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Thursday 5 December 2024
Palmer man guilty of aviation violationsRead the Press Release
ANCHORAGE, Alaska – A federal jury convicted a Palmer man yesterday for violating multiple aviation regulations.
According to court documents and evidence presented at trial, for roughly 30 years, William Marsan, 57, held an Airman Certificate as an Airline Transport Pilot issued by the Federal Aviation Administration (FAA). He operated an aviation business out of Palmer, Alaska, and owned a Piper Cherokee aircraft.
In June 2023, the FAA received a report that Marsan, as the pilot in command of the Piper Cherokee aircraft, failed to radio his intention to take off from Warren “Bud” Woods Palmer Municipal Airport and operated the aircraft against the flow of landing traffic, resulting in a near mid-air collision with another aircraft attempting to land.
Law enforcement investigated the June 2023 incident and discovered that Marsan was operating an aircraft without a valid license or valid registration. The investigation revealed that in June 2022, Marsan sent a letter to the FAA revoking the registration of his aircraft. Investigators also discovered that Marsan allowed his medical certificate to lapse in 2020 and 2021, which was required to keep his pilot’s license.
When FAA inspectors contacted him in July 2023 as part of the investigation, Marsan refused to provide his airman certificate, aircraft registration and airworthiness certificates, all of which are requirements through the FAA, and claimed he was not required to have any of those documents. As a result of the investigation, the FAA issued an Emergency Order of Revocation of Marsan’s pilot’s license in January 2024, which required the immediate surrender of his pilot’s license or the filing of an appeal of the decision within 10 days. Marsan failed to file an appeal or surrender his license but continued to fly his aircraft until his initial arrest in July 2024. Marsan was released pending trial. He failed to appear for multiple court hearings prior to his trial and he was rearrested in September 2024.
Marsan was convicted of one count of operating an aircraft without a license and one count of operating an unregistered aircraft. The jury was unable to reach a unanimous verdict on one count of operating an aircraft displaying a false aircraft registration mark.
“Aviation is a pillar of our state’s transportation infrastructure. Mr. Marsan’s actions flagrantly violated critical aviation regulations designed to safeguard both the industry and those who rely on it,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Let this conviction serve as a clear message that those who choose to violate these rules will face prosecution. I also want to extend appreciation to the law enforcement officers and investigators whose dedication led to the successful prosecution of this case.”
“The use of unregistered or unauthorized aircraft poses a significant risk to public safety and undermines the integrity of Alaska’s airspace,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “The FBI will continue to work alongside law enforcement partners and aviation authorities to hold operators accountable who willfully disregard laws designed to keep our community safe.”
“I credit the FAA Aviation Safety Inspectors for bringing this matter to my attention and thank the FBI for being excellent partners in addressing the referral. I also sincerely appreciate the U.S. Attorney’s Office for seeing the case to its conclusion,” said Regional Administrator Michael O’Hare of the FAA, Alaska Region.
The FBI Anchorage Field Office and FAA, Alaska Region investigated the case.
Assistant U.S. Attorney Tom Bradley and Mac Caille Petursson are prosecuting the case.
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Owner of Med Spa Charged with Covid-19 Relief Fraud, Using Funds for a Bentley and Luxury PurchasesRead the Press Release
MIAMI — Cassandra Yolanda Clarke, 45 of Miramar, Fla., had her initial appearance yesterday before a U.S. Magistrate Judge in Fort Lauderdale and was charged with fraudulently obtaining COVID-19 relief loans and grants under the Paycheck Protection Program (PPP).
According to allegations in the indictment, Clarke submitted fraudulent applications on behalf of Narotique Med Spa LLC and Narotique Beauty Bar Inc., seeking COVID-19 relief funds from the Small Business Administration (SBA) and PPP participating lenders. Clarke is alleged to have created and submitted fraudulent IRS tax forms with the applications. Clarke is charged with having received approximately $851,894 in COVID-19 relief funds from the fraudulent scheme. The indictment charges Clarke used the fraudulently obtained funds to lease a Bentley Bentayga and make luxury purchases at the Bal Harbour Shops.
The indictment charges Clarke with three counts of wire fraud and three counts of money laundering. If convicted, Clarke faces up to 10 years in prison for money laundering, and 20 years in prison for wire fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, made the announcement.
FBI Miami’s Palm Beach Resident Agency investigated the case. Assistant U.S. Attorney Jonathan Bailyn is prosecuting it.
An indictment is a merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On Sept. 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case no. 24-cr-60227.
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Overland Park Officers Recognized with Attorney General’s Award for Distinguished Service in Community PolicingRead the Press Release
KANSAS CITY, KAN. – Attorney General Merrick B. Garland today announced the recipients of the Seventh Annual Attorney General’s Award for Distinguished Service in Community Policing, including Officer Wesley Griffith and Officer Bill Koehn, of the Overland Park, Kansas, Police Department.
This prestigious award recognizes law enforcement officers who demonstrate exceptional dedication to strengthening trust, promoting community engagement, and enhancing public safety.
“Community policing is essential to building trust and ensuring public safety,” said Attorney General Garland. “These officers have gone above and beyond their duty to foster partnerships with the communities they serve. Their work is an inspiration to us all and a reminder of the profound impact law enforcement can have on individuals, neighborhoods, and society.”
Officers Koehn and Griffith have elevated community policing to new heights through their community education and awareness building of Crime Prevention Through Environmental Design, (or CTPTED). From giving presentations to hundreds of residents and businesses, to conducting physical security assessments and launching impactful programs, their work has both deeply engaged the community while at the same time strengthening crime prevention efforts. Their efforts stand as a model of how all facets of community policing can be seamlessly integrated for lasting impact.
“Whether they are patrolling neighborhoods, investigating criminal cases, or holding community events to build bridges between law enforcement and residents, police officers are invaluable to public safety and our justice system. The U.S. Attorney’s Office – District of Kansas congratulates Officer Wesley Griffith and Officer Bill Koehn for their exceptional work,” said U.S. Attorney Kate E. Brubacher.
The Attorney General’s Award recognizes individual state, local, and Tribal sworn officers, deputies, and troopers for exceptional efforts in community policing. The awarded individuals have demonstrated active engagement with the community in one of three areas: criminal investigations, field operations, or innovations in community policing.
The awardees were selected from a nationwide pool of nominees for their outstanding achievements in fostering safer, more inclusive communities.
The Department of Justice commends these officers for their service, leadership, and unwavering commitment to their communities. For more information about the awards, visit www.justice.gov.
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Orleans Parish Man Indicted for Bank RobberyRead the Press Release
NEW ORLEANS, LA – JUAN K. SIMPSON (“SIMPSON”), age 30, of New Orleans, was indicted for bank robbery, a violation of Title 18, United States Code, Section 2113(a), announced U.S. Attorney Duane A. Evans.
According to the indictment, on November 25, 2024, SIMPSON robbed a Capital One Bank located on South Claiborne Avenue, in New Orleans. If convicted, SIMPSON faces up to twenty (20) years imprisonment, a fine of up to $250,000.00, and up to three (3) years of supervised release following any term of imprisonment. SIMPSON also faces payment of a $100 mandatory special assessment fee.
United States Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Mary Katherine Kaufman of the General Crimes Unit.
Omaha Woman Sentenced to more than 10 Years’ Imprisonment for Methamphetamine ChargeRead the Press Release
United States Attorney Susan Lehr announced that Jessica Hernandez, age 36, of Omaha, Nebraska was sentenced on December 5, 2024, in federal court in Omaha after having pled guilty to conspiracy to possess with intent to distribute methamphetamine and distribution of meth. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Hernandez to 126 months’ imprisonment. There is no parole in the federal system. After Hernandez’s release from prison, she will begin a 5-year term of supervised release.
On May 19, 2022, Omaha Police Department officers executed a search warrant on a South Omaha residence. Jessica Hernandez and codefendant Jose Arevalo-Villalobos were encountered leaving the residence prior to the search and were allowed to leave. The search revealed one pound of meth hidden in a bedroom with used by Hernandez. An additional 4 pounds of meth were found in a storage room. The investigation revealed that Hernandez and Arevalo-Villalobos, her boyfriend, had been living at the residence for approximately two weeks and paying the owner to store meth there.
A firearm was found in a lockbox hidden in the basement that investigators determined belonged to Arevalo-Villalobos, who was sentenced to 151 months’ imprisonment on January 19, 2024.
This case was investigated by the Omaha Police Department and the Federal Bureau of Investigation.
North Providence Man Sentenced to Six Years in Federal Prison on Drug and Firearm ChargesRead the Press Release
PROVIDENCE – A North Providence man who sold more than seven thousand fentanyl-laced pills and a firearm while under surveillance by members of the Rhode Island FBI Safe Streets Task Force has been sentenced to six years in federal prison, announced United States Attorney Zachary A. Cunha.
Keurys Pena, 35, was sentenced on Tuesday by U.S. District Court Chief Judge John J. McConnell, Jr., to 72 months of incarceration to be followed by four years of federal supervised release. Pena pleaded guilty on August 1, 2024, to possession with the intent to distribute fentanyl and possession of a firearm by a person convicted of a crime.
According to information presented to the court, on eight occasions between June and October 2022, while under law enforcement surveillance, Pena sold and delivered 7,080 fentanyl-laced pills weighing a combined total of approximately 876 grams, or roughly two pounds. During a transaction on September 7, 2022, Pena also sold an individual a firearm in exchange for a cash payment. The drugs and the firearm were quickly seized by members of law enforcement following each transaction.
Pena was arrested at his North Providence residence on October 18, 2022, and was found to be in possession of 5.38 grams of cocaine, 11.89 grams of a powder mixture containing fentanyl, and 22.84 grams of a substance containing methamphetamine. On that same date, a court-authorized search warrant was executed at a stash house/rental property maintained by Pena in Pawtucket where law enforcement seized a powder substance containing 484.12 grams of fentanyl and a mixture containing 108.6 grams of methamphetamine.
Court records illustrate that Pena was previously convicted multiple times and sentenced on drug, conspiracy, forgery and breaking and entering charges. At the time of his arrest in this most recent matter, Pena was serving a term of Rhode Island state probation, having been convicted in Rhode Island Superior Court in 2015 on charges of assault and escape by an inmate. He was sentenced to 12 years – with 15 months to serve, 165 months suspended with probation.
This Project Safe Neighborhoods case was prosecuted in U.S. District Court by Assistant U.S. Attorney Stacey A. Erickson.
The matter was investigated by the Rhode Island FBI Safe Street Task Force and the Pawtucket Police Department.
The FBI Safe Streets Task Force consists of agents and law enforcement officers from the FBI, Rhode Island State Police, the Cranston, Woonsocket, Pawtucket, West Warwick, and Central Falls Police Departments, and the U.S. Marshals Service.
This case is part of Project Safe Neighborhoods, 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. In 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Nebraska Man Pleads Guilty in Multi-Million Dollar “Cryptojacking” CaseRead the Press Release
Earlier today, in federal court in Brooklyn, Charles O. Parks III, also known as “CP3O,” pleaded guilty to wire fraud for operating a large-scale illegal “cryptojacking” operation. As part of the scheme, Parks defrauded two well-known providers of cloud computing services out of more than $3.5 million worth of computing resources in order to mine cryptocurrency worth nearly $1 million. The proceeding was held before United States Magistrate Judge Cheryl L. Pollak. When sentenced, Parks faces up to 20 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the guilty plea.
“Through fraud and deceit, Parks acquired powerful computing resources worth millions of dollars to fuel his illegal cryptomining operation,” stated United States Attorney Peace. “Today’s guilty plea underscores our strong commitment to prosecuting criminal actors who enrich themselves through sophisticated cryptocurrency frauds and other complex cyber schemes.”
Mr. Peace also thanked the FBI’s New York Cyber Crimes Task Force for their assistance on this case.
“This guilty plea serves as a reminder to potential cybercriminals that experienced law enforcement officers are well-equipped to detect, investigate, and put an end to financial exploitation schemes carried out in the digital world,” stated NYPD Commissioner Tisch. “I commend our NYPD detective who worked this case, as well as our partners at the FBI and the office of the U.S. Attorney for the Eastern District of New York, for their skill and unwavering dedication to their work, as evidenced by today’s outcome.”
“Cryptojacking,” also referred to as malicious cryptomining, is the unauthorized use or hijacking of another party’s resources, such as electricity, hardware or computing power to mine cryptocurrency. According to court filings and facts presented at today’s plea hearing, from in or about January 2021 through August 2021, Parks created and used a variety of names, corporate affiliations and email addresses, including emails with domains from corporate entities he operated called “MultiMillionaire LLC” and “CP3O LLC,” to register numerous accounts with the cloud providers and to gain access to massive amounts of computing processing power and storage that he did not pay for. Parks used those fraudulently obtained resources to mine various cryptocurrencies including Ether, Litecoin and Monero. Parks tricked the providers into approving heightened privileges and benefits, including elevated levels of cloud computing services and deferred billing accommodations, and deflected inquiries from the providers regarding questionable data usage and mounting unpaid subscription balances.
Parks converted and laundered the cryptocurrency proceeds through cryptocurrency exchanges, a non-fungible token marketplace, an online payment provider and traditional bank accounts in order to disguise the audit trail and disassociate the funds from the fraud. Parks also structured various money movements to avoid transaction reporting requirements under federal law. After converting the ill-gotten cryptocurrency into dollars, Parks used the proceeds of the scheme to make extravagant purchases, including a Mercedes Benz luxury car, jewelry and first-class hotel and travel expenses.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Andrew Reich and Artie McConnell are in charge of the prosecution.
The Defendant:
CHARLES O. PARKS III (also known as “CP3O”)
Age: 45
Omaha, NebraskaE.D.N.Y. Docket No. 24-CR-105 (EK)
Montgomery Man Sentenced to 16 Years in Prison Following Federal Drug and Gun ConvictionsRead the Press Release
Montgomery, Ala. – Today, Acting United States Attorney Kevin Davidson announced the sentencing of a Montgomery, Alabama man following his convictions on federal drug and gun charges. On December 3, 2024, 38-year-old David Lee Johnson III, received a sentence of 192 months in prison. Following his prison sentence, Johnson will serve five years of supervised release. There is no parole in the federal system.
According to his plea agreement and other court records, on April 27, 2022, officers with the Montgomery Police Department observed Johnson walking near Zelda Road. When Johnson spotted the officers, he ran to a trash enclosure behind a local restaurant, then exited a short time later. Inside the enclosure, officers found a firearm and an assortment of drugs, including methamphetamine. Officers spotted Johnson attempting to leave the scene in a vehicle and made a traffic stop. Johnson admitted to possessing the gun and methamphetamine. Johnson has previous felony convictions and is prohibited from possessing firearms or ammunition. On September 4, 2024, Johnson pleaded guilty to possession of methamphetamine with the intent to distribute and being a felon in possession of a firearm. During the sentencing hearing, the judge noted Johnson’s lengthy and varied criminal history along with the specific harm methamphetamine causes the community.
The Montgomery Police Department and Drug Enforcement Administration investigated this case, which Assistant United States Attorney Justin L. Jones prosecuted.
Money Launderer Sentenced, Ordered to Repay $2.3 MillionRead the Press Release
ST. LOUIS – U.S. District Judge Rodney W. Sippel on Thursday sentenced a man who helped launder millions of dollars obtained in fraud schemes to three years in prison and ordered him to repay $2.3 million.
Richard Charles Appelbaum III, 40, of Maryland Heights, pleaded guilty in August to one count of conspiracy to commit money laundering. He admitted conspiring with at least six others to move millions of dollars obtained from fraud victims into cryptocurrency.
In 2022, Appelbaum was introduced to someone identified in his plea agreement as “E.S.,” who was described as a “big player” in cryptocurrency.
E.S. offered to hire Appelbaum as an "investment banker" at Coins2Trade, a cryptocurrency transaction processor. E.S. told Appelbaum he would receive a 3% commission for converting U.S. currency into cryptocurrency. Between August 2022 and October 2022, E.S. trained Appelbaum via WhatsApp messages and phone calls, typically between 10 p.m. and 3 a.m. E.S. told Appelbaum to create businesses, open numerous business and personal bank accounts and open accounts at various cryptocurrency exchanges under his own name. Appelbaum was told to provide the information on the accounts to E.S. E.S. also told Appelbaum to never tell bank personnel that he was dealing with cryptocurrency and use the debit cards tied to the accounts at least once per day to make the accounts appear legitimate.
Told he could make money by recruiting others, Appelbaum recruited another person to process cryptocurrency transactions.
Appelbaum and other co-conspirators formed numerous business entities, falsely claiming on corporate organization documents that the businesses would be involved in auto purchasing consulting, boating supplies, real estate management and life skills consulting when their real purpose was demonstrating apparent legitimacy to financial institutions when the business accounts received large wire deposits. Between February 2022 and April 2023, Appelbaum and the other co-conspirators opened at least 24 business bank accounts at various financial institutions.
The accounts were used to receive the proceeds of Business Email Compromise (BEC) wire fraud schemes, where criminal actors infiltrated the victims’ email accounts to divert payments. Between February 2022 and February 2023, at least 36 individuals and entities were defrauded in this way. In one example, on Dec. 12, 2022, a title company in Florida received a fraudulent email with instructions to wire $2.2 million in escrowed funds to one of Appelbaum’s accounts. Appelbaum later lied to the title company’s lawyer and in a deposition in a civil suit, falsely claiming that he was owed the money for consulting services, his plea agreement says.
Appelbaum and other co-conspirators then moved the criminal proceeds from the business accounts to personal bank accounts, and then to accounts at cryptocurrency trading platforms, knowing that it was designed in whole or in part to conceal the nature, location, source or control of the proceeds.
Appelbaum knew that at least $3.5 million was laundered that way. During the conspiracy, Appelbaum and his co-conspirators received at least 34 wire transfers totaling $8.3 million from victims of the BEC fraud scheme or an online romance fraud scheme, Appelbaum’s plea says.
The FBI investigated the case. Assistant U.S. Attorney Kyle Bateman is prosecuting the case.
Missouri Man Sentenced to 15 Years in Prison for Producing Child PornographyRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Wednesday sentenced a man to 15 years in prison for producing child pornography.
Steven Popple, now 39, of Park Hills, Missouri, met an underage girl in May of 2021, according to his plea agreement. He began a flirtatious relationship with her and exchanged text messages with sexual content. He began asking her for nude photos and videos and instructed her how to pose and what sexual acts to perform. At Popple’s request, the victim sent him about 300 photos and videos and the pair met and engaged in sex acts, his plea agreement says.
Popple pleaded guilty in U.S. District Court in St. Louis in June to one count of production of child pornography.
“If it hadn’t been for the victim’s mother, this crime wouldn’t have come to light. After discovering concerning images on her daughter’s phone, the mother contacted the FBI,” said Special Agent in Charge Ashley T. Johnson of the FBI St. Louis Division. "Contacting law enforcement immediately reduces the risk of a perpetrator disposing of critical evidence."
The FBI and the St. Francois County Sheriff’s Department investigated the case. Assistant U.S. Attorney Dianna Edwards prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Minneapolis Man Indicted for Two Violent RobberiesRead the Press Release
MINNEAPOLIS – A Minneapolis man has been charged with four crimes related to two separate armed robberies, announced U.S. Attorney Andrew M. Luger.
According to court documents, on June 7, 2024, Korey Maurese Hale, 25, brandished a Mossberg 715T .22 caliber rifle while robbing a drug store. The next day, on June 8, 2024, Hale brandished the same firearm while robbing a bank.
For his conduct, Hale is charged with one count of Hobbs Act robbery, one count of armed bank robbery, and two counts of brandishing a firearm during a bank robbery. He made his initial appearance on December 3, 2024, in U.S. District Court before Magistrate Judge Dulce J. Foster.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, and the St. Paul Police Department.
Assistant U.S. Attorney Matthew D. Forbes is prosecuting the case.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
McKinsey & Company Africa to Pay over $122M in Connection with Bribery of South African Government OfficialsRead the Press Release
McKinsey and Company Africa (Pty) Ltd (McKinsey Africa), which operates in South Africa as a wholly owned and controlled subsidiary of international consulting firm McKinsey & Company Inc. (McKinsey), will pay over $122 million to resolve an investigation by the Justice Department into a scheme to pay bribes to government officials in South Africa between 2012 and 2016. The guilty plea of a former McKinsey senior partner who participated in the bribery scheme was also unsealed. The Justice Department’s resolution is coordinated with prosecutorial authorities in South Africa.
McKinsey Africa entered into a three-year deferred prosecution agreement (DPA) with the department in connection with a criminal information filed in the Southern District of New York charging the company with one count of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA). Vikas Sagar, a former senior partner of McKinsey who worked in McKinsey Africa’s South Africa office, previously pleaded guilty to one count of conspiracy to violate the FCPA.
According to court documents and admissions, McKinsey Africa, acting through a senior partner and for the benefit of McKinsey, agreed to pay bribes to then-officials at Transnet SOC Ltd. (Transnet), South Africa’s state-owned and state-controlled custodian of ports, rails, and pipelines, and at Eskom Holdings SOC Ltd. (Eskom), South Africa’s state-owned and state-controlled energy company. Between at least 2012 and 2016, McKinsey Africa obtained sensitive confidential and non-public information from Transnet and Eskom regarding the award of lucrative consulting contracts and submitted proposals for multimillion-dollar consulting engagements, while knowing that South African consulting firms with which McKinsey Africa had partnered would pay a portion of their fees as bribes to officials at Transnet and Eskom. As a result of the bribery scheme, McKinsey and McKinsey Africa earned profits of approximately $85,000,000.
“McKinsey Africa bribed South African officials in order to obtain lucrative consulting business that generated tens of millions of dollars in profits,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “As a consequence, McKinsey Africa has agreed to pay a criminal penalty of more than $122 million. The resolution announced today — the department’s third coordinated resolution with South African authorities in only two years — is evidence that our International Corporate Anti-Bribery (ICAB) initiative, which we announced in November 2023, is bearing fruit. Through the ICAB, the Criminal Division remains committed to strengthening its international partnerships, including in South Africa, to combat corruption.”
“McKinsey Africa participated in a yearslong scheme to bribe government officials in South Africa and unlawfully obtained a series of highly lucrative consulting engagements that netted McKinsey Africa and its parent entity McKinsey & Company approximately $85 million in profits,” said U.S. Attorney Damian Williams for the Southern District of New York. “The scheme was carried out by a senior partner at McKinsey and allowed McKinsey Africa to repeatedly get awarded consulting contracts through corruption and bribes at two different state-owned entities in South Africa. This office and our law enforcement partners will continue our fight against American companies that seek to gain an unfair business advantage by supporting corrupt political officials overseas, no matter the industry, no matter the country, and no matter how prominent or profitable those companies may be.”
“This settlement underscores our unwavering commitment to holding companies accountable that willfully engage in corrupt activities around the world,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “McKinsey Africa engaged in a serious and long-running bribery scheme to secure contracts by corrupting government officials. This misconduct is a blatant violation of law and a breach of public trust. No matter what country the crime occurs in, the FBI will always work closely with our international partners to root out corruption.”
“McKinsey Africa will pay over $122 million, a clear indication that corruption comes at a significant cost,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “The resolution of this case underscores that justice has no borders, and those who engage in bribery and conspire to commit crimes will be held accountable. The Postal Inspection Service is committed to ensuring that government resources and international partnerships serve the public good and are never exploited for personal or corporate gain.”
Pursuant to the DPA, McKinsey Africa has agreed to pay a criminal penalty of $122,850,000. The Justice Department has agreed to credit up to one-half of the criminal penalty against amounts McKinsey pays to authorities in South Africa in related proceedings. In addition, both McKinsey and McKinsey Africa have agreed to, among other things, continue cooperating with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of New York in any ongoing or future criminal investigation arising during the term of the DPA. McKinsey and McKinsey Africa have also agreed to enhance their compliance program where necessary and appropriate and to report to the government regarding remediation and implementation of their enhanced compliance program.
The Justice Department reached this resolution with McKinsey Africa based on a number of factors, including, among others, the nature and seriousness of the offense. McKinsey Africa received credit for its cooperation with the department’s investigation, which included (i) immediately and proactively cooperating from the inception of the department’s investigation; (ii) making numerous factual presentations to the department over the course of its investigation, derived from information obtained through the company’s internal investigation; (iii) collecting, reviewing, and producing voluminous records, including those located abroad, in response to requests from the department; (iv) promptly reporting the discovery of document-deletion efforts by the McKinsey partner involved in the conduct found during its internal investigation, taking additional investigative steps to uncover information and evidence regarding those efforts, and producing such information and evidence to the department; (v) reporting, in real time, newly discovered information and documents that allowed the department to preserve and obtain evidence as part of its independent investigation; (vi) tracing complex internal accounting money-flows and currency exchange-information in response to requests from the department; (vii) preserving, collecting, and producing to the department documents located abroad, and engaging a third-party forensics consultant to analyze key electronic devices and providing to the department the results of that analysis; (viii) collecting and producing to the department personal email and bank account information of the McKinsey partner involved in the conduct relevant to the department’s investigation; (ix) engaging with the department in response to a deconfliction request to preserve the integrity of the department’s investigation; and (x) making company officers and employees available for interviews.
McKinsey and McKinsey Africa also engaged in timely remedial measures, including: (i) putting the McKinsey partner involved in the criminal scheme on leave when it learned of the partner’s role in the scheme, subsequently separating that partner from McKinsey after discovering his deletion activity, and requiring that partner’s continued cooperation post-separation; (ii) conducting additional anti-corruption training for employees in South Africa and elsewhere in Africa, and ceasing work with all state-owned enterprises (SOEs) for a period of time while it conducted its internal investigation; (iii) enhancing due diligence processes for third-party partners, including instituting controls to ensure that due diligence is completed before work begins on an engagement and imposing a more rigorous risk-review for public sector clients; (iv) carrying out an enhanced review process for all sole-source work that requires advance-approval before the engagement can begin; and (v) voluntarily repaying, in 2018 and 2021, all revenues that McKinsey and McKinsey Africa received from potentially tainted contracts to the SOEs in South Africa from which they received contracts as a result of the criminal scheme.
In light of these considerations as well as McKinsey’s prior history, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 35% reduction off the fifth percentile of the otherwise applicable guidelines fine range.
FBI’s Los Angeles International Corruption squad and USPIS are investigating the case.
Trial Attorneys William E. Schurmann and Alexandra P. Swain of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Andrew K. Chan and Nicholas Chiuchiolo for the Southern District of New York are prosecuting the case.
The Justice Department’s Office of International Affairs and authorities in South Africa provided assistance in this matter.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
View the Deferred Prosecution Agreement.
View the Information.
McKinsey & Company Africa to Pay over $120 Million in Connection with Bribery of South African Government OfficialsRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York; Nicole M. Argentieri, Principal Deputy Assistant Attorney General for the Criminal Division of the U.S. Department of Justice (“DOJ”); Akil Davis, Assistant Director in Charge of the Federal Bureau of Investigation (“FBI”) Los Angeles Field Office; and Eric Shen, Inspector in Charge of the U.S. Postal Inspection Service (“USPIS”) Criminal Investigations Group, announced today that MCKINSEY AND COMPANY AFRICA (PTY) LTD (“MCKINSEY AFRICA”), a wholly-owned and controlled subsidiary of McKinsey & Company, Inc. (“McKinsey”), a multinational strategy and management consulting firm headquartered in the U.S., will pay over $120 million to resolve an investigation by the DOJ into a scheme to bribe government officials in South Africa in exchange for lucrative consulting contracts at multiple state-owned and state-controlled entities. MCKINSEY AFRICA entered into a deferred prosecution agreement (“DPA”) in connection with a criminal information filed today in the Southern District of New York charging the company with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act ("FCPA"). The case has been assigned to U.S. District Judge Colleen McMahon.
Also unsealed today is the guilty plea of VIKAS SAGAR, a former Senior Partner at McKinsey & Company, who pled guilty to participating in a conspiracy to violate the Foreign Corrupt Practices Act before U.S. District Judge Laura Taylor Swain on December 16, 2022.
U.S. Attorney Damian Williams said: “McKinsey Africa participated in a yearslong scheme to bribe government officials in South Africa and unlawfully obtained a series of highly lucrative consulting engagements that netted McKinsey Africa and its parent entity McKinsey & Company approximately $85 million in profits. The scheme was carried out by a senior partner at McKinsey and allowed McKinsey Africa to repeatedly get awarded consulting contracts through corruption and bribes at two different state-owned entities in South Africa. This Office and our law enforcement partners will continue our fight against companies that seek to gain an unfair business advantage by supporting corrupt political officials overseas, no matter the industry, no matter the country, and no matter how prominent or profitable those companies may be.”
Principal Deputy Assistant Attorney General Nicole M. Argentieri said: “McKinsey Africa bribed South African officials in order to obtain lucrative consulting business that generated tens of millions of dollars in profits. As a consequence, McKinsey Africa has agreed to pay a criminal penalty of more than $122 million. The resolution announced today — the department’s third coordinated resolution with South African authorities in only two years — is evidence that our International Corporate Anti-Bribery ("ICAB") initiative, which we announced in November 2023, is bearing fruit. Through the ICAB, the Criminal Division remains committed to strengthening its international partnerships, including in South Africa, to combat corruption.”
USPIS Inspector in Charge Eric Shen said: “McKinsey Africa will pay over $122 million, a clear indication that corruption comes at a significant cost. The resolution of this case underscores that justice has no borders, and those who engage in bribery and conspire to commit crimes will be held accountable. The Postal Inspection Service is committed to ensuring that government resources and international partnerships serve the public good and are never exploited for personal or corporate gain.”
FBI Assistant Director in Charge Akil Davis said: “McKinsey Africa’s corruption seemed to pay off for a time, yielding millions in government contracts. Those actions have now cost the company dearly. Individuals and companies who collude to thwart free market competition have a direct and negative impact on communities and the American consumer. This agreement demonstrates the commitment of the FBI and our partners to investigate anti-competitive behavior, and we will continue to work with foreign governments, including South Africa, to hold accountable those who try to cheat the system for their own benefit and profit.”
According to court documents and admissions:
Between at least 2012 and 2016, MCKINSEY AFRICA, acting through McKinsey Senior Partner SAGAR, agreed to pay bribes to then-officials at Transnet SOC Ltd ("Transnet"), South Africa’s state-owned and state-controlled custodian of ports, rails, and pipelines, and at Eskom Holdings Limited ("Eskom"), South Africa’s state-owned and state-controlled energy company. As part of the scheme, MCKINSEY AFRICA obtained sensitive confidential and non-public information from Transnet and Eskom regarding the award of lucrative consulting contracts and submitted proposals for multimillion-dollar consulting engagements, while knowing that South African consulting firms with which MCKINSEY AFRICA had partnered would pay a portion of their fees as bribes to officials at Transnet and Eskom. As a result of the bribery scheme, McKinsey and MCKINSEY AFRICA earned profits of approximately $85,000,000.
As part of the DPA, MCKINSEY AFRICA has agreed to pay a criminal penalty of $122,850,000. The Department has agreed to credit up to one-half of the criminal penalty against amounts McKinsey pays to authorities in South Africa in related proceedings. In addition, both McKinsey and MCKINSEY AFRICA have agreed, among other things, to continue cooperating with the U.S. Attorney’s Office for the Southern District of New York and the Criminal Division’s Fraud Section and in any ongoing or future criminal investigation arising during the term of the DPA. In addition, McKinsey and MCKINSEY AFRICA have agreed to enhance their compliance program where necessary and appropriate, and to report to the government regarding remediation and implementation of their enhanced compliance program.
The Department reached this resolution with MCKINSEY AFRICA based on a number of factors, including, among others, the nature and seriousness of the offense. MCKINSEY AFRICA received credit for its cooperation with the Department’s investigation, which included immediately and proactively cooperating from the inception of the Offices’ investigation; making numerous factual presentations to the Offices over the course of their investigation, derived from information obtained through the Company’s internal investigation; collecting, reviewing, and producing voluminous records, including those located abroad, in response to requests from the Offices; promptly reporting the discovery of document-deletion efforts by the McKinsey partner involved in the conduct found during its internal investigation, taking additional investigative steps to uncover information and evidence regarding those efforts, and producing such information and evidence to the Offices; reporting, in real time, newly discovered information and documents which allowed the Offices to preserve and obtain evidence as part of their independent investigation; tracing complex internal accounting money-flows and currency exchange-information in response to requests from the Offices; preserving, collecting, and producing to the Offices documents located abroad, and engaging a third-party forensics consultant to analyze key electronic devices and providing to the Offices the results of that analysis; collecting and producing to the Offices personal email and bank account information of the McKinsey partner involved in the conduct relevant to the Offices’ investigation; engaging with the Offices in response to a deconfliction request to preserve the integrity of the Offices’ investigation; and making Company officers and employees available for interviews.
McKinsey and MCKINSEY AFRICA also engaged in timely remedial measures, including: putting the McKinsey partner involved in the criminal scheme on leave when it learned of the partner’s role in the scheme, subsequently separating that partner from McKinsey after discovering his deletion activity, and requiring that partner’s continued cooperation post-separation; conducting additional anti-corruption training for employees in South Africa and elsewhere in Africa, and ceasing work with all SOEs for a period of time while it conducted its internal investigation; enhancing due diligence processes for third-party partners, including instituting controls to ensure that due diligence is completed before work begins on an engagement and imposing a more rigorous risk-review for public sector clients; carrying out an enhanced review process for all sole-source work that requires advance-approval before the engagement can begin; and voluntarily repaying, in 2018 and 2021, all revenues that McKinsey and MCKINSEY AFRICA received from potentially tainted contracts to the SOEs in South Africa from which it received contracts as a result of the criminal scheme.
In light of these considerations as well as McKinsey’s prior history, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 35% reduction off the fifth percentile of the otherwise applicable guidelines fine range.
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The FBI’s International Corruption Unit and the USPIS are investigating the case as part of the IRS Global Illicit Financial Team in Washington, D.C.
SAGAR, 56, of Johannesburg, South Africa, pled guilty to participating in a conspiracy to violate the Foreign Corrupt Practices Act.
Mr. Williams praised the outstanding work of the FBI and USPIS. Mr. Williams also thanked the Department of Justice’s Office of International Affairs and authorities in South Africa for their assistance in this matter.
The case is being prosecuted by Assistant U.S. Attorneys Andrew K. Chan and Nicholas Chiuchiolo of the Southern District of New York; and Trial Attorneys William E. Schurmann and Alexandra P. Swain of the Criminal Division’s Fraud Section.
Marion County Man Sentenced to Federal Prison for Distributing Methamphetamine and FentanylRead the Press Release
Ocala, Florida – United States District Judge Thomas P. Barber has sentenced Terrance Maurice Washington (42, Marion County) to 14 years in federal prison for possession of a controlled substance (methamphetamine and fentanyl) with intent to distribute it. Washington entered a guilty plea on June 26, 2024.
According to court documents, on multiple occasions between October 2023 and January 2024, Washington distributed methamphetamine and/or fentanyl to a confidential source who was working with law enforcement. The drugs provided by Washington during the transactions ranged from gram quantities to upwards of a pound or more of methamphetamine. Washington bragged that the type of fentanyl he distributed was “dropping people.” After law enforcement arrested Washington, a search of his residence revealed another two pounds of methamphetamine intended for distribution.
This case was investigated by the Drug Enforcement Administration and the Marion County Unified Drug Enforcement Strike Team (UDEST). It was prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
Man Pleads Guilty to Armed Kidnapping of a Rideshare DriverRead the Press Release
MIAMI – On Dec. 3, Miguel Alejandro Pastran Hernandez, 24, pled guilty to kidnapping a rideshare driver at gunpoint and forcing the victim to drive the defendant from Texas to South Florida.
On or about Aug. 16, at around 10:30 p.m., Victim 1 was working as a driver for a ride sharing application near Arlington, Texas, when Victim 1 picked up Pastran Hernandez. Victim 1 drove Pastran Hernandez to his destination, which was a gas station that appeared to be closed. After a short time, Victim 1 heard the click of a gun being chambered and saw Pastran Hernandez holding what appeared to be a firearm. Victim 1 offered to give Pastran Hernandez the victim’s possessions and leave the vehicle, but Pastran Hernandez told Victim 1 that he was going to tie the victim up and put the victim in the back of the vehicle.
Instead of tying up Victim 1, Pastran Hernandez ordered Victim 1 to drive to Florida. Pastran Hernandez used a mobile application on his cellphone to see where law enforcement was located along the drive and instructed Victim 1 to avoid those areas. Pastran Hernandez told Victim 1 that he had other guns in the car, inside his luggage. While driving from Texas to Florida, Pastran Hernandez discovered that Victim 1 had a blue handgun in the vehicle. The firearm was unloaded, with the ammunition stored separately in the vehicle. Pastran Hernandez loaded the ammunition into the firearm and kept it on his person for the duration of the kidnapping. During the journey, Pastran Hernandez brandished that firearm at Victim 1 so that Victim 1 would follow his commands.
On or about Aug. 18, Pastran Hernandez and Victim 1 arrived in Miami Beach, Fla., where Pastran Hernandez surveilled the residence of another potential victim (Victim 2). Pastran Hernandez told Victim 1 that Victim 2 was a social media influencer and that Pastran Hernandez intended to kidnap Victim 2 or someone in Victim 2’s family for a $3,000,000 ransom.
On or about Aug. 19, Pastran Hernandez made Victim 1 drive to a store in Hialeah, Fla., to buy supplies for the kidnapping of Victim 2. Pastran Hernandez held onto Victim 1’s car keys, while Victim 1 used the restroom. Around that time, police officers arrived at the store and Pastran Hernandez fled the area on foot.
Law enforcement located Pastran Hernandez at a park in Hollywood, Fla. a few hours later. On Pastran Hernandez’s person, inside a cross-body bag, was Victim 1’s blue handgun. The firearm was loaded and had a bullet in the chamber.
Inside Pastran Hernandez’s backpack, which was in Victim 1’s car, law enforcement later discovered multiple Airsoft or BB guns, knives, a black mask, hat, sunglasses, binoculars, walkie-talkies, zip-ties, and other items.
Pastran Hernandez is scheduled to be sentenced on Feb. 20, 2025, before Chief Judge Cecilia M. Altonaga. He faces up to life in prison, following his guilty plea to charges of kidnapping, carjacking, and possessing a firearm in furtherance of a crime of violence. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, announced the charges.
FBI Miami investigated the case. Assistant U.S. Attorney Elizabeth Hannah is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that brings 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. 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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-20380.
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Magoffin County Man Sentenced for Methamphetamine and Fentanyl TraffickingRead the Press Release
PIKEVILLE, Ky. – A Salyersville, Ky., man, Daniel Jackson, 57, was sentenced on Thursday, to 97 months in prison, by Chief U.S. District Judge Danny Reeves, following his conviction for possession with the intent to distribute 50 grams or more of methamphetamine and possession with the intent to distribute fentanyl.
According to evidence presented at his trial, on February 7, 2024, law enforcement conducted a traffic stop of a vehicle being driven by Jackson. During a search of the vehicle, law enforcement located and seized over 70 grams of methamphetamine. Jackson then attempted to discard a bag of fentanyl, in the police car, after his arrest.
Under federal law, Jackson 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 five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jim Scott, Special Agent in Charge, DEA, Louisville Field Division; and William “Bill” Meade, Magoffin County Sheriff, jointly announced the sentence.
The investigation was conducted by the DEA, the Magoffin County Sheriff’s Office, and Operation UNITE. Assistant U.S. Attorney Drew Trimble is prosecuting the case on behalf of the United States.
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Lock Haven Resident Charged with Conspiring with Physician for Kickback Payments at Local Nursing HomeRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Paul D. Polen, age 71, of Lock Haven, Pennsylvania was charged by criminal information with one count of conspiracy to engage in theft or bribery concerning programs receiving federal funds between 2002 and 2022.
According to United States Attorney Gerard M. Karam, the information alleges that Polen, while working at a nursing home in Lock Haven, PA, agreed with an unnamed physician to be paid kickback payments. The nursing home was a recipient of Medicare benefits in excess of $10,000 per year. Under Federal law, it is an offense to embezzle, steal, obtain by fraud, or misapply property worth at least $5,000 from an organization receiving Federal funds in excess of $10,000 in a year.
The physician reported to Polen, who ran the workers’ compensation program for the nursing home. Polen hired the physician for this role on the condition that the physician would have to pay half of his salary from the nursing home to Polen each month, through a company that Polen set up called Paul D. Polen, Inc. Polen made his own wife the president of this company in name only.
The physician agreed to this arrangement, which required, at most, a few hours of work per month from the physician. The physician’s responsibilities also included evaluating Polen’s own workers’ compensation claims, which resulted in Polen working a reduced schedule for the same compensation from the nursing home.
The physician then proceeded to pay Polen between approximately $1,700 and $2,500 per month for a period of about twenty years. In order to conceal these payments, Polen and the physician regularly exchanged payment at the physician’s home rather than at the workplace. In total, it is alleged that Polen and the physician conspired to embezzle, steal, obtain by fraud, and misapply approximately $528,450 from the nursing home.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.
The maximum penalty under federal law for conspiracy is five years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Lincoln Woman Sentenced to over 4 Years for Conspiracy to Distribute and Possession with Intent to Distribute FentanylRead the Press Release
United States Attorney Susan Lehr announced that Wren G. Chamberlain, age 22, of Lincoln, Nebraska was sentenced on December 5, 2024, in federal court in Lincoln for one count of conspiracy to distribute and possession with intent to distribute fentanyl. United States District Judge Susan M. Bazis sentenced Chamberlain to a total of 51 months’ imprisonment. There is no parole in the federal system. After Chamberlain’s release from prison, she will begin a 3-year term of supervised release.
On August 12, 2023, a Confidential Informant (“CI”) helped law enforcement arrange a controlled purchase of M30 pills from Aidan Glenn. Glenn informed the CI that he was going to meet with Michael Smith at a location in Lincoln to get more pills. Law enforcement arrested Glenn, Chamberlain, and Smith.
Chamberlain agreed to speak with law enforcement and consented to a search of her cellphone. She admitted that she and Glenn arrange M30 purchases from Smith together. Her phone showed extensive conversations with Glenn, Smith, Chase Hartung, and others coordinating purchases and sales of M30s dating back to at least July 1, 2023. Chamberlain and Glenn’s phones show that they worked together to arrange purchases and sales.
Chamberlain bonded out shortly after her arrest and began working with another individual to sell M30s and fill the void in the market left by Smith’s arrest. The two were arrested on November 28, 2023, with 13.8 grams of cocaine, 29.13 grams of heroin, 9.29 grams of psilocyn, and 190 M30 pills (the pills weighed approximately .1 grams each).
Michael Smith is currently set for a change of plea hearing on December 11, 2024, before U.S. Magistrate Judge Jacqueline M. DeLuca.
Chase Hartung is currently set for a court hearing on December 19, 2024, before U.S. Magistrate Judge Jacqueline M. DeLuca.
Aidan Glenn is currently set for sentencing on January 9, 2025, before U.S. District Judge Susan M. Bazis.
This case was investigated by the Lincoln Police Department.
Lebanese Man Sentenced for Participation in International Money Laundering ConspiracyRead the Press Release
BOSTON – A Lebanese man was sentenced yesterday for his for his participation in a money laundering conspiracy.
Andres Rached Farah, 55, a Lebanese citizen who resided in Colombia, was sentenced by U.S. District Court Judge Richard G. Stearns to 52 months in prison. In August 2024, Farah pleaded guilty to money laundering conspiracy and conducting substantive money laundering transactions. Farah was charged in a 50-count indictment along with 19 other individuals in March 2022. Farah was arrested in Colombia in April 2022 and extradited to the United States in September 2023.
Beginning in 2016 and continuing until 2022, law enforcement conducted an investigation into a money laundering organization based primarily in Barranquilla, Colombia. An undercover agent infiltrated the organization by portraying himself as an international money launderer able to pick up bulk cash throughout the world, launder the proceeds through his United States-based accounts and send the money to Colombia. Specifically, the money would be sent either through the Black Market Peso Exchange – a common method of trade-based money laundering used to repatriate the proceeds of drug trafficking to Colombia – or through business accounts that could layer the proceeds in other transactions to conceal the original illegal source.
Throughout the course of the investigation, members of the money laundering organization would allegedly contact the undercover and arrange meetings for the undercover and the undercover’s purported associates to collect bulk cash throughout the world. Members of the money laundering organization allegedly directed where the money was to be sent, and facilitators, such as Farah, would facilitate the payout of the laundered proceeds in Colombia for the benefit of the drug suppliers. Over the course of the conspiracy, Farah was responsible for the laundering of at least $591,000 in drug proceeds.
Farah is the ninth defendant to be sentenced in the case. Four other defendants have pleaded guilty and are awaiting sentencing. Two additional defendants have filed notice of their intent to plead guilty. The case is pending as to the remaining defendants.
United States Attorney Joshua R. Levy; Stephen Belleau, Acting Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Jonathan Wlodyka, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. The Justice Department’s Office of International Affairs and the Narcotic and Dangerous Drug Section’s Office of the Judicial Attaché at the U.S. Embassy in Bogota provided critical assistance in securing the arrest and extradition of Farah. Assistant U.S. Attorneys Jared C. Dolan and Alathea E. Porter of the Criminal Division are prosecuting 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.
The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Leading member of drug smuggling group headed to prisonRead the Press Release
LAREDO, Texas – A 66-year-old Mexican man has been sentenced for his role in smuggling fentanyl into the United States, announced U.S. Attorney Alamdar S. Hamdani.
Juan Hernandez Alcantar pleaded guilty Aug. 6.
U.S. District Judge Marina Garcia Marmolejo has now ordered him to serve 168 months in federal prison. Not a U.S. citizen, Alcantar is expected to face removal proceedings following his imprisonment. In handing down the sentence, Judge Marmolejo noted Alcantar’s role as a leader/organizer, how deadly and dangerous fentanyl is and the number of deaths that could result from such a large amount of drugs.
In July 2023, Alcantar recruited drug mules to transport fentanyl and cocaine. He had been residing at his daughter’s residence and was using her vehicle to conduct his drug operation. During the scope of the conspiracy, Alcantar arranged for the smuggling of 2,194 grams of fentanyl, 1,200 grams of heroin and 2,100 grams of cocaine.
Authorities learned Alcantar was going to be smuggled to San Antonio in a tractor trailer with other undocumented aliens in an effort to evade the Border Patrol checkpoint north of Laredo. They were able to stop the trailer and take him into custody.
Alcantar is an undocumented alien who has a history of illegally entering the United States and committing criminal offenses.
Homeland Security Investigations conducted the investigation with assistance from Border Patrol as part of the South Texas High Intensity Drug Trafficking Areas (HIDTA) Task Force. Special Assistant U.S. Attorney Terence A. Check Jr. prosecuted the case assistance of Assistant U.S. Attorney Andrew Hakala-Finch.
Leader of Southwest Virginia Methamphetamine Conspiracy to Serve 20 Years in Federal Prison Following His Release from Prison in GeorgiaRead the Press Release
ABINGDON, Va. – The leader of a 20-member conspiracy that distributed numerous kilograms of methamphetamine throughout southwest Virginia and eastern Tennessee was sentenced today in federal court.
Christopher “CJ” Johnson, 47, of Bristol, Tennessee, previously pled guilty to conspiracy to distribute methamphetamine. Today he was sentenced to 20 years in federal prison, which he will serve following his release from the Georgia Department of Corrections.
According to court documents, in 2020 Johnson and Noah Bryan Horn were arrested in Georgia with four kilograms of methamphetamine, two pistols, and heroin. As a result, Johnson received a 25-year prison sentence in the Georgia Department of Corrections. But, by mid-2022, Johnson had launched another methamphetamine conspiracy. From prison in Georgia, Johnson used a contraband cell phone to communicate with people outside of prison to coordinate his multi-state drug trafficking scheme. Co-conspirators would travel to Georgia to collect large amounts of methamphetamine from Johnson’s designated sources, send payments to Johnson via CashApp and other means, and then bring the drugs back to southwest Virginia and eastern Tennessee for further distribution. Johnson also coordinated deliveries of fentanyl and ecstasy during the conspiracy.
At one point, Johnson was responsible for a large percentage of the overall methamphetamine market in both the Bristol, Virginia and Bristol, Tennessee areas.
Others who have previously pleaded guilty as part of the conspiracy included individuals from Virginia and Tennessee: Noah Bryan Horn, Nicholas Alexander Courtney, Michael Paul Brown, Jeremy Wayne Maxfield, Kenneth Lee Trivette, Olivia Abigail Coleman, Kayla Cheyanne Winebarger, Sheenah Amber Rogers, Joey Dean Webb, Diamond Snow Booher, Amber Leigh Phipps, Morgan Paige Perry, Eric Dale Whisman, Kedrick Lee Dingus, Christopher Michael Sullivan, Woodrow America Ritchie, Ashley Lynn Young, Patricia Ann Smoot, and Tabitha Nichole Satterfield.
United States Attorney Christopher R. Kavanaugh, and Jarod Forget, Special Agent in Charge of the Drug Enforcement Administration’s Washington Division, made the announcement.
The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Virginia State Police, the Washington County Sheriff’s Office, the Smyth County Sheriff’s Office, the Bristol (Virginia) Police Department, and other law enforcement agencies in Georgia and Tennessee investigated the case, including Tennessee’s Bristol Police Department, Sullivan County Sheriff’s Office, and 2nd Judicial Drug Task Force as well as the Georgia State Patrol.
Assistant U.S. Attorneys Corey Hall and Whit Pierce are prosecuting the case.
Kings County Man Charged with Receiving and Possessing Child Sex Abuse Material on PhoneRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Quentin Nelson, 32, of Corcoran, charging him with receiving and possessing prepubescent child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 25, 2020, Nelson received and attempted to receive child pornography. Nelson also possessed numerous images and videos of prepubescent child sexual abuse materials on a phone and an SD card.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney Kristin F. Scott is prosecuting the case.
If convicted, Nelson faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on each count. 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 was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Justice Department and Consumer Financial Protection Bureau Reinforce Federal Protections for Servicemembers in Letter to Financial Services ProvidersRead the Press Release
The Justice Department and Consumer Financial Protection Bureau (CFPB) issued a joint letter today reiterating financial services providers of their responsibility to recognize interest rate protections that exist for servicemembers, recent veterans and their spouses under the Servicemembers Civil Relief Act (SCRA).
Under the SCRA, servicemembers have additional rights and protections because of the unique financial challenges that often emerge as a result of their service. One provision of the SCRA limits the amount of interest that banks, credit cards and other financial services providers may charge on certain financial obligations that the servicemember incurred before military service to no more than 6% per year, including most fees.
“Servicemembers make great sacrifices to serve our nation and protect our democracy,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Financial services providers must ensure that servicemembers are afforded their rights and benefits under the law.”
“Many military families have been hit hard by high interest rates on credit cards, mortgages and auto loans, even though they are entitled to an interest rate cap,” said CFPB Director Rohit Chopra. “Financial firms shouldn’t be price gouging those who serve in uniform.”
Recently, the CFPB has published reports on the rising interest rates in both the credit card and mortgage markets. The CFPB’s 2022 analysis estimated that less than 10% of eligible auto loans and 6% of personal loans to activated members of the National Guard and Reserves were receiving interest rate reductions, resulting in nearly $10 million a year in estimated lost savings. With current interest rates on car loans and even mortgages well above 6% for many borrowers, more servicemembers would now benefit from a reduction than in prior years.
Today’s letter ensures that financial services providers are aware of the provision within the SCRA that protects servicemembers against violations of interest rate benefits. If servicemembers make a proper request, a creditor must forgive and not defer any interest greater than 6%. The letter also includes recommendations for financial services providers to further help servicemembers, such as automatically applying the interest rate cap to all eligible accounts held at that institution if a servicemember invokes protections for a single account.
The Justice Department’s Servicemembers and Veterans Initiative coordinates federal resources to build a comprehensive legal support and protection network focused on serving servicemembers, veterans and their families. Since 2011, the department has obtained over $481 million in monetary relief for over 147,000 servicemembers through its enforcement of the SCRA. For more information, visit www.justice.gov/servicemembers.
Servicemembers who are covered by this law are likely eligible for military legal assistance and can contact their local legal assistance office for help. See legalassistance.law.af.mil/ for a list of office locations. If servicemembers are not eligible for military legal assistance services, they may request that the Justice Department review their claim by submitting a complaint at civilrights.justice.gov/report/.
The CFPB provides educational resources to military families, monitors complaints and coordinates with federal partners on matters related to consumer protection for the military community. Additionally, the CFPB has authority to enforce the Military Lending Act, as well as the ability to take legal action to address unfair, deceptive or abusive acts or practices related to consumer financial products or services for all members of the public, including servicemembers, under the Consumer Financial Protection Act.
Consumers encountering problems with interest rates can submit a complaint with the CFPB online or by calling (855) 411-CFPB (2372). The CFPB encourages employees who believe their companies have violated federal consumer financial protection laws to send information about what they know to [email protected].
James Mailhiot, Jr. Pleads Guilty to Tax EvasionRead the Press Release
Burlington, Vermont – The United States Attorney’s Office announced that James Mailhiot, Jr., 56, of Rutland, Vermont, pleaded guilty yesterday in United States District Court in Rutland to a charge of federal income tax evasion. U.S. District Judge Mary Kay Lanthier released Mailhiot on conditions pending sentencing, which is scheduled for March 27, 2025.
On November 14, 2024, the United States Attorney filed a one-count information charging Mailhiot with evading a significant portion of the income taxes he owed to the United States for Tax Years 2019 through 2022. Yesterday, Mailhiot pleaded guilty to that information.
According to the information, Mailhiot owned and operated a roofing business that generated approximately $1.6 million in gross revenues between 2019 and 2022. Mailhiot used an out-of-state accountant to prepare his federal income tax returns. To enable the accountant to prepare each return, Mailhiot sent the accountant records of revenues earned and expenses incurred on the various roofing jobs he completed that year. In fact, the records Mailhiot gave to the accountant were very incomplete, resulting in a very substantial understatement of the taxable income he earned each year, and very substantial underpayments of the taxes he owed to the Internal Revenue Service. According to the information, Mailhiot’s underpayments for years 2019-2022 totaled $296,000.
Mailhiot faces up to five years of imprisonment and a fine of up to $100,000. The actual sentence, however, will be determined by the District Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors.
This case was investigated by the Internal Revenue Service, Criminal Investigation.
Mailhiot is represented by Mark Kaplan, Esq. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Indictment Charges New Haven Man with Cocaine Trafficking OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that a federal grand jury in Hartford has returned an indictment charging ROBERTO LOZADA, also known as Roberto Lozado and “Omi,” 51, of New Haven, with possession with intent to distribute cocaine.
The indictment was returned on November 14, 2024, and Lozada appeared today before U.S. Magistrate Judge Maria E. Garcia and entered a plea of not guilty to the charge. He has been detained since his arrest on October 1, 2024.
As alleged in court documents and statements made in court, on October 1, 2024, the Drug Enforcement Administration received information that Lozada would be delivering a half-kilogram of cocaine to an unknown person in the area of Forbes Avenue and Woodward Avenue in New Haven. Investigators initiated surveillance and Lozada was stopped when he arrived at the location. A search of a backpack he was carrying revealed approximately 553 grams of cocaine.
The charge of possession with intent to distribute cocaine carries a maximum term of imprisonment of 20 years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration New Haven Task Force, which includes members from the DEA, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Waterbury, East Haven, Branford, West Haven, Ansonia, Meriden, Naugatuck, and Shelton Police Departments.
The case is being prosecuted by Assistant U.S. Attorney Brendan J. Keefe.
Indiana, Pa., Man Sentenced for Fentanyl and Methamphetamine TraffickingRead the Press Release
PITTSBURGH, Pa. - A resident of Indiana, Pennsylvania, was sentenced to 46 months of incarceration, to be followed by three years of federal supervised release, related to his conviction for violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Jacob Robert Kelly, 26. Kelly earlier this year pleaded guilty to possession with intent to distribute fentanyl and methamphetamine.
In imposing the sentence, Judge Conti emphasized the serious nature of Kelly’s criminal conduct and the harm his conduct could have had on the community.
Assistant United States Attorney Nicole A. Stockey is prosecuting this case on behalf of the government.
United States Attorney Olshan commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Kelly.
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.
Illinois Man Sentenced to 2 Years for Fentanyl TraffickingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Dantrell T. Stevenson, 31, Matteson, Illinois, was sentenced on December 2, 2024, by Chief U.S. District Judge James D. Peterson to 2 years in federal prison for conspiring to distribute fentanyl. The prison term will be followed by 4 years of supervised release. Stevenson pleaded guilty to this charge on September 9, 2024.
The government’s investigation revealed a large-scale drug trafficking organization that was responsible for bringing over 4 kilograms of fentanyl pills into Madison from Arizona. Law enforcement began investigating the organization in January 2022, following the seizure of two mail packages that each contained a kilogram of fentanyl pills (almost 20,000 pills in total). Both packages were mailed by an individual in Arizona to addresses in Madison.
Between March and October 2022, undercover officers purchased fentanyl pills from members of the organization on twenty-three occasions in the Madison area. Stevenson was involved in ten of those drug sales. In October 2022, another mail package destined for members of the Madison drug organization was seized and contained 1.75 kilograms of fentanyl pills.
During Stevenson’s involvement in the case, he was on parole through the state of Illinois, following a firearms conviction.
At sentencing, Judge Peterson noted that while the quantities of fentanyl that Stevenson was selling were smaller than his co-defendants, he was an active dealer and his conduct was harmful to the community.
Five other defendants involved in this fentanyl trafficking operation were charged in a separate indictment and have already been sentenced. Dejon C. Glover was sentenced on May 16, 2024, to 4 ½ years in federal prison for attempting to possess fentanyl intended for distribution. Lloyd M. McKire-Bennett was sentenced on May 17, 2024, to more than 13 ½ years in federal prison for conspiring to distribute 400 grams or more of fentanyl and possessing firearms and ammunition as a felon. Deshawn P. Davis was sentenced on May 22, 2024, to 5 ½ years in federal prison for conspiring to distribute fentanyl. Yoshi R. Walker was sentenced on July 24, 2024, to 6 years in federal prison for attempting to distribute 40 grams or more of fentanyl. Christopher S. Wilson was sentenced on July 29, 2024, to 5 years in federal prison for conspiring to distribute 40 grams or more of fentanyl.
The charges against Stevenson and the other individuals were the result of an investigation conducted by the U.S. Postal Inspection Service, Drug Enforcement Administration, IRS Criminal Investigations, Wisconsin Department of Justice Division of Criminal Investigation, and Dane County Narcotics Task Force. The ATF Madison Crime Gun Task Force also assisted with the investigation. The task force consists of federal agents from ATF and Task Force Officers (TFOs) from local agencies including the Dane County and Clark County Sheriff’s Offices and the Fitchburg, Madison, Sun Prairie, and La Crosse Police Departments. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
Illegal Alien Sentenced in Multi-Million Dollar Wire and Tax Fraud SchemeRead the Press Release
Jacksonville, Florida – United States District Judge Wendy W. Berger has sentenced Pablo Isila Euceda-Hernandez (36), a Honduran national illegally present in United States, to 27 months in federal prison for conspiracy to commit wire fraud and conspiracy to commit tax fraud. The court also ordered Euceda-Hernandez to pay restitution to the IRS in the amount of $1,214,508. The court also entered a money judgment against Euceda-Hernandez in the amount of $336,029, representing the proceeds of the wire fraud.
According to court documents, Euceda-Hernandez established a shell company that purported to be involved in the construction industry. Euceda-Hernandez obtained a workers’ compensation insurance policy in the name of the shell company to cover a minimal payroll for a few purported employees. He then “rented” the workers’ compensation insurance to work crews who had obtained subcontracts with construction contractors on projects in various Florida counties as well as contractors in other states. He sent the contractors a certificate as “proof” that the work crews had workers’ compensation insurance, as required by Florida law. By sending the certificate, Euceda-Hernandez falsely represented that the work crews worked for the shell company. Over the course of the scheme, Euceda-Hernandez “rented” the certificates to dozens of work crews, defrauding the worker’s compensation carrier, typically allowing undocumented illegal workers to be employed unlawfully.
As part of the scheme, the contractors issued payroll checks for the workers’ wages to the shell companies and Euceda-Hernandez cashed these checks, then distributed the cash to the work crews after deducting their fee, which was typically about 6% of the payroll. During the scheme, Euceda-Hernandez cashed payroll checks totaling approximately $5 million. Neither the shell company nor the contractors reported to government authorities the wages that were paid to the workers, nor did they pay either the employees’ or the employer’s portion of payroll taxes – including Social Security, Medicare, and federal income tax. According to the IRS, the amount of payroll taxes due on wages collected by Euceda-Hernandez totaled $1,214,508.
The scheme also facilitated the avoidance of the higher cost of obtaining adequate workers’ compensation insurance for the numerous workers on the work crews to whom Euceda-Hernandez “rented” the workers’ compensation insurance. The policy that Euceda-Hernandez purchased and then “rented” out was for an estimated payroll of $169,400 and the insurance company issued a policy for a premium of approximately $11,352. Had a workers’ compensation insurance policy been purchased for the actual payroll totaling approximately $5 million, the policy premium would have totaled approximately $591,978.
“Under-the-table cash payroll schemes, especially those designed to pay illegal immigrants not authorized to work in the United States, jeopardizes the integrity of the construction industry and undermines the legal framework intended to protect workers and ensure fair business through legal and ethical standards,” said Tim Hemker, Homeland Security Investigations (HSI) Jacksonville assistant special agent in charge. “HSI, through our strong law enforcement partnerships, is committed to uncovering the schemes of criminals and ensuring that justice is served for those who seek to exploit the system.”
“This defendant cheated. He cheated their employees, the U.S. taxpayers, and most importantly the free-market principles which govern our society,” said Ron Loecker, Special Agent in Charge of IRS-Criminal Investigation’s Tampa Field Office. “By breaking the law, Euceda-Hernandez sought an unfair advantage to all their competitors who played by the rules and will now contemplate their actions from prison. We want to ensure a level playing field for the business owners doing things the right way. To those who think they can get away with this type of behavior, no matter what steps you take to cover your tracks, we will find out, and do everything we can to bring you to justice.”
This case was investigated by Homeland Security Investigations, the Internal Revenue Service – Criminal Investigation, and the Florida Department of Financial Services. It was prosecuted by Assistant United States Attorney John Cannizzaro.
Honduras Man Charged with Illegal Re-Entry into U.S.Read the Press Release
PITTSBURGH, Pa. – A Honduras resident has been indicted by a federal grand jury in Pittsburgh on a charge of illegal re-entry of a removed alien, United States Attorney Eric G. Olshan announced today.
The one-count Indictment named Saul Enrique Padilla-Mejia, 38, as the sole defendant.
According to the Indictment, on or about August 13, 2019, Padilla-Mejia was removed from the United States. On or about February 4, 2024, Padilla-Mejia was arrested by the Pennsylvania State Police for driving under the influence, driving without a license, reckless driving, careless driving, and failing to obey traffic control devices.
Padilla-Mejia was arrested on September 1, 2024, by the Moon Township Police Department related to the illegal re-entry charge, and was taken into custody by U.S. Immigration and Customs Enforcement on October 30, 2024.
Padilla-Mejia appeared in federal court on December 4, 2024, and was ordered detained pending trial.
The law provides for a maximum total sentence of up to two years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the United States.
U.S. Immigration and Customs Enforcement and the Pennsylvania State Police conducted the investigation leading to the Indictment.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Home Health Care Company and Its Owners Pay More Than $360K to Settle False Claims AllegationsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and William Tong, Connecticut Attorney General, today announced that HOME CARE VNA LLC and its current and former owners, SHAKIRA LUBEGA and CONSTANT OGUTT, have entered into a civil settlement agreement with the federal and state governments in which they will pay $361,520 to settle allegations that they were paid for home health care services that violated Medicaid regulations relating to plans of care.
Home Care VNA is a home health agency with offices located at 330 Main Street in Hartford. Lubega is the current owner of Home Care VNA and Ogutt is a former, part owner. Lubega and Ogutt are married.
The Regulations of Connecticut State Agencies expressly require, as a condition of payment for home health care services, that each patient has a plan of care, the plan of care is signed by a licensed practitioner, the plan of care is signed within 21 days after the episode of care begins, and a new or modified plan of care is reviewed, revised, and signed every 60 days.
The United States and the State of Connecticut contend that Home Care VNA, Lubega, and Ogutt submitted or caused to be submitted claims for reimbursement to Connecticut Medicaid for home health care services for patients who had unsigned plans of care or had no plans of care at all.
To resolve the governments’ False Claims Act allegations, Home Care VNA, Lubega, and Ogutt have agreed to pay $361,520, which covers the time-period from August 1, 2018, through March 26, 2020.
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot and by Assistant Attorney General Joshua Jackson of the Connecticut Office of the Attorney General.
In 2022, Home Care VNA, Lubega, and Ogutt paid $630,000 to resolve Medicaid fraud allegations in Massachusetts.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Hartford Man Admits Trafficking Crystal MethRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that GODFREY SMITH, also known as “Mike” and “Mikey,” 41, of Hartford, pleaded guilty today in Bridgeport federal court to a methamphetamine trafficking charge.
According to court documents and statements made in court, in April 2024, the Drug Enforcement Administration’s Hartford Task Force and Middletown Police Department made a controlled purchase of approximately 53 grams of crystal methamphetamine from an individual in Middletown. During the transaction, investigators identified Smith as the source of the drugs. On August 22, 2024, investigators made a controlled purchase of approximately 240 grams of crystal methamphetamine from Smith in Hartford.
Smith was arrested on a federal criminal complaint on September 4, 2024. At the time of his arrest, law enforcement seized from Smith approximately 27 grams of crystal methamphetamine, 44 grams of cocaine, 32 grams of crack cocaine, $3,200 in cash, and a box of .45 caliber ammunition.
Smith pleaded guilty to possession with intent to distribute, and distribution of, five grams or more of methamphetamine, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny in Hartford on February 28.
Smith is released on a $100,000 bond pending sentencing.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, Middletown, New Britain, Rocky Hill, Wethersfield, and Windsor Locks Police Departments. The Bureau of Alcohol, Tobacco, Firearms and Explosives has assisted the investigation.
The case is being prosecuted by Assistant U.S. Attorney A. Reed Durham.
Guatemala Resident Indicted for Illegal Re-Entry into U.S.Read the Press Release
PITTSBURGH, Pa. – A resident of Guatemala has been indicted by a federal grand jury in Pittsburgh on a charge of illegal re-entry of a removed alien, United States Attorney Eric G. Olshan announced today.
The one-count Indictment named Josue Raul Ascon-Morales, 36, as the sole defendant.
According to the Indictment, on or about March 18, 2008, Ascon-Morales was removed from the United States. On or about September 1, 2024, Ascon-Morales was charged by the Moon Township Police Department for driving under the influence and driving without a license. He was taken into custody by U.S. Immigration and Customs Enforcement on October 22, 2024.
Ascon-Morales appeared in federal court on December 4, 2024, and was ordered detained pending trial.
The law provides for a maximum total sentence of up to two years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
U.S. Immigration and Customs Enforcement and the Moon Township Police Department conducted the investigation leading to the Indictment.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Fraud Ringleader and Former Fugitive William Mize Sentenced to 12 Years in Federal Prison, Ordered to Pay $7.1 Million in RestitutionRead the Press Release
Spokane, Washington – On December 5, 2024, United States District Judge Thomas O. Rice sentenced William Oldham Mize to 144 months in federal prison in connection to a multimillion-dollar fraud scheme involving false and fabricated insurance claims. Judge Rice also imposed 3 years of supervised release and $6,657,209.00 in restitution to insurance companies and $436,399.00 in restitution to the IRS.
According to court documents and information presented at the sentencing hearing, Mize was the ringleader of a massive insurance fraud scheme to intentionally cause automobile and boat collisions as well as staged home “accidents” in order to file false and fraudulent insurance claims and collect the proceeds. According to court documents, the scheme took place between 2013 and 2018, involved numerous staged collisions in Washington and Nevada, and obtained more than $6 million, most of which was kept by Mize. The United States seized and forfeited more than $2 million in assets – including numerous houses, cars, boats, and cash – from Mize and his co-conspirators and has returned that money to the victims of his crime.
Mize originally appeared in federal court on his indictment on January 9, 2019. Following his initial appearance, he was released pending trial. In July 2019, Mize fled from supervision and became a fugitive, living under a number of false identities.
On November 28, 2023, the U.S. Marshals apprehended Mize in Jacksonville, Florida based on a lead that Mize, using a false identity, was attempting to sell a yacht in which was living in the Jacksonville area. Mize was then located and arrested at a marina in central Florida and transported to Eastern Washington, where he has remained in custody.
“For many years Mr. Mize recruited, directed, and elaborately staged automobile and boat collisions as well as other injury accidents to fraudulently obtain millions of dollars. Not only did this scheme cause serious physical harm to his co-conspirators, including his wife and children, but it placed the community in significant danger. Furthermore, Mr. Mize defrauded the public out of more than $400,000 by cheating on his taxes. When indicted by prosecutors in my office, Mr. Mize fled, to avoid accountability for his crimes,” stated U.S. Attorney Vanessa Waldref. “I am grateful for the dedication of the U.S. Marshals who located and returned Mr. Mize to the Eastern District and prosecutors and investigators who worked many hours over the years to achieve justice in this case.”
“I want to commend and express special thanks for the exceptional investigative work done by the talented agents and investigative professionals with the Federal Bureau of Investigation, the Internal Revenue Service, and the United States Marshals Service. Their close collaboration and partnership, and their persistence and hard work throughout a complex and lengthy investigation, are what made this result possible. We look forward to continuing to work with our law enforcement partners to strengthen and safeguard Eastern Washington,” said Assistant United States Attorney Dan Fruchter.
“Mr. Mize spent years living off the misery he caused.” said Gregory L. Austin, Acting Special Agent in Charge of the FBI’s Seattle field office. “While he enriched himself, his co-conspirators, which included family members, were left with physical injuries and jail sentences. To make matters worse, rather than answer for his crimes, he became a fugitive for almost five years. I would like to commend our investigators, partners, and specifically the US Marshals Service, who ultimately tracked him down and took him into custody.”
“Mr. Mize endangered his family and the public for money,” said Adam Jobes, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office. “As long as money is a motivation for crime, we will assist our law enforcement partners with investigations like this one.”
“The elaborate fraud schemes that William Mize orchestrated not only caused financial injury to various insurance companies, but these crimes add to the cost for responsible citizens to have insurance. It should also not be forgotten that the collisions, and physical injuries to those participating in the schemes, were acts of unconscionable violence and added risk to the public. Mize fled after his original appearance in federal court, which led to a long and protracted fugitive investigation,” said Craig Thayer, United States Marshal for the Eastern District of Washington. “The partnership and teamwork between local, state, and federal agencies including the IRS and FBI was instrumental in the eventual arrest of Mize. Judge Rice has now made Mize accountable with today’s sentence and order for restitution.”
The FBI, Internal Revenue Service, and U.S. Marshals Service investigated this case. Assistant United States Attorneys Dan Fruchter, Jeremy J. Kelley, and Brian M. Donovan prosecuted the case on behalf of the United States.
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Founder of Beverage Company Charged with Defrauding Investors of Millions of DollarsRead the Press Release
NEWARK, N.J. – The founder and executive chairman of a beverage company appeared in court for lying to solicit investments in his company, U.S. Attorney Philip R. Sellinger announced.
Todd O’Gara, 44, of Austin, Texas was charged by complaint with one count of wire fraud and appeared in court today to before U.S. Magistrate Judge Dustin Howell in Austin federal court.
According to documents filed in this case and statements made in court:
O’Gara, who founded and managed a beverage company, Wanu Water, Inc., raised at least $3.4 million dollars from individual victim investors. O’Gara repeatedly lied to solicit those investments and to encourage investors to maintain their investments. Among other things, O’Gara lied about the size of purchase orders from retailers and about major investments from private equity firms. As part of this fraudulent scheme, O’Gara sent investors fake documents including doctored emails and forged term sheets.
The wire fraud charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000, or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.
U.S. Attorney Sellinger added that the investigation is continuing. If you believe you are a victim of or otherwise have information concerning this scheme, please contact the FBI at [email protected].
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado, Newark Field Division, with the investigation.
The government is represented by Assistant U.S. Attorneys Aaron L. Webman and Carolyn Silane of the Economic Crimes Unit in Newark.
ogara.complaint.pdf
Former EMT Sentenced for Drug TamperingRead the Press Release
Memphis, TN – A Cordova, Tennessee woman has been sentenced to a year and a day in federal prison for tampering with a vial of Benadryl while on duty as an Emergency Medical Technician. Reagan Fondren, Acting United States Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, Cleola Hogan, 40, was working her shift as an EMT on March 20, 2022, when she removed Benadryl from a vial using a syringe and injected the Benadryl into her arm. Hogan then replaced the missing Benadryl with saline solution and glued the cap back onto the Benadryl vial. Benadryl is commonly used to treat patients with severe allergic reactions, and replacing Benadryl with saline would place patients who needed Benadryl at risk of death or serious bodily injury.
Hogan entered a guilty plea on September 3, 2024, to tampering with a consumer product with reckless disregard that another person would be placed in danger of death or bodily injury.
On December 4, 2024, Chief United States District Court Judge Sheryl H. Lipman sentenced Hogan to 12 months and one day of incarceration with a three-year period of supervised release to follow. Hogan was also ordered to undergo drug and mental health treatment and counseling. There is no parole in the federal system.
This case was investigated by the United States Food and Drug Administration’s Office of Criminal Investigations, working with the Priority Ambulance Diversion Task Force.
Acting U.S. Attorney Reagan Fondren thanked Assistant United States Attorney Carroll L. André III and former Assistant United States Attorney Courtney Lewis who prosecuted this case, as well as the law enforcement partners who investigated the case.
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For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
Former Commerce City Manager and Former Baldwin Park City Attorney Bribery Guilty Pleas and Plea Agreements UnsealedRead the Press Release
LOS ANGELES – Two former top city officials in Commerce and Baldwin Park have pleaded guilty to participating in a scheme involving bribes in exchange for a corrupt Baldwin Park politician’s votes and influence over his city’s cannabis permitting process, the Justice Department announced today.
Edgar Pascual Cisneros, 42, of Montebello, who served as Commerce’s city manager from November 2017 to December 2023, pleaded guilty on November 6, 2023, to federal bribery. Robert Manuel Nacionales Tafoya, 62, of Redondo Beach, who served as Baldwin Park’s city attorney from December 2013 to October 2022, pleaded guilty on December 5, 2023, to federal bribery and tax evasion charges.
Federal prosecutors today unsealed the criminal charges and plea agreements, in which both Cisneros and Tafoya agreed to cooperate in ongoing public corruption investigations.
According to the plea agreements, shortly after Baldwin Park began issuing marijuana permits in June 2017, then-Baldwin Park City Councilmember Ricardo Pacheco solicited bribes from companies seeking those permits. Cisneros helped a company obtain a marijuana permit and related approvals through approximately $45,000 in bribes and that the company promised to pay Cisneros at least $235,000 to help secure the permit. Tafoya facilitated a bribery scheme involving former Compton City Councilmember Isaac Galvan, in which Galvan sought to obtain a marijuana permit for his consulting client also through bribes to Pacheco. Tafoya further admitted to evading payment of approximately $650,000 in federal tax liability.
Pacheco pleaded guilty in June 2020 to a federal bribery charge unrelated to the marijuana-permit scheme. Pacheco further admitted to orchestrating bribery schemes involving Tafoya and Gabriel Chavez, a former San Bernardino County planning commissioner who pleaded guilty to a federal bribery charge in November 2022. Pacheco’s sentencing hearing is scheduled for February 2025. Chavez’s sentencing hearing is scheduled for April 2025.
In September 2023, Galvan and his consulting client, Yichang Bai, were arrested on a federal grand jury indictment alleging they paid $70,000 in bribes to Pacheco in exchange for his vote and support for marijuana permits for Bai’s company, W&F International Corp. Both men have pleaded not guilty. Their trial is scheduled for June 10, 2025.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI and IRS Criminal Investigation are investigating these matters.
Assistant United States Attorneys Thomas F. Rybarczyk, Michael J. Morse, and Lindsey Greer Dotson of the Public Corruption and Civil Rights Section are prosecuting these cases.
Any member of the public who has information related to this or any other public corruption matter is encouraged to send information to the FBI’s tip line at tips.fbi.gov or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
Former California Correctional Officer Sentenced for Accepting BribesRead the Press Release
SACRAMENTO, Calif. — Stephen Joseph Crittenden, 44, of Suisun City, was sentenced today by U.S. District Judge Troy L. Nunley to two years and one month in prison for bribery concerning programs receiving federal funds, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Crittenden was a California Department of Corrections and Rehabilitation correctional officer at the California Medical Facility in Vacaville. From 2021 through 2023, he accepted bribes from inmates, totaling more than $45,000, to smuggle cellphones into the California Medical Facility.
“Crittenden abused the trust placed in correctional officers by repeatedly taking bribes to smuggle contraband into a prison,” said U.S. Attorney Talbert. “Today’s sentence reflects the seriousness of his abuse of trust and should deter other correctional officers from engaging in the same conduct.”
“The FBI has no tolerance for corruption by public employees – especially law enforcement officers – who are entrusted to uphold the law and serve the public. No person is above the law,” said FBI Sacramento Special Agent in Charge Sid Patel. “This case exemplifies the strong partnership between the FBI and CDCR. The FBI works tirelessly to ensure corrupt public officials are held accountable to preserve the public’s trust in and integrity of these vital positions.”
This case was the product of an investigation by the Federal Bureau of Investigation, with assistance from the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney Nicholas M. Fogg prosecuted the case.
Federal judge convicts Boulder man of illegally possessing firearmRead the Press Release
HELENA — A federal judge on Dec. 4 convicted a Boulder felon accused of illegally possessing a firearm he had tried to hide and while he was on state supervision, U.S. Attorney Jesse Laslovich said today.
After a one-day bench trial on Nov. 25, Chief U.S. Judge Brian M. Morris announced the verdict on Dec. 4, finding Paul Anthony LaFournaise, 59, guilty of prohibited person in possession of a firearm. LaFournaise faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release.
The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for April 16, 2025. LaFournaise was detained pending further proceedings.
In court documents and at trial, the government alleged that on May 11, Jefferson County Sheriff’s Office deputies responded to reports that LaFournaise was threatening a sister at the family residence because believed the sister had stolen an item of his, a “black bag.” LaFournaise also called 911 to report that his brother had punched him in the face. The brother told deputies he had punched LaFournaise because LaFournaise had threatened his mom and sister and shoved him. Deputies ultimately identified LaFournaise as the primary aggressor and arrested him for partner/family member assault. The investigation determined that the sister had found items belonging to LaFournaise-- a 9mm pistol, a holster, ammunition, drugs and drug paraphernalia-- inside a black bag that was under a sweatshirt in a flowerpot inside a shed. The sister then hid the bag and contents from LaFournaise and was concerned because he is a felon, was on state supervision and prohibited from possessing firearms and ammunition. LaFournaise told investigators he had handled the gun and had purchased the drugs that were in the black bag. He had received the bag and knew it contained a gun before May 11. LaFournaise further explained that he had hidden the bag earlier in the day on May 11 by placing it in a planter and putting things on top of it.
The U.S. Attorney’s Office is prosecuting the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Probation and Parole and Jefferson County Sheriff’s Office conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
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Federal investigation into meth, fentanyl trafficking on Blackfeet Indian Reservation results in multiple indictmentsRead the Press Release
BROWNING — U.S. Attorney Jesse Laslovich, for the District of Montana, today announced that a six-month-long enforcement initiative led by the Drug Enforcement Administration, in cooperation with, federal, tribal and local enforcement, into drug trafficking on the Blackfeet Indian Reservation has resulted in indictments of multiple individuals.
U.S. Attorney Laslovich, joined by representatives from the DEA, Blackfeet Law Enforcement Services and Bureau of Indian Affairs, discussed the initiative during a press conference held at the Blackfeet Tribal Business Council offices in Browning, on the Blackfeet Reservation.
The DEA-led the enforcement action was initiated under its Operation Overdrive, which is aimed at combatting rising rates of drug-related violent crime and overdose deaths plaguing American communities. The initiative identifies hot spots to devote its law enforcement resources to communities where criminal drug organizations or networks are causing the most harm. The DEA, working in partnership with federal, tribal and local law enforcement agencies, identified the Blackfeet Reservation as a community for Operation Overdrive.
“Our office is well aware that the scourge of methamphetamine and fentanyl trafficking is devastating to Montana communities and disproportionally harming Indian Country, including the Blackfeet Nation. Drug traffickers attempt to move into reservations and enlist residents to deal drugs and collect the proceeds. Focused enforcement actions, like this operation on the Blackfeet Reservation, not only get violent drug dealers and suppliers off the street, but also send the message that traffickers have no safe place on Montana’s Indian reservations. The progress we’ve made with this operation would not have happened without the cooperation of our federal, tribal, and local law enforcement partners, for which I am sincerely grateful,” U.S. Attorney Laslovich said.
“DEA’s Operation Overdrive shows our commitment to areas of the country experiencing high drug cartel activity, and the violence and crime that comes with it,” said DEA Rocky Mountain Field Division Special Agent in Charge Jonathan Pullen. “I send our sincere thanks to the Blackfeet Reservation, the U.S. Attorney’s Office, District of Montana, and commend our tribal, federal, state and local law enforcement partners for their hard work, dedication, and cooperation in bringing criminals to justice.”
The DEA initiative on the Blackfeet Reservation ran from approximately May to October and has resulted so far in the indictments of 11 individuals on various federal drug crimes, primarily involving methamphetamine and fentanyl, and firearms crimes.
Assisting DEA in the enforcement action were Blackfeet Law Enforcement Services, the Bureau of Indian Affairs, Glacier County Sheriff’s Office and FBI.
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Federal Inmate Convicted at Trial Sentenced to 25 Years in Prison for Assault with Intent to Commit MurderRead the Press Release
Ocala, Florida – United States District Judge Thomas P. Barber has sentenced Shane McMillan (51, Texas) to 25 years in federal prison following jury verdicts finding McMillan guilty of assault with the intent to commit murder and possession of a prohibited object by a federal inmate.
According to testimony and evidence presented at trial, McMillan was an inmate in the Coleman Federal Correctional Complex in Sumter County. On July 9, 2023, McMillan followed another inmate into a cell, closed the door, and then stabbed the victim approximately 10 times with a shank. Another inmate heard screaming and opened the cell door, which allowed the victim to escape. The victim suffered multiple puncture wounds to his neck, chest, and torso. The victim was transported by helicopter to a nearby hospital where he eventually recovered from the injuries. When interviewed by the FBI, McMillan admitted that he wanted to kill the victim.
This case was investigated by the FBI and the Federal Bureau of Prisons. It was prosecuted by Assistant United States Attorney Hannah Nowalk Watson.
Federal Inmate and His Sister Charged with Cyberstalking and Conspiring to Extort Victims by Threatening to Release Sexually Explicit MaterialsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a Complaint charging FRED MASTROIANNI and DOREEN MASTROIANNI with cyberstalking, extortion, and conspiracy to commit extortion. DOREEN MASTROIANNI and FRED MASTROIANNI will be presented in White Plains federal court before U.S. Magistrate Judge Victoria Reznik on December 11, 2024, at 3:00 p.m.
U.S. Attorney Damian Williams said: “As alleged, Fred and Doreen Mastroianni have cyberstalked and conspired to extort victims by threatening to release compromising images of them to the public, allegedly engaging in this conduct even though Fred is already serving a 35-year prison sentence for receiving, distributing, and producing child pornography. This Office will continue to protect the community from those who repeatedly try to harm and exploit vulnerable citizens.”
FBI Assistant Director in Charge James E. Dennehy said: “The Mastroianni siblings allegedly preyed on individuals who were victimized by Fred Mastroianni; stalking and conspiring to extort them for the siblings’ financial benefit. Victimization by sexual exploitation is beyond appalling and will not be tolerated. FBI New York will work tirelessly to hold accountable anyone attempting to utilize stalking and extortion for financial gain."
As alleged in the Complaint unsealed today:[1]
FRED MASTROIANNI (“FRED”) is currently serving a 35-year sentence imposed by the Honorable Philip M. Halpern, U.S. District Judge for the Southern District of New York, on August 15, 2024, for receiving and distributing child pornography and for the sexual exploitation of a minor. DOREEN MASTROIANNI (“DOREEN”) is FRED’s sister.
Since at least October 2024, FRED and DOREEN have engaged in a plot to extort victims by threatening to release sexually explicit images and videos of the victims that FRED has saved. The extortion attempts are designed to compel victims to contribute money to FRED’s commissary account in prison and to fund the purchase of an insurance policy against DOREEN’s life for the benefit of FRED. FRED has used another inmate’s email account to send DOREEN draft extortion threats in furtherance of this scheme. At FRED’s direction, DOREEN has forwarded those extortion threats to victims on FRED’s behalf.
There may be more victims of this alleged conduct. If you have information to report, contact the FBI through its toll-free Tip Line at 1-800-CALL-FBI (225-5324) or https://tips.fbi.gov.
* * *
FRED, 54, formerly of White Plains, New York, and DOREEN, 69, of Yorktown Heights, New York, are each charged with one count of cyberstalking, which carries a maximum sentence of five years in prison; one count of interstate extortion, which carries a maximum sentence of two years in prison; and one count of conspiracy to commit interstate extortion, which carries a maximum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the work of the FBI’s Westchester Safe Streets Task Force.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Ryan W. Allison, Margaret N. Vasu, and Courtney Heavey are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Extradited Nigerian National Sentenced to Eight Years in Prison for Business Email Compromise SchemeRead the Press Release
WASHINGTON — Okechuckwu Valentine Osuji, 39, a Nigerian national, was sentenced yesterday in New Haven, Connecticut, to eight years in prison for operating a business email compromise scheme out of multiple countries, including the United States.
According to court documents and statements made in court, Osuji and his co-conspirators targeted specific individuals and businesses by masquerading as trustworthy entities in electronic communications to obtain money. They used witting and unwitting “money mules” to receive fraud proceeds in their bank accounts and then either transferred those funds from the money mule accounts to accounts under the co-conspirators’ control or converted the stolen proceeds to cash for further transfer. Over the years-long operation of the scheme, numerous victims were tricked into transferring funds into bank accounts the victims believed were under the control of legitimate recipients as part of normal business operations. In reality, the bank accounts were controlled by Osuji and his co-conspirators. The victims included a Connecticut-based financial company, a Colorado-based lending company, an Alaska-based nonprofit performing arts organization, a New York-based food and beverage company, and many others.
The scheme also involved the exploitation of elderly individuals through romance scams to serve as some of the unwitting money mules, including one woman who testified at trial that she was duped into sending her own personal savings and income, including Social Security checks, to an individual she believed to be her romantic partner, but who was in fact one of Osuji’s co-conspirators. The scam resulted in the near-total depletion of her life savings, caused her to declare bankruptcy, and led to the repossession of her house. Her personal bank account was also used to facilitate the fraud against one of the companies targeted by Osuji.
Osuji was arrested in Malaysia and extradited to the United States in 2022. On May 1, 2024, a jury in New Haven found Osuji guilty of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. As a result of the scheme, losses and intended losses totaled over $6 million. At his sentencing hearing, Osuji was ordered to pay restitution to his victims.
Osuji’s alleged co-conspirator, John Wamuigah, remains in Malaysia and is pending extradition proceedings. An indictment is merely an allegation, and Wamuigah is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Another co-conspirator, Tolulope Bodunde, also a citizen of Nigeria, pleaded guilty and was sentenced on Oct. 16 to two years in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Vanessa Roberts Avery for the District of Connecticut; and Special Agent in Charge Robert Fuller of the FBI New Haven Field Office made the announcement.
The FBI New Haven Field Office and the Stamford Police Department investigated the case. The Justice Department’s Office of International Affairs, Royal Malaysia Police, and Malaysian Attorney General’s Chambers provided valuable assistance in securing the arrest and extradition of Osuji.
Trial Attorney Lydia Lichlyter of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Neeraj N. Patel for the District of Connecticut are prosecuting the case.
To learn more about business email compromise scams, please visit www.fbi.gov/how-we-can-help-you/scams-and-safety/common-scams-and-crimes/business-email-compromise and www.ic3.gov/CrimeInfo/BEC.
Extradited Nigerian National Sentenced to Eight Years in Prison for Business Email Compromise SchemeRead the Press Release
Okechuckwu Valentine Osuji, 39, a Nigerian national, was sentenced yesterday in New Haven, Connecticut, to eight years in prison for operating a business email compromise scheme out of multiple countries, including the United States.
According to court documents and statements made in court, Osuji and his co-conspirators targeted specific individuals and businesses by masquerading as trustworthy entities in electronic communications to obtain money. They used witting and unwitting “money mules” to receive fraud proceeds in their bank accounts and then either transferred those funds from the money mule accounts to accounts under the co-conspirators’ control or converted the stolen proceeds to cash for further transfer. Over the years-long operation of the scheme, numerous victims were tricked into transferring funds into bank accounts the victims believed were under the control of legitimate recipients as part of normal business operations. In reality, the bank accounts were controlled by Osuji and his co-conspirators. The victims included a Connecticut-based financial company, a Colorado-based lending company, an Alaska-based nonprofit performing arts organization, a New York-based food and beverage company, and many others.
The scheme also involved the exploitation of elderly individuals through romance scams to serve as some of the unwitting money mules, including one woman who testified at trial that she was duped into sending her own personal savings and income, including Social Security checks, to an individual she believed to be her romantic partner, but who was in fact one of Osuji’s co-conspirators. The scam resulted in the near-total depletion of her life savings, caused her to declare bankruptcy, and led to the repossession of her house. Her personal bank account was also used to facilitate the fraud against one of the companies targeted by Osuji.
Osuji was arrested in Malaysia and extradited to the United States in 2022. On May 1, 2024, a jury in New Haven found Osuji guilty of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. As a result of the scheme, losses and intended losses totaled over $6 million. At his sentencing hearing, Osuji was ordered to pay restitution to his victims.
Osuji’s alleged co-conspirator, John Wamuigah, remains in Malaysia and is pending extradition proceedings. An indictment is merely an allegation, and Wamuigah is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Another co-conspirator, Tolulope Bodunde, also a citizen of Nigeria, pleaded guilty and was sentenced on Oct. 16 to two years in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Vanessa Roberts Avery for the District of Connecticut; and Special Agent in Charge Robert Fuller of the FBI New Haven Field Office made the announcement.
The FBI New Haven Field Office and the Stamford Police Department investigated the case. The Justice Department’s Office of International Affairs, Royal Malaysia Police, and Malaysian Attorney General’s Chambers provided valuable assistance in securing the arrest and extradition of Osuji.
Trial Attorney Lydia Lichlyter of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Neeraj N. Patel for the District of Connecticut are prosecuting the case.
To learn more about business email compromise scams, please visit www.fbi.gov/how-we-can-help-you/scams-and-safety/common-scams-and-crimes/business-email-compromise and www.ic3.gov/CrimeInfo/BEC.
Eleven-Time Convicted Felon Pleads Guilty to Possessing AmmunitionRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Bryan Jermaine Davis (37, Jacksonville) has pleaded guilty to possessing ammunition as a convicted felon. Davis faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been scheduled.
According to court documents, on July 5, 2024, an officer with the Jacksonville Sheriff’s Office conducted a traffic stop of Davis for failing to wear a seatbelt. During questioning, Davis admitted to having marijuana in his possession. The officer conducted a search of Davis’s vehicle and recovered a bag containing assorted rounds of ammunition and a ghost gun under the driver’s seat. Ghost guns have no serial number and are therefore untraceable. When the officer found the ammunition and ghost gun, Davis attempted to flee on foot but was caught and detained by officers who had responded to the scene. At the time of the offense, Davis had multiple prior felony convictions including robbery, selling heroin, possession of cocaine, dealing in stolen property, and possession of a weapon by a state prisoner. As a convicted felon, Davis is prohibited from possessing ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Brenna Falzetta.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Edina Financial Adviser Sentenced to over Two Years in Prison for Stealing $2.1 Million from ClientsRead the Press Release
ST. PAUL, Minn. – An Edina financial adviser has been sentenced to 30 months in federal prison, two years of supervised release, and ordered to pay restitution in the amount of $2,104,395, in a wire fraud scheme where millions in client investment funds were misappropriated, announced United States Attorney Andrew M. Luger.
According to court documents, Kristi Margaret Berge, 48, was the founder and CEO of Keep Safe Investments, LLC, or “KSI Financial,” a financial planning and investment services firm. Berge also co-owned and operated J&K Connect LLC, a company that invested in real estate through buying, renovating, and re-selling properties. Berge maintained offices for her companies in Edina, Minnesota. Berge is registered as an investment adviser with the Financial Industry Regulatory Authority (FINRA) and licensed as an investment adviser with the State of Minnesota.
According to court documents, from June 2020 through February 2023, Berge fraudulently misappropriated approximately $2.1 million from some of her clients’ accounts by falsely representing to clients that she would maintain their money in safe and secure investment accounts, such as individual retirement accounts and 401(k) retirement savings plans. Instead, Berge fraudulently misappropriated the money by repeatedly withdrawing client funds in varying amounts between $5,000 and $220,000 and depositing the funds into bank accounts she controlled. Berge then used the clients’ funds to purchase multiple properties in Edina for her real estate business. Berge tried to conceal her fraud by falsely labeling her illicit withdrawals as “management” or “administrative” fees and by creating fabricated records to give the false impression that she had authorization to withdraw clients’ investment funds.
Berge pleaded guilty to one count of wire fraud earlier this year, and was sentenced yesterday in U.S. District Court by Judge Eric C. Tostrud.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Matthew S. Ebert, Harry M. Jacobs, and Craig Baune prosecuted the case.
Dubuque, Iowa, Man Guilty of Cocaine ConspiracyRead the Press Release
A man who conspired with others to distribute large quantities of cocaine that resulted in the death of a young Dubuque woman pled guilty today in federal court in Cedar Rapids.
Maurice Randolph, age 44, from Dubuque, Iowa, was convicted of one count of conspiracy to distribute 500 grams of more of cocaine within 1000 feet of several parks and schools in Dubuque, Iowa, between 2017 and April of 2021, that resulted in the death of a young Dubuque woman on February 14, 2021.
At the plea hearing, Randolph admitted he was a member of a conspiracy to distribute 500 grams or more of cocaine in the Dubuque area near numerous parks and schools. He admitted that on February 14, 2021, one of his coconspirators distributed cocaine to a young woman in Dubuque who went home, used the cocaine and died.
Sentencing before United States District Court Chief Judge C.J. Williams will be set after a presentence report is prepared. Randolph remains in custody of the United States Marshal pending sentencing. Randolph faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and 8 years to life on supervised release following any imprisonment.
The case was prosecuted by Assistant United States Attorneys Patrick J. Reinert and Nicole Nagin and investigated by Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Iowa Medical Examiner’s Office and the Dubuque Drug Task Force, comprised of Dubuque Police Department, Dubuque Sheriff’s Office. 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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-01013.
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Department of Justice awards nearly $975,000 for youth suicide prevention in Pacific CountyRead the Press Release
Seattle – The Department of Justice Office of Justice Programs (OJP) and the Bureau of Justice Assistance (BJA) has awarded almost $975,000 to Pacific County organizations to execute a comprehensive youth suicide prevention project.
“Tragically, Pacific County has the tenth highest suicide rate in the state,” said U.S. Attorney, Tessa M. Gorman. “Those working with youth in Pacific County have crafted this project to try to combat youth suicide and build community resilience. The Department of Justice supports these efforts with the hope that other communities can learn from these programs.”
Pacific County Public Health & Human Services (PCHHS), in collaboration with WestEd’s Justice and Prevention Research Center (JPRC), aim to specifically address the high rates of suicidal ideation and attempt among 8th – 12th graders in Pacific County. This project will deliver suicide awareness and prevention training in academic settings, establish a trauma response protocol, conduct comprehensive evaluation of current suicide prevention policies and procedures, and ultimately implement sustainable resilience-building activities in the community.
The recipients of the award will utilize a series of evidence-based programs to equip individuals with the necessary skills to identify and effectively respond to signs of mental health struggle and suicidal ideation. By providing a comprehensive education of suicide prevention strategies for young people, this project intends to create a safer and more supportive environment long-term for the youth of Pacific County.
Connecticut Real Estate Agent Sentenced to Prison for Defrauding Clients in Long Running Short Sale Fraud SchemeRead the Press Release
BOSTON – The manager of a real estate agency was sentenced today in federal court in Boston in connection with a multi-year scheme to defraud his clients by engaging in fraudulent short sales of government and bank-owned properties to straw buyers acting at the direction of the defendant.
James Macchio, 46, of Glastonbury, Conn., was sentenced by U.S. District Court Judge Leo T. Sorokin to 42 months in prison and two years of supervised release. Macchio was also ordered to forfeit $621,579 and to pay at least $2,567,154 in restitution. In May 2024, Macchio pleaded guilty to one count of conspiracy to commit wire fraud.
Macchio and another real estate agent, Sheldon Haag, used straw buyers to acquire properties owned by the clients of Macchio’s brokerage, which included banks, federal agencies, bankruptcy trustees and other mortgage holders. The straw buyers included a shell company set up by a co-conspirator as a purported construction company. Macchio and his co-conspirators hid their involvement as the de facto buyers of short sale properties from their clients, the owners of the properties, and used their inside knowledge as the owner’s broker to minimize sale prices in order to maximize their gain from later “flipping” the properties.
While perpetrating the “flipping scheme,” Macchio and his co-conspirators further defrauded clients by submitting fraudulent renovation bids from contractors to their own clients, including from a fake construction company they controlled through a co-conspirator. Once their clients accepted a fraudulent bid, Macchio and his co-conspirators hired different contractors at much lower cost and pocketed the difference between the fraudulent bid and the actual cost of the property repairs.
During the COVID-19 pandemic, Macchio and co-conspirators defrauded the Small Business Administration by obtaining pandemic relief loans to fund their ongoing real estate fraud scheme.
Sheldon Haag previously pleaded guilty to his role in the conspiracy and, in October 2024, was sentenced to one year and one day in prison to be followed by supervised release.
United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Jonathan Wlodyka, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office made the announcement today. The United States Department of Housing and Urban Development provided valuable assistance. Assistant U.S. Attorney Kriss Basil, Deputy Chief of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Columbia Police Officer Recognized with Attorney General’s Award for Distinguished Service in Community PolicingRead the Press Release
COLUMBIA, S.C. — Attorney General Merrick B. Garland has announced the recipients of the Seventh Annual Attorney General’s Award for Distinguished Service in Community Policing, including Lance Corporal Justin Boyd of the Columbia Police Department.
This prestigious award recognizes law enforcement officers who demonstrate exceptional dedication to strengthening trust, promoting community engagement, and enhancing public safety.
“Community policing is essential to building trust and ensuring public safety,” said Attorney General Garland. “These officers have gone above and beyond their duty to foster partnerships with the communities they serve. Their work is an inspiration to us all and a reminder of the profound impact law enforcement can have on individuals, neighborhoods, and society.”
The best of community policing is demonstrated throughout the work of Lance Corporal Boyd – from the partnerships he forms, to the community outreach that’s a regular part of his work, to the investigations he successfully conducts to make his community safer. And that involves all segments of the community -- including those disenfranchised residents who often go unseen and unheard. Thanks to his efforts, their voices are now part of the conversation, and the community is safer for it.
“Lance Corporal Boyd represents the best of South Carolina law enforcement. Our community is stronger and safer thanks to his dedicated service,” said U.S. Attorney Adair Ford Boroughs for the District of South Carolina. “Now, more than ever, we need officers like him, dedicated to community policing. Congratulations, LCpl Boyd.”
“This prestigious award is proof that law enforcement officers care about the people who live, work, and play in the various communities in which they serve. And that is exactly the gift that Lance Corporal Boyd offers City of Columbia citizens,” said Columbia Police Chief W.H. ‘Skip’ Holbrook. “He has a genuine way of connecting with people in a relatable, caring level. For him, community policing goes beyond a daily assignment -- he embraces it wholeheartedly.”
The Attorney General’s Award recognizes individual state, local, and Tribal sworn officers, deputies, and troopers for exceptional efforts in community policing. The awarded individuals have demonstrated active engagement with the community in one of three areas: criminal investigations, field operations, or innovations in community policing.
The awardees were selected from a nationwide pool of nominees for their outstanding achievements in fostering safer, more inclusive communities.
The Department of Justice commends these officers for their service, leadership, and unwavering commitment to their communities. For more information about the awards, visit www.justice.gov.
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Chesapeake man who used company credit card for over $100,000 in personal expenses pleads guilty to wire fraudRead the Press Release
NORFOLK, Va. – A Chesapeake man pled guilty today to wire fraud after using his position to charge unauthorized personal expenses totaling over $100,000 to a company credit card.
From June 2015 to February 2023, Brandon Thompson, 44, was an administrator with a Virginia joint venture among physicians in conjunction with Sentara Hospital. Thompson’s responsibilities included purchasing equipment, implementing capital and operating budgets, and promoting cost containment and efficient use of facility resources.
From at least January 2018 through February 2023, Thompson used a company card for, among other things, his rent, wedding reception, divorce attorney, and groceries. He also used the card for such luxury items as diamonds, airline tickets, and an initiation fee for a country club membership.
Thompson is scheduled to be sentenced on May 9, 2025, and faces up to 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea.
Assistant U.S. Attorney Clayton D. LaForge is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:24-cr-128.