ordinances against Old Order Amish residents: one mandating that certain households connect to the Township’s municipal sewage system, which requires the use of an electric grinder pump, and one banning privies on property intended for permanent residence. The lawsuit alleges that these acts substantially burdened Old Order Amish residents’ religious exercise, which restricts the use of electricity and requires adherents remain separate and apart from the modern world, and that the Township and SUGASA lacked a compelling reason for doing so.
“No one should have to choose between keeping their home or practicing their faith,” said Acting U.S. Attorney Troy Rivetti for the Western District of Pennsylvania. “This office will continue to defend religious communities against zoning ordinances that penalize them for adhering to their religious beliefs.”
“The Religious Land Use and Institutionalized Persons Act protects the rights of religious communities across the country, including the Old Order Amish, from the enforcement of land use rules that unreasonably burden their religious exercise,” said Deputy Assistant Attorney General Kathleen Wolfe of the Civil Rights Division. “The Justice Department is proud to support this longstanding Amish community’s religious rights.”
The proposed consent order, which was filed today in the Western District of Pennsylvania and must still be approved by the court, would resolve a lawsuit the United States also filed today alleging that Sugar Grove Township and SUGASA violated RLUIPA by enacting the connection ordinance over Old Order Amish religious objections, enforcing the ordinances against Old Order Amish residences, and imposing municipal liens and fines against Old Order Amish property owners because the property owners did not comply with the ordinances.
As part of the consent order, the Township and SUGASA will exempt certain Old Order Amish households from mandatory connection to the municipal sewage system, permit Old Order Amish residents to use privies on their private properties, and forgive any outstanding liens, fines, or other monetary penalties against Old Order Amish households for prior noncompliance with the two ordinances. The consent order also requires the Township and SUGASA to train its officials and employees on RLUIPA’s provisions, establish a procedure for receiving and resolving RLUIPA complaints, and provide reports to the United States.
RLUIPA is a federal law that protects persons and religious institutions from unduly burdensome or discriminatory land use regulations. More information about RLUIPA and the department’s efforts to enforce it can be found on the Place to Worship Initiative’s webpage.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or through the online RLUIPA complaint portal.
Justice Department Resolves Lawsuit Against Pennsylvania Township and Sewage Authority over Allegations They Substantially Burdened Amish Residents’ Religious ExerciseRead the Press Release
Note: View the complaint here and the proposed consent order here.
The Justice Department today announced an agreement with Sugar Grove Township, Pennsylvania, and the Sugar Grove Area Sewage Authority (SUGASA), to resolve allegations that they violated the Religious Land Use and Institutionalized Persons Act (RLUIPA) by enacting and enforcing two ordinances against Old Order Amish residents: one mandating that certain households connect to the Township’s municipal sewage system, which requires the use of an electric grinder pump, and one banning privies on property intended for permanent residence. The lawsuit alleges that these acts substantially burdened Old Order Amish residents’ religious exercise, which restricts the use of electricity and requires adherents remain separate and apart from the modern world, and that the Township and SUGASA lacked a compelling reason for doing so.
“The Religious Land Use and Institutionalized Persons Act protects the rights of religious communities across the country, including the Old Order Amish, from the enforcement of land use rules that unreasonably burden their religious exercise,” said Deputy Assistant Attorney General Kathleen Wolfe of the Civil Rights Division. “The Justice Department is proud to support this longstanding Amish community’s religious rights.”
“No one should have to choose between keeping their home or practicing their faith,” said Acting U.S. Attorney Troy Rivetti for the Western District of Pennsylvania. “This office will continue to defend religious communities against zoning ordinances that penalize them for adhering to their religious beliefs.”
The proposed consent order, which was filed today in the Western District of Pennsylvania and must still be approved by the court, would resolve a lawsuit the United States also filed today alleging that Sugar Grove Township and SUGASA violated RLUIPA by enacting the connection ordinance over Old Order Amish religious objections, enforcing the ordinances against Old Order Amish residences, and imposing municipal liens and fines against Old Order Amish property owners because the property owners did not comply with the ordinances.
As part of the consent order, the Township and SUGASA will exempt certain Old Order Amish households from mandatory connection to the municipal sewage system, permit Old Order Amish residents to use privies on their private properties, and forgive any outstanding liens, fines, or other monetary penalties against Old Order Amish households for prior noncompliance with the two ordinances. The consent order also requires the Township and SUGASA to train its officials and employees on RLUIPA’s provisions, establish a procedure for receiving and resolving RLUIPA complaints, and provide reports to the United States.
RLUIPA is a federal law that protects persons and religious institutions from unduly burdensome or discriminatory land use regulations. More information about RLUIPA and the department’s efforts to enforce it can be found on the Place to Worship Initiative’s webpage.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or through the online RLUIPA complaint portal.
Justice Department Announces Seizure of Cybercrime Websites Selling Hacking Tools to Transnational Organized Crime GroupsRead the Press Release
The Justice Department today announced the coordinated seizure of 39 domains and their associated servers in an international disruption of a Pakistan-based network of online marketplaces selling hacking and fraud-enabling tools operated by a group known as Saim Raza (also known as HeartSender). The seizures were conducted in coordination with the Dutch National Police.
According to the affidavit filed in support of these seizures, Saim Raza has used these cybercrime websites since at least 2020 to sell phishing toolkits and other fraud-enabling tools to transnational organized crime groups, who used them to target numerous victims in the United States, resulting in over $3 million in victim losses.
The Saim Raza-run websites operated as marketplaces that advertised and facilitated the sale of tools such as phishing kits, scam pages, and email extractors, often used to build and maintain fraud operations. Not only did Saim Raza make these tools widely available on the open internet, it also trained end users on how to use the tools against victims by linking to instructional YouTube videos on how to execute schemes using these malicious programs, making them accessible to criminal actors that lacked this technical criminal expertise. The group also advertised its tools as “fully undetectable” by antispam software.
The transnational organized crime groups and other cybercrime actors who purchased these tools primarily used them to facilitate business email compromise schemes wherein the cybercrime actors tricked victim companies into making payments to a third party. Those payments would instead be redirected to a financial account the perpetrators controlled, resulting in significant losses to victims. These tools were also used to acquire victim user credentials and utilize those credentials to further these fraudulent schemes. The seizure of these domains is intended to disrupt the ongoing activity of these groups and stop the proliferation of these tools within the cybercriminal community.
Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, U.S. Attorney Nicholas J. Ganjei for the Southern District of Texas, and Special Agent in Charge Douglas Williams of the FBI Houston Field Office made the announcement.
The FBI Houston Field Office is investigating the case. The Justice Department appreciates the cooperation and significant assistance law enforcement partners in the Netherlands have provided.
Trial Attorney Gaelin Bernstein of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Rodolfo Ramirez for the Southern District of Texas are prosecuting the case.
Illegal Alien from Costa Rica Sentenced for Firearm PossessionRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that MILTON RAYO CASTILLO (“RAYO CASTILLO”), age 26, a native of Costa Rica, was sentenced on January 28. 2025 by United States District Judge Wendy Vitter, for being an illegal alien in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(5)(A). RAYO CATILLO was sentenced to fifty-two (52) months incarceration, supervised release for three (3) years, and payment of a $100 mandatory special assessment fee.
According to the indictment, on or about March 10, 2024, RAYO CASTILLO, an alien illegally present in the United States, was found in possession of a nine-millimeter semi-automatic pistol, after brandishing the weapon at a patron at a Kenner, Louisiana restaurant.
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.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security and the Kenner Police Department in investigating this matter. Assistant United States Attorney Spiro G. Latsis of the General Crimes Unit oversees the prosecution.
Hudson County Man Charged with Online Enticement of A MinorRead the Press Release
NEWARK, N.J. – A Hudson County man has been charged with enticing a minor to engage in criminal sexual conduct, Acting U.S. Attorney Vikas Khanna announced.
Ryan Niksa, 34, of Jersey City, New Jersey, was charged in a one-count complaint with enticement of a minor to engage in sexual activity. He had an initial appearance before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court on January 29, 2025, and was ordered detained.
According to documents filed in this case and statements made in court:
Since in or around August 2024, Niksa communicated with a minor victim located in another state through social media applications and text messages. Niksa and the minor victim exchanged sexually explicit photos and videos. Niksa expressed his desire to live with the minor victim, discussed traveling to the minor victim’s home state to be with her, and discussed running away with the minor victim to another country where they could evade law enforcement.
Enticement of a minor carries a mandatory minimum penalty of 10 years in prison and a maximum potential penalty of life in prison, as well as a $250,000 fine.
Acting U.S. Attorney Khanna credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, the Jersey City Police Department, under the direction of Director James Shea, and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Alison Thompson of the Organized Crime and Gangs Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Shaiba Rather, Assistant Federal Public Defender
niksa.complaint.pdfHot Springs Man Sentenced to More Than 18 Years in Federal Prison for Methamphetamine and Firearms PossessionRead the Press Release
HOT SPRINGS – An Arkansas man was sentenced yesterday to a combined total of 222 months in Federal Prison for Possession of More Than 50 Grams of Methamphetamine with the Intent to Distribute and Possession of a Firearm in furtherance of a Drug Trafficking Offense. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearings, which took place in the United States District Court in Hot Springs.
According to court records, on July 23, 2023, Darius Kyri Walker, age 43, of Hot Springs, was stopped by Hot Springs Police Department Officers for a traffic infraction. Officers recognized Walker and knew that he was on active felony parole supervising through the Arkansas Department of Correction. Additionally, Officers observed an object concealed with Walker’s waistband. Ultimately, Walker was found to be in possession of 61.27 grams of pure methamphetamine, five (5) firearms, and hundreds of rounds of ammunition.
On June 24, 2024, Walker pleaded guilty to Possession of More Than 50 Grams of a Mixture or Substance Containing a Detectable Amount of Methamphetamine with Intent to Distribute and Possession of a firearm in Furtherance of a Drug Trafficking Crime.
U.S. Attorney David Clay Fowlkes made the announcement.
The Drug Enforcement Administration and the Hot Springs Police Department, Special Investigations Division, investigated the case.
Assistant U.S. Attorney Bryan Achorn prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov.
Hot Springs Man Sentenced to More Than 18 Years in Federal Prison for Methamphetamine and Firearms PossessionRead the Press Release
HOT SPRINGS – An Arkansas man was sentenced yesterday to a combined total of 222 months in Federal Prison for Possession of More Than 50 Grams of Methamphetamine with the Intent to Distribute and Possession of a Firearm in furtherance of a Drug Trafficking Offense. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearings, which took place in the United States District Court in Hot Springs.
According to court records, on July 23, 2023, Darius Kyri Walker, age 43, of Hot Springs, was stopped by Hot Springs Police Department Officers for a traffic infraction. Officers recognized Walker and knew that he was on active felony parole supervising through the Arkansas Department of Correction. Additionally, Officers observed an object concealed with Walker’s waistband. Ultimately, Walker was found to be in possession of 61.27 grams of pure methamphetamine, five (5) firearms, and hundreds of rounds of ammunition.
On June 24, 2024, Walker pleaded guilty to Possession of More Than 50 Grams of a Mixture or Substance Containing a Detectable Amount of Methamphetamine with Intent to Distribute and Possession of a firearm in Furtherance of a Drug Trafficking Crime.
U.S. Attorney David Clay Fowlkes made the announcement.
The Drug Enforcement Administration and the Hot Springs Police Department, Special Investigations Division, investigated the case.
Assistant U.S. Attorney Bryan Achorn prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov.
Hoover Brothers Sentenced for Selling Stolen Goods OnlineRead the Press Release
BIRMINGHAM, Ala. – Two Hoover brothers have been sentenced for running an online fencing scheme that resulted in the sale of over $1 million worth of stolen goods, announced U.S. Attorney Prim F. Escalona and U.S. Secret Service Special Agent in Charge Patrick Davis.
U.S. District Judge Madeline Haikala sentenced Abdurrahman Amar, 32, to 34 months in prison and Yahya Amar, 33, to 30 months in prison. In August and September 2024, the Amars pleaded guilty to one count each of conspiracy to engage in the interstate transportation of stolen goods.
According to the Amars’ plea agreements, from January 2022 through December 2023, Abdurrahman Amar organized and led a network of “boosters”— professional thieves. The boosters regularly offered the Amars various new and unopened goods for purchase, especially personal electronic devices and tools. The Amars knew that the boosters obtained these goods by stealing them from various retailers, including Wal-Mart, Target, Home Depot, and Lowe’s.
After purchasing the goods from the boosters at a steep discount from their retail value, the Amars listed the goods for re-sale on various online platforms—primarily eBay and Facebook—at prices that included a markup from the boosters’ prices but that were still well below the stolen goods’ retail value.
Over the course of the conspiracy, the Amars completed approximately 7,283 separate sales of stolen goods on eBay, resulting in total revenue of approximately $1,014,191.44. After selling the stolen goods online, the Amars shipped the stolen goods to customers located throughout the United States and internationally.
The U.S. Secret Service investigated the case. Assistant U.S. Attorney Brett A. Janich prosecuted the case.
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Havre meth, fentanyl trafficker sentenced to 10 years in prisonRead the Press Release
MISSOULA — A Havre man who admitted to conspiring to distribute methamphetamine and fentanyl in Montana was sentenced today to 10 years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Lance Jon Stimson, 33, pleaded guilty in October 2024 to conspiracy to distribute and to possess with intent to distribute controlled substances.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that the FBI’s Montana Regional Violent Crime Task Force was investigating an individual for distributing fentanyl in Missoula. The investigation showed that the individual supplied Stimson with meth and fentanyl to distribute. In April 2024, officers arrested Stimson for absconding from supervision and located 310 fentanyl pills and 28 grams of heroin in his vehicle. Stimson admitted to working with the individual to distribute more than 7,000 fentanyl pills and 17 ounces of meth between October 2023 and April 2024.
The U.S. Attorney’s Office prosecuted the case. The FBI’s Montana Regional Violent Crime Task Force.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
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Hartford Man Sentenced to 46 Months in Federal Prison for Illegal Gun PossessionRead the Press Release
Marc H. Silverman, Acting United States Attorney for the District of Connecticut, today announced that OSIRIS MUHAMMAD, 24, of Hartford, was sentenced yesterday by U.S. District Judge Sarala V. Nagala in Hartford to 46 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, shortly after midnight on January 26, 2024, Muhammad fired several shots at an intended victim in the area of Belden Street and Albany Avenue in Hartford. On January 28, 2024, Hartford Police spotted Muhammad at a liquor store on Albany Avenue. After a brief pursuit, he was taken into custody. Officers found him in possession of a Ruger P89 pistol. Subsequent analysis by the National Integrated Ballistic Information Network (NIBIN) connected the firearm to shell casings collected at the scene of the shooting the day before.
In 2020, Muhammad was convicted in state court of robbery in the first degree. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Muhammad has been detained since his arrest. On June 28, 2024, he pleaded guilty to unlawful possession of a firearm by a felon.
This investigation was conducted by the Hartford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by Assistant U.S. Attorneys Konstantin Lantsman and Daniel Gordon .
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn.
Guatemala Man Sentenced to Federal Prison for 10 Years for Attempted Enticement of a MinorRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Roberto A. Lange has sentenced a Guatemala man who resided in Sioux Falls, South Dakota, for Attempted Enticement of a Minor Using the Internet. The sentencing took place on January 27, 2025.
Jorge Manuel Rodriguez-Marroquin, age 48, was sentenced to the mandatory minimum sentence of ten years in federal prison, followed by five years of supervised release, and is required to pay a special assessment to the Federal Crime Victims Fund in the amount of $100. Rodriguez-Marroquin must register as a sex offender upon release from federal prison.
Rodriguez-Marroquin was indicted by a federal grand jury in April 2024. He pleaded guilty on November 12, 2024.
The conviction stemmed from an incident on March 9, 2024, when Rodriguez-Marroquin used Facebook to start a conversation with who he believed was a 15-year-old girl. He steered the conversation to sexual matters and enticed her to meet up with him for sexual activity. Unbeknownst to Rodriguez-Marroquin, the 15-year-old was an undercover law enforcement agent. Rodriguez-Marroquin was arrested when he showed up at the meet location.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Elizabeth A. Ebert-Webb prosecuted the case.
Rodriguez-Marroquin was immediately remanded to the custody of the U.S. Marshals Service.
Gang-Affiliated Massachusetts Man Sentenced to 5 Years for Trafficking Fentanyl into MaineRead the Press Release
PORTLAND, Maine: A Massachusetts man was sentenced today in U.S. District Court in Portland for distributing and possessing with intent to distribute controlled substances.
Chief U.S. District Judge Lance E. Walker sentenced Jervis Almanzar, 20, to 60 months in prison to be followed by four years of supervised release. Almanzar pleaded guilty on August 28, 2024.
According to court records, in January 2023, a confidential source arranged to buy fentanyl from an FBI target and agreed on a location in Maine to conduct the transaction. The source purchased a total of approximately 300 grams of fentanyl over two transactions, and Almanzar delivered the drugs each time. Almanzar is a known and admitted Trinitarios gang member.
The FBI investigated the case with assistance from the Augusta Police Department.
Organized Crime Drug Enforcement Task Forces: This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Four Members of Online Neo-Nazi Group that Exploited Minors Charged with Producing Child Sexual Abuse MaterialRead the Press Release
Note: View the indictment here.
Two men were arrested today on charges of participating in a neo-Nazi child exploitation enterprise that groomed and then coerced minors to produce child sexual abuse material (CSAM) and images of self-harm. The group allegedly victimized at least 16 minors around the world, including two in Southern California.
Colin John Thomas Walker, 23, of Bridgeton, New Jersey, and Clint Jordan Lopaka Nahooikaika Borge, 41, of Pahoa, Hawaii, were arrested this morning pursuant to a grand jury indictment that charges them with one count of engaging in a child exploitation enterprise. They are expected to make their initial appearances in court later today in New Jersey and Hawaii.
The indictment also charges two other defendants who are already in custody: Rohan Sandeep Rane, 28, of Antibes, France, and Kaleb Christopher Merritt, 24, of Spring, Texas. The indictment returned by a grand jury on Jan. 17 and unsealed today, also charges Rane and Walker with one count of engaging in a child exploitation enterprise.
According to the indictment, from at least 2019 to 2022, Rane, Walker, Merritt, and Borge were members of CVLT (pronounced “cult”), an online group that espoused neo-Nazism, nihilism, and pedophilia as its core principles. Members of the international enterprise engaged in online child sexual exploitation offenses and trafficked CSAM. Rane, Walker, and Merritt acted as leaders and administrators in the CVLT enterprise, hosting and running CVLT online servers and controlling membership for the group.
CVLT members worked collectively to entice and coerce children to self-produce CSAM on a platform run by CVLT members where they groomed children for the eventual production of CSAM through various means of degradation, including exposing the victims to extremist and violent content. CVLT specifically targeted vulnerable victims, including ones suffering from mental health challenges or a history of sexual abuse.
Victims were encouraged to engage in increasingly dehumanizing acts, including cutting and eating their own hair, drinking their urine, punching themselves, calling themselves racial slurs, and using razor blades to carve CVLT members’ names into their skin. CVLT members’ coercion escalated to pressuring victims to kill themselves on a video livestream.
When victims hesitated, resisted, or threatened to tell parents or authorities, CVLT members would threaten to distribute already-obtained compromising photos and videos of the victims to their family and friends. For victims who stopped participating in the CSAM, CVLT would sometimes carry through on their threats.
Rane previously was charged with several child exploitation and related offenses in France and has been in French custody since 2022. Merritt is currently in Virginia state custody, serving a 50-year sentence for child sex abuse crimes committed in 2020 and 2021.
If convicted, the defendants would face a minimum penalty of 20 years in prison and a statutory maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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 the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Homeland Security Investigations (HSI), the Los Angeles Police Department, San Bernardino County Sheriff’s Office, Henry County Sheriff’s Office (Virginia), Iowa State University Police, Police Nationale (France), the National Crime Agency (United Kingdom), the New Zealand Department of Internal Affairs, and EUROPOL are investigating this matter.
Assistant U.S. Attorney Catharine A. Richmond for the Central District of California and Trial Attorneys Justin Sher and James Donnelly of the National Security Division’s Counterterrorism Section are prosecuting this case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Four Members of Online Neo-Nazi Group that Exploited Minors Charged with Producing Child Sexual Abuse MaterialRead the Press Release
LOS ANGELES – Two men were arrested today on federal charges of participating in a neo-Nazi child exploitation enterprise that groomed and then coerced minors to produce child sexual abuse material (CSAM) and images of self-harm. The group allegedly victimized at least 16 minors around the world, including two in Southern California.
Collin John Thomas Walker, 23, of Bridgeton, New Jersey, and Clint Jordan Lopaka Nahooikaika Borge, 41, of Pahoa, Hawaii, were arrested this morning pursuant to a grand jury indictment that charges them with one count of engaging in a child exploitation enterprise. They are expected to make initial court appearances later today in New Jersey and Hawaii.
The indictment charges two other defendants who are already in custody: Rohan Sandeep Rane, 28, of Antibes, France, and Kaleb Christopher Merritt, 24, of Spring, Texas. The indictment, which was returned by a grand jury on January 17 and unsealed today, also charges Rane and Walker with one count of engaging in a child exploitation enterprise.
“The defendants here are alleged to have committed horrific acts against children,” said Acting United States Attorney Joseph T. McNally. “There is nothing more important than protecting our youth. Our office will continue its effort to aggressively prosecute and incarcerate dangerous predators.”
“Sextortion and other forms of online child sexual abuse have tragically altered the trajectory of too many young lives and this group preyed upon the vulnerable to fulfill their sick and twisted desires,” said Homeland Security Investigations (HSI) Los Angeles Special Agent in Charge Eddy Wang. “HSI and our partners will work tirelessly to protect children from victimization in communities across the United States and around the globe.”
According to the indictment, from at least 2019 to 2022, Rane, Walker, Merritt and Borge were members of CVLT (pronounced “cult”), an online group that espoused neo-Nazism, nihilism and pedophilia as its core principles. Members of the international enterprise engaged in online child sexual exploitation offenses and trafficked CSAM. Rane, Walker, and Merritt acted as leaders and administrators in the CVLT enterprise, hosting and running CVLT online servers and controlling membership for the group.
CVLT members worked collectively to entice and coerce children to self-produce CSAM on a platform run by CVLT members where they groomed children for the eventual production of CSAM through various means of degradation, including exposing the victims to extremist and violent content. CVLT specifically targeted vulnerable victims, including ones suffering from mental health challenges or a history of sexual abuse.
Victims were encouraged to engage in increasingly dehumanizing acts, including cutting and eating their own hair, drinking their urine, punching themselves, calling themselves racial slurs, and using razor blades to carve CVLT members’ names into their skin. CVLT members’ coercion escalated to pressuring victims to kill themselves on a video livestream.
When victims hesitated, resisted or threatened to tell parents or authorities, CVLT members would threaten to distribute already-obtained compromising photos and videos of the victims to their family and friends. For victims who stopped participating in the CSAM, CVLT would sometimes carry through on their threats.
Rane previously was charged with several child exploitation and related offenses in France and has been in French custody since 2022. Merritt is currently in Virginia state custody, serving a 50-year sentence for child sex abuse crimes committed in 2020 and 2021.
If convicted, the defendants would face a 20-year mandatory minimum sentence and a statutory maximum sentence of life in prison.
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. Attorney’s Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Homeland Security Investigations (HSI), the Los Angeles Police Department, San Bernardino County Sheriff’s Office, Henry County Sheriff’s Office (Virginia), Iowa State University Police, Police Nationale (France), the National Crime Agency (United Kingdom), the New Zealand Department of Internal Affairs, and EUROPOL are investigating this matter.
Assistant United States Attorney Catharine A. Richmond of the Violent and Organized Crime Section, and Trial Attorneys Justin Sher and James Donnelly of the National Security Division’s Counterterrorism Section are prosecuting this case.
Former U.S. Postal Employee Guilty of Stealing Mail ContentsRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that on January 16, 2025, SONIA MILLER (“MILLER”), age 54, a resident of New Orleans, pled guilty to theft of U.S. mail matter by a postal employee, in violation of Title 18, United States Code, Section 1709(a).
According to court documents, on or about March 14, 2023, MILLER unlawfully removed the contents of several parcels of mail entrusted to her as a postal employee.
At sentencing, MILLER faces a maximum sentence of 5 years imprisonment, up to a $250,000 fine, up to 5 years of supervised release and a $100 mandatory special assessment fee.
The case was investigated by the United States Postal Service, Office of the Inspector General. Assistant United States Attorney Mary Katherine Kaufman of the General Crimes Unit is in charge of the prosecution.
Former Sanger Police Officer Convicted on Eight Counts of Sexually Assaulting Women While on DutyRead the Press Release
FRESNO, Calif — On Wednesday, a federal jury in Fresno convicted former Sanger Police Department Officer J. DeShawn Torrence, 42, of eight counts of deprivation of constitutional rights under color of law for sexually assaulting four women whom he encountered during the course of his official duties. The jury found that the offenses included kidnapping, aggravated sexual abuse, and attempted aggravated sexual abuse, and also caused bodily injury.
Deputy Assistant Attorney General Kathleen Wolfe of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Michele Beckwith for the Eastern District of California, and Special Agent in Charge Siddartha Patel of the FBI Sacramento Field Office made the announcement.
The evidence at trial proved that Torrence sexually assaulted four women. He kidnapped a 21‑year-old woman who was walking to a store to buy groceries for her young children, drove her outside of town in his police car, and sexually assaulted her at an isolated dead end. Torrence forcibly raped a second victim, a 67-year-old woman, after following her into her home during a DUI investigation. With a third victim, Torrence showed up at her door in his police uniform after midnight, entered her apartment, pinned her against the kitchen counter, and sexually assaulted her. Torrence showed up multiple times at the home of a fourth victim, a domestic violence victim, supposedly to investigate a prior domestic violence incident. During those follow up visits, Torrence forced the victim to expose sensitive parts of her body for no legitimate reason, and he sexually assaulted her.
“Law enforcement officers are entrusted with great power to protect the public and keep them safe from harm. This officer’s crimes were an egregious breach of that trust and an appalling abuse of power, as he repeatedly preyed on the women in his community and violated their civil rights,” said Acting U.S. Attorney Beckwith. “We stand ready to investigate and prosecute such crimes with all the tools we have available.”
“The FBI Sacramento Field Office is grateful to the brave victims who came forward and trusted us to investigate the allegations of sexual abuse at the hands of a police officer,” said Special Agent in Charge Sid Patel. “The FBI is deeply committed to working with our partners to thoroughly investigate such cases to protect the American people and preserve public trust in law enforcement.”
The FBI Sacramento Field Office investigated the case, with assistance from the Fresno County Sheriff’s Office. Special Litigation Counsel Michael J. Songer of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Karen Escobar for the Eastern District of California are prosecuting the case.
Torrence is scheduled to be sentenced on May 7, 2025. Torrence faces a maximum penalty of life in prison and a $250,000 fine for five of the counts. The remaining counts each carry a maximum penalty of one year in prison and a fine of up to $100,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Police Officer Charged with Conspiracy to Traffic FirearmsRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against Corey Harris, 34, of Exeter, charging him with conspiracy to traffic firearms and unlawful dealing and manufacturing of firearms without a license, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, between 2021 and 2023, Harris, a peace officer with the California Department of Cannabis Control at the time of his arrest and a former officer with the Visalia Police Department, conspired with another individual to traffic in firearms. He conspired to transfer at least three firearms on three different occasions to a person he knew to be a felon, including a stolen AK-style rifle, a Glock handgun, and a privately manufactured machine gun. Privately manufactured firearms are also known as “ghost guns.”
According to court documents, Harris used his status as a police officer to obtain firearms and firearms accessories that ordinary citizens could not purchase. He manufactured or directed the manufacture of firearms, including machine guns. Despite not having a federal firearms license, Harris was in the business of manufacturing and selling firearms.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Fresno Police Department, the Selma Police Department, the California Department of Cannabis Control, the California Department of Justice, and the Visalia Police Department. Assistant U.S. Attorney Robert L. Veneman-Hughes is prosecuting the case.
If convicted of conspiracy to traffic firearms, Harris faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. If convicted of unlawful dealing and manufacturing of firearms without a license, Harris faces a maximum penalty of five years in prison and a $250,000 fine. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Former Deputy Sentenced for Falsifying Records to Obstruct A Federal InvestigationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Wesley Wayne Hunter Jr., age 29, of Yukon, Oklahoma, was sentenced to 70 months in prison for one count of Destruction, Alteration, or Falsification of Records to Obstruct a Federal Investigation.
The charge arose from an investigation by the Federal Bureau of Investigation and the Oklahoma State Bureau of Investigation.
On June 5, 2024, Hunter pleaded guilty to the charge. According to investigators, on July 20, 2023, in his official capacity as a Canadian County Deputy, Hunter purposefully deactivated the mobile tracking system on his work phone while transporting a pretrial detainee from Bryan County to Canadian County before pulling his patrol car off the transport route. Hunter admitted during the June plea hearing he did this to conceal and impede any future investigation into his subsequent criminal misconduct.
“The FBI will not stand by when a law enforcement official abuses the authority entrusted to them,” said FBI Oklahoma City Acting Special Agent in Charge Sonia Garcia. “We will continue to hold accountable any public servant who fails the community they were sworn to protect.”
“Wesley Wayne Hunter Jr. betrayed his employer, his community, and his oath by engaging in misconduct against a detainee and attempting to conceal his acts,” said United States Attorney Christopher J. Wilson. “Today, thanks to the diligent work of the FBI, the OSBI, the DOJ Civil Rights Division, and Eastern District prosecutors, Hunter is being held accountable for his crime.”
The Honorable John D. Russell, U.S. District Judge in the United States District Court for the Northern District of Oklahoma, sitting by assignment, presided over the hearing in Muskogee. Hunter 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 Nicole Paladino and Richard Lorenz, in consultation with Trial Attorney Laura Gilson of the Civil Rights Division of the Department of Justice, represented the United States.
Former California Police Officer Convicted on Eight Counts of Sexually Assaulting Women While on DutyRead the Press Release
A federal jury in Fresno, California, convicted yesterday former Sanger, California, Police Department officer J. DeShawn Torrence, 42, of eight counts of deprivation of constitutional rights under color of law for sexually assaulting four women whom he encountered during the course of his official duties. The jury found that the offenses included kidnapping, aggravated sexual abuse, and attempted aggravated sexual abuse, and caused bodily injury.
“Law enforcement officers are entrusted with great power to protect the public and keep them safe from harm. This officer’s crimes were an egregious breach of that trust and an appalling abuse of power, as he repeatedly preyed on the women in his community and violated their civil rights,” said Acting U.S. Attorney Michele Beckwith for the Eastern District of California. “We stand ready to investigate and prosecute such crimes with all the tools we have available.”
“The FBI Sacramento Field Office is grateful to the brave victims who came forward and trusted us to investigate the allegations of sexual abuse at the hands of a police officer,” said Special Agent in Charge Sid Patel of the FBI Sacramento Field Office. “The FBI is deeply committed to working with our partners to thoroughly investigate such cases to protect the American people and preserve public trust in law enforcement.”
The evidence at trial proved that Torrence sexually assaulted four women. He kidnapped a 21-year-old woman who was walking to a store to buy groceries for her young children, drove her outside of town in his police car, and sexually assaulted her at an isolated dead end. Torrence forcibly raped a second victim, a 67-year-old woman, after following her into her home during a DUI investigation. With a third victim, Torrence showed up at her door in his police uniform after midnight, entered her apartment, pinned her against the kitchen counter, and sexually assaulted her. Torrence showed up multiple times at the home of a fourth victim, a domestic violence victim, supposedly to investigate a prior domestic violence incident. During those follow up visits, Torrence forced the victim to expose sensitive parts of her body for no legitimate reason, and he sexually assaulted her. The jury also heard testimony that Torrence sexually assaulted a fifth woman while acting in his capacity as a police officer.
Five of the counts each carry a maximum penalty of life in prison and a $250,000 fine. The three remaining counts each carry a maximum penalty of one year in prison and a fine of up to $100,000. Torrence is scheduled to be sentenced on May 7.
Deputy Assistant Attorney General Kathleen Wolfe of the Justice Department’s Civil Rights Division made the announcement.
The FBI Sacramento Field Office investigated the case, with assistance from the Fresno County Sheriff’s Office.
Special Litigation Counsel Michael J. Songer of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Karen Escobar for the Eastern District of California are prosecuting the case.
Florida Businessman Indicted for Tax EvasionRead the Press Release
A federal grand jury in Jacksonville, Florida, returned an indictment yesterday charging a Florida businessman with tax evasion, not filing a tax return and not paying taxes.
According to the indictment, Phillip Mak, of Jacksonville, was a self-employed businessman who from 2008 through 2020 earned approximately $10.3 million in income. During that same period, Mak allegedly did not pay any federal taxes and, except for two years, did not file tax returns. The IRS allegedly assessed approximately $1.9 million in outstanding taxes, penalties and interest against Mak for tax years 2008, 2009, 2012-2015 and 2019-2020.
Instead of paying what he owed, Mak allegedly attempted to shield his assets from the IRS by transferring $1 million in cash to his domestic partner’s bank accounts. In addition, the indictment alleges that Mak, after being interviewed by IRS investigators, transferred ownership of his home to his domestic partner’s trust, created a nominee entity and began depositing his income into a bank account held in the name of that entity.
In total, Mak is alleged to have caused a tax loss to the IRS of more than $1.92 million.
If convicted, Mak faces a maximum sentence of five years in prison for tax evasion and a maximum sentence of one year in prison for each charge of failure to file a tax return and failure to pay tax. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Isaiah Boyd and Michael Jones of the Tax Division and Assistant U.S. Attorney John Cannizzaro for the Middle District of Florida are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Florida Businessman Indicted for Tax EvasionRead the Press Release
Jacksonville, FL — A federal grand jury in Jacksonville, Florida, returned an indictment yesterday charging a Florida businessman with tax evasion, not filing a tax return and not paying taxes.
According to the indictment, Phillip Mak, of Jacksonville, was a self-employed businessman who from 2008 through 2020 earned approximately $10.3 million in income. During that same period, Mak allegedly did not pay any federal taxes and, except for two years, did not file tax returns. The IRS allegedly assessed approximately $1.9 million in outstanding taxes, penalties and interest against Mak for tax years 2008, 2009, 2012-2015 and 2019-2020.
Instead of paying what he owed, Mak allegedly attempted to shield his assets from the IRS by transferring $1 million in cash to his domestic partner’s bank accounts. In addition, the indictment alleges that Mak, after being interviewed by IRS investigators, transferred ownership of his home to his domestic partner’s trust, created a nominee entity and began depositing his income into a bank account held in the name of that entity.
In total, Mak is alleged to have caused a tax loss to the IRS of more than $1.92 million.
If convicted, Mak faces a maximum sentence of five years in prison for tax evasion and a maximum sentence of one year in prison for each charge of failure to file a tax return and failure to pay tax. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Isaiah Boyd and Michael Jones of the Tax Division and Assistant U.S. Attorney John Cannizzaro for the Middle District of Florida are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Five Arrested in Second Federal Sweep Targeting Asian Boyz Gang for Alleged Drug Trafficking in LowellRead the Press Release
BOSTON – Four indictments were unsealed today if federal court in Boston charging a second wave of alleged members and associated of the Asian Boyz gang for their roles in a distribution network of homemade methamphetamine pills, branded as “Adderall.”
The following five men were arrested this morning and will appear in federal court in Boston later today:
- Sovath Yern, a/k/a “Stryke,” 35, of Billerica, charged with one count of conspiracy to distribute and to possess with intent to distribute 500 grams and more of methamphetamine;
- Owen Landry, a/k/a “Oski,” 22, of Lowell, charged with one count was charged with one count of conspiracy to distribute and to possess with intent to distribute 500 grams and more of methamphetamine; one count of distribution of and possession with intent to distribute 50 grams and more of methamphetamine, aiding and abetting; and one count of distribution of and possession with intent to distribute 500 grams and more of methamphetamine;
- Zachary Hansen, 29, of Lowell, charged with one count was charged with one count of conspiracy to distribute and to possess with intent to distribute 500 grams and more of methamphetamine and one count of distribution of and possession with intent to distribute 500 grams and more of methamphetamine;
- Scott Fournier, a/k/a “S.G.,” 33, of Lowell, charged with one count of conspiracy to distribute and to possess with intent to distribute 500 grams and more of methamphetamine; two counts of possession with intent to distribute 500 grams and more of methamphetamine; two counts of distribution of and possession with intent to distribute 50 grams and more of methamphetamine; and three counts of distribution of and possession with intent to distribute 500 grams and more of methamphetamine; and
- Richard Nguyen, a/k/a “Cheese,” a/k/a “Cheeseburger,” 29, of Lowell, charged with two counts of distribution of and possession with intent to distribute 500 grams and more of methamphetamine and one count of distribution of and possession with intent to distribute 50 grams and more of methamphetamine.
An indictment has also been unsealed against a sixth man currently serving a state prison sentence who will make an initial appearance in federal court in Boston at a later date:
- Isiah Lyons, a/k/a “Tank,” a/k/a “Rozay,” 29, of Lowell, was charged with one count of conspiracy to distribute and to possess with intent to distribute 500 grams and more of methamphetamine.
According to court records, today’s charges are a continuation of an investigation into the Asian Boyz gang that began in 2021 to disrupt the manufacturing and distribution of methamphetamine pills impacting Lowell. It is alleged that a total of over 57,000 counterfeit Adderall pills, consisting of over 18 kilograms of a mixture or substance of methamphetamine, were seized from or purchased from the defendants named in the indictments unsealed today.
Previously, in July 2023, nine members and associates of the Asian Boyz were arrested and charged with conspiracies for drug trafficking and transferring illegal firearms, include machinegun conversion devices. Of the nine defendants, five have pleaded guilty and are awaiting sentencing.
The charges of distribution of and possession with intent to distribute 500 grams and more of methamphetamine and conspiracy to distribute and to possess with intent to distribute 500 grams and more of methamphetamine each provide for a sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. The charges of distribution of and possession with intent to distribute 50 grams and more of methamphetamine each provide for a sentence of at least five year and up to life in prison, at least four years and up to a lifetime of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah B. Foley; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Greg C. Hudon, Superintendent of the Lowell Police Department made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Billerica, Haverhill, Methuen, North Andover and Salem Police Departments. Assistant U.S. Attorney Fred M. Wyshak, III of the Organized Crime & Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce 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 https://www.justice.gov/PSN.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
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 Courts Authorize IRS “John Doe” Summonses to Trident Trust EntitiesRead the Press Release
The U.S. District Court for the Northern District of Georgia entered an order earlier this week authorizing the IRS to serve John Doe summonses on TT (USA) Holdings Inc.; Trident Corporate Services Inc. and Trident Fund Services Inc., entities that are members of a multinational group of affiliated companies generally operating under the trade name “Trident Trust” and collectively referred to as the “Trident Trust Group.”
Separately, on Dec. 18, 2024, the U.S. District Court for the District of South Dakota entered an order, unsealed on Jan. 21, authorizing service of a similar John Doe summons on Trident Trust Company (South Dakota) Inc. The United States also previously obtained approval in the U.S. District Court for the Southern District of New York for the IRS to serve John Doe summonses on a different affiliate entity of the Trident Trust Group, as well as to third party financial service companies, banks and courier services that may have information about Trident Trust Group’s U.S. taxpayer clients.
The United States is not alleging that any of the entities engaged in wrongdoing. Rather, the IRS uses John Doe summonses to obtain information about possible violations of internal revenue laws by individuals whose identities are unknown. These summonses seek information about U.S. individuals who may have used the Trident Trust Group’s services to underreport their worldwide income and conceal their ownership of certain foreign assets that U.S. individuals are required to report to the U.S. government.
“The Justice Department and the IRS are dedicated to unearthing tax evasion that uses foreign bank accounts and offshore shell corporations,” said Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “We will use the many tools available to us, including John Doe summonses like the ones authorized by the courts here, to ensure that taxpayers are fully meeting their responsibilities.”
Federal law requires certain individual taxpayers, including all U.S. citizens and residents with gross annual income above the reporting threshold, to pay taxes on all income earned worldwide. They must also disclose certain foreign financial accounts, assets and controlled foreign corporations. Failure to report these offshore arrangements can result in serious civil and criminal consequences.
The government’s petitions allege that Trident Trust Group is an offshore service provider operating in nearly 30 countries worldwide, and it has provided corporate, trust and fund administration services for over 40 years. The petitions further allege that Trident Trust Group offers services that enable offshore account and entity concealment, like mail forwarding and retention, and ready-to-use “shelf” companies. For example, the petitions allege that Trident Trust Group personnel have listed themselves as the founders, directors and officers of thousands of Panamanian companies to help their U.S. clients potentially conceal their interests in and income from those foreign entities.
A declaration from an IRS revenue agent that accompanied the petitions alleges that at least nine U.S. taxpayers used Trident Trust Group’s services to avoid compliance with U.S. tax laws. The declaration further alleges that the IRS learned of this noncompliance through the Offshore Voluntary Disclosure Program, a program that allowed U.S. taxpayers to voluntarily disclose foreign accounts or entities used to evade tax in exchange for settling their civil liabilities on fixed terms.
These orders authorize the IRS to issue summonses to TT (USA) Holdings Inc.; Trident Corporate Services Inc.; Trident Fund Services Inc. and Trident Trust Company (South Dakota) Inc seeking information about U.S. taxpayer clients who may have used the services of the entities and the broader Trident Trust Group to establish, maintain, operate or control any foreign financial account or other foreign asset; any foreign corporation, company, trust, foundation or other legal entity or any foreign or domestic financial account or other asset in the name of such foreign entity from 2014 through 2023. By obtaining these records, the IRS expects to be able to identify clients of the Trident Trust Group to investigate whether they potentially used the group’s services to avoid or evade federal taxes.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Tax Division Attorneys Christina T. Lanier and Brij B. Patnaik are handling the case in the U.S. District Court for the District of South Dakota; and they, along with Elisabeth K. Kryska of the Tax Division, are handling the case in the Northern District of Georgia. Assistant U.S. Attorney Anthony J. Sun for the Southern District of New York is handling the case in the U.S. District Court for the Southern District of New York.
Trident Trust Order (NDGA).pdf Trident Trust petition (NDGA).pdf Trident Trust order (DSD).pdf Trident Trust Petition (DSD).pdf Trident Trust Declaration (DSD)_0.pdfFederal Correctional Officer Pleads Guilty to Assaulting InmateRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Miguel Hidalgo (34, Florida) has pleaded guilty to deprivation of an inmate’s civil rights under the color of law. Hidalgo faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, on August 22, 2022, Hidalgo was employed with the U.S. Bureau of Prisons as a correctional officer at Federal Correctional Complex Coleman. While on duty at the prison, Hidalgo entered the cell of two inmates who were both handcuffed behind their backs. While in the cell, Hidalgo pushed one of the inmates to the floor, then struck that inmate multiple times in the face and chest area. When Hidalgo was exiting the cell, the inmate spat on Hidalgo. Hidalgo requested the cell door be reopened. He then reentered the cell and again began striking and kicking the inmate. The inmate suffered injuries from the assault, including multiple rib fractures and contusions on his face. By striking the inmate, Hidalgo willfully deprived the inmate of the right not to be subjected to cruel and unusual punishment by a person acting under color of law—a right secured and protected by the Constitution and laws of the United States.
This case was investigated by the Department of Justice - Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
Fairfield Man Sentenced to 4 Years in Prison for Bank Fraud and Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — Steven Daniel Miller, 48, of Fairfield, was sentenced today to four years in prison for one count of bank fraud and one count of aggravated identity theft, Acting U.S. Attorney Michele Beckwith announced. Miller was also ordered to pay $36,205.81 in restitution.
According to court documents, in October 2018, Miller used another person’s social security number to complete a credit application with a bank in order to purchase a 2018 Dodge Challenger Hellcat at a car dealership in Yuba City. Based on the false information on the credit application, the bank approved the loan and paid approximately $75,754 to the car dealership. Miller left the dealership with the vehicle, and it was subsequently seized by law enforcement.
Miller pleaded guilty in May 2024. Miller failed to appear for his sentencing scheduled for October 2024. He was arrested in November 2024 and has been in custody since.
This case was the product of an investigation by the U.S. Secret Service with assistance from the California Highway Patrol, the Solano County Sheriff’s Office, the Rocklin Police Department, the Gilroy Police Department, and the Fairfield Police Department. Assistant U.S. Attorney Denise N. Yasinow prosecuted the case.
Estill County Man Sentenced for Distributing Oxycodone PillsRead the Press Release
LONDON, Ky. – An Irvine, Ky., man, Chad Newman, 40, was sentenced to 87 months in prison, by U.S. District Judge Robert E. Wier, for conspiracy to distribute oxycodone.
According to his plea agreement, from January 1, 2019, until April 11, 2023, Newman conspired with others to distribute oxycodone pills in Madison, Estill, Laurel, Clay, and Knox Counties. During this time frame, Newman obtained oxycodone 30 mg pills from a source of supply in Louisville, which he would then sell to mid-and lower-level drug traffickers and drug users throughout Southeast Kentucky.
Under federal law, Newman must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jim Scott, Special Agent in Charge of the DEA Louisville Field Division; Col. Phillip Burnett, Commissioner, Kentucky State Police; and Sheriff Chris Flynn, Estill Count Sheriff’s Office, jointly announced the sentence.
The investigation was conducted by DEA, KSP, Madison County Drug Task Force, and Estill County Sheriff’s Office. Assistant U.S. Attorney Sam Dotson prosecuted the case on behalf of the United States.
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Elkhart Man Sentenced to 228 Months in PrisonRead the Press Release
SOUTH BEND – Adam Motheral, 50 years old, of Elkhart, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to distributing methamphetamine and possessing a firearm in furtherance of a drug trafficking offense, announced Acting United States Attorney Tina L. Nommay.
Motheral was sentenced to 228 months in prison followed by 4 years of supervised release.
According to documents in the case, between October 2023 and February 2024, Motheral sold four firearms and over 400 grams of high purity methamphetamine to buyers in Elkhart. A search of his residence resulted in the recovery of approximately 150 grams of methamphetamine and nine additional firearms. Motheral has an extensive criminal history which includes 4 prior felony and 12 prior misdemeanor convictions.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration including the DEA North Central Laboratory, and Homeland Security Investigations with assistance from the Elkhart County Intelligence and Covert Enforcement Unit, the Elkhart Police Department, the South Bend Police Department, and the LaGrange, Illinois Police Department. The case was prosecuted by Assistant United States Attorney Katelan McKenzie Doyle.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Eleven members of deadly drug trafficking organization sentenced to prisonRead the Press Release
NORFOLK, Va. – Eleven Virginia residents have been sentenced to prison for their roles in a violent drug trafficking organization that was responsible for a double homicide in Chesapeake. A twelfth defendant is awaiting sentencing.
According to court records and evidence presented at trial, between January 2020 and November 2022, Cortney Allen Conley, aka KO, 36, of Virginia Beach, ran a large-scale, violent interstate drug trafficking organization principally based in the Hampton Roads area. The organization frequently sold drugs at “pop-up” shops, which regularly appeared in new locations to avoid detection by law enforcement.
In 2021, Conley was robbed at gunpoint at a pop-up on Providence Road in Chesapeake, after which Conley and his co-conspirators were regularly armed while they trafficked drugs. In July 2021, an armed robber attempted to rob a pop-up, and shop workers, including Javaid Akhtar Reed, 27, of Chesapeake, and Aaron Butler Hunter, 38, of Virginia Beach, defended Conley’s drugs and drug proceeds. During the attempted robbery, Reed ordered the attempted robber out of the shop at gunpoint.
On May 13, 2022, two armed subjects attempted to rob the organization’s pop-up on Wintercress Way in Chesapeake. Conley and Rashaun Marcquez Johnson, 28, of Virginia Beach, shot and killed the two subjects. During the gun battle, Davian Marcelis Jenkins, 27, of Suffolk, pistol-whipped one of the subjects as the subject lay dying in the foyer. During the shootout, bullets flew across the hall into another apartment and hit a child’s play kitchen. Immediately afterward, Conley and Jenkins removed controlled substances, drug proceeds, and firearms from the pop-up and fled. Conley directed Jenkins to go back to the shooting scene and remove security cameras, which had recorded the shootout. Jenkins removed one camera from the front door of the apartment. Conley then fled the state.
On Nov. 8, 2022, Conley was arrested in Virginia Beach at a pop-up he established after the double homicide. During the arrest, Conley jumped from a second story window and tried to run from the police.
On April 15, 2024, after a ten day jury trial, Conley, Reed, and Kyron Speller, 29, of Norfolk, were convicted for their involvement in the organization.
Conley was convicted of continuing criminal enterprise; possession with intent to distribute marijuana; possession with intent to distribute psilocybin and psilocyn; possessing, brandishing, and discharging a firearm in furtherance of a drug trafficking crime. Conley was sentenced today to 40 years in prison.
Other members of the organization who were sentenced include:
Name
Date of Sentencing
Sentence Imposed
Javaid Akhtar ReedDec. 23, 2024
14 years, 3 monthsCorey Melic BlackwellJuly 12, 2024
13 yearsAaron HunterSept. 26, 2024
10 yearsKasheim BryantOct. 31, 2024
7 yearsAmadeo Ilan ClassenNov. 7, 2024
10 yearsDavian Marcelis JenkinsNov. 7, 2024
4 yearsJeron D’Nell CephusJuly 22, 2024
3 years, 6 monthsKyron SpellerOct. 25, 2024
3 years, 5 monthsLateya ConleySept. 25, 2024
3 yearsJasmine Deneen CuffeeOct. 31, 2024
1 year, 3 monthsJohnson is scheduled to be sentenced on Feb. 21, 2025.
Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia; Michael Feinberg, Acting Special Agent in Charge of the FBI’s Norfolk Field Office; Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Mark G. Solesky, Chief of Chesapeake Police; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorneys Megan M. Montoya, Joe DePadilla, and Luke Bresnahan prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-147.
East St. Louis Woman Sentenced to Serve 10 Years in Prison for Transporting Controlled Substances to Pemiscot CountyRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Stephen N. Limbaugh Jr. on Thursday sentenced Georgia R. Phillips, 49, of East St. Louis, Illinois, to 120 months (10 years) in federal prison for the offense of possession with intent to distribute cocaine base.
Court records reflect that Phillips was pulled over for a traffic violation on Interstate 55 in Pemiscot County last May. During the stop, officers discovered large quantities of controlled substances in her vehicle, including approximately four ounces of crack cocaine. After being placed under arrest, Phillips admitted she was traveling from East St. Louis to deliver the controlled substances to an individual in Hayti, Missouri. The pair met in prison while serving a previous sentence for a drug-trafficking crime. At her guilty plea hearing last year, Phillips admitted that she intended to distribute the controlled substances. After serving her sentence, Phillips will be placed on a three-year term of supervised release.
This case was investigated by the Pemiscot County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jack Koester handled the prosecution for the Government.
Davenport Man Sentenced to 25 Years in Federal Prison for Drug ChargesRead the Press Release
DAVENPORT, Iowa – A Davenport man was sentenced yesterday to 25 years in federal prison for conspiracy to distribute methamphetamine and fentanyl and possession with intent to distribute methamphetamine and fentanyl.
According to public court documents and evidence presented at a four-day trial and sentencing, Paul Antonio Deon Parrow, 41, also known as “Tone,” distributed methamphetamine and fentanyl over nearly a year period in the Quad Cities. Parrow recruited others to assist him in distributing drugs and stored and sold drugs at multiple residences within the Quad Cities. In total, Parrow was responsible for more than 26 pounds of methamphetamine and 145 grams of fentanyl.
After completing his term of imprisonment, Parrow will be required to serve a five-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department.
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.
Cybercrime websites selling hacking tools to transnational organized crime groups seizedRead the Press Release
HOUSTON – A total of 39 domains and their associated servers have been seized in a coordinated effort involving an international disruption of a Pakistan-based network of online marketplaces selling hacking and fraud-enabling tools a group known as Saim Raza (aka HeartSender) operated, announced U.S. Attorney Nicholas J. Ganjei along with Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division and Special Agent in Charge Douglas Williams of the FBI.
The seizures occurred Jan. 29 and were conducted in coordination with the Dutch National Police.
According to the affidavit filed in support of these seizures, Saim Raza has used these cybercrime websites since at least 2020 to sell phishing toolkits and other fraud-enabling tools to transnational organized crime groups who used them to target numerous victims in the United States, resulting in over $3 million in victim losses.
“Almost everyone has a friend or loved one that has been affected by these types of computer hacks,” said Ganjei. “These scams not only target businesses but individuals as well and cause significant hardship to the victims. Even though these people reside abroad, the use of these websites made it easy for them to spread their malicious hacking tools for a fee. However, today we have significantly disrupted their ability to harm others.”
The Saim Raza-run websites operated as marketplaces that advertised and facilitated the sale of tools such as phishing kits, scam pages and email extractors often used to build and maintain fraud operations. Not only did Saim Raza make these tools widely available on the open internet, it also trained end users on how to use the tools against victims by linking to instructional YouTube videos on how to execute schemes using these malicious programs, making them accessible to criminal actors that lacked this technical criminal expertise. The group also advertised its tools as “fully undetectable” by antispam software.
The transnational organized crime groups and other cybercrime actors who purchased these tools primarily used them to facilitate business email compromise schemes wherein the cybercrime actors tricked victim companies into making payments to a third party. Those payments would instead be redirected to a financial account the perpetrators controlled, resulting in significant losses to victims. These tools were also used to acquire victim user credentials and utilize those credentials to further these fraudulent schemes. The seizure of these domains is intended to disrupt the ongoing activity of these groups and stop the proliferation of these tools within the cybercriminal community.
The FBI Houston Field Office is conducting the investigation. The Justice Department appreciates the cooperation and significant assistance law enforcement partners in the Netherlands have provided.
Assistant U.S. Attorney Rodolfo Ramirez and Trial Attorney Gaelin Bernstein of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
Cracked and Nulled Marketplaces Disrupted in International Cyber OperationRead the Press Release
The Justice Department today announced its participation in a multinational operation involving actions in the United States, Romania, Australia, France, Germany, Spain, Italy, and Greece to disrupt and take down the infrastructure of the online cybercrime marketplaces known as Cracked and Nulled. The operation was announced in conjunction with Operation Talent, a multinational law enforcement operation supported by Europol to investigate Cracked and Nulled.
Operation Talent Seizure BannerSupervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, U.S. Attorney Trini E. Ross for the Western District of New York, U.S. Attorney Jaime Esparza for the Western District of Texas, Assistant Director Brian A. Vorndran of the FBI’s Cyber Division, Special Agent in Charge Matthew Miraglia of the FBI Buffalo Field Office, and Special Agent in Charge Aaron Tapp for the FBI San Antonio Field Office made the announcement.
Cracked
According to seizure warrants unsealed today, the Cracked marketplace has been selling stolen login credentials, hacking tools, and servers for hosting malware and stolen data — as well as other tools for carrying out cybercrime and fraud — since March 2018. Cracked had over four million users, listed over 28 million posts advertising cybercrime tools and stolen information, generated approximately $4 million in revenue, and impacted at least 17 million victims from the United States. One product advertised on Cracked offered access to “billions of leaked websites” allowing users to search for stolen login credentials. This product was recently allegedly used to sextort and harass a woman in the Western District of New York. Specifically, a cybercriminal entered the victim’s username into the tool and obtained the victim’s credentials for an online account. Using the victim’s credentials, the subject then cyberstalked the victim and sent sexually demeaning and threatening messages to the victim. The seizure of these marketplaces is intended to disrupt this type of cybercrime and the proliferation of these tools in the cybercrime community.
The FBI, working in coordination with foreign law enforcement partners, identified a series of servers that hosted the Cracked marketplace infrastructure and eight domain names used to operate Cracked. They also identified servers and domain names for Cracked’s payment processor, Sellix, and the server and domain name for a related bulletproof hosting service. All of these servers and domain names have been seized pursuant to domestic and international legal process. Anyone visiting any of these seized domains will now see a seizure banner that notifies them that the domain has been seized by law enforcement authorities.
The FBI Buffalo Field Office is investigating the case.
Senior Counsel Thomas Dougherty of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Charles Kruly for the Western District of New York are prosecuting the case.
Nulled
The Justice Department announced the seizure of the Nulled website domain and unsealed charges against one of Nulled’s administrators, Lucas Sohn, 29, an Argentinian national residing in Spain. According to the unsealed complaint affidavit, the Nulled marketplace has been selling stolen login credentials, stolen identification documents, hacking tools, as well as other tools for carrying out cybercrime and fraud, since 2016. Nulled had over five million users, listed over 43 million posts advertising cybercrime tools and stolen information, and generated approximately $1 million in yearly revenue. One product advertised on Nulled purported to contain the names and social security numbers of 500,000 American citizens.
The FBI, working in coordination with foreign law enforcement partners, identified the servers that hosted the Nulled marketplace infrastructure, and the domain used to operate Nulled. The servers and domain have been seized pursuant to domestic and international legal process. Anyone visiting the Nulled domain will now see a seizure banner that notifies them that the domain has been seized by law enforcement authorities.
According to the complaint, Sohn was an active administrator of Nulled and performed escrow functions on the website. Nulled’s customers would use Sohn’s services to complete transactions involving stolen credentials and other information. For his actions, Sohn has been charged with conspiracy to traffic in passwords and similar information through which computers may be accessed without authorization; conspiracy to solicit another person for the purpose of offering an access device or selling information regarding an access device; and conspiracy to possess, transfer, or use a means of identification of another person with the intent to commit or to aid and abet or in connection with any unlawful activity that is a violation of federal law.
If convicted, Sohn faces a maximum penalty of five years in prison for conspiracy to traffic in passwords, 10 years in prison for access device fraud, and 15 years in prison for identity fraud.
The FBI Austin Cyber Task Force is investigating the case. The Task Force participants include the Naval Criminal Investigative Service, IRS Criminal Investigation, Defense Criminal Investigative Service, and the Department of the Army Criminal Investigation Division, among other agencies.
Assistant U.S. Attorneys G. Karthik Srinivasan and Christopher Mangels for the Western District of Texas are prosecuting the case, with Assistant U.S. Attorney Mark Tindall for the Western District of Texas handling the forfeiture component.
The Justice Department worked in close cooperation with investigators and prosecutors from several jurisdictions on the takedown of both the Cracked and Nulled marketplaces, including the Australian Federal Police, Europol, France’s Anti-Cybercrime Office (Office Anti-cybercriminalité) and Cyber Division of the Paris Prosecution Office, Germany’s Federal Criminal Police Office (Bundeskriminalamt) and Prosecutor General’s Office Frankfurt am Main – Cyber Crime Center (Generalstaatsanwaltschaft Frankfurt am Main – ZIT), the Spanish National Police (Policía Nacional) and Guardia Civil, the Hellenic Police (Ελληνική Αστυνομία), Italy’s Polizia di Stato and the General Inspectorate of Romanian Police (Inspectoratul General al Poliției Romane). The Justice Department’s Office of International Affairs provided significant assistance.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Covington Man Guilty of Being a Felon in Possession of Firearms, Silencers, and MachinegunsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JOE LYNN BEATTIE (“BEATTIE”), age 52, of Covington, Louisiana, pled guilty on January 27, 2025, to a three (3) count indictment. Count One charged him with being a Felon in Possession of Firearms and Ammunition, in violation of Title 18, United States Code, Section 922(g)(1). Count Two charged him with possession of silencers that were not registered to him in the National Firearms Registration and Transfer Record, in violation of Title 26, United States Code, Section 5841. Finally, Count Three charged him with possession of machineguns, in violation of Title 26, United States Code, Section 922(o).
According to court records, federal agents learned BEATTIE had received unlawfully imported firearm parts from China. Special Agents from Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and officers from the St. Tammany Parish Sheriff’s Office, then executed a search warrant at his residence. The search yielded five (5) firearms, ammunition, sixteen (16) silencers, and five (5) machinegun conversion devices, that turn firearms into fully automatic weapons.
If convicted, BEATTIE faces a maximum penalty of fifteen (15) years imprisonment for Count One, and up to ten (10) years of imprisonment for both Counts Two and Three. He also faces up to three (3) years of supervised release following imprisonment and a $100 mandatory special assessment fee as to all counts. As to for Counts One and Three, he faces a fine of up to $250,000, and up to a $10,000 fine for Count Two.
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.
U.S. Attorney Evans praised the work of Homeland Security Investigations, the St. Tammany Parish Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, in investigating this matter. Assistant U.S. Attorney Jon Maestri of the General Crimes Unit is in charge of the prosecution.
Chaska Man Pleads Guilty for His Role in $250 Million Feeding Our Future Fraud SchemeRead the Press Release
MINNEAPOLIS – A Chaska man pleaded guilty for his role in the $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic, announced Acting U.S. Attorney Lisa D. Kirkpatrick.
According to court documents, from approximately November 2020 through January 2022, Mohamed Muse Noor a.k.a. “Deeq Darajo,”40, knowingly participated in a scheme to defraud a federal child nutrition program designed to provide free meals to children in need. Rather than feed children, Noor and his co-defendants took advantage of the COVID-19 pandemic—and the resulting program changes—to enrich themselves by fraudulently misappropriating millions of dollars in federal child nutrition program funds.
According to court documents, Noor was specifically recruited to the Feeding Our Future scheme even though he had no background or experience in buying or providing food. In December 2020, Noor submitted his application to be enrolled in the Federal Child Nutrition Program through Feeding Our Future employee, Abdikerm Eidleh, to Aimee Bock, former Executive Director of the Feeding Our Future non-profit organization. Under Eidleh’s direction, Noor signed forms with fake meal counts and fabricated invoices falsely claiming to be feeding supper and snack to 1,500 children every day within a few weeks of being sponsored by Feeding Our Future. However, Noor did not personally serve any meals to children and never visited the sites registered in his name by Feeding Our Future.
According to the plea agreement entered today, Noor paid kickbacks to Eidleh in exchange for Feeding Our Future’s sponsorship in the Federal Child Nutrition Program. Food distribution sites associated with Noor fraudulently obtained up to $1.3 million in federal child nutrition program funds by falsely claiming to have served meals to thousands of children per day. Almost all almost of the $1.3 million was either transferred to Eidleh or was intercepted by Eidleh without Noor’s knowledge. As part of their arrangement, Noor retained approximately $52,388 in fraudulent proceeds for himself.
Noor pleaded guilty today in U.S. District Court before Judge Joan N. Ericksen to one count of conspiracy to commit wire fraud. His sentencing hearing will be scheduled at a later date.
The case is the result of an investigation by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Joseph H. Thompson, Matthew S. Ebert, and Harry M. Jacobs are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.
Charleston Man Pleads Guilty to Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Tyrece Ramone Phillips, 38, of Charleston, pleaded guilty today to conspiracy to possess with intent to distribute 400 grams or more of a mixture or substance containing a detectable amount of fentanyl.
According to court documents and statements made in court, on October 3, 2024, law enforcement officers intercepted a United States Postal Service package addressed to Phillips’ Charleston residence. Investigators obtained and executed a search warrant for the package, and found it continued approximately 572.2 grams of a substance containing fentanyl. Investigators placed a sham substance in the seized package and conducted a controlled delivery of the package to Phillips’ residence on October 4, 2024. Phillips took the package inside the residence after the controlled delivery. Investigators executed a search warrant at Phillips’ residence and found Phillips with the sham substance from the package in his hands in an upstairs bathroom. Investigators also found a scale with residue and a large amount of cash in the residence during the search.
Phillips is scheduled to be sentenced on April 24, 2025, and faces a mandatory minimum of 10 years and up to life in prison, five years of supervised release, and a $10 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Postal Inspection Service.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney J. Parker Bazzle II is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-177.
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CEO of Financial Firm Pleads Guilty to Running a Multimillion Dollar FraudRead the Press Release
SAN DIEGO – Carlos Manuel da Silva Santos, the founder and chief executive officer of San Diego-based Ethos Asset Management, Inc., which offered financing to domestic and international businesses, pleaded guilty to wire fraud conspiracy and aggravated identity theft today in federal court.
Santos, a Portuguese national, has been in custody since his arrest on November 13, 2023, in Newark, New Jersey, after arriving in the United States from abroad.
According to his plea agreement, Santos admitted he and co-conspirators held Ethos out to the public as a “full-service project financing” company that offered loans to prospective borrowers in exchange for an upfront fee as collateral for Ethos to use. However, on many occasions when a borrower gave Ethos the upfront fee as collateral, Ethos’ funding never materialized.
To induce prospective borrowers to send Ethos an upfront fee as collateral and enter into loan agreements, Santos and his co-conspirators lied about Ethos’ history of funding projects, the source of Ethos’ money, the amount of capital available to disburse loans, and how Ethos used the collateral upfront fees. For instance, Santos admitted that he used money from the upfront collateral fees to release collateral deposited by other borrowers and to disburse loans to other borrowers.
Santos also admitted that he and others altered otherwise legitimate financial account statements to inflate the amount of money Ethos appeared to have at its disposal to finance projects for the purpose of luring prospective borrowers to provide collateral and financial institutions to lend money. For example, in August 2021, Santos successfully induced a borrower to wire money as a collateral upfront fee by sending a bank statement that falsely represented Ethos having $100,304,447.46 when, in fact, it did not.
In February and May 2023, Santos again induced borrowers to provide collateral upfront fees by emailing a copy of Ethos’ annual financial statements reflecting falsely that Ethos had over $2.2 billion in total assets and that an accounting firm had audited the statements. Indeed, Santos admitted that he knowingly forged the signature of an employee at a bookkeeping firm on Ethos’s 2022 annual financial statement to falsely indicate that the firm had audited the statement. In each noted example, Ethos fraudulently obtained upfront fees and failed to disburse loan payments as promised.
Santos further admitted Ethos’ project financing scheme was international in nature, with a presence in the United States, Brazil, Turkey, and elsewhere. Santos admitted his scheme resulted in $17,125,000 in losses to certain U.S. based victims. The plea agreement also explains that the parties will request a restitution hearing allowing the United States to offer evidence that Santos owes significantly more money to various other victims.
According to the plea agreement, Santos also forged the signature of an employee at an accounting firm to make it appear that the firm had audited Ethos’ annual financial reports.
“Untold numbers of people fall victim to fraud schemes every year,” said U.S. Attorney Tara McGrath. “Whether it’s a simple email scam or an elaborate investment scheme, the U.S. Attorney’s Office will relentlessly pursue accountability for the defendants and restitution for the victims.”
“Today’s guilty plea underscores Homeland Security Investigation’s (HSI) unwavering commitment to combating financial crimes,” said Shawn Gibson, Special Agent in Charge for HSI San Diego. “This successful outcome is the result of an extensive, long-term investigation where our dedicated agents and partners assigned to the Costa Pacifico Financial Task Force worked tirelessly and diligently to gather all the evidence and bring this individual to justice. Their unwavering commitment and thorough efforts have been instrumental in protecting our community and upholding the law.
Sentencing is scheduled for April 18, 2025, before U.S. District Judge Robert S. Huie.
This case is being prosecuted by Assistant U.S. Attorneys E. Christopher Beeler, Carl F. Brooker IV, and Amy B. Wang.
If you believe you are a victim of Carlos Santos and his company Ethos Asset Management, Inc., contact Homeland Security Investigations at [email protected].
DEFENDANT
Carlos Manuel da Silva Santos Age: 30 Portugal
SUMMARY OF CHARGES
Wire Fraud Conspiracy – Title 18, U.S.C., Section 1349
Maximum penalty: Thirty years in prison and $250,000 fine
Aggravated Identity Theft – Title 18, U.S.C. Section 1028A
Maximum penalty: Mandatory two years in prison consecutive to the term for the underlying felony
INVESTIGATING AGENCY
Homeland Security Investigations
Burlington Man Sentenced to 30 Months in Federal Prison for Possessing Firearms as a Drug UserRead the Press Release
DAVENPORT, Iowa – A Burlington man was sentenced today to 30 months in federal prison for possessing five firearms as a drug user.
According to public court documents, Isaac Davon Carter, 31, purchased four firearms on August 5, 2020, from four different guns stores in Burlington, Clive, and Des Moines. Five days later, the United States Postal Inspection Service intercepted a package shipped from Cedar Rapids to California and located ten firearms inside, including all four firearms Carter purchased. In September 2020, law enforcement executed search warrant at Carter’s Burlington residence and located a loaded Glock pistol. Carter admitted he was an unlawful drug user, lied on the ATF form to obtain the four firearms he purchased, and had procured the firearms for another person, who was with him when he purchased them.
After completing his term of imprisonment, Carter will be required to serve a three-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the United States Postal Inspection Service and Des Moines County Sheriff’s Office.
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.
Brockton Man Sentenced to 10 Years in Prison for Firearms and Fentanyl ChargesRead the Press Release
BOSTON – A Brockton man was sentenced today in federal court in Boston for possession with intent to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking offense.
Shem Khattiya, 39, was sentenced by Senior District Court Judge Patti B. Saris to 10 years in prison to be followed by five years of supervised release. In October 2024, Khattiya pleaded guilty to a two count Superseding Information charging him with possession with intent to distribute 40 grams or more of fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
In An investigation into Khattiya began in 2023, and in March 2023, a search was conducted at Khattiya’s Brockton apartment where over 800 grams of fentanyl; at least seven different firearms (most of which were loaded, some were ghost guns and some with serial numbers and some assault rifles); 26 high capacity magazines; thousands of rounds of ammunition; a ghost gun creation kit; triggers; a hydraulic kilogram press; and other items used in the manufacturing of drugs and firearms and distribution of drugs were recovered in his bedroom. It has been determined that “triggers” may qualify as machine guns as the purpose was to convert semi-automatic weapons into automatic weapons.
United States Attorney Leah B. Foley 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 Bureau of Alcohol, Tobacco, Firearms and Explosives, the Plymouth County District Attorney’s Office, the Brockton Police Department and the Massachusetts State Police. Assistant U.S. Attorney Lindsey E. Weinstein of the Criminal Division prosecuted 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.
Box Elder Man Sentenced to Five Years in Federal Prison for Receiving Child PornographyRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Court Judge Karen E. Schreier has sentenced a Box Elder, South Dakota, man for Receipt of Child Pornography. The sentencing took place on January 24, 2025.
Taylor Bloomgren, 23, was sentenced to five years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Bloomgren must forfeit two Xboxes and four cellular phones. He will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
A federal grand jury indicted Bloomgren in February 2024. He pleaded guilty on November 8, 2024.
Between 2021 and 2023, Bloomgren used his cellular phone, computer, and Xboxes to play online games on Discord. Bloomgren used the platform to communicate with a minor female who was 11 years old when Bloomgren started chatting with her. Bloomgren’s communications with the child resulted in Bloomgren having virtual sex with her. Bloomgren also exchanged sexually explicit photographs and masturbation videos with the child.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the Box Elder Police Department and the South Dakota Internet Crimes Against Children Task Force. Assistant U.S. Attorney Heather Knox prosecuted the case.
Bloomgren was immediately remanded to the custody of the U.S. Marshals Service.