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Tuesday 12 November 2024
Convicted Drug Felon Sentenced to 20 Years in Federal Prison for Possessing Loaded Firearm and Trafficking Fentanyl, Heroin, Crack Cocaine, and Cocaine at a North Philadelphia ResidenceRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Euddy Izquierdo, 42, of Philadelphia, Pennsylvania, was sentenced today by United States District Judge Juan R. Sánchez to 240 months in prison to be followed by 10 years of supervised release for possessing with intent to distribute fentanyl, para-flourofentanyl, heroin, crack cocaine, and cocaine, and unlawfully possessing a firearm.
On January 10, 2022, Izquierdo was arrested by the Drug Enforcement Administration, after agents seized a large cache of drugs from a residence on the 2000 block of Sanger Street in Philadelphia. The defendant admitted to the agents that he rented the place to store and package his drugs, which he sold in the city’s Kensington neighborhood.
Inside the basement apartment, DEA agents recovered 237.8 grams of para-flourofentanyl (a fentanyl analogue), 93.1 grams of fentanyl, 132.1 grams of heroin, 29.7 grams of crack cocaine, 153.8 grams of cocaine, and 26 grams of xylazine (also known as “tranq”), a veterinary sedative commonly used as a cheap cutting agent to dilute controlled substances on the street and increase profits for drug traffickers. Agents also recovered a loaded 9mm pistol on a table in the apartment.
At the time of his arrest, Izquierdo was on federal supervised release following a previous drug trafficking conviction in 2015. Because of his prior conviction, Izquierdo was not permitted to possess a firearm under federal law.
On June 18, 2024, after a two-day trial, a federal jury found Izquierdo guilty of possession with intent to distribute 100 grams or more of para-fluorofentanyl, 40 grams or more of fentanyl, 100 grams or more of heroin, 28 grams or more of crack cocaine, and cocaine; maintaining a drug-involved premises; possession of a firearm by a felon; and possession of a firearm in furtherance of a drug trafficking crime.
“Euddy Izquierdo was like a one-stop shop for narcotics,” said U.S. Attorney Romero. “Heroin, crack, fentanyl, powder cocaine — he pushed all of it into Kensington, profiting from other people’s pain and addiction. Getting illegal drugs off the street and illegal guns out of criminals’ hands makes our city immeasurably safer. My office and the DEA will continue to put these traffickers out of business and behind bars.”
“Izquierdo received a severe sentence in federal prison for the distribution of dangerous drugs such as fentanyl, heroin, crack cocaine, and cocaine, which was further aggravated by the fact that he was on supervised release for a prior federal drug conviction at the time of his arrest,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Izquierdo was convicted at trial for distributing these drugs in Kensington, an area that has been disproportionately affected by the ravages of the opioid crisis. For that he will spend the next 20 years in a federal prison.”
This case was investigated by the DEA as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program and is being prosecuted by Assistant United States Attorney Justin Ashenfelter.
Clay County Man Pleads Guilty to Firearm ChargeRead the Press Release
Jacksonville, Florida –United States Attorney Roger B. Handberg announces that Jackson Richard Perint (27, Clay County) has pleaded guilty to possession of a firearm by a convicted felon. Perint faces a maximum penalty of 15 years in federal prison and forfeiture of a SCCY Industries 9mm pistol and ammunition. Perint was arrested on April 3, 2024, and released on conditions. He violated the conditions of release and was ordered detained on August 15, 2024. No sentencing date has been set.
According to court documents and court proceedings, on August 8, 2023, a detective with the Clay County Sheriff’s Office (CCSO) Narcotic’s Unit, acting in an online undercover capacity, arranged a drug transaction with Perint. The next day, Perint arrived by car to a predetermined location. Based on a prior suspension of Perint’s driver license, the CCSO conducted a traffic stop of his car. During a subsequent search of the car the deputies located a 9mm pistol, loaded with 11 rounds of ammunition in between the driver’s seat and the center console. They also located cash and drugs in the car.
At the time of the offense, Perint had previously been convicted in state court in Florida of nine felonies, including possession of a weapon by a convicted felon (2021, 2022). As a convicted felon, Perint is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Clay County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives – Jacksonville Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
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.
Charlotte Man on Federal Supervised Release for A Firearms Violation Is Sentenced to More Than Nine Years in Prison for Illegal Gun PossessionRead the Press Release
CHARLOTTE, N.C. – James Earl Holmes, 45, of Charlotte, was sentenced today to 110 months in prison followed by three years of supervised release for possession of a firearm by a felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Michael Hudgins of the Pineville Police Department (PPD), join U.S. Attorney King in making today’s announcement.
According to court documents and court proceedings, on May 30, 2021, PPD officers responded to 911 calls about a shooting in a parking lot of an apartment complex. When the officers arrived, they found a female, identified as F.L., in the backseat of a vehicle. F.L. had sustained two gunshot wounds. The victim and witnesses on the scene told PPD officers that Holmes had shot F.L. The officers located Holmes nearby seated in his wheelchair and recovered three 9mm casings from the area where F.L. was shot. F.L. was transported to the hospital and Holmes was taken into custody. Holmes repeatedly denied having a firearm. While at the police station, officers discovered Holmes to have a firearm in his diaper. PPD officers retrieved from Holmes a loaded 9mm pistol with a round in the chamber. Court records show that, at the time of the incident, Holmes was on supervised release for a federal firearms conviction in the Eastern District of Wisconsin. As a result of that conviction, Holmes was prohibited from possessing a firearm or ammunition.
During the investigation, F.L. told the officers that she was at the same party as Holmes and had rejected the defendant’s advances. After F.L. left the party, Holmes approached the victim while she was sitting in a parked vehicle and shot her. The victim recalled that she had begged Holmes not to shoot her, but Holmes told her, “Don’t be sorry now, b**ch,” and then shot her.
According to court records, Holmes initially denied shooting the victim. However, the three 9mm discharged casings collected from the scene of the shooting, and a bullet fragment surgically removed from the victim’s body, were submitted to the Charlotte-Mecklenburg Police Department’s Crime Laboratory for analysis, which concluded that the three discharged casings and the bullet recovered from the victim’s body were all fired from Holmes’s 9mm pistol.
According to court records, Holmes committed numerous offenses while in pretrial custody at the Mecklenburg County Jail (MCJ). In 2021, Holmes threatened a detention officer after she told the defendant to put on a shirt. Holmes then spit at the detention officer, bit her, and stabbed her with a shank. Court records show that, in March 2022, MCJ detention officers were performing a safety and security check on Holmes because he was being transported to a hospital for medical treatment. During the search, a detention officer found a four-inch shank in Holmes’s wheelchair. On yet another occasion, Holmes threw a brown liquid substance at a detention officer’s head. Holmes also assaulted a nurse at the jail and has repeatedly refused to follow lawful orders while in custody.
On June 16, 2022, Holmes pleaded guilty to possession of a firearm by a convicted felon. At today’s sentencing hearing, the government argued that the defendant possessed the firearm in connection with the attempted murder of F.L. The Court agreed, applied the sentencing enhancement, and sentenced Holmes to 110 months in prison.
Holmes will remain in federal custody until he is transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Holmes still faces a potential revocation of supervised release and additional prison sentence in federal court in Wisconsin.
In making today’s announcement, U.S. Attorney King commended the ATF and the Pineville Police Department for their investigation of the case and the Charlotte Mecklenburg Police Department’s Crime Laboratory for their invaluable assistance.
Assistant U.S. Attorney David Kelly of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
California man sentenced to 240 months for receiving child pornographyRead the Press Release
KANSAS CITY, KAN. – A California man was sentenced to 240 months in prison after soliciting and receiving child sexual abuse materials.
According to court documents, Timothy Vigil, 38, of Lemore, California pleaded guilty to one count of receipt of child pornography.
In 2023, the Federal Bureau of Investigation (FBI) arrested Jordan Escobar,18, of Kansas City, Kansas. Escobar admitted to recording child sexual abuse material then distributing it on an online platform. After reviewing Escobar’s electronic devices and a subsequent investigation, agents identified Timothy Vigil as the owner of an account to which Escobar sent the images. Vigil direct messaged Escobar specifically requesting materials containing child pornography.
Between December 2023 and January 2024, Vigil also distributed 29 MEGA links to other platform users that contained child sexual abuse material, including more than 3,000 videos.
Escobar pleaded guilty to one count of distribution of child pornography and is awaiting sentencing.
The Federal Bureau of Investigation (FBI) investigated the case.
Assistant U.S. Attorney Audrey McCormick prosecuted the case.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
###California Man Sentenced for International Money Laundering ConspiracyRead the Press Release
BOSTON – A California man was sentenced last week for his involvement in a sophisticated international money laundering and drug trafficking organization.
Qinliang Chen, 34, of Rosemead, Calif., was sentenced by U.S. District Court Angel Kelley to 15 months in prison and two years of supervised release. In February 2024, Chen pleaded guilty to money laundering conspiracy.
In May 2023, Chen was among 12 individuals from Massachusetts, Rhode Island, New York and California charged in a superseding indictment for their alleged involvement in a sophisticated international money laundering and drug trafficking organization allegedly led by Jin Hua Zhang.
According to the charging documents, Zhang’s organization was first detected in 2021 in the greater Boston area, throughout the United States and overseas. It was determined that for a fee, Zhang laundered bulk cash for drug dealers and laundered profits from other illegal businesses. In less than a year, Zhang and his organization allegedly laundered at least $25 million worth of drug proceeds and funds from other illegal businesses. Funds were allegedly traced and seized from the Zhang organization to Hong Kong and elsewhere in China, India, Cambodia and Brazil, among other locations.
On two occasions in 2022, Zhang told an undercover agent that there was bulk cash that needed to be picked up in Florida. Cooperating witnesses picked up the cash in Florida that was delivered by Chen. Specifically, in August 2022, Chen delivered over $125,000 to a cooperating witness. Chen had previously been stopped at the Orlando International Airport trying to bring more than $99,000 in cash through a security checkpoint. At a second meeting in September 2022, over $161,000 in cash in vacuum-sealed bags were seized from a compartment in Chen’s rental car.
Zhang pleaded guilty in October 2024 and is scheduled to be sentenced on Jan. 21, 2025.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Christopher Pohl, Brian A. Fogerty and Meghan C. Cleary of Levy’s Criminal Division are prosecuting the case.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bronx Juvenile Detention Center Supervisor Pleads Guilty in Connection with Beating of 16-Year-Old Resident and False ReportRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of DAQUAN SEYMOUR, a supervisor at the Horizon Juvenile Center (“Horizon”), a secure detention center for juveniles located in the Bronx, New York, in connection with his beating of a 16-year-old resident at Horizon (“Minor Victim-1”), and attempt to cover-up the beating, on April 25, 2022. SEYMOUR pled guilty to depriving Minor Victim-1 of his constitutional rights under color of law. As part of his guilty plea, SEYMOUR admitted that he prepared a false report following the assault of Minor Victim-1 on April 25, 2022, in which he omitted reference to the assault of Minor Victim-1. In addition, as part of his guilty plea, SEYMOUR also agreed not to dispute that he falsified another incident report in connection with an earlier attempted assault of a 17-year-old resident at Horizon (“Minor Victim-2”) on December 29, 2021. SEYMOUR was arrested on July 26, 2023, and pled guilty today before U.S. District Judge Edgardo Ramos.
U.S. Attorney Damian Williams said: “Daquan Seymour, a supervisor at a juvenile detention facility, abused his position of authority by assaulting a vulnerable sixteen-year-old boy who was detained pending trial. Seymour also lied on his reports about this and another assault on a minor in his care. Seymour’s pattern of violence toward youth and obstruction has now come to an end as he faces justice. This Office is committed to protecting the constitutional rights of all New Yorkers, including minors residing at youth detention facilities, and will ensure that those who abuse their power and harm vulnerable members of our society are held accountable.”
According to the allegations in the Indictment, Superseding Indictment, other public court documents, and statements made in court proceedings:
On or about April 25, 2022, SEYMOUR was employed as an Associate Youth Development Specialist at Horizon, which was operated by the New York City Administration for Children’s Services (“ACS”). Associate Youth Development Specialists at Horizon are responsible for, among other things, supervising other staff members and ensuring the safety of all juvenile residents.
At the time of the beating, Minor Victim-1 was a 16-year-old juvenile resident at Horizon, who was detained pending trial. Following a confrontation between several staff members and juvenile residents at Horizon, including Minor Victim-1, SEYMOUR, along with a fellow supervisor violently dragged Minor Victim-1 by his forearms across the floor of a residential hall and into a private room (the “Room”). Once inside the Room, SEYMOUR and the other supervisor beat Minor Victim-1, striking him repeatedly and forcefully as Minor Victim-1 lay on the floor. As a result of the beating, Minor Victim-1 suffered bodily injuries, including a deep laceration to his upper lip area, which required Minor Victim-1 to be transported to a nearby hospital for emergency medical care where he received nine stitches.
Following the beating of Minor Victim-1, SEYMOUR attempted to cover up his participation in the beating. In particular, SEYMOUR prepared an incident report that described the confrontation between Horizon residents and staff members that immediately preceded the assault but failed to disclose that he dragged or physically assaulted Minor Victim-1.
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SEYMOUR, 34, of the Bronx, New York, pled guilty to one count of deprivation of rights under color of law, which carries a maximum sentence of 10 years in prison.
The maximum potential sentences 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 efforts of the Department of Investigation for their outstanding work on this matter. Mr. Williams also thanked the Special Agents of the U.S. Attorney’s Office for the Southern District of New York for their significant assistance.
The prosecution of this case is being handled by the Office’s Civil Rights Unit in the Criminal Division. Assistant U.S. Attorneys Jamie Bagliebter, Lisa Daniels, and Mitzi S. Steiner are in charge of the prosecution.
Bluefield Man Sentenced to 14 Years in Prison for Federal Drug CrimeRead the Press Release
BLUEFIELD, W.Va. – Matthew Alexander Wilson, 29, of Bluefield, was sentenced today to 14 years in prison, to be followed by three years of supervised release, for possession with intent to distribute fentanyl and methamphetamine.
According to court documents and statements made in court, on August 16, 2023, Wilson and Denise R. Allen were apprehended at a gun store in Princeton, West Virginia. Following their arrest, Wilson and Allen consented to a search by law enforcement officers of a truck they had rented using a stolen identity. Officers found nearly a pound of methamphetamine, 45 grams of fentanyl and two Glock 9mm semiautomatic handguns during the search of the rental truck. Wilson and Allen admitted they possessed the methamphetamine and fentanyl and intended to distribute it. Wilson, a convicted felon, was also involved in directing Allen to use a stolen identification to purchase firearms on his behalf.
Allen, 30, of Bluefield, was sentenced on June 10, 2024 to five years in prison, to be followed by five years of supervised release, after pleading guilty to possession with intent to distribute fentanyl and methamphetamine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Southern Regional Drug and Violent Crime Task Force. The task force consists of members of the West Virginia State Police, the Bluefield Police Department, the Princeton Police Department, the Mercer County Sheriff’s Department, the McDowell County Sheriff’s Department, and the Wyoming County Sheriff’s Department.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Andrew D. Isabell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:23-cr-152.
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Bergen County Woman Charged with Destroying Cell Phone to Obstruct Federal Investigations into Her Husband and HerselfRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, woman was charged with destruction of records in a federal investigation, U.S. Attorney Philip R. Sellinger announced today.
Jennifer Iturralde Pina, 43, of Franklin Lakes, New Jersey, is charged by complaint with one count of destruction of records. Iturralde appeared today before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was released on $200,000 bond.
According to documents filed in this case and statements made in court:
On Oct. 16, 2023, Iturralde’s husband, Cesar Humberto Pina, aka “Flipping NJ,” also of Franklin Lakes, was charged in the District of New Jersey with wire fraud in connection with a real estate investment fraud scheme. After Pina’s release on bond, Iturralde learned that the government received evidence from a witness related to Pina’s case. Shortly thereafter, Iturralde asked a friend to tell the witness to stop assisting the Government.
In early March 2024, the government obtained search warrants for two of Iturralde’s phones – which the government believed Iturralde used in connection with the real estate fraud scheme and the attempt to discourage the witness from assisting the government – and one phone belonging to the friend. On March 3, 2024, Iturralde tried, unsuccessfully, to hide one of her phones at the friend’s home. On March 5, 2024, the friend’s family member called to tell Iturralde that law enforcement had just seized the friend’s phone. Shortly thereafter, as law enforcement knocked on Iturralde’s door to execute the warrant to seize her phones, Iturralde destroyed one of the phones.
The destruction of records charge carries a maximum sentence of 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss from the offense.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; special agents of the IRS–Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge in Christopher A. Nielsen; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation.
The government is represented by Assistant U.S. Attorney Mark Pesce, Carolyn Silane, and Aaron Webman of the Economic Crimes Unit in Newark.
The charge and accusations against both Iturralde and Pina are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
iturraldepina.complaint.pdfArmed Henderson Drug Trafficker Sentenced to More Than 11 Years in PrisonRead the Press Release
NEW BERN, N.C. – A Henderson man was sentenced to 138 months in prison for armed drug trafficking. On August 15, 2024, Cedric Neal pled guilty to possession with the intent to distribute 40 grams or more of fentanyl and a quantity of cocaine and possessing a firearm in furtherance of a drug trafficking crime.
According to court documents and other information presented in court, Neal, 38, was previously sentenced to 105 months imprisonment for conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. He was released from federal prison on July 27, 2022, and was placed on supervised release for five years. By January 2023, investigators received a tip that Neal—while on supervised release—had resumed drug trafficking activities.
Investigators conducted seven controlled purchases of crack, fentanyl, or both from Neal, then executed search warrants at three locations associated with him. The search warrants yielded fentanyl, cocaine, cocaine base, marijuana, and numerous firearms. Ultimately, Neal was held accountable for 1,205 grams of marijuana, 451 grams of cocaine, 288 grams of fentanyl, nine grams of cocaine base, and five firearms.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Henderson Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Charles E. Loeser prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:24-CR-40-FL.
Armed Folk Nation Gang Member Receives Eight Years in PrisonRead the Press Release
NEW BERN, N.C. – Joseph Lee, age 28, of Wilmington, was sentenced to 100 months in prison, followed by four years of supervised release, for conspiracy to distribute and possession with the intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine, distribution of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. On August 13, 2024, Lee pled guilty to the charges.
According to court documents and other information presented in court, on June 29, 2023, law enforcement made a controlled purchase using a confidential informant, of approximately an ounce of methamphetamine from Lee around the Market North Apartment in Wilmington. Lee was armed with a handgun at the time. Between June 29 and August 3, law enforcement purchased an additional 40 grams of methamphetamine from Lee. According to law enforcement, Lee is a validated gang member of Folk Nation.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Louise W. Flanagan. The ATF and the New Hanover County Sheriff’s Office investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:23-CR-00121-FL.
Ahoskie Man Sentenced to 8.5 Years for Violent Armed Robbery of Verizon StoreRead the Press Release
NEW BERN, N.C. – An Ahoskie man was sentenced to 102 months in prison for the armed robbery of a Verizon Store and the use of a firearm during and in relation to the robbery. On June 11, 2024, Marcus Lee Deloatch pled guilty to the charges.
According to court documents and other information presented in court, Deloatch, age 40, forced his way into the store through the back door as the manager was closing for the night on December 21, 2023. Deloatch, who was a former employee of the store, pistol-whipped the manager, knocking her to the ground and then went to the front of the store where the register was located. He pointed his firearm at another employee while he grabbed $1,200 out of the register. During the encounter Deloatch complained that the store owed him his last paycheck for $200. Deloatch then fled out the rear of the store. Both victims recognized their former coworker and police were able to quickly find and arrest Deloatch, who commented that he had not planned on getting locked up until after Christmas.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The FBI and Ahoskie PD investigated the case.
Assistant U.S. Attorney Phil Aubart prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:24-CR-11-FL.
Adam Champagne Pleads Not Guilty to Bank RobberyRead the Press Release
Burlington, Vermont – The United States Attorney’s Office announced that Adam Champagne, 42, a Burlington native who currently has no stable residence, pleaded not guilty on November 8, 2024 in United States District Court in Burlington to a charge of bank robbery. U.S. Magistrate Judge Kevin Doyle ordered that Champagne be held without bail pending trial, which has not been scheduled.
On October 24, 2024, a federal grand jury returned a one-count indictment charging Champagne with robbing a bank on Shelburne Road in South Burlington on September 25, 2024. According to court records, Champagne told the bank teller that he had a bomb in a bag he was carrying. Local law enforcement arrested Champagne on this charge on November 7. According to court records, Champagne is suspected of robbing three other banks in the Burlington area since last summer.
The United States Attorney emphasizes that the charge in the indictment is merely an accusation and that Champagne is presumed innocent unless and until he is proven guilty.
If convicted, Champagne faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence, however, would 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 South Burlington, Burlington, and Essex police departments, as well as the Federal Bureau of Investigation.
Champagne is represented by the Office of the Federal Public Defender. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Monday 11 November 2024
Illinois Man Sentenced to over 7 Years for Fentanyl TraffickingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Lildre S. Brown, 36, Markham, Illinois, was sentenced November 7, 2024, by Chief U.S. District Judge James D. Peterson to 85 months in federal prison for distributing fentanyl. The prison term will be followed by 6 years of supervised release. Brown pled guilty to this charge on July 18, 2024.
Between December 2023 and February 2024, Brown distributed fentanyl laced heroin on three separate occasions in the Madison area. On one of these occasions, Brown sent co-defendant Nicole Sanders to deliver almost 100 grams of fentanyl. On the two other occasions, co-defendant Simmeka Tibbs delivered the fentanyl for Brown. As part of the investigation, agents executed a search warrant at Sanders’ residence and found another 72 grams of fentanyl in the trunk of her car.
At the time of these offenses, Brown was on supervised release from a previous federal drug conviction. Judge Peterson revoked that supervision and imposed a two-year prison term. Both sentences will be served at the same time.
At Brown’s sentencing, Judge Peterson highlighted that Brown continued to sell drugs while on federal supervision. Judge Peterson was also concerned by the amount of fentanyl involved and by the fact that Brown involved others in his criminal activities.
All three defendants who were charged in this trafficking scheme have pled guilty. Tibbs will be sentenced on November 19, 2024, and Sanders on November 22, 2024.
The charges against Brown, Tibbs, and Sanders were the result of an investigation conducted by the Drug Enforcement Administration, Rock County Sheriff’s Office, Madison Police Department, and the Markham Illinois Police Department. Assistant U.S. Attorney William M. Levins prosecuted this case.
Sunday 10 November 2024
Watertown Man Sentenced to 20 Years in Federal Prison for Sexually Abusing a Minor ChildRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a Watertown, South Dakota, man convicted of Abusive Sexual Contact. The sentencing took place on November 4, 2024, in Aberdeen, South Dakota.
Deserick Jake Bird, age 37, was sentenced to 20 years in federal prison, followed by 10 years of supervised release. He was ordered to pay $200 as a statutorily required special assessment to the Federal Crime Victims Fund. Bird will also be serving an 80-year sentence for a sexual assault conviction from the State of South Dakota.
Bird was originally indicted for Aggravated Sexual Abuse of a Child by a federal grand jury in February of 2022. He pleaded guilty to Abusive Sexual Contact on August 19, 2024.
Over a three-year period, Bird sexually assaulted a young girl between eight and 11 years old. A second victim also came forward to report that Bird had sexually assaulted her when she was 14 years old.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the FBI and Sisseton Wahpeton Tribal Law Enforcement. Assistant U.S. Attorney Elizabeth Ebert-Webb prosecuted the case.
Watauga Man Sentenced to over 13 Years in Federal Prison for Possessing a Firearm as a Felon and for Assaulting a Federal OfficerRead the Press Release
ABERDEEN - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a Watauga, South Dakota, man convicted of Prohibited Person in Possession of a Firearm and Simple Assault on a Federal Officer. The sentencing took place on November 4, 2024.
Justin James Schneider, age 39, was sentenced to over 13 years in federal prison, followed by three years of supervised release, and ordered to pay a $5,000 fine and a $125 special assessment to the Federal Crime Victims Fund. His revolver was also forfeited.
Schneider was indicted by a federal grand jury in July of 2023. Following a jury trial, he was convicted on August 8, 2024.
On June 20, 2023, the Corson County Sheriff’s Office received credible information that Schneider had discharged a revolver earlier that day and was armed and dangerous. The Corson County Sheriff requested and received assistance from the Bureau of Indian Affairs – Office of Justice Services to detain and arrest Schneider. A BIA officer found Schneider in Bullhead, South Dakota, which lies within the Standing Rock Sioux Indian Reservation. When the officer attempted to arrest him, Schneider fled in his pickup to a nearby pasture and engaged in an armed stand-off with Corson County deputies and BIA police officers. Schneider eventually hopped back into his pickup and fled to the Bullhead Community Center, striking a police squad car en route. Schneider then exited his pickup, brandishing a revolver, gesturing wildly towards nearby civilians and disregarding repeated police commands to drop his gun. As Schneider moved quickly towards unarmed children, a police officer shot him to protect the public. Schneider was taken into custody without further incident.
Schneider has nine prior felony convictions, including convictions for Aggravated Assault, Assault Against a Law Enforcement Officer, Felony Driving Under the Influence, Possession of Methamphetamine and Ingestion of Methamphetamine.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities and measuring the results.
This case was investigated by the FBI, the Corson County Sheriff’s Office and the Bureau of Indian Affairs – Office of Justice Services. Assistant U.S. Attorney Carl Thunem prosecuted the case.
Schneider was immediately remanded to the custody of the U.S. Marshals Service.
Two Winner Men Sentenced to Federal Prison, One for 10 Years and Another for Five Years, for Their Roles in a Drive by ShootingRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Eric C. Schulte has sentenced two Winner, South Dakota, men convicted of Assault With a Dangerous Weapon. The sentencings took place on November 5, 2024.
Arthur Black Bull, age 19, was sentenced to 10 years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Therryn Black Horse, age 22, was sentenced to five years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Black Bull and Black Horse were indicted by a federal grand jury in February of 2024. Black Bull pleaded guilty on August 5, 2024. Black Horse pleaded guilty on August 7, 2024.
The convictions stem from an incident that occurred in April of 2023 in Winner Tribal Housing, which is in Tripp County, South Dakota, and which is part of the Rosebud Sioux Indian Reservation. In the early morning hours of April 13, 2023, Black Bull and Black Horse drove by the victim’s residence in Winner Tribal Housing. Black Horse had a previous disagreement with the victim and wanted to scare him. As they passed the residence in their vehicle, Black Bull fired multiple rounds at the residence with a 9mm pistol, striking the outside of the residence. The victim and his family were in the residence at the time of the shooting, but no one was injured. Shell casings collected from the scene were later matched to a pistol that was seized by law enforcement in a traffic stop in May of 2023. The pistol was subsequently traced to Black Bull. He and Black Horse will forfeit ownership of the pistol to the United States.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the FBI. Senior Litigation Counsel Kirk Albertson prosecuted the case.
Black Bull and Black Horse were immediately remanded to the custody of the U.S. Marshals Service.
Sisseton Man Sentenced to Eight Years in Federal Prison for Sexually Abusing Several Minor GirlsRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a Sisseton, South Dakota, man convicted of Sexual Abuse of a Minor. The sentencing took place on November 5, 2024, in Aberdeen, South Dakota.
Daniel Oscar Seaboy, age 23, was sentenced to eight years in federal prison, followed by five years of supervised release. He was ordered to pay a $200 as a statutorily required special assessment to the Federal Crime Victims Fund.
Seaboy was indicted by a federal grand jury in April of 2024. He pleaded guilty on August 19, 2024.
In March of 2023, a 13-year-old female and a 14-year-old female were at Seaboy’s house visiting another minor female. Seaboy provided alcohol and marijuana to the girls. Seaboy then had sexual intercourse with the 14-year-old female and infected her with a sexually transmitted disease. Seaboy also had sexual intercourse with the 13-year-old female without her consent.
Separately, in October of 2023, Seaboy lured a 14-year-old female from her home, provided her with alcohol and a vape pen, and had sexual intercourse with her without her consent. Seaboy also infected this minor female with a sexually transmitted disease.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the FBI and the Sisseton Wahpeton Tribal Law Enforcement. Assistant U.S. Attorney Elizabeth Ebert-Webb prosecuted the case.
Seaboy was remanded to the custody of the U.S. Marshals Service to continue serving his sentence.
Sioux Falls Man Sentenced to 10 Years in Federal Prison for Conspiring to Distribute MethamphetamineRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on November 4, 2024.
Jaden Rae Lalley-Mestas, age 24, was sentenced to 10 years in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Lalley-Mestas was indicted by a federal grand jury in September of 2023. He pleaded guilty on August 16, 2024.
The conviction stemmed from a package seizure that occurred in April of 2023 when law enforcement discovered that approximately six pounds of methamphetamine was shipped in a package destined for Lalley-Mestas’ home. Agents later examined the contents of Lalley-Mestas’ phone pursuant to a search warrant and discovered that he was working with others to receive the package and provide it to another co-conspirator.
This case was investigated by Homeland Security Investigations, Drug Enforcement Administration, South Dakota Division of Criminal Investigation, and the Sioux Falls Area Drug Task Force. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Lalley-Mestas was immediately remanded to the custody of the U.S. Marshals Service.
Sioux Falls Man Acquitted of EscapeRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a Sioux Falls, South Dakota, man was acquitted of Escape from Custody following a federal jury trial in Rapid City, South Dakota, on November 7, 2024.
Jericho Ladeaux, age 31, was indicted by a federal grand jury in July of 2024.
The charges relate to Ladeaux allegedly failing to report to a Rapid City halfway house to finish his federal sentence. Ladeaux was found in Rapid City by local law enforcement approximately seven hours after he had been ordered to report to the halfway house.
The investigation was conducted by U.S. Marshals Service and the U.S. Attorney's Office prosecuted the case.
Rapid City Man Convicted in Federal Jury Trial of Conspiracy to Distribute Fentanyl Resulting in DeathRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a jury has convicted Curtis Cummings, age 39, of Rapid City, South Dakota, of Conspiracy to Distribute a Controlled Substance Resulting in Death following a three-day jury trial in federal district court in Rapid City. The verdict was returned on November 7, 2024.
The charges carry a mandatory minimum of 20 years up to life in custody and/or a $10,000,000 fine, five years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
Cummings was indicted by a federal grand jury in June of 2023.
Cummings was part of a large-scale distribution of fentanyl in the Rapid City area from December of 2021 through June of 2023. Cummings and others traveled to Colorado on a weekly basis to obtain significant quantities of fentanyl pills. When they returned to Rapid City, Cummings distributed the fentanyl pills from his home. During the course of the conspiracy fentanyl pills distributed by Cummings, and others working for him, were consumed by an individual on April 26, 2022, resulting in the overdose death of that individual.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), Drug Enforcement Agency. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorneys Meghan N. Dilges and Edward C. Tarbay prosecuted the case.
A presentence investigation was ordered, and a sentencing date was set for January 24, 2025. The defendant was remanded to the custody of the U.S. Marshals Service.
McLaughlin Man Sentenced to Nearly 14 Months in Federal Prison for Burglary in the Standing Rock ReservationRead the Press Release
ABERDEEN - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a McLaughlin, South Dakota, man convicted of First-Degree Burglary. The sentencing took place on November 4, 2024.
Nathaniel B. Griffin, age 49, was sentenced to nearly 14 months in federal prison, followed by two years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Griffin was indicted by a federal grand jury in September of 2023. He pleaded guilty on July 29, 2024.
Shortly after nightfall on July 5, 2023, Griffin and two co-defendants went to a woman’s home in McLaughlin to assault a man they believed had inappropriately touched a girl. McLaughlin lies within the Standing Rock Sioux Indian Reservation. As the woman yelled at them to go away, one of the co-defendants kicked in her front door. Griffin and another co-defendant rushed into the house while their accomplice stood on the stoop. Although the man was passed out, one of Griffin’s co-defendants repeatedly kicked him in the face while Griffin illumined the scene with a cell phone flashlight. The man incurred a broken nose and shattered orbital and sinus bones in the affray. He still struggles with his vision and headaches today.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in Federal court as opposed to State court.
This case was investigated by the FBI and the Bureau of Indian Affairs – Office of Justice Services. Assistant U.S. Attorney Carl Thunem prosecuted the case.
Griffin was immediately remanded to the custody of the U.S. Marshals Service.
After Being Found Guilty in a Federal Jury Trial of Failure to Register as a Sex Offender, A South Dakota Man Has Been Sentenced to 45 Months in Federal PrisonRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a South Dakota man convicted of Failure to Register as a Sex Offender. The sentencing took place on November 4, 2024, in Aberdeen, South Dakota.
Lance Quintin Longie, age 42, was sentenced to three years and nine months in federal prison, followed by five years of supervised release. He was ordered to pay $100 as a statutorily required special assessment to the Federal Crime Victims Fund.
Longie was indicted for Failure to Register as a Sex Offender by a federal grand jury in May of 2024. Longie proceeded to trial on August 5, 2024, and the jury returned a guilty verdict.
Longie is required to register a sex offender under the Sex Offender Registration and Notification Act because he was convicted of Criminal Sexual Conduct in the First Degree in 2004 in the District Court of Minnesota, Clay County. In the summer of 2022, Longie was residing in Moorhead, MN, and last registered with the Moorhead Police Department on June 29, 2022. Later that summer, Longie traveled to South Dakota and took up residence in New Effington. Longie resided at the New Effington address and did not update the sex offender registry in South Dakota until he was arrested at the residence by officers with the Roberts County Sheriff’s Office on March 22, 2024.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Beau Blouin prosecuted the case.
Longie was remanded to the custody of the U.S. Marshals Service to continue serving his sentence.
Friday 8 November 2024
Wausau Man Sentenced to 8 Years for Possessing Methamphetamine Intended for DistributionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Jonathan Rodriguez, 39, Wausau, Wisconsin, was sentenced November 6, 2024, by U.S. District Judge William M. Conley to 8 years in federal prison for possessing methamphetamine intended for distribution. Rodriguez pleaded guilty to this charge on August 9, 2024.
Law enforcement received a tip that Rodriguez had in his possession, a significant amount of methamphetamine. Officers located Rodriguez in downtown Wausau and ultimately searched him. He had 319 grams of methamphetamine, some of which was pre-packaged for distribution. Rodriguez also admitted that he had sold about a pound of methamphetamine hours before his arrest.
At sentencing, Judge Conley commented on Rodriguez’s criminal history and how he spent about half his life incarcerated without making changes. In deciding upon a sentence, Judge Conley balanced Rodriguez’s criminal record with his difficult upbringing.
The charge against Rodriguez was the result of an investigation conducted by the Wausau Police Department and the Marathon County Sherriff’s Office. Assistant U.S. Attorney Louis Glinzak prosecuted this case.
Venezuelan Man Charged with Unlawfully Possessing a Firearm After Driving Motorcycle Across Border in Derby Line, VermontRead the Press Release
Burlington, Vermont – The United States Attorney’s Office stated that Julio Cesar Romero-Paredes, 46, of Venezuela, has been charged by criminal complaint with unlawfully possessing a firearm as an individual illegally present in the United States, and illegal reentry into the United States after having previously departed while under an order of removal.
Romero-Paredes’s initial appearance before United States Magistrate Judge Kevin J. Doyle has not been scheduled at this time.
According to court records, on November 7, 2024, at approximately 12:50 a.m., the driver of a distinctive motorcycle illegally entered the United States by driving around barriers placed near the Haskell Library in Derby Line, Vermont. Customs and Border Protection Officers stationed at nearby ports of entry assisted in locating the motorcycle, which entered onto Interstate 91 and was headed southbound. CBP Officers located the vehicle near Exit 28 on Interstate 91, and performed a traffic stop. The motorcycle, which bore a Georgia registration, was being operated by Romero-Paredes. Romero-Paredes was taken into custody by CBP Officers. An inventory search of Romero-Paredes’s motorcycle, including the bags affixed to the motorcycle, revealed a fully loaded Walther Model P22 .22 caliber semi-automatic pistol (with one round in the chamber), five additional magazines containing approximately 50 rounds of .22 caliber ammo, two Glock magazines with approximately 30 rounds of 9 mm ammunition, and a suspected suppressor that threaded onto the barrel of the Walther pistol. Agents also located in the bags affixed to the motorcycle several handcuff keys, multiple knives, a collapsible steel baton, zip ties, and cell phones. Immigration records revealed that Romero-Paredes had initially entered the United States in 2005 with a visitor’s visa. Romero-Paredes was ordered removed from the United States by an immigration judge on or about March 18, 2022, in Dallas, Texas.
The United States Attorney’s Office emphasizes that the complaint contains allegations only and that Romero-Paredes is presumed innocent until and unless proven guilty. Romero-Paredes faces up to 15 years of imprisonment if convicted of the firearm charge, and up to 2 years of imprisonment if convicted of the immigration charge. The actual sentence, however, would be determined by the District Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors.
United States Attorney Nikolas P. Kerest commended the efforts of Customs and Border Protection to quickly apprehend Romero-Paredes, and the investigatory assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The prosecutor is Assistant United States Attorney Nicole Cate. Romero-Paredes has not yet been appointed or retained counsel.
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.
Unprovoked Assault on a Psychiatrist at St. Elizabeths Gets Man 13 Year Prison TermRead the Press Release
WASHINGTON – Anthony Braxton, 44, of Washington, D.C., was sentenced yesterday to 156 months in prison, for the offense of aggravated assault of a senior citizen, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
Braxton was found guilty by a Superior Court jury on September 5, 2024, of one count of aggravated assault of a senior citizen. The Honorable Andrea Hertzfeld sentenced Braxton on November 7, 2024, to 156 months in prison, to be followed by three years of supervised release.
According to the government’s evidence, on April 23, 2020, the victim, a doctor at St. Elizabeths Hospital, had responded to a call for assistance on his ward. As the victim was walking toward a colleague and another patient, Braxton approached the victim from behind and, totally unprovoked, punched the victim in the head, knocking him to the ground where he lay unconscious for several minutes. Over the next several weeks, the victim developed a life-threatening brain bleed that ultimately required two surgeries. The victim deals with lingering symptoms from his injuries to this day.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department and the U.S. Attorney’s office. They acknowledged those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorney Nicole H. Conte, Victim Assistance Specialist Deidria Ellis, Supervisory Paralegal Specialist Renee Prather, Lead Paralegal Specialist Tameka Garcia, Paralegal Specialist Abubakar Alawy, Supervisory IT Specialist Leif Hickling, and Special Agent Eric Pauta. Finally, they commended the work of Assistant U.S. Attorneys Caroline Huether, Julian Ginos, and Richard Carlton, who investigated and prosecuted the case.
United States Attorney Announces Participation in Newly Formed Veterans CourtRead the Press Release
SAN FRANCISCO – United States Attorney Ismail J. Ramsey today announced the United States Attorney’s Office’s participation in the Northern District of California’s newly formed Veterans Court (VC). VC is a program for justice-involved veterans that provides a viable and appropriate alternative to incarceration for eligible veteran-defendants.
“We are deeply indebted to the military veterans within the Northern District of California for their service and sacrifice. We recognize, however, that some veterans struggle and come into contact with the federal criminal justice system,” said U.S. Attorney Ramsey. “Where appropriate and consistent with our mission to keep the community safe, Veterans Court offers an alternative to incarceration.”
For veterans who meet the eligibility requirements and are determined to be suitable candidates, VC offers dedicated programming as an alternative to incarceration. VC integrates court supervision and an extensive network of treatment services and community support. The program offers a four-phased structured approach: (1) engagement and assessment; (2) stability and accountability; (3) wellness and community connection; and (4) program transition.
In order to participate in VC, a veteran-defendant must meet the minimum eligibility requirements:
- At least 12 months of service in the U.S. armed forces (Army, Army Reserve, Army National Guard, Navy, Navy Reserve, Air Force, Air Force Reserve, Air National Guard, Marine Corps, Marine Corps Reserve, Coast Guard, Coast Guard Reserve, Space Force), unless discharged early due to a service-connected disability or a reservist/guardsman who served the full period for which he or she was called to active duty.
- Not charged with a sex offense or crimes against minors.
- Not involved in removal proceedings or with an immigration detainer.
Participants must plead guilty in order to participate. Upon determination of suitability for the program, the U.S. Attorney’s Office will schedule a meeting with the defendant and his or her counsel and may offer either a Track I plea agreement (to low to moderate risk defendants) or a Track II plea agreement (to any risk level of defendants). The participant will then begin a tailored, phased program lasting between 12-24 months. For Track I participants who successfully complete all program requirements, the government will move to dismiss the charges. For Track II participants who successfully complete all program requirements, the government will recommend a noncustodial sentence. Participants who do not successfully complete the program will proceed to sentencing in accordance with standard procedures and timelines.
Admission to VC and determination of Track I or Track II eligibility lie solely with the United States Attorney’s Office.
For more information about alternative sentencing programs in the Northern District of California, please see https://www.cand.uscourts.gov/about/court-programs/cap-frequently-asked-questions/.
- Veterans Justice Court Application
- Veterans Court Quick Overview Guide
U.S. Court of Appeals Affirms Justice Department’s Victory Protecting Airline CompetitionRead the Press Release
The U.S. Court of Appeals for the First Circuit today affirmed the U.S. District Court for the District of Massachusetts’ ruling in favor of the Justice Department and the Attorneys General of six states and the District of Columbia in their civil antitrust lawsuit to stop the Northeast Alliance between American Airlines and JetBlue.
“Today’s decision is a hard-won victory for the millions of Americans who count on competition between airlines to fly affordably, whether to visit family, to go on vacation, or to travel for business,” said Attorney General Merrick B. Garland. “The airline industry — like every industry — must comply with the antitrust laws that protect consumers and prohibit anticompetitive coordination.”
“Today’s decision is yet another litigation victory for the Antitrust Division and American travelers who depend on competition for lower airfare and higher quality,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “I am incredibly grateful for the hard work and dedication of the Antitrust Division staff that investigated and litigated this case, and to the state law enforcement partners who brought this case with us.”
The court’s opinion followed a judgment by the district court upholding the Justice Department’s challenge to American Airlines and JetBlue’s Northeast Alliance in May 2023. The Northeast Alliance was a series of agreements between American Airlines and JetBlue through which the two airlines consolidated their operations in Boston and New York City. The district court ruled that JetBlue and American Airlines’ decision to stop competing in Boston and New York, where they are major players, violated Section 1 of the Sherman Act because it eliminated competition for American travelers in many domestic markets for scheduled air passenger service, and the court of appeals affirmed that decision.
U.S. Attorney’s Office Secures Sentencing in Domestic Violence CaseRead the Press Release
ALBUQUERQUE – A Mescalero man was sentenced to 30 months in prison for assaulting his intimate partner by strangling her.
There is no parole in the federal system.
According to court documents, on November 8, 2023, Ronnie Pernell Evans, 21, an enrolled member of the Mescalero Apache Tribe, assaulted his intimate partner by shoving her and grabbing her by her throat until they tripped and fell to the ground.
Upon his release from prison, Evans will be subject to three years of supervised release.
U.S. Attorney Alexander M.M. Uballez made the announcement today.
The Bureau of Indian Affairs investigated this case. Assistant U.S. Attorney Joni Autrey Stahl is prosecuting the case.
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U.S. Attorney's Office and FBI Charge Arizona Man with Sexual Abuse of a ChildRead the Press Release
ALBUQUERQUE – An Arizona man is charged by criminal complaint with sexually abusing a minor child at a fair.
Webster Hot, 64, an enrolled member of the Navajo Nation, appeared before a federal judge and will remain in custody pending trial, which has not been scheduled.
According to the indictment, on October 5-6, 2024, Hot allegedly sexually abused an 8-year-old girl at the Northern Navajo Nation Fair in Shiprock, New Mexico. The abuse is alleged to have occurred inside Hot's camper truck.
If convicted, Hot faces 30 years to life in prison in prison followed by a minimum of five years of supervised release up to life.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Farmington Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Navajo Nation Department of Investigation and Department of Criminal Investigations. Assistant United States Attorney Brittany DuChaussee is prosecuting the case.
View the Criminal Complaint (Hot).pdfA criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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U.S. Attorney's Office Announces Guilty Plea in Child Sexual Abuse CaseRead the Press Release
ALBUQUERQUE – A Nevada man pleaded guilty in federal court to sexual abuse involving a child under 12 years old.
According to court documents, between May 16, 2009, and May 15, 2012, Cedric Martinez, 31, an enrolled member of the Navajo Nation, knowingly engaged in sexual contact with a child under 12 years old at a residence in Upper Fruitland, New Mexico, within the Navajo Nation reservation.
Martinez was taken into custody pending sentencing, which has not yet been scheduled. At sentencing, Martinez faces any term between 18 and 22 years in prison. Upon his release from prison, Martinez will be subject to no less than five years and up to life of supervised release.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Farmington Resident Agency of the Federal Bureau of Investigation’s Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations. Assistant United States Attorneys Brittany DuChaussee and Meg Tomlinson are prosecuting the case.
View the Plea Agreement (Martinez).pdf# # #
U.S. Attorney Announces Release of Servicemembers and Veterans Legal Resource ManualRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces the release of the Servicemembers and Veterans Manual. The Manual, located online at https://www.justice.gov/usao-mdfl/servicemembers-and-veterans-working-group, is a comprehensive guide to the unique legal issues facing the servicemember and veterans community, including legal protections in the areas of housing, employment, consumer protection, disability rights, financial assistance, and mental health. The Manual also identifies organizations throughout Florida focused on helping servicemembers and veterans with these matters.
The Manual is the result of a successful collaboration between federal and state military branches, federal and state agencies, legal aid organizations, and others who serve the military within the Middle District of Florida and throughout the state. In addition to members from the United States Attorney’s Office, it includes members from the following organizations: Florida’s Army National Guard; U.S. Army, Navy, Air Force, Space Force, and Coast Guard; U.S. Department of Veterans Affairs; U.S. Department of Labor VETS Office; Consumer Financial Protection Bureau; Florida Attorney General’s Office; Florida Department of Veterans Affairs; Florida Commission on Human Relations; Bay Area Legal Services; Community Legal Services; Jacksonville Area Legal Aid; University of Florida Levin College of Law Veterans and Servicemembers Clinic; National Veterans Legal Services Program; the Tragedy Assistance Program for Survivors or TAPS; and counseling services within the Middle District of Florida.
“As we honor our veterans, we reflect on their sacrifice and the freedoms they’ve secured for us all. Florida, one of the most veteran-populated states, is home to countless heroes whose service inspires us. Veterans have given us more than freedom; they’ve given us the responsibility to build a just and inclusive society in their honor,” stated Cheyanne Costilla, Executive Director of the Florida Commission on Human Relations. “At the Florida Commission on Human Relations, we’re committed to ensuring that their legacy lives on through our work to foster fairness, inclusion, and respect for all, and this agency is proud to have participated in the development of this useful reference guide for servicemembers, veterans, and their families.”
“Region Legal Service Office Southeast is proud to join the United States Attorney’s Office for the Middle District of Florida in the creation of a collaborative online manual touching on countless topics critical to the support and representation of servicemembers and veterans,” said Captain Katherine S. Pasieta, Commanding Officer at the U.S. Navy Regional Legal Service Office Southeast. “Legal Assistance Attorneys across the Navy Judge Advocate General’s Corps and Region Legal Service Office Southeast are committed to providing timely, expert advice to servicemembers and their families on consumer affairs, estate planning, and family law matters. The release of this new online resource will launch a user-friendly guide to navigate the often-complex legal landscape affecting our military members, veterans, and their dependents. I am grateful to our local experts and their ability to provide countless manhours of guidance and support to the Consumer Law Subcommittee and creation of Consumer Law materials for the manual. This collaborative effort underscores our shared commitment with other public agencies to support those who are now serving or have previously served our nation.”
“Our goal was to create a comprehensive, accessible guide to legal rights and resources that addresses the unique challenges faced by our veterans,” said CEO & President of Bay Area Legal Services Joan Cain Boles. With Florida home to the third-largest veteran population in the nation, it was critical for us all to enhance the health, safety, and quality of life for Florida’s veterans. This guide stands as a testament to our commitment to empowering those who have served.”
"The Consumer Financial Protection Bureau is proud to work alongside our federal and state partners to safeguard the rights of servicemembers in the Middle District of Florida," said James S. Rice, the CFPB's Assistant Director for the Office of Servicemember Affairs.
Members of the Veterans and Servicemembers Legal Clinic at the University of Florida Levin College of Law are also actively participating in the area of financial assistance. Professor Judy Clausen, who leads the clinic, explained, “in working with the attorneys in our committee in drafting the Financial Assistance chapter of the Manual, our team members collaborated to identify and find solutions to address the financial issues that most affect service members, veterans, and military families, ensuring that the manual is most useful and easily accessible.”
Organizations interested in joining the Working Group or anyone who would like outreach from Working Group participants can send an email to: [email protected].
Video message from U.S. Attorney Handberg on the rollout of the Servicemembers and Veterans Working Group Manual.
Press conference hosted by Community Legal Services.
Twin Falls Man Sentenced to 6.5 Years in Federal Prison for Possessing Child Sexual Abuse MaterialRead the Press Release
BOISE – Shane Pruett, 42, of Twin Falls, was sentenced to 78 months in federal prison for possession of child sexual abuse material (CSAM), U.S. Attorney Josh Hurwit announced today.
According to court records, the investigation began when Homeland Security Investigations (HSI) received CyberTip reports from Reddit. A CyberTip is a report submitted to the National Center for Missing and Exploited Children (NCMEC). NCMEC gathers leads and tips regarding suspected online crimes against children and forwards them to the appropriate law enforcement agencies. HSI determined that a Reddit account, later identified as belonging to Pruett, had posted CSAM on Reddit.
HSI obtained a federal search warrant for the contents of Pruett’s Reddit account and located images of CSAM, along with messages that Pruett had sent discussing his sexual interest in children. HSI executed a federal search warrant at Pruett’s Twin Falls residence and seized two cellphones, an iPad, and a laptop computer belonging to Pruett. A forensic examination revealed CSAM on each of the devices.
U.S. District Judge Amanda K. Brailsford also sentenced Pruett to 15 years of supervised release and ordered him to pay $15,000 in restitution to victims in the images he possessed. Pruett will be required to register as a sex offender as a result of the conviction.
“We are committed to finding anyone engaged in illegal and harmful online child exploitation crimes,” said U.S. Attorney Hurwit. “I am grateful for the strong partnerships between federal and local law enforcement that allow us to prosecute these types of defendants to the fullest extent of the law.”
“HSI agents fight every day to protect children from online predators, and the sentence handed down today sends a clear message that those who engage in the exploitation and abuse of children will be held accountable under the full extent of the law,” said acting Special Agent in Charge Matthew Murphy, who oversees HSI operations in the Pacific Northwest. “HSI and our law enforcement partners are committed to protecting children from these horrific crimes and will continue to relentlessly pursue those who seek to harm them.”
U.S. Attorney Hurwit commended the cooperative efforts of Homeland Security Investigations and the Twin Falls Police Department, which led to the charge.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Tulsa County Resident Sentenced to Four Years for Possession of Child Sexual Exploitation MaterialRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Vince Harjo, age 36, of Glenpool, Oklahoma, was sentenced to 48 months imprisonment and lifetime supervised release for possessing sexually explicit material of a minor.
The charges arose from an investigation by the Federal Bureau of Investigation and the Muscogee (Creek) Nation Lighthorse Police Department.
On September 11, 2023, Harjo pleaded guilty to an Information of one count of Possession of Certain Material Involving the Sexual Exploitation of a Child. According to investigators, on February 4, 2023, law enforcement officers responding to a call in Okmulgee, Oklahoma, discovered Harjo in possession of images on his cell phone which depicted the sexual exploitation of a child.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
We encourage anyone who suspects or has information regarding child sexual exploitation, trafficking of minors, sextortion, child pornography, or any other means of child exploitation to immediately contact law enforcement. You can file a report on the National Center for Missing & Exploited Children (NCMEC)'s website at www.cybertipline.com, call 1-800-843-5678, contact the FBI at 1-800-CALL-FBI (1-800-225-5324), or call 877-4-HSI TIP.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Harjo will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Joshua Satter represented the United States.
Texas Resident Pleads Guilty to Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jeffrey Wayne Thompson, age 48, of Fort Worth, Texas, entered a guilty plea to an Indictment charging him with one count of Felon in Possession of Firearm and Ammunition.
The Indictment alleged that February 21, 2023, Thompson knowingly possessed a firearm and six rounds of ammunition after having been previously convicted of a crime punishable by more than one year imprisonment.
The charges arose from an investigation by the Pittsburg County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable D. Edward Snow, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Thompson was allowed to remain on bond pending sentencing.
Assistant United States Attorney Michael E. Robinson represented the United States.
Telefónica Venezolana to Pay over $85M to Resolve Foreign Bribery InvestigationRead the Press Release
Telefónica Venezolana C.A. (Telefónica Venezolana), a Venezuela-based subsidiary of Telefónica S.A. (Telefónica), a publicly traded global telecommunications operator based in Spain, will pay over $85.2 million to resolve an investigation by the Justice Department into a scheme to bribe government officials in Venezuela to receive preferential access to U.S. dollars in a currency auction.
Telefónica Venezolana 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).
“Telefónica Venezolana bribed Venezuelan government officials to participate in a government auction through which it exchanged Venezuelan bolivars for U.S. dollars. The company concealed the illicit payments by purchasing equipment at inflated prices from two suppliers who paid the bribes on the company’s behalf,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Telefónica Venezolana chose to support a corrupt regime to circumvent the difficulties of conducting legal business in Venezuela. This resolution is yet another example of the Justice Department’s commitment to fight corruption and hold companies accountable for their criminal conduct.”
“Telefónica Venezolana, a subsidiary and agent of a U.S. issuer, agreed to line the pockets of corrupt Venezuelan officials to gain access to U.S. currency and maintain its position in the Venezuelan telecommunications market,” said U.S. Attorney Damian Williams for the Southern District of New York. “Intermediaries then funneled the bribe payments through U.S. correspondent bank accounts. This office will not tolerate the use and abuse of the U.S. financial system to enrich corrupt foreign officials and those who maintain their market position by appeasing them.”
“This case is an example of the IRS Criminal Investigation (IRS-CI)’s and our law enforcement partners’ relentless effort to fight corruption and protect United States interests,” said Executive Special Agent in Charge Kareem Carter of the IRS-CI Washington Field Office. “We are committed to pursuing investigations into corporate fraud in an effort to protect consumers from bearing the costs associated with criminal activity.”
“Telefónica Venezolana engaged in a complex and criminal financial fraud scheme, in which they bribed Venezuelan government officials to obtain access to U.S. dollars,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “Thanks to the cooperative efforts of HSI, IRS-CI, and the Justice Department, the perpetrators of this conspiracy will be forced to pay for their illicit actions. HSI will continue to collaborate with our law enforcement partners, at home and overseas, to investigate and bring to justice any corporations engaging in such financial crimes.”
According to court documents and admissions, in 2014, Telefónica Venezolana participated in a government-sponsored currency auction in Venezuela that allowed it to exchange its Venezuelan bolivars for U.S. dollars. To ensure its success in the auction, Telefónica Venezolana recruited two suppliers to make approximately $28.9 million in corrupt payments to an intermediary, knowing that some of those funds would be paid as a “commission” to Venezuelan government officials. To conceal the bribe payments, Telefónica Venezolana covered the cost of the bribes by purchasing equipment from the two suppliers at inflated prices. As a result of its corrupt payments, Telefónica Venezolana was permitted to exchange and subsequently received over $110 million through the currency auction, which it used to purchase equipment from the two suppliers it recruited to join the scheme. These funds represented over 65% of the funds that the Venezuelan government awarded in the 2014 currency auction.
As part of the DPA, Telefónica Venezolana and its corporate parent, Telefónica, have agreed, among other things, to 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. In addition, Telefónica Venezolana and Telefónica 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 Justice Department reached this resolution with Telefónica Venezolana based on a number of factors, including, among others, the nature and seriousness of the offense. Telefónica Venezolana received credit for its cooperation with the department’s investigation, which included: (i) making regular factual presentations to the department based on the information learned in the course of Telefónica Venezolana’s internal investigation; (ii) voluntarily making employees based outside the United States available for interviews in the United States; (iii) producing a significant number of documents to the department, while navigating foreign data privacy and related laws; and (iv) collecting, analyzing, and organizing voluminous evidence and information for the department, accompanied by translations of documents. However, in the initial phases of the department’s investigation, Telefónica Venezolana failed to timely identify, collect, produce, and disclose certain records and important information, which affected investigative efforts by the department and reduced the impact of Telefónica Venezolana’s cooperation.
Telefónica Venezolana also engaged in timely remedial measures, including: (i) disciplining certain employees involved in the relevant misconduct or who were otherwise made aware of the misconduct, including terminating employees; (ii) strengthening its anti-corruption compliance program by building and empowering an independent compliance function, appointing a Chief Compliance Officer with direct access to the Audit Committee of the Board of Directors, and investing in additional compliance resources throughout its global operations; (iii) overhauling its review and approval process for transactions with non-standard pricing, including by ensuring that the compliance function reviews all such transactions globally; (iv) reviewing, enhancing, and testing its broader internal controls for pricing and other transactions with the assistance of a forensic accounting firm; (v) strengthening processes for vetting, engaging, and monitoring third parties, including implementing additional controls concerning payments to third parties through a proprietary software tool; and (vi) establishing risk assessment and audit processes to regularly review and update the compliance program and otherwise mitigate business risks.
In light of these considerations, as well as Telefónica Venezolana’s and Telefónica’s prior history, which includes a resolution involving a subsidiary of Telefónica, Telefónica Brasil S.A., in an action brought by the Securities and Exchange Commission in 2019 for alleged violations of the accounting provisions of the FCPA, the criminal penalty of $85,260,000 calculated under the U.S. Sentencing Guidelines reflects a 20% reduction off the fifth percentile above the low end of the otherwise applicable guidelines fine range.
IRS-CI and HSI are investigating the case as part of the IRS Global Illicit Financial Team in Washington, D.C.
Senior Litigation Counsel Nicola Mrazek and Trial Attorney Abdus Samad Pardesi of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jilan Kamal for the Southern District of New York are prosecuting the case.
The Justice Department’s Office of International Affairs and authorities in Panama, Switzerland, and Luxembourg 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 here.
View the information here.
Telefónica Venezolana to Pay over $85 Million to Resolve Foreign Bribery InvestigationRead 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”); Kareem Carter, Executive Special Agent in Charge of the IRS-CI Washington Field Office; and, Derek W. Gordon, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”) Washington, D.C., Field Office, announced today that TELEFÓNICA VENEZOLANA, C.A. (“TELEFÓNICA VENEZOLANA”), a Venezuela-based subsidiary of Telefónica, S.A. (“Telefónica”), a publicly traded global telecommunications operator based in Spain, will pay over $85.2 million to resolve an investigation by the DOJ into a scheme to bribe government officials in Venezuela to receive preferential access to U.S. dollars in a currency auction.
TELEFÓNICA VENEZOLANA 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).
U.S. Attorney Damian Williams said: “Telefónica Venezolana, a subsidiary and agent of a U.S. issuer, agreed to line the pockets of corrupt Venezuelan officials to gain access to U.S. currency and maintain its position in the Venezuelan telecommunications market. Intermediaries then funneled the bribe payments through U.S. correspondent bank accounts. This Office will not tolerate the use and abuse of the U.S. financial system to enrich corrupt foreign officials and those who maintain their market position by appeasing them.”
Principal Deputy Assistant Attorney General Nicole M. Argentieri said: “Telefónica Venezolana bribed Venezuelan government officials to participate in a government auction through which it exchanged Venezuelan bolivars for U.S. dollars. The company concealed the illicit payments by purchasing equipment at inflated prices from two suppliers who paid the bribes on the company’s behalf. Telefónica Venezolana chose to support a corrupt regime to circumvent the difficulties of conducting legal business in Venezuela. This resolution is yet another example of the Justice Department’s commitment to fight corruption and hold companies accountable for their criminal conduct.”
IRS-CI Executive Special Agent in Charge Kareem Carter said: “This case is an example of the IRS Criminal Investigation (CI)’s and our law enforcement partners’ relentless effort to fight corruption and protect United States interests. We are committed to pursuing investigations into corporate fraud in an effort to protect consumers from bearing the costs associated with criminal activity.”
HSI Executive Associate Director Katrina W. Berger said: "Telefónica Venezolana engaged in a complex and criminal financial fraud scheme, in which they bribed Venezuelan government officials to obtain access to U.S. dollars. Thanks to the cooperative efforts of HSI, IRS Criminal Investigations, and the Department of Justice, the perpetrators of this conspiracy will be forced to pay for their illicit actions. HSI will continue to collaborate with our law enforcement partners, at home and overseas, to investigate and bring to justice any corporations engaging in such financial crimes.”
According to court documents and admissions:
In 2014, TELEFÓNICA VENEZOLANA participated in a government-sponsored currency auction in Venezuela that allowed it to exchange its Venezuelan bolivars for U.S. dollars. To ensure its success in the auction, TELEFÓNICA VENEZOLANA recruited two suppliers to make approximately $28.9 million in corrupt payments to an intermediary, knowing that some of those funds would be paid as a “commission” to Venezuelan government officials. To conceal the bribe payments, TELEFÓNICA VENEZOLANA covered the cost of the bribes by purchasing equipment from the two suppliers at inflated prices. As a result of its corrupt payments, TELEFÓNICA VENEZOLANA was permitted to exchange and subsequently received over $110 million through the currency auction, which it used to purchase equipment from the two suppliers it recruited to join the scheme. These funds represented over 65% of the funds that the Venezuelan government awarded in the 2014 currency auction.
As part of the DPA, TELEFÓNICA VENEZOLANA and its corporate parent, Telefónica, have agreed, among other things, to continue cooperating with the DOJ Criminal Division’s Fraud Section and 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. In addition, TELEFÓNICA VENEZOLANA and Telefónica 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 Department reached this resolution with TELEFÓNICA VENEZOLANA based on a number of factors, including, among others, the nature and seriousness of the offense. TELEFÓNICA VENEZOLANA received credit for its cooperation with the Department’s investigation, which included: making regular factual presentations to the Department based on the information learned in the course of TELEFÓNICA VENEZOLANA’s internal investigation; voluntarily making employees based outside the U.S. available for interviews in the U.S.; producing a significant number of documents to the Department, while navigating foreign data privacy and related laws; and collecting, analyzing, and organizing voluminous evidence and information for the Department, accompanied by translations of documents.
However, in the initial phases of the Department’s investigation, TELEFÓNICA VENEZOLANA failed to timely identify, collect, produce, and disclose certain records and important information, which affected investigative efforts by the Department and reduced the impact of TELEFÓNICA VENEZOLANA’s cooperation.
TELEFÓNICA VENEZOLANA also engaged in timely remedial measures, including: disciplining certain employees involved in the relevant misconduct or that were otherwise made aware of the misconduct, including terminating employees; strengthening its anti-corruption compliance program by building and empowering an independent compliance function, appointing a Chief Compliance Officer with direct access to the Audit Committee of the Board of Directors, and investing in additional compliance resources throughout its global operations; overhauling its review and approval process for transactions with non-standard pricing, including by ensuring that the compliance function reviews all such transactions globally; reviewing, enhancing, and testing its broader internal controls for pricing and other transactions with the assistance of a forensic accounting firm; strengthening processes for vetting, engaging, and monitoring third parties, including implementing additional controls concerning payments to third parties through a proprietary software tool; and establishing risk assessment and audit processes to regularly review and update the compliance program and otherwise mitigate business risks.
In light of these considerations, as well as TELEFÓNICA VENEZOLANA and Telefónica’s prior history, which includes a resolution involving a subsidiary of Telefónica, Telefónica Brasil S.A., in an action brought by the Securities and Exchange Commission in 2019 for alleged violations of the accounting provisions of the FCPA, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 20% reduction off the fifth percentile above the low end of the otherwise applicable guidelines fine range.
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The IRS-CI and HSI are investigating the case as part of the IRS Global Illicit Financial Team in Washington, D.C.
The case is being prosecuted by Assistant U.S. Attorney Jilan J. Kamal of the Southern District of New York; Senior Litigation Counsel Nicola Mrazek and Trial Attorney Abdus Samad Pardesi of the Criminal Division’s Fraud Section.
The Justice Department’s Office of International Affairs and authorities in Panama, Switzerland, and Luxembourg provided assistance in this matter.
South Carolina Woman Pleads Guilty to Sending Racist Threats to Kill a Catskill ManRead the Press Release
ALBANY, NEW YORK – Kristin Keeble, age 54, of Pageland, South Carolina, pled guilty today to transmitting a threat to injure another in interstate commerce.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Keeble admitted that on October 26, 2023, she sent four threatening, profanity-laced and racially derogatory audio messages through Facebook Messenger to a man in Catskill, New York. Keeble threatened to kill the victim by hanging him, along with a woman the victim knew, and the woman’s children, from a tree. Keeble purported to be acting with members of the Ku Klux Klan. Keeble knew, from the victim’s Facebook profile photo, that the victim was Black.
At sentencing before United States District Judge Anne M. Nardacci on March 7, 2025, Keeble will face a maximum term of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The FBI investigated the case, which Assistant U.S. Attorney Alexander Wentworth-Ping is prosecuting.
South Carolina Woman Pleads Guilty to $1.7 Million Embezzlement SchemeRead the Press Release
CHARLOTTE, N.C. – Kristin Turney, 54, of Catawba, South Carolina, pleaded guilty in federal court today to wire fraud for embezzling more than $1.7 million from her employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina, joins U.S. Attorney King in making today’s announcement.
According to court documents, from 2016 to 2023, Turney executed a scheme to defraud her employer, a Charlotte-based company, by embezzling more than $1.7 million. Turney was in charge of the company’s financial matters, including bank accounts, payroll, accounts payables and receivables, and tax filings. As part of the scheme, Turney misused her access and control over the company’s bank accounts and books and records to write company checks to herself without proper approval or authorization and then deposited the checks into bank accounts under her control. As a result, Turney caused at least 1,000 fraudulent and unauthorized deposits totaling more than $1.7 million to be made from the bank account of the victim company to Turney’s bank account. Turney then covered up the fraud by, among other things, making false accounting entries in the company’s books and records, providing false information to the company’s tax return preparer, and giving false information to the company’s owner and employees. Turney generally spent the embezzled funds to pay for personal expenses, that included hundreds of thousands of dollars in shopping trips, car payments, mortgage payments, tuition payments, and vacation expenses.
The wire fraud charge carries a maximum sentence of 20 years in prison and a $250,000 fine.
In making today’s announcement, U.S. Attorney King thanked the FBI for their investigation of the case.
Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Slidell Man Sentenced for Unlicensed Manufacturing and Dealing in Explosive MaterialsRead the Press Release
NEW ORLEANS, LOUISIANA – DEVIN JUNEAU (“JUNEAU”), age 38, a resident of Slidell, Louisiana, was sentenced on November 7, 2024, by U.S. District Judge Susie Morgan, to time served, after previously pleading guilty to engaging in the business of manufacturing and dealing in explosive materials without a license, in violation of Title 18, United States Code, Sections 842(a)(1) and 844(a)(1), announced U.S. Attorney Duane A. Evans.
According to court documents, on or about February 6, 2024, JUNEAU manufactured and sold M-Type explosive devices that contained explosive materials to undercover agents, without possessing a license to engage in the business of manufacturing and dealing in explosive materials.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (A.T.F.). The case is being prosecuted by Assistant United States Attorney Troy Bell of the Violent Crimes Unit.
Second Indictment Returned Charging Orlando Middle School Employee with Distribution and Possession of Child Sex Abuse MaterialRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the return of a superseding indictment charging Mitchell Regan (36, Leesburg) with two counts of distribution of child sex abuse material (CSAM) and one count of possession of CSAM. If convicted, Regan faces a maximum penalty of 20 years in federal prison on each count, including a 5-year minimum sentence on both distribution offenses. Regan is detained in federal custody pending the resolution of this case.
According to the superseding indictment and court records, Homeland Security Investigations (HSI) executed a search warrant at Regan’s residence on October 17, 2024. During a search of Regan’s cellphone, an HSI computer forensic agent located an image of CSAM in his photo gallery. Regan advised law enforcement that he was employed at a middle school and the Boys and Girls Club and that that he teaches chess club and music lessons. A subsequent review of Regan’s social media applications by law enforcement revealed Regan had distributed two videos of CSAM on June 24, 2024.
A superseding indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by HSI and the Orange County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Roofing Business Owner and Payroll Administrator Both Plead Guilty in Employment Tax ConspiracyRead the Press Release
A Florida man and woman both pleaded guilty yesterday to conspiring to defraud the United States by not paying employment taxes to the IRS.
According to court documents and statements made in court, William Skaggs Jr. owned and operated Nastar Roofing, a roofing company that operated throughout the Fort Myers area. Billie Adkison was the business’s main office administrator, whose duties included managing payroll.
Between 2013 and 2023, Nastar employees, including Skaggs and Adksion, and others acting at their direction withdrew over $21 million from the company’s bank accounts to pay employees predominantly in cash without withholding Social Security, Medicare and federal income taxes from those wages. They did this to escape paying employment taxes they knew were legally required.
At times, Nastar used a payroll provider to issue nominal employee paychecks, but Nastar did not inform the payroll company about the cash wages. As such, when the payroll company filed employment tax returns with the IRS that included wages for Nastar employees, the forms were false in that they did not report the cash wages. Similarly, when Nastar did not use a payroll provider and filed its own employment tax returns, it failed to report the substantial cash wages paid to employees. Both Skaggs and Adkison signed a number of these tax returns, knowing that they were false.
In total, Skaggs and Adkison caused a tax loss to the IRS of nearly $2.5 million.
Skaggs and Adkison are scheduled to be sentenced at a later date. They face a maximum penalty of five years in prison. They also face a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger Handberg for the Middle District of Florida made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Kevin Schneider of the Tax Division and Assistant U.S. Attorney Michael Leeman for the Middle District of Florida are prosecuting the case.
Ringleader of Wire Fraud Conspiracy SentencedRead the Press Release
United States Attorney Susan Lehr announced that Abas Ali, age 22, of Omaha, Nebraska, was sentenced November 8, 2024, in federal court in Omaha for conspiring to commit wire fraud and aggravated identity theft. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Ali to 27 months’ imprisonment on the wire fraud charge and 24 months’ imprisonment on the aggravated identity theft charge for a total of 51 months. There is no parole in the federal system. After Ali’s release from prison, he will begin a 5-year term of supervised release on both charges.
A task force of Sarpy County, Douglas County, and Pottawattamie County agencies was assembled to investigate a significant spike in the Omaha and Council Bluffs metro areas in burglarized vehicles. The modus operandi of the thefts was that one member of the conspiracy would drive a vehicle slowly through a residential neighborhood while other members of the conspiracy, called “runners,” would enter vehicles parked in driveways or parked on the street outside of the residence and steal property like credit cards, identification, computers, money, and other valuables.
The members of the conspiracy would then take the stolen cards from the vehicles to area stores like Wal-Mart and other retailers and buy drinks, food, and prepaid cards that they would load up with money from the stolen cards. They would also purchase money orders to further conceal the source of the proceeds and the money orders would be deposited back to bank accounts or bitcoin accounts belonging to the members of the conspiracy.
Law enforcement was able to identify and arrest all five members of the conspiracy.
Co-conspirator Hassan Mohamed was sentenced on June 12, 2024, to 20 months imprisonment on the wire fraud charge and 24 months on the aggravated identity theft charge for a total of 44 months.
Co-conspirator Hazem Sarmin was sentenced on June 14, 2024, to 18 months imprisonment on the wire fraud charge and 24 months on the aggravated identity theft charge for a total of 42 months.
Co-conspirators Ian Betkie will be sentenced December 5, 2024, and Bead Chan will be sentenced January 3, 2025. Both pled guilty to wire fraud and aggravated identity theft.
This case was investigated by the Sarpy County Sheriff’s Office, Douglas County Sheriff’s Office, and the Federal Bureau of Investigation.
Retired Combat Medic Sentenced to 50 Years in Federal Prison for Sexual Exploitation of Two ChildrenRead the Press Release
SAN ANTONIO – A retired Army combat medic was sentenced in federal court to 50 years in prison for two counts of sexual exploitation of children.
According to court documents, Eric Scott McCants, 47, produced sexually explicit videos involving prepubescent children and shared them in a child exploitation group on a social networking application in July 2021. FBI agents seized his phone and discovered additional sexually explicit videos, some of which depicted a second minor female and dated back to as early as October 2018.
McCants was arrested on Aug. 13, 2021 and indicted Sept. 1, 2021 for four counts related to the production, possession and distribution of child pornography. He pleaded guilty Aug. 7, 2024 to two counts of sexual exploitation of children. On Wednesday, he was sentenced to 25 years imprisonment for each count. He will also pay $100,000 in restitution to the two victims.
“This 50-year sentence sends a clear message that the sexual exploitation of children has lasting traumatic effects on vulnerable victims and will not be tolerated in the Western District,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Thank you to our federal law enforcement partners at the FBI for their diligence in this investigation and their dedication to protecting the children of our communities.”
“The details of this case and McCants’ exploitation of minors are horrific, and we hope this sentence will allow his victims some measure of comfort in knowing he will never be able to hurt another child,” said Special Agent in Charge Aaron Tapp for the FBI’s San Antonio field office. “We are dedicated to stopping predators who harm our most vulnerable citizens and want to thank the U.S. Attorney’s Office for their continued assistance in keeping our communities safe.”
The FBI investigated the case.
Assistant U.S. Attorney Tracy Thompson 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 CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Repeated Sexual Abuse of a 14-Year-Old Girl Gets Man 12 Year Prison TermRead the Press Release
WASHINGTON – Francisco Flores-Lopez, 34, of Alexandria, VA, was sentenced today to 12 years in prison for sexually abusing a 14-year-old D.C. resident, resulting in her pregnancy, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
Flores-Lopez pleaded guilty on September 4, 2024, to first degree child sexual abuse, in the Superior Court of the District of Columbia. Judge Marisa Demeo sentenced Flores-Lopez to 144 months in prison, followed by 10 years of supervised release. Flores-Lopez will also be required to register as a sex offender.
According to the government’s evidence, the victim met Flores-Lopez over social media and met up for the first time in June 2022, the same month the victim would turn 14 years old. The defendant, who was 32 years old in June 2022, picked up the victim in his truck and brought her to Rock Creek Park in Washington, D.C., where he engaged in penetrative vaginal sex with the victim in his truck. Between June 2022 and March 2023, Flores-Lopez engaged in various sexual acts with this 14-year-old girl at various locations in Rock Creek Park. The victim became pregnant and gave birth to a baby girl while she was still 14. Even after giving birth, Flores-Lopez would come over to the victim’s house and continued to engage in sex with the victim. DNA testing conducted in this case corroborated that Flores-Lopez was the father of the baby born to the victim as a result of the sexual abuse.
In announcing the sentence, U.S. Attorney Graves and Chief. Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also commended the efforts of Assistant U.S. Attorneys Richard Kelley and Sarah Folse, who prosecuted the case.
Pharmacist and Brother Convicted of $15M Medicare, Medicaid, and Private Insurer Fraud SchemeRead the Press Release
A federal jury convicted a pharmacy owner and his brother today for conspiracy to commit health care fraud and wire fraud.
According to court documents and evidence presented at trial, Raad Kouza, a pharmacist in Wayne County, Michigan, and his brother, Ramis Kouza, of Oakland County, Michigan, billed Medicare, Medicaid, and Blue Cross Blue Shield of Michigan for prescription medications that they did not dispense at pharmacies they owned or operated in Michigan. The defendants collectively caused over $15 million of loss to Medicare, Medicaid, and Blue Cross Blue Shield of Michigan.
Raad Kouza and Ramis Kouza were convicted of conspiracy to commit health care fraud and wire fraud. Raad Kouza was also convicted of one count of health care fraud. Both defendants face a maximum penalty of 20 years in prison on the conspiracy count, and Raad Kouza faces a maximum penalty of 10 years in prison on the health care fraud count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing hearings will be set at a later date.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office; and Special Agent in Charge Mario Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI Detroit Field Office and HHS-OIG investigated the case.
Trial Attorneys Claire Sobczak Pacelli, Jeffrey A. Crapko, and Andres Q. Almendarez of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Passaic County Man Sentenced to 82 Months in Prison for Fentanyl, Cocaine, and Ammunition ChargesRead the Press Release
CAMDEN, N.J. – A Passaic County, New Jersey, man was sentenced to 82 months in prison for possessing with intent to distribute fentanyl and cocaine and possessing ammunition by a convicted felon, U.S. Attorney Philip R. Sellinger announced today.
Kadeem Coleman, 31, of Paterson, New Jersey, previously pleaded guilty before Chief U.S. District Judge Renée M. Bumb to possession with intent to distribute fentanyl and cocaine and possession of ammunition by a convicted felon, and was sentenced to 70 months in prison on those counts. At the time Coleman committed these offenses, he was on federal supervised release; for violating the terms of his supervised release, Judge Bumb sentenced Coleman to an additional 12 months in prison to run consecutively. Judge Bumb imposed the sentence on Nov. 7, 2024, in Camden federal court.
According to documents filed in this case and statements made in court:
On October 15, 2021, law enforcement arrested Coleman and searched his residence pursuant a search warrant. Law enforcement recovered fentanyl and cocaine, which was subsequently confirmed through laboratory testing, and over 120 rounds of ammunition. Coleman had previously been federally convicted in the District of New Jersey for unlawful possession of a firearm.
In addition to the prison term, Judge Bumb sentenced Coleman to five years of supervised release.
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; the Passaic County Sheriff’s Office, under the direction of Acting Sheriff Gary Giardina; and the Paterson Police Department, under the direction of Officer in Charge Isa Abbassi with the investigation leading to the sentencing.
This case is part of the Paterson Violent Crime Initiative (VCI), which was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Passaic County Prosecutor’s Office, and the City of Paterson’s Department of Public Safety for the purpose of combatting violent crime in and around Paterson. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Paterson Department of Public Safety, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, N.J. State Parole, Bergen County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, and N.J. Department of Corrections.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi‑agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
The government is represented by Assistant U.S. Attorney Farhana C. Melo of the OCDETF/Narcotics Unit in Newark.
Orleans Parish Resident Guilty of Controlled Substances and Gun Control Acts ViolationsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that DIONTAE DORSEY, (“DORSEY”), age 43, of New Orleans, pled guilty on November 7, 2024 to Counts 1, 4, and 8 of an indictment before U.S. District Judge Carl J. Barbier. Sentencing is scheduled for February 27, 2025.
DORSEY was charged in Count 1 with Conspiracy to Distribute, and Possess with Intent to Distribute, Controlled Substances, in violation of Title 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), 841(b)(1)(B), 841(b)(1)(C), and 846. At sentencing, he faces a minimum of 10 years and up to life imprisonment, up to a $10,000,000 fine, and at least 5 years of supervised release.
DORSEY was charged in Count 4 with possessing firearms in furtherance of drug trafficking crimes, in violation of Title 18 U.S.C. § 924(c)(1). At sentencing, he faces a mandatory minimum of 5 years up to life imprisonment, up to a $250,000 fine, and up to 5 years of supervised release following imprisonment. Any sentence on Count 4 must run consecutive to any other sentence.
DORSEY was charged in Count 8 with maintaining a drug-involved premises, in violation of Title 21 U.S.C. § 856(a) and Title 18 U.S.C. § 2. Count 8 carries up to 20 years imprisonment, up to a $500,000 fine, and at least 3 years of supervised release following imprisonment. All three counts also carry a $100 mandatory special assessment fee.
According to the indictment, beginning on a time unknown but continuing until at least May 8, 2024, DORSEY and other individuals, maintained three residences in the Algiers neighborhood of New Orleans for the purpose of packaging and distributing narcotics, including fentanyl, cocaine, and heroin. Several of these individuals furthered this drug trafficking conspiracy by possessing firearms.
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.
United States Attorney Evans praised the work of the Drug Enforcement Administration, the Louisiana State Police, the Federal Bureau of Investigation, and the New Orleans Police Department. The prosecution is being handled by Assistant United States Attorney Stuart Theriot of the Narcotics Unit.
Operator of ‘Bitcoin Fog’ Sentenced to More Than 12 Years in Prison for Running Notorious Darknet Cryptocurrency MixerRead the Press Release
WASHINGTON – Roman Sterlingov, 36, a citizen of Russia and Sweden, was sentenced today to more than 12 years – or 150 months – in prison for operating a cryptocurrency mixer that laundered tens of millions of dollars for Darknet narcotics dealers and facilitated illegal conduct by other individuals who participated in a Darknet site for trafficking child sexual abuse material. A cryptocurrency mixer is a service that mixes potentially illegally derived cryptocurrency with others to obscure the trail back to the cryptocurrency’s original source.
The sentence, handed down in U.S. District Court for the District of Columbia, was announced by U.S. Attorney Matthew M. Graves, Deputy Attorney General Lisa Monaco, Principal Deputy Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Chief Guy Fico of the Internal Revenue Service-Criminal Investigation (IRS-CI), and FBI Assistant Director in Charge David Sundberg of the Washington Field Office.
In addition to his term of imprisonment, Sterlingov was sentenced to pay a forfeiture money judgment in the amount of $395,563,025.39, and forfeiture of seized cryptocurrencies and monetary assets valued at approximately $1.76 million. In addition, Sterlingov was ordered to forfeit his interest in the Bitcoin Fog wallet, totaling approximately 1,345 bitcoin and currently valued at more than $103 million.
“As proven at trial, Roman Sterlingov created and used an online tool to process hundreds of millions in illegal transactions, enabling darknet drug dealers and those who sell child sexual abuse material, to operate,” said U.S. Attorney Graves. “Today’s sentence sends an unmistakable message: those who help criminals with online payments for their illegal activities will face serious penalties. This prosecution also provides more proof that we have the skilled investigators and talented prosecutors needed to hold those who operate these darknet sites accountable.”
“Roman Sterlingov ran the longest-running bitcoin money laundering service on the darknet, and today he paid the price,” said Deputy Attorney General Lisa Monaco. “In the deepest corners of the internet, he provided a home for criminals of all stripes, from drug traffickers to identity thieves, to store hundreds of millions of dollars in illicit proceeds. Today’s sentence reflects the Department’s determination to dismantle the criminal networks that enable criminal actors to flourish and ensure consequences for the criminals operating them.”
“Roman Sterlingov laundered over $400 million in criminal proceeds through Bitcoin Fog, his cryptocurrency ‘mixing’ service that was open for business to criminals looking to hide dirty money,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Through his illicit money laundering operation, Sterlingov helped criminals launder proceeds of drug trafficking, computer crime, identity theft, and the sexual exploitation of children. Today’s sentencing underscores the Justice Department’s commitment to holding those who facilitate criminal activity fully accountable for their crimes. I am especially proud of the dedicated investigators and prosecutors who worked tirelessly to unmask and prosecute the Bitcoin Fog scheme.”
“Clearly, Sterlingov’s attempt to shroud his illicit activities in a cloak of anonymity ultimately failed against the sophisticated collaborative work of our Criminal Investigation (CI) special agents and partners,” said Chief Guy Ficco of IRS-CI. “Today’s significant prison term and hundreds of millions in financial sanctions against the defendant emphasizes the seriousness of this conviction and should serve as a stark notice that this type of criminal activity will not be tolerated.”
“The prosecution of Roman Sterlingov and the sentence imposed today should serve as a warning to cybercriminals,” said Assistant Director in Charge David Sundberg. “The FBI will not hesitate to use all tools at its disposal and will leverage our extensive partnerships to disrupt the cybercriminal ecosystem and the individuals who provide the key services that facilitate criminal activity.”
Sterlingov was found guilty on March 12, 2024, of conspiracy, sting money laundering, operating an unlicensed money transmitting business, and violations of the D.C. Money Transmitters Act following a month-long jury trial. The jury also granted forfeiture to the government of several specific assets that law enforcement had previously seized, including over about 1,354 Bitcoin (BTC) held in a Bitcoin Fog wallet, as well as $349,625 and various cryptocurrencies (including Bitcoin, Ethereum, Monero, and Stellar) held in seized Kraken cryptocurrency exchange accounts.
According to the government’s evidence, Sterlingov operated Bitcoin Fog from October 2011 to April 2021. Bitcoin Fog was a cryptocurrency “mixer,” or “tumbler,” and had gained notoriety as a money laundering service for criminals seeking to hide their illicit proceeds from law enforcement. Over the course of its decade-long operation, which stopped only when Sterlingov was arrested and detained, Bitcoin Fog moved well over 1.2 million Bitcoin (BTC) – valued at approximately nearly $400 million at the time of the transactions. The bulk of that cryptocurrency came from darknet marketplaces and was tied to illegal narcotics, computer fraud and abuse activities, and identity theft. Sterlingov’s service also served purveyors of child sexual abuse material (CSAM) through the notorious site Welcome to Video.
Sterlingov -- who used the monikers Akemashite Omedetou and Killdozer and Meth!, among others -- was fully aware that Bitcoin Fog would be used to launder Bitcoin from illegal vendors on the Darknet. As he noted succinctly about a month before creating Bitcoin Fog, Bitcoin and narcotics went hand in hand. “Also, like Silk Road, go ahead and accept payments in bitcoins; then, you will not be intimidated by even the U.S.”
The defendant advertised the site as “for people who have real problems for the law and we provide them the best possible service, and highest possible anonymity.” Those who had “real problems for the law” would mix “your bitcoins in our own pool with other users’ Bitcoins, and get paid back to other accounts from our mixed pool.”
At its launch, Sterlingov publicized Bitcoin Fog as a tool for anonymizing bitcoin transactions and evading law enforcement. His site charged customers a fee for the service. Historically, the largest users of Bitcoin Fog were darknet markets such as Agora, Silk Road, Silk Road 2.0, Evolution, and AlphaBay. As the jury found, Sterlingov’s mixing and tumbling activity was an illegal money transmitting and money laundering service under federal law.
While the identity of a BTC address owner is generally anonymous (unless the owner opts to make the information publicly available), the evidence at trial demonstrated that law enforcement can identify the owner of a particular Bitcoin address by analyzing the blockchain. The analysis can also reveal additional addresses controlled by the same individual or entity. IRS-CI’s analysis determined Bitcoin Fog received approximately 486,861.69 BTC, valued at about $54,897,316 at the time of the transactions, directly from darknet markets. Bitcoin Fog sent approximately 164,931.13 BTC (about $23,690,956 at the time of the transactions) directly to darknet markets. In sum, the anonymizer sent or received more than $78 million in transactions involving known darknet markets, counting only direct transactions.
Based on Bitcoin Fog’s transaction activity over time, Sterlingov made millions in commissions from Bitcoin Fog transactions. Investigators obtained records of Sterlingov’s true-name accounts at several cryptocurrency exchanges. Analysis of those accounts revealed the vast majority of cryptocurrency deposited into Sterlingov’s accounts was originally sourced and traced back to Bitcoin clusters associated with Bitcoin Fog.
Under U.S. law, it is a crime to conspire to commit money laundering, that is, to conduct financial transactions with proceeds from unlawful activity designed to conceal the nature, location, source, ownership, or control of such proceeds. It is also a crime to conduct or attempt to conduct a financial transaction involving property represented to be the proceeds of specified unlawful activity, with the intent to conceal the nature, location, source, ownership, or control of such property. It is also a crime to operate a money transmitting businesses without obtaining an appropriate money transmitting license in the state in which the service operates, or with FinCEN. The District of Columbia also criminalizes similar unlicensed activity.
Sterlingov was arrested April 27, 2021, at Los Angeles International Airport and has remained detained since that time.
This case is being investigated by the IRS-CI District of Columbia Cyber Crime Unit and the FBI Washington Field Office. The Justice Department’s Office of International Affairs and FBI’s Virtual Asset Unit provided invaluable assistance. Additional assistance was provided by Japanese, Swedish, Danish, Romanian, and UK authorities, as well as Europol.
The case is being prosecuted by Assistant U.S. Attorney Christopher B. Brown for the District of Columbia and Trial Attorneys Jeff Pearlman and C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS). Pelker and Brown are members of CCIPS’ National Cryptocurrency Enforcement Team (NCET). Paralegal Specialists Angela De Falco and Divya Ramjee provided valuable assistance.
Ohio Man Convicted of Possession and Distribution of Child Sexual Abuse MaterialsRead the Press Release
TOLEDO, Ohio – A federal jury has convicted an Ohio man of possession and distribution of child sexual abuse materials (CSAM), also known as child pornography. Derran Reebel, 52, of Toledo, was found guilty of committing crimes that violate federal laws regarding the sexual exploitation and abuse of children. According to court documents, Reebel knowingly received and distributed CSAM for nearly eight years, from about Jan. 1, 2014 through Aug. 17, 2022. During a search warrant execution conducted at his residence, investigators found numerous books, magazines, periodicals, films, and video tapes that contained visual depictions of minors engaged in sexually explicit conduct in his possession.
Law enforcement officials also discovered that Reebel used social media for a number of years to chat with minors and send them sexually explicit messages and photos of himself.
Sentencing has not yet been scheduled. Reebel faces a minimum sentence of five years and a maximum of 20 years in prison.
This case was investigated by the FBI-Toledo. The case is being prosecuted by Assistant U.S. Attorneys Sara Al-Sorghali and Frank Spryszak for the Northern District of Ohio.
To report child exploitation, please visit cybertipline.org, or call 1-800-843-5678, 24 hours a day, 7 days a week.
New Orleans Woman Guilty of Federal Controlled Substances Act Violations and Money LaunderingRead the Press Release
NEW ORLEANS, LOUISIANA – Today, U.S. Attorney Duane A. Evansannounced that BRANDIE ROWE (ROWE), age 36, a resident of New Orleans, pled guilty on November 6, 2024, before United States District Judge Jane Triche Milazzo to a two-count superseding indictment. Count One charged ROWE with conspiracy to distribute and possess with intent to distribute a quantity of cocaine, heroin, and fentanyl in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(C). Count Two charged ROWE with conspiracy to launder monetary instruments in violation of Title 18, United States Code, Sections 1956(a)(2)(A) and 1956(h).
According to court documents, ROWE and other co-conspirators distributed of multi-kilogram quantities of cocaine, fentanyl, and heroin within the Eastern District of Louisiana. Additionally, ROWE and the co-conspirators traveled between New Orleans, and other states, in order to transport U.S. Currency and narcotics on behalf of a Drug Trafficking Organization.
As to Count One, ROWE faces up to twenty (20) years imprisonment, a fine of up to $1,000,000.00, at least three years of supervised release, and a mandatory special assessment fee of $100. As to Count Two, ROWE faces up to twenty (20) years imprisonment, a fine of up to $500,000.00, up to three years of supervised release, and a mandatory special assessment fee of $100.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This investigation was led by the Drug Enforcement Administration – New Orleans Field Division Office and was assisted by the Federal Bureau of Investigation, the United States Border Patrol, the Gretna Major Crimes Task Force, the Kenner Police Department, the Jefferson Parish Sheriff’s Office, the St. John’s Parish Sheriff’s Office, the Orleans Parish Sheriff’s Office, and the New Orleans Police Department. The prosecution is being handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.