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18 December 2024
Omaha Man Sentenced for Distributing Fentanyl and MethamphetamineRead the Press Release
United States Attorney Susan Lehr announced that Seth Coufal, age 34, of Omaha, Nebraska, was sentenced December 18, 2024, in federal court in Omaha for distribution of fentanyl and methamphetamine. United States District Judge Brian C. Buescher sentenced Coufal to 180 months’ imprisonment. There is no parole in the federal system. After Coufal is released from prison, he will begin a 3-year term of supervised release.
In December 2022, Coufal distributed fentanyl and methamphetamine to another individual in Elkhorn, Nebraska. That individual used the drugs and subsequently overdosed but survived.
This case was investigated by the Douglas County Sheriff’s Office.
Ohio Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Adrian Horton, also known as “Big Guy” and “Fat Boy,” 23, of Toledo, Ohio, was sentenced today to five years and three months in prison, to be followed by five years of supervised release, for possession with intent to distribute 40 or more grams of fentanyl and a quantity of cocaine base, also known as “crack.”
According to court documents and statements made in court, on March 28, 2022, law enforcement officers executed a search warrant at a Monroe Avenue residence in Huntington where Horton was staying. Officers seized over 40 grams of fentanyl, a quantity of cocaine, a Century CAHG2797-N 7.62x39mm semi-automatic firearm, also known as a “Micro Draco,” with a high-capacity magazine, and a loaded Glock 17 9mm pistol. Horton admitted that he possessed the seized controlled substances, intended to distribute them, and used the Huntington residence to distributed various kinds of controlled substances.
Horton further admitted that he possessed the seized firearms to protect his drugs and drug proceeds and for protection during drug transactions, and that he distributed various drugs with a co-conspirator for several months prior to the March 28, 2022 search.
Horton also admitted that he aided and abetted the straw purchase of firearms on multiple occasions. Horton and the co-conspirator gave cash to their regular drug buyers and directed them to buy firearms on their behalf. The straw purchasers falsely certified on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Records Form 4473 that they were the buyers of the firearms when they knew they were purchasing them for Horton and the co-conspirator. Horton and the co-conspirator compensated the straw purchasers with drugs.
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 Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Owen Reynolds and Stephanie Taylor 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. 3:24-cr-5..
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Norman Man Pleads Guilty to Production of Child PornographyRead the Press Release
OKLAHOMA CITY – Yesterday, JACOB EDWARD KAMOLZ, 39, of Norman, pleaded guilty to production of child pornography, announced U.S. Attorney Robert J. Troester.
On September 17, 2024, a federal Grand Jury returned a four-count Indictment against Kamolz, charging him with production, attempted production, possession, and distribution of child pornography. According to public record, in August 2024, Kamolz connected with an FBI Online Covert Employee (OCE) who was purporting to be a juvenile on a social media messaging app. Over the course of several days, Kamolz sent child sexual abuse material (CSAM) to the OCE and requested that they send CSAM in return. Public record further reflects that, after his arrest, the FBI determined Kamolz produced CSAM with a child using his cell phone.
On December 17, 2024, Kamolz pleaded guilty and admitted he used a minor to produce CSAM. At sentencing, Kamolz faces no less than 15 years and up to 30 years in federal prison, and a fine of up to $250,000.
This case is the result of an investigation by the FBI Oklahoma City Field Office, Norman Resident Agency. Assistant U.S. Attorney Jordan Ganz is prosecuting the case.
This case is part of Project Safe Childhood (PSC), a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the DOJ Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.justice.gov/psc.
Reference is made to public filings for additional information.
New York Resident Pleads Guilty to Operating Secret Police Station of the Chinese Government in Lower ManhattanRead the Press Release
Chen Jinping, 60, of New York, New York, pleaded guilty today to conspiring to act as an illegal agent of the government of the People’s Republic of China (PRC), in connection with opening and operating an undeclared overseas police station, located in lower Manhattan, for the PRC’s Ministry of Public Security (MPS).
“Today’s guilty plea holds the defendant accountable for his brazen efforts to operate an undeclared overseas police station on behalf of the PRC’s national police force — a clear affront to American sovereignty and danger to our community that will not be tolerated,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Department of Justice will continue to pursue anyone who attempts to aid the PRC’s efforts to extend their repressive reach into the United States.”
“Today's acknowledgment of guilt is a stark reminder of the insidious efforts taken by the PRC government to threaten, harass, and intimidate those who speak against their Communist Party,” said Executive Assistant Director Robert Wells of the FBI’s National Security Branch. “These blatant violations will not be tolerated on U.S. soil. The FBI remains committed to preserving the rights and freedoms of all people in our country and will defend against transnational repression at every front.”
“A priority of my office has been to counteract the malign activities of foreign governments that violate our nation’s sovereignty by targeting local diaspora communities in the United States,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Today, a participant in a transnational repression scheme who worked to establish a secret police station in the middle of New York City on behalf of the national police force of the People’s Republic of China has pleaded guilty to conspiracy to act as an illegal agent. We will continue our efforts to protect the rights of vulnerable persons who come to this country to escape the repressive activities of authoritarian regimes.”
As alleged, Chen Jinping and co-defendant “Harry” Lu Jianwang conspired to act as illegal agents of the PRC government and also obstructed justice by destroying evidence of their communications with an MPS official. While acting under the direction and control of the MPS official, the defendants worked together to establish the first known overseas police station in the United States on behalf of the Fuzhou branch of the MPS. The police station — which closed in the fall of 2022 — occupied an entire floor in an office building in Manhattan’s Chinatown. Lu and Chen helped open and operate the clandestine police station. None of the participants in the scheme informed the U.S. government that they were helping the PRC government surreptitiously open and operate an undeclared MPS police station on U.S. soil.
In October 2022, the FBI conducted a judicially authorized search of the illegal police station. In connection with the search, FBI agents interviewed both defendants and seized their phones. In reviewing the contents of these phones, FBI agents observed that communications between the defendants and an MPS official appeared to have been deleted. In subsequent consensual interviews, the defendants admitted to the FBI that they had deleted their communications with the MPS official after learning about the ongoing FBI investigation, thus preventing the FBI from learning the full extent of the MPS’s directions for the overseas police station.
Chen faces a maximum penalty of five years in prison. Per Chen’s plea agreement, the government has agreed to dismiss the obstruction of justice charge against him. Lu has pleaded not guilty to both of the charges against him and is awaiting trial.
The FBI is investigating the case.
Assistant U.S. Attorneys Alexander A. Solomon and Antoinette N. Rangel for the Eastern District of New York and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
The FBI has created a website for victims to report efforts by foreign governments to stalk, intimidate, or assault people in the United States. If you believe that you are or have been a victim of transnational repression, please visit www.fbi.gov/investigate/counterintelligence/transnational-repression.
New York City Resident Pleads Guilty to Operating Secret Police Station of the Chinese Government in Lower ManhattanRead the Press Release
BROOKLYN, NY – Today in federal court in Brooklyn, Manhattan resident Chen Jinping pleaded guilty to conspiring to act as an agent of the government of the People’s Republic of China (PRC), in connection with opening and operating an undeclared overseas police station in lower Manhattan for the PRC’s Ministry of Public Security (MPS). Today’s proceeding was held before United States District Judge Nina R. Morrison. When sentenced, the defendant faces up to five years in prison.
Breon Peace, United States Attorney for the Eastern District of New York; Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division; and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
“A priority of my Office has been to counteract the malign activities of foreign governments that violate our nation’s sovereignty by targeting local diaspora communities in the United States,” stated United States Attorney Peace. “Today, a participant in a transnational repression scheme who worked to establish a secret police station in the middle of New York City on behalf of the national police force of the People’s Republic of China has pleaded guilty to conspiracy to act as an illegal agent. We will continue our efforts to protect the rights of vulnerable persons who come to this country to escape the repressive activities of authoritarian regimes.”
“Today’s guilty plea holds the defendant accountable for his brazen efforts to operate an undeclared overseas police station on behalf of the PRC’s national police force — a clear affront to American sovereignty and danger to our community that will not be tolerated,” stated Assistant Attorney General Olsen. “The Department of Justice will continue to pursue anyone who attempts to aid the PRC’s efforts to extend their repressive reach into the United States.”
“Today, Chen Jinping admitted to his role in audaciously establishing an undeclared police station in the heart of New York City and attempting to conceal the effort when approached by FBI New York,” stated FBI Assistant Director in Charge Dennehy. “This illegal police station was not opened in the interest of public safety, but to further the nefarious and repressive aims of the PRC in direct violation of American sovereignty. The FBI is unwavering in our duty to protect both the freedoms enshrined in the Constitution and the security of our nation from oppressive hostile governments.”
As alleged in court filings and facts presented at the plea proceeding, Chen Jinping and co-defendant Lu Jianwang conspired to act as illegal agents of the PRC government and also obstructed justice by destroying evidence of their communications with an MPS official (the MPS Official). While acting under the direction and control of the MPS Official, the defendants worked together to establish the first known overseas police station in the United States on behalf of the Fuzhou branch of the MPS. The police station—which closed in the fall of 2022—occupied an entire floor in an office building in Manhattan’s Chinatown. Chen and Lu helped open and operate the clandestine police station. None of the participants in the scheme informed the U.S. government that they were helping the PRC government open and operate an undeclared MPS police station on U.S. soil.In October 2022, the FBI conducted a judicially authorized search of the illegal police station. In connection with the search, FBI agents interviewed both defendants and seized their phones. In reviewing the contents of these phones, FBI agents observed that communications between the defendants, on the one hand, and the MPS Official, on the other, appeared to have been deleted.
Lu Jianwang has pleaded not guilty to the charges and is awaiting trial.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon and Antoinette N. Rangel are in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
The FBI has created a website for victims to report efforts by foreign governments to stalk, intimidate, or assault people in the United States. If you believe that you are or have been a victim of transnational repression, please visit https://www.fbi.gov/investigate/counterintelligence/transnational-repression.
The Defendant:
CHEN JINPING
Age: 60
Manhattan, New YorkE.D.N.Y. Docket No. 23-CR-316 (NRM)
New Hartford, Iowa, Man Receives Prison Sentence for Child Pornography ChargeRead the Press Release
A New Hartford, Iowa, man who received child pornography from 2004 through December of 2021 was sentenced December 17, 2024 to more than 11 years in federal prison.
Robert Jene Smith, age 57, from New Hartford, Iowa, received the prison term after a May 20, 2024, guilty plea to one count of receipt of child pornography.
In a plea agreement, Smith admitted that from 2004 through the search of his house in December of 2021, he obtained and shared hundreds of images and videos by using a file sharing program. During the search of his residence, agents found over 7,500 images and over 100 videos of minors engaged in sexually explicit conduct on multiple devices in the residence.
Smith was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Smith was sentenced to 136 months’ imprisonment and fined $1,000. He was ordered to make $32,000 in restitution to ten identified victims who were used to produce child pornography and requested restitution for damages they suffered. He must also pay $15,100 in special assessments and serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Smith is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick J. Reinert and investigated by Iowa Division of Criminal Investigation, the Urbandale, Iowa, Police Department, and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-03023.
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New Hampshire Man Pleads Guilty to Possessing 70 Kilos of CocaineRead the Press Release
BOSTON – A Manchester, N.H. man pleaded guilty on Dec. 11, 2024, in federal court in Boston to possession with intent to distribute five kilograms or more of cocaine.
Miguel Angel Martinez Lugo, a/k/a “Jesus Manuel Encarnacion,” a/k/a “Jose Rosado Rabell,” 38, pleaded guilty to one count of possession with intent to distribute 5 kilograms or more of cocaine. U.S. District Court Judge Julia E. Kobick scheduled sentencing for March 6, 2025.
On April 4, 2024, police working in plain clothes and operating an unmarked vehicle observed a black Acura MDX with a New Hampshire license plate registered to Martinez Lugo under his alias, “Jesus Encarnacion,” and a Chevrolet pickup truck with an Ohio license plate in close proximity to one another that appeared to be travelling together. Law enforcement followed the two vehicles as they drove down a number of streets and then ultimately parked on Porter Street Court in Salem, Mass. The two vehicles were parked in such a way that their trunks were visible and law enforcement observed two males, one of which was identified as Martinez Lugo, transporting a heavy-duty black plastic storage bin with a yellow lid from the pickup truck to the black Acura MDX. Two additional heavy duty black plastic storage bins were observed inside of the black Acura MDX.
When the Black Acura MDX passed the law enforcement vehicle, the driver, Martinez Lugo, made eye contact with the officer and then quickly parked and abandoned the vehicle. A search warrant was subsequently sought for the vehicle and 70 kilograms of cocaine were found inside of the three plastic storage bins inside of the vehicle. Three cellular phones were also recovered from the vehicle, among other things.
The charge provides for a mandatory minimum sentence of 10 years and up to life in prison, at least five years and up to life of supervised release and fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Chief Lucas J. Miller of the Salem (Mass.) Police Department; and Chief Peter Marr of the Manchester N.H. Police Department made the announcement. Valuable assistance was provided by the United States Marshals and the U.S. Customs and Border Patrol. Assistant U.S. Attorney J. Mackenzie Duane of the Narcotics & Money Laundering Unit is prosecuting the case.
Nationwide Lawsuit Filed in Rhode Island Alleging CVS Knowingly Dispensed Controlled Substances in Violation of the Controlled Substances Act and the False Claims ActRead the Press Release
PROVIDENCE, RI – In a civil complaint unsealed today in federal court in Providence, Rhode Island, the Justice Department alleges that CVS Pharmacy, Inc., and various subsidiaries (collectively, CVS) filled unlawful prescriptions in violation of the Controlled Substances Act (CSA) and sought reimbursement from federal healthcare programs for some of the unlawful prescriptions in violation of the False Claims Act (FCA). CVS is the country’s largest pharmacy chain, with more than 9,000 pharmacies across the United States.
The government’s complaint alleges that, from October 17, 2013, to the present, CVS knowingly filled prescriptions for controlled substances that lacked a legitimate medical purpose, were not valid, and/or were not issued in the usual course of professional practice. Among the large quantities of unlawful prescriptions that CVS allegedly filled were prescriptions for dangerous and excessive quantities of opioids, early fills of opioids, and “trinity” prescriptions, an especially dangerous and abused combination of drugs made up of an opioid, a benzodiazepine, and a muscle relaxant. CVS also allegedly filled large quantities of prescriptions for controlled substances written by prescribers it knew to be engaged in “pill mill practices” – that is, prescribers who issue large numbers of controlled substance prescriptions without any medical purpose. According to the complaint, CVS ignored substantial evidence from multiple sources, including its own pharmacists and internal data, indicating that its stores were dispensing unlawful prescriptions.
The complaint alleges that CVS’s violations resulted from corporate-mandated performance metrics, incentive compensation, and staffing policies that prioritized corporate profits over patient safety. CVS set staffing levels far too low for pharmacists to both meet their performance metrics and comply with their legal obligations. CVS also allegedly deprived its pharmacists of crucial information (including by, for example, preventing pharmacists from warning one another about certain prescribers) that could have reduced the number of unlawful prescriptions filled. The complaint alleges that CVS’s actions helped to fuel the prescription opioid crisis and that, in some particularly tragic instances, patients died after overdosing on opioids shortly after filling unlawful prescriptions at CVS.
“Opioid deaths remain a scourge on communities across Rhode Island and the nation, robbing families of loved ones and leaving a path of devastation in their wake,” said Zachary A. Cunha, U.S. Attorney for the District of Rhode Island. “This lawsuit alleges that CVS failed to exercise its critical role as gatekeeper of dangerous prescription opioids and, instead, facilitated the illegal distribution of these highly addictive drugs, including by pill mill prescribers. When corporations such as CVS prize profits over patient safety and overburden their pharmacy staff so that they cannot carry out the basic responsibility of ensuring that prescriptions are legitimate, we will use every tool at our disposal to see that they answer for it.”
“Our complaint alleges that CVS repeatedly filled controlled substance prescriptions that were unlawful and pressured its pharmacists to fill such prescriptions without taking the time needed to confirm their validity,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The practices alleged contributed to the opioid crisis and opioid-related deaths, and today’s complaint seeks to hold CVS accountable for its misconduct.”
The government alleges that by knowingly filling unlawful prescriptions for controlled substances, CVS violated the CSA and, where CVS sought reimbursement from federal healthcare programs, also violated the FCA. The complaint alleges that CVS’s actions helped to fuel the prescription opioid crisis. If CVS is found liable, it could face civil penalties for each unlawful prescription filled in violation of the CSA and treble damages and applicable penalties for each prescription reimbursed by federal healthcare programs in violation of the FCA. The court also may award injunctive relief to prevent CVS from committing further CSA violations, including ordering appropriate changes to corporate compliance programs and policies.
“When lives are destroyed or lost to opioid abuse, it doesn’t matter if the supplier is a street-level dealer, a pill mill, or a nationwide corporation,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “Our laws regarding the distribution of opioids and other controlled substances are clear and apply to everyone. We will pursue whatever legal action is necessary to stop any enterprise, regardless of size, that places profit over the safety of our citizens.”
“CVS is alleged to have dispensed large amounts of highly addictive opioid medications to persons they knew had no medical need for them. Simply put, they put profits over their obligation to keep their customers safe,” said DEA Administrator Anne Milgram. “A pharmacy is the final step in the pharmaceutical distribution process that is in place to keep customers safe. In the fight against the opioid epidemic, DEA will continue to be relentless in holding those accountable who violate our drug laws and place our communities in danger whether they are a criminal cartel or large pharmacy chain.”
“Pharmacies and pharmacists are critical partners to ensure controlled substances are dispensed lawfully and safely to the public,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG is committed to holding individuals and entities that dispense these controlled substances improperly and without legitimate medical purpose accountable.”
“Protecting TRICARE, the healthcare system for military members and their dependents, is a top priority for the Department of Defense Office of Inspector General Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Today’s filing demonstrates DCIS’ ongoing commitment to partner with the Department of Justice and our law enforcement partners to investigate health care providers that submit false claims to TRICARE and put its beneficiaries at risk.”
Whistleblower Hillary Estright, who previously worked for CVS, filed an action on October 17, 2019, under the qui tam provisions of the FCA. Those provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over such lawsuits, as it has done here.
The case is captioned United States ex rel. Estright v. Health Corporation, et al., No. 1:22-cv-222 (D.R.I.).
The United States’ intervention in this matter underscores the government’s commitment to combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to HHS, at 800-HHS-TIPS (800-447-8477).
The United States’ enforcement action is being litigated by attorneys from the U.S. Attorneys’ Offices for the District of Rhode Island (First Assistant U.S. Attorney Sara M. Bloom and Assistant U.S. Attorneys Kevin Love Hubbard and Rachna Vyas), the Justice Department Civil Division’s Consumer Protection Branch (Assistant Directors Amy L. DeLine and C.B. Buente, Senior Litigation Counsel Donald Lorenzen, and Trial Attorneys Benjamin Cornfeld and Amanda K. Kelly) and Commercial Litigation Branch, Fraud Section (Trial Attorneys Claire L. Norsetter, Joshua Barron, and Megan F. Engel), as well as the Eastern District of Virginia (Assistant U.S. Attorneys Clare Wuerker and John Beerbower), the District of Hawaii (Assistant U.S. Attorneys Sydney Spector and Tracy Weinstein), and the Eastern District of Texas (Assistant U.S. Attorneys James Gillingham and Adrian Garcia).
The DEA’s Office of Diversion Control, Washington, D.C. Field Division, HHS-OIG, and DCIS conducted the investigation. Several other offices provided substantial assistance in the investigation, including the United States Attorneys’ Offices for the Southern District of California, the Northern District of Ohio, DEA’s Office of Chief Counsel, DEA’s Office of Diversion Control, Los Angeles Field Division, the Office of Personnel Management, the Department of Labor Office of Inspector General, United States Postal Service Office of Inspector General, and the FBI.
The claims asserted against the defendants are allegations only, and there has been no determination of liability.
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52_-_complaint_in_intervention.pdfMuskogee Residents Sentenced for Child NeglectRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Andrew Allen Maher, age 33, and Azalee Louellen Maher, age 28, both of Muskogee, Oklahoma, were sentenced to five years supervised release for child neglect in Indian country.
The charges arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation.
On April 15, 2024, Andrew Maher and Azalee Maher each pleaded guilty to one count of Child Neglect in Indian Country. According to investigators, on August 18, 2023, Muskogee officers responding to reports of an accidental firearm discharge at a Muskogee residence discovered a two-year old child with a self-inflicted gunshot wound to the lower abdomen. EMS workers successfully resuscitated and stabilized the child, who was transported for life-saving surgery. As part of the plea, both defendants admitted failing to provide adequate supervision to the child in their care, resulting in the child accessing a firearm.
The crime occurred in Muskogee County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, U.S. Chief District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings.
Assistant U.S. Attorney Jessie Pippin represented the United States.
Missouri Man Accused of $284,000 Pandemic Rental Assistance FraudRead the Press Release
ST. LOUIS – A man from Moberly, Missouri was indicted Wednesday and accused of fraudulently obtaining $284,000 that was supposed to provide rental assistance to families affected by the COVID-19 pandemic.
Steven W. Hendren, 32, of Moberly, was indicted by a grand jury in U.S. District Court in St. Louis with three counts of wire fraud and one count of aggravated identity theft. The indictment accuses Hendren of submitting a series of fraudulent applications for rental assistance to the Missouri Housing Development Commission (MHDC) beginning in March 2021. The MHDC administered and distributed federal Emergency Rental Assistance.
The indictment says Hendren submitted a series of fraudulent applications falsely listing himself as a landlord, included fictitious lease agreements and financial statements and inflated rent amounts. The MHDC wired a total of $284,840.44 to Hendren’s account, the indictment says, much of which Hendren used for personal expenses, including the purchase of a 2020 GMC Yukon.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The FBI investigated the case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.
Anyone with information about pandemic fraud is asked to call the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or report via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Mississippi Man Sentenced to 46 Months in Prison on Firearm and Counterfeiting ChargeRead the Press Release
Jacksonville, Florida – Senior U.S. District Judge Timothy J. Corrigan has sentenced Bryan Lyndell Chapman (27, Mississippi) to 3 years and 10 months in federal prison for manufacturing counterfeit Federal Reserve notes and possessing a firearm as a convicted felon. The court also ordered Chapman to forfeit a Bushmaster pistol, ammunition, a printer, and make restitution to the victims that he defrauded. Chapman was arrested on February 26, 2024, and ordered detained.
According to court documents, in late 2023 into January 2024, Chapman traveled from Tennessee to Florida. During his trip, he manufactured counterfeit Federal Reserve notes and passed them at various businesses. On January 17, 2024, a deputy from the Columbia County Sheriff’s Office (CCSO) investigated a vehicle in which Chapman was a passenger. During the investigation, the CCSO located inside the vehicle a loaded firearm, ammunition, equipment for manufacturing counterfeit Federal Reserve notes, 78 counterfeit $20 bills, and 35 incomplete counterfeit pages with only the front of a $20 bill printed on it. The CCSO subsequently determined that Chapman was out on bond on a felony firearm charge pending in Mississippi and had previously been convicted in Tennessee of felony aggravated assault. As a convicted felon, Chapman is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Columbia County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives – Jacksonville Office, and the United States Secret Service – Jacksonville Office. It was 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.
Milwaukee Man Sentenced to 45 Years’ Imprisonment for Sex TraffickingRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on December 17, 2024, Samuel L. Spencer, a.k.a. “Bin Laden” (age: 53), of Milwaukee, Wisconsin, was sentenced to 45 years in federal prison, followed by 5 years of supervised release, after being convicted at trial of four counts of sex trafficking by force, fraud, or coercion, as well as conspiracy to commit sex trafficking.
The evidence at trial proved that Spencer, a drug dealer, used his access to cocaine and heroin to coerce women struggling with addiction into engaging in commercial sex acts to make money for him. In addition to strategically giving or withholding drugs, Spencer controlled his victims by depriving them of sleep and food, threatening them with firearms, and using extreme physical violence, which included strangling his victims, whipping them with belts, burning their skin, and kidnapping one woman in the trunk of his car after she tried to flee from him. During a two-week trial, the government introduced numerous exhibits that included Spencer’s own words boasting about his crimes and threatening to kill and disfigure his victims.
At the sentencing hearing, Chief United States District Judge Pamela Pepper emphasized that the 15-year duration of Spencer’s conduct was “almost impossible to get your brain around.” Judge Pepper said that the episodes of violence perpetrated by Spencer were some of the worst the court had ever seen. Judge Pepper also underscored the impact of Spencer’s crimes on his victims, emphasizing that Spencer “used force, threats, violence—and sometimes all three” to deprive his victims “of their human agency.”
“For more than 15 years, Samuel Spencer used a combination of violence, threats, forms of torture, manipulation, and financial control to coerce his victims to engage in commercial sex acts for one purpose – to make as much money for him as possible,” stated U.S. Attorney Haanstad. “This cruelty occurred day after day. I commend the relentless work of the investigative and prosecution teams to bring Mr. Spencer to justice, and I commend the courage and resolve of the victims who shared their testimony publicly to ensure that Mr. Spencer could not terrorize additional women in the same manner.”
“Mr. Spencer both physically and mentally harmed and exploited vulnerable women for more than 15 years,” said Special Agent in Charge Michael Hensle of the FBI Milwaukee Field Office. “The lengthy sentence issued by the court reflects the heinous nature of these crimes and that behavior of this type will be investigated and prosecuted to the full extent of the law. The women and men of the FBI along with our local partners are committed to investigating and obtaining justice for all victims of human trafficking in our Wisconsin communities.”
The Federal Bureau of Investigation (FBI) investigated the case with the assistance of the Milwaukee Police Department. Assistant United States Attorneys Erica J. Lounsberry and Julie F. Stewart prosecuted the case.
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Man Who Robbed Martha's Vineyard Bank at Gunpoint Sentenced to Decade in PrisonRead the Press Release
BOSTON – An Edgartown, Mass. man was sentenced today in federal court in Boston for arranging the November 2022 armed bank robbery of a Martha’s Vineyard bank.
Miquel Anthonio Jones, 33, was sentenced to 10 years in federal prison to be followed by three years of supervised release. In March 2023, Jones was indicted by a federal grand jury, and additional charges were brought in a superseding indictment in April 2023.
Jones conspired with co-defendants Omar Odion Johnson, of Canterbury, N.H., Romane Andre Clayton, of Jamaica, and Tevin Porter, of Bridgeport, Conn., to commit the Nov. 17, 2022 armed robbery of the Rockland Trust bank branch in Vineyard Haven.
As the only member of the crew from Martha’s Vineyard, Jones led the robbery conspiracy. Specifically, Jones identified the bank they would be robbing, obtained and provided all the necessary items for the robbery to his co-conspirators – including dark-colored clothing, plastic masks that resembled an elderly man with exaggerated facial features, zip ties and duct tape – and chose which bank to rob and when. Jones also paid Johnson to bring a gun.
On Nov. 16, 2022, Jones met Johnson and Clayton in Martha’s Vineyard and provided them with details of his plan before driving himself and his co-conspirators to the Rockland Trust bank in Vineyard Haven, where he assured them he had obtained information about the bank and its security. The defendants then slept at Jones’ residence in Edgartown the night before they committed the robbery.
On the morning of Nov. 17, 2022, Jones drove the group to the bank. After arriving, Jones, Johnson and Porter hid in bushes near the rear of the bank while Clayton drove to a nearby state forest to park the car, before bicycling back to the bank.
As the bank’s three employees arrived that morning, Jones, Johnson and Porter – wearing the plastic masks and displaying two handguns – approached them and forced their way through the rear door. Once inside the bank, one of the individuals held a gun to the head of one of the bank employees, forced the employee to open the bank’s vault and took approximately $39,100. The bank employees were bound with duct tape and plastic zip ties while their belongings were searched and the robbers demanded access to one of their vehicles.
Jones, Porter, and Johnson then left the bank in an employee’s car, picked up Clayton outside the bank, and drove to the Manuel Correllus State Forest, where they abandoned the vehicle in a parking lot. They then fled in another vehicle that Clayton had left there for purposes of their escape.
Later that morning, Porter and Clayton left Martha’s Vineyard together on a ferry. Meanwhile, Jones and Johnson drove to a local farm associated with Jones’s landscaping job to dispose of the equipment that had been used during the bank robbery. At the farm, they buried the two firearms used in the robbery in a hole in the ground and burned the remainder of the robbery equipment, including the plastic masks.
After the evidence was disposed of, Jones returned home to his residence where he hid the approximately $39,100 that had been stolen from the bank, in his bedroom under a bureau. Johnson left Martha’s Vineyard, reconvened with Porter and Clayton in Woods Hole, and then drove them to the area of Johnson’s home in New Hampshire.
“Protecting the people of Massachusetts from criminal conduct comes in many forms, and this case highlights some of the most old-fashioned, blatant and terrifying criminal behavior we face: armed bank robbery. Miquel Antonio Jones orchestrated and led a calculated and violent robbery that terrorized bank employees and the surrounding community. His conduct left lasting emotional scars, and today, he is paying a significant price for his actions,” said United States Attorney Joshua S. Levy “This decade-long sentence sends a clear message: such violent and calculated crimes have no place in our communities. We will not tolerate those who threaten the safety of others, and we will continue to pursue justice to ensure Massachusetts remains a safe place for all who live and work here.”
“This was a bold and brazen armed robbery carried out on a picturesque island at the start of the day. The ringleader of this robbery crew, Miquel Antonio Jones, showed up armed with loaded firearms, zip ties, duct tape, and plastic masks and forced employees into the bank at gunpoint, making them fear for their lives,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “It’s incredibly fortunate no one was hurt before the armed robbers opted to flee. Today’s sentence makes it clear that bank robbery is not an easy payday, it’s a federal crime, and the FBI and our partners will ensure perpetrators like Jones are held fully accountable.”
Clayton, Johnson and Porter have each pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on Jan. 8, 2025, Jan. 9, 2025 and Jan. 28, 2025, respectively.
U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Valuable assistance was provided by Cape & Islands District Attorney’s Office; the Massachusetts State Police; the Tisbury, West Tisbury, Edgartown, Chilmark, Oak Bluffs, Aquinnah, Canterbury (N.H.) and New Haven (Conn.) Police Departments; the United States Postal Inspection Service; the Bureau of Alcohol Tobacco and Firearms; Immigration and Customs Enforcement; and United States Customs and Border Protection. Assistant U.S. Attorney Meghan C. Cleary of the Criminal Division is prosecuting the case.
Man Sentenced to Prison and Ordered to Pay $45,205.60 in Restitution for Vandalizing Federal BuildingRead the Press Release
HUNTINGTON, W.Va. – Brian Scott Murray, 51, was sentenced today to one year and four months in prison, to be followed by three years of supervised release, and ordered to pay $45,205.60 in restitution for injuring property of the United States in excess of $1,000.
According to court documents and statements made in court, on March 16, 2024, Murray threw multiple rocks at the Sidney L. Christie U. S. Courthouse and Federal Building in Huntington. Murray admitted that he threw the rocks at windows on the west side of the building and broke the outer layers of three windows. Murray further admitted that he walked to the Huntington Police Department afterward and told multiple officers there what he had done. Murray also admitted that the Sidney L. Christie U. S. Courthouse and Federal Building is listed in the National Register of Historic Places.
Murray has multiple prior convictions including for depredation of government property in United States District Court for the District of Oregon on April 8, 2019, after breaking a window as the Gus J. Solomon United States Courthouse in Portland, Oregon.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Police Department and the United States Marshals Service (USMS).
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams 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. 3:24-cr-48.
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Man Sentenced to over Thirteen Years in Federal Prison for Armed Robbery of Indianapolis Gas Station and Shooting of an EmployeeRead the Press Release
INDIANAPOLIS— George Tracy, 21, of Indianapolis, has been sentenced to 159 months in federal prison, followed by three years of supervised release after pleading guilty to discharging a firearm during a crime of violence.
According to court documents, on November 22, 2022, George Tracy robbed the Mobile gas station located on Central Ave in Indianapolis, Indiana. During the robbery, Tracy shot his firearm on three occasions in the direction of the employee behind the counter and stole approximately two-hundred dollars from the register. The final shot fired hit the employee in the left upper leg, resulting in hospitalization. After shooting the victim, Tracy told him to “have a good day bro.”
The robbery and shooting were recorded on video surveillance. Officers conducted a search of Tracy’s home and located the firearm that was used during the robbery and the clothes Tracy was seen wearing in the surveillance footage.
“Our hearts go out to the victim of this senseless shooting, who will carry the scars and trauma from this vicious crime for the rest of their life,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Armed, violent criminals like this man rob the entire community of our sense of safety and security in our workplaces. The serious federal prison sentence imposed here demonstrates that these crimes will not be tolerated by federal law enforcement. Working closely with our partners at the FBI, IMPD, and all of our law enforcement partners, our federal prosecutors will continue to bring cases targeting these serious offenders as we seek to reduce gun violence.”
FBI and IMPD investigated this case. The sentence was imposed by U.S. District Judge James R. Sweeney.
U.S. Attorney Myers thanked Assistant U.S. Attorney Jeremy C. Fugate, who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Louisiana Company and Its Owner Sentenced for Manufacturing and Selling Software that Allowed the Disabling of Emissions Controls on Motor VehiclesRead the Press Release
Louisiana-based company Power Performance Enterprises Inc. (PPEI) and its president and owner, Kory B. Willis, were sentenced yesterday in federal court in Sacramento, California, for violating and conspiring to violate the Clean Air Act by tampering with the monitoring devices of emissions control systems of diesel trucks.
U.S. District Court Judge John A. Mendez for the Eastern District of California sentenced Willis to serve 10 months of home confinement as part of a three-year term of probation and ordered Willis and PPEI to jointly pay $1.55 million in criminal fines. PPEI was ordered to complete a five-year term of probation. Willis and PPEI pleaded guilty in March 2022. In total, Willis and PPEI have been ordered to pay $3.1 million in criminal fines and civil penalties related to Clean Air Act enforcement.
“The software that Mr. Willis and PPEI manufactured and sold reversed the effects of emissions control requirements for vehicles driven on our country’s roads, posing unacceptable risk to the health of our citizens,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “This sentencing shows that we will take strong action to enforce the Clean Air Act and ensure that mandated emissions controls remain operating on vehicles to protect public health and the environment.”
“Environmental laws that control diesel pollution safeguard the environment and the health of the public, and are especially important to protect sensitive populations such as the young, the elderly, and people who suffer from respiratory conditions,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “Those who would sell illegal defeat devices should stand warned: the U.S. Attorney’s Office will continue to vigorously prosecute those who place profit above the public’s health and the environment.”
“For decades, EPA has prioritized efforts to halt the illegal sale of aftermarket defeat devices, which cause dangerous air pollution from trucks and cars,” said Assistant Administrator David M. Uhlmann of Environmental Protection Agency (EPA)’s Office of Enforcement and Compliance Assurance. “Today's criminal sentencing punishes the defendants for their deliberate attempts to evade the requirements of the Clean Air Act and follows an earlier 2022 civil enforcement action addressing their misconduct. EPA will continue to leverage all of its enforcement tools and authorities to stop illegal behavior that puts our communities at risk.”
According to court documents, from PPEI’s incorporation in 2009 until 2019, PPEI and Willis were among the nation’s most prominent developers of custom software known as “tunes,” and in particular, “delete tunes.” Generally, tunes can alter a diesel truck’s fuel delivery, power parameters and emissions. Delete tunes allow vehicles to remove or disable emissions controls, while appearing to run normally, resulting in vastly increased emissions of air pollution. PPEI and Willis were well known for their custom delete tunes.
Willis and PPEI reached the top of the illegal delete tuning market, tuning over 175,000 vehicles according to Willis. Willis also stated that PPEI was the biggest custom tuning company in the world, servicing over 100,000 customers and tuning more than 500 vehicles a week. According to internal PPEI records, PPEI typically sold well over $1 million dollars of product per month. According to calculations by the EPA, the estimated emissions impact of PPEI’s sales of delete tunes between 2013 and 2018 alone are expected to cause over 100 million excess pounds of nitrogen oxides (NOx) emissions over the life of the diesel trucks equipped with those products.
Deleting a diesel truck causes its emissions to increase dramatically. For example, for a fully deleted truck, which has had all emissions equipment removed or disabled, EPA testing quantified the increased emissions as follows: NOx increased 310 times, non-methane hydrocarbons increased 1,400 times, carbon monoxide increased 120 times and particulate matter increased 40 times. EPA’s Air Enforcement Division released a report in November 2020 finding that more than half a million diesel pickup trucks in the United States — approximately 15% of U.S. diesel trucks that were originally certified with emissions controls — have been illegally deleted.
Diesel emissions include multiple hazardous compounds and harm human health and the environment. Diesel emissions have been found to cause and worsen respiratory ailments such as asthma and lung cancer. One study indicated that 21,000 American deaths annually are attributable to diesel particulate matter. Exposure to polluted air in utero has also been associated with a host of problems with lifelong ramifications including low birth weight, preterm birth, autism, brain/memory disorders and asthma.
Stopping aftermarket defeat devices for vehicles and engines is a top priority for EPA. Visit EPA’s website to learn more about its efforts to stop the sale of illegal defeat devices.
EPA’s Criminal Investigation Division investigated the case.
Senior Counsel Krishna S. Dighe and Trial Attorney Stephen J. Foster of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Katherine T. Lydon for the Eastern District of California and are prosecuting the criminal case.
Local Tennis Coach Charged with Enticement and Production of Child Sexual Abuse MaterialRead the Press Release
MIAMI – Today, Daniel James Riggs, 31, had his initial appearance in Fort Lauderdale, Fla., on a complaint charging him with enticement of a minor and production of child pornography.
According to the complaint, Daniel Riggs, of Fort Lauderdale, while a tennis coach for the minor victim, engaged in sexual conversations with the minor victim through a social media application. In addition, Riggs is alleged to have sexually abused the minor victim while they traveled internationally, and domestically for tennis training and tournaments. The abuse continued locally within the Southern District of Florida. In addition to physical abuse, Riggs requested child sexual abuse material (CSAM) from the minor victim through a social media application. To mask his identity, Riggs created multiple anonymous profiles and at times advised the minor victim to delete their communications.
Social media records revealed a possible additional victim. Anyone with information relating to additional victims of child sexual exploitation or abuse by Riggs is encouraged to call the FBI at 1-800-CALL-FBI.
A pretrial detention hearing is scheduled for Dec. 23 at 11:00 a.m.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, and Sheriff Gregory Tony of the Broward Sheriff’s Office (BSO) announced the charges.
FBI Miami and BSO investigated the case. Assistant U.S. Attorney Camille Smith is prosecuting it.
A complaint is a merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-mj-6603.
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Lincoln Woman Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Susan Lehr announced that Dacia Leytham, age 32, of Lincoln, Nebraska, was sentenced on December 18, 2024, in federal court in Lincoln for one count of possession with intent to distribute 50 grams or more of methamphetamine with a serious prior drug felony conviction. Senior United States District Judge John M. Gerrard sentenced Harris to 180 months’ imprisonment. There is no parole in the federal system. After Harris’ release from prison, she will begin a 10-year term of supervised release.
On August 10, 2022, Leytham was a passenger in an SUV stopped by Lincoln Police Department officers after she agreed to sell meth to an undercover narcotics investigator. Leytham’s backpack was searched, and investigators found baggies containing a total of at least 430 grams of pure meth. Leytham later agreed to talk to investigators and admitted she had sold a total of approximately 10 ounces of meth over the prior month.
At the time of her arrest, Leytham had a prior felony conviction related to the distribution of meth for which she was sentenced to four to six years by the Douglas County District Court in June of 2019.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Level 1 Sex Offender from Attleboro Arrested and Charged with Possession of Child Sexual Abuse MaterialRead the Press Release
BOSTON – An Attleboro man, who is a Level 1 sex offender, has been arrested and charged in connection with possession of child sexual abuse material (CSAM).
Eric Brault, 31, was charged with possession of child pornography and will appear in federal court in Boston at 3 p.m. today.
According to the charging documents, an investigation into an internet-based communications application used for the trafficking of CSAM allegedly identified Brault as a likely user of the application who participated in groups where CSAM was disseminated. During a search of Brault’s residence this morning, a review of his phone allegedly revealed that Brault was a member of several groups on the platform that exchanged CSAM. Additionally, more than 200 video and image files, most of which appear to depict CSAM, were allegedly located within a photo album on Brault’s phone.
Brault was previously convicted in Attleboro District Court to Indecent Assault and Battery on a Child Under 14 Years Old and was subsequently sentenced to 18 months of probation.
Brault faces a sentence of at least 10 years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Valuable assistance was provided by the Attleboro Police Department. Assistant U.S. Attorney Jessica L. Soto of the Major Crimes Unit is prosecuting 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 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.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Kentucky Man Sentenced for Distributing Child Sexual Abuse Material to South FloridaRead the Press Release
MIAMI – On Dec. 12, James Ray Nichols, 32, from Louisville, Ky., was sentenced to 15 years’ imprisonment, followed by 25 years of supervised release, and ordered to register as a sex offender after pleading guilty to the charge of distribution of child pornography.
According to the court record, beginning in January 2024, Nichols, who lived at his parents’ home in Kentucky, used a social networking application on his phone to discuss having sex with an 8-year-old and 3-year-old in conversations with an undercover Homeland Security Investigations (HSI) Task Force Officer and Palm Beach County Sheriff’s Office (PBSO) Detective posing as the children’s mother in the Southern District of Florida. Between January and July 2024, Nichols distributed multiple videos of child sexual abuse material to the undercover officer.
On July 17, HSI agents executed a search warrant at Nichols’ Kentucky residence where he was found with a phone that held a cache of child sexual exploitation material. After his arrest, Nichols was transferred to the Southern District of Florida.
At sentencing, Nichols agreed to pay $10,000 restitution to victims of the material he distributed.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Anthony Salisbury of HSI Miami, and Sheriff Rick Bradshaw of PBSO made the announcement.
HSI West Palm Beach and PBSO investigated the case. Assistant U.S. Attorney Gregory Schiller is prosecuting it.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov or https://www.justice.gov/usao-sdfl/project-safe-childhood.
To report an incident involving the possession, distribution, receipt or production of child pornography call (877) 4-HSI-TIP [(877) 447-4847]. Child sexual abuse material – referred to in legal terms as "child pornography" – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer revictimization every time the images are viewed. In 2023, the National Center for Missing & Exploited Children (NCMEC) received 36 million reports of the possession, manufacture, or distribution of child sexual abuse materials. To file a report with NCMEC, go to https://report.cybertip.org or call 1-800-843-5678.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at https://www.justice.gov/usao-sdfl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 24-cr-80093.
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Justice Department Obtains Order Holding in Contempt Florida Man Who Is Permanently Enjoined from Preparing Tax ReturnsRead the Press Release
A federal court in New Jersey last month held in contempt Abraham Taylor, a resident of Florida and formerly of New Jersey, for continuing to prepare returns after the court permanently barred him and his business — Chentay Consulting Services LP, doing business as CCS Tax Services — from preparing federal income tax returns for others.
According to the court’s contempt order, Taylor concealed his violations of the permanent injunction by using electronic filing privileges assigned to Fredrick Gibson, of Uncle Sam Tax Services in Pennsylvania. Taylor agreed to the entry of the contempt order and a disgorgement judgment for preparing returns in violation of the injunction. Gibson agreed to forfeit his electronic filing privileges which Taylor had used to conceal his identity.
Taylor was previously held in contempt in 2021 for using electronic filing privileges assigned to his son O’Neal Taylor and his son’s business O’Neal Z. Taylor. Through the contempt order, Taylor agreed to a disgorgement judgment and O’Neal agreed to forfeit his electronic filing privileges.
The most recent contempt order requires Taylor to provide the United States with a list of his customers and to send a copy of the court’s injunction order to all customers for whom he prepared returns. It also provides that the court shall order the sale of Taylor’s house to satisfy the two disgorgement judgments if Taylor continues to prepare returns in violation of the injunction.
Each year the IRS highlights some of the tax scams that put taxpayers at risk of losing money, personal information, data and more. In the IRS’ most recent list, it specifically warned taxpayers “to beware of promoters peddling bogus tax schemes aimed at reducing taxes or avoiding them altogether.”
The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Second Contempt Order - Taylor_0.pdfJustice Department Files Nationwide Lawsuit Alleging CVS Knowingly Dispensed Controlled Substances in Violation of the Controlled Substances Act and the False Claims ActRead the Press Release
HONOLULU – In a civil complaint unsealed today in Providence, Rhode Island, the Justice Department alleges that CVS Pharmacy Inc. and various subsidiaries (collectively, CVS) filled unlawful prescriptions in violation of the Controlled Substances Act (CSA) and sought reimbursement from federal healthcare programs for unlawful prescriptions in violation of the False Claims Act (FCA). CVS is the country’s largest pharmacy chain, with more than 9,000 pharmacies across the United States.
The government’s complaint alleges that, from October 17, 2013, to the present, CVS knowingly filled prescriptions for controlled substances that lacked a legitimate medical purpose, were not valid, and/or were not issued in the usual course of professional practice. Among the large number of unlawful prescriptions that CVS allegedly filled were prescriptions for dangerous and excessive quantities of opioids, early fills of opioids, and “trinity” prescriptions, an especially dangerous and abused combination of drugs made up of an opioid, a benzodiazepine and a muscle relaxant. CVS also allegedly filled large quantities of prescriptions for controlled substances written by prescribers it knew to be engaged in “pill mill practices” — that is, prescribers who issue large numbers of controlled substance prescriptions without any medical purpose. According to the complaint, CVS ignored substantial evidence from multiple sources, including its own pharmacists and internal data, indicating that its stores were dispensing unlawful prescriptions.
The complaint alleges that CVS’ violations resulted from corporate-mandated performance metrics, incentive compensation, and staffing policies that prioritized corporate profits over patient safety. CVS set staffing levels far too low for pharmacists to both meet their performance metrics and comply with their legal obligations. CVS also allegedly deprived its pharmacists of crucial information (including by, for example, preventing pharmacists from warning one another about certain prescribers) that could have reduced the number of unlawful prescriptions filled. The complaint alleges that CVS’ actions helped to fuel the opioid crisis and that, in some particularly tragic instances, patients died after overdosing on opioids shortly after filling unlawful prescriptions at CVS.
“Our complaint alleges that CVS repeatedly filled controlled substance prescriptions that were unlawful and pressured its pharmacists to fill such prescriptions without taking the time needed to confirm their validity,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The practices alleged contributed to the opioid crisis and opioid-related deaths, and today’s complaint seeks to hold CVS accountable for its misconduct.”
“Opioid deaths remain a scourge on communities across Rhode Island and the nation, robbing families of loved ones and leaving a path of devastation in their wake,” said U.S. Attorney Zachary A. Cunha for the District of Rhode Island. “This lawsuit alleges that CVS failed to exercise its critical role as gatekeeper of dangerous prescription opioids and, instead, facilitated the illegal proliferation of these highly addictive drugs, including by pill mill prescribers. When corporations such as CVS prize profits over patient safety and overburden their pharmacy staff so that they cannot carry out the basic responsibility of ensuring that prescriptions are legitimate, we will use every tool at our disposal to see that they answer for it.”
The government alleges that by knowingly filling unlawful prescriptions for controlled substances, CVS violated the CSA and, where CVS sought reimbursement from federal healthcare programs, also violated the FCA. The complaint alleges that CVS’s actions helped to fuel the opioid crisis. If CVS is found liable, it could face civil penalties for each unlawful prescription filled in violation of the CSA and treble damages and applicable penalties for each prescription reimbursed by federal healthcare programs in violation of the FCA. The court also may award injunctive relief to prevent CVS from committing further CSA violations, including ordering appropriate changes to corporate compliance programs and policies.
“When lives are destroyed or lost to opioid abuse, it doesn’t matter if the supplier is a street-level dealer, a pill mill, or a nationwide corporation,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Our laws regarding the dispensing of opioids and other controlled substances are clear and apply to everyone. We will pursue whatever legal action is necessary to stop any enterprise, regardless of size, that places profit over the safety of our citizens.”
“CVS is alleged to have dispensed large amounts of highly addictive opioid medications to persons they knew had no medical need for them,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “Simply put, they put profits over their obligation to keep their customers safe. A pharmacy is the final step in the pharmaceutical distribution process that is in place to keep customers safe. In the fight against the opioid epidemic, DEA will continue to be relentless in holding those accountable who violate our drug laws and place our communities in danger whether they are a criminal cartel or large pharmacy chain.”
“Pharmacies and pharmacists are critical partners to ensure controlled substances are dispensed lawfully and safely to the public,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG is committed to holding individuals and entities that dispense these controlled substances improperly and without legitimate medical purpose accountable.”
“Protecting TRICARE, the healthcare system for military members and their dependents, is a top priority for the Department of Defense Office of Inspector General Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “Today’s filing demonstrates DCIS’ ongoing commitment to partner with the Department of Justice and our law enforcement partners to investigate health care providers that submit false claims to TRICARE and put its beneficiaries at risk.”
Whistleblower Hillary Estright, who previously worked for CVS, filed an action on October 17, 2019, under the qui tam provisions of the FCA. Those provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over such lawsuits, as it has done here.
The case is captioned United States ex rel. Estright v. Health Corporation, et al., No. 1:22-cv-222 (D.R.I.).
The United States’ intervention in this matter underscores the government’s commitment to combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS, at 800-HHS-TIPS (800-447-8477).
The DEA’s Office of Diversion Control, Washington, D.C. Division, HHS-OIG and DCIS investigated the case. The U.S. Attorneys’ Offices for the Southern District of California and Northern District of Ohio, DEA’s Office of Chief Counsel, DEA’s Office of Diversion Control, Los Angeles Field Division, Office of Personnel Management, Department of Labor Office of Inspector General, U.S. Postal Service Office of Inspector General and FBI provided substantial assistance in the investigation.
Assistant Directors Amy L. DeLine and C.B. Buente, Senior Litigation Counsel Donald Lorenzen and Trial Attorneys Benjamin Cornfeld and Amanda K. Kelly of the Civil Division’s Consumer Protection Branch; Trial Attorneys Claire L. Norsetter, Joshua Barron and Megan F. Engel of the Civil Division’s Commercial Litigation Branch, Fraud Section; First Assistant U.S. Attorney Sara M. Bloom and Assistant U.S. Attorneys Kevin Love Hubbard and Rachna Vyas for the District of Rhode Island; Assistant U.S. Attorneys Clare Wuerker and John Beerbower for the Eastern District of Virginia; Assistant U.S. Attorneys Sydney Spector and Tracy Weinstein for the District of Hawaii; and Assistant U.S. Attorneys James Gillingham and Adrian Garcia for the Eastern District of Texas are litigating the enforcement action.
The claims asserted against the defendants are allegations only. There has been no determination of liability.
Justice Department Files Nationwide Lawsuit Alleging CVS Knowingly Dispensed Controlled Substances in Violation of the Controlled Substances Act and the False Claims ActRead the Press Release
In a civil complaint unsealed today in Providence, Rhode Island, the Justice Department alleges that CVS Pharmacy Inc. and various subsidiaries (collectively, CVS) filled unlawful prescriptions in violation of the Controlled Substances Act (CSA) and sought reimbursement from federal healthcare programs for unlawful prescriptions in violation of the False Claims Act (FCA). CVS is the country’s largest pharmacy chain, with more than 9,000 pharmacies across the United States.
The government’s complaint alleges that, from Oct. 17, 2013, to the present, CVS knowingly filled prescriptions for controlled substances that lacked a legitimate medical purpose, were not valid, and/or were not issued in the usual course of professional practice. Among the large number of unlawful prescriptions that CVS allegedly filled were prescriptions for dangerous and excessive quantities of opioids, early fills of opioids, and “trinity” prescriptions, an especially dangerous and abused combination of drugs made up of an opioid, a benzodiazepine and a muscle relaxant. CVS also allegedly filled large quantities of prescriptions for controlled substances written by prescribers it knew to be engaged in “pill mill practices” — that is, prescribers who issue large numbers of controlled substance prescriptions without any medical purpose. According to the complaint, CVS ignored substantial evidence from multiple sources, including its own pharmacists and internal data, indicating that its stores were dispensing unlawful prescriptions.
The complaint alleges that CVS’ violations resulted from corporate-mandated performance metrics, incentive compensation, and staffing policies that prioritized corporate profits over patient safety. CVS set staffing levels far too low for pharmacists to both meet their performance metrics and comply with their legal obligations. CVS also allegedly deprived its pharmacists of crucial information (including by, for example, preventing pharmacists from warning one another about certain prescribers) that could have reduced the number of unlawful prescriptions filled. The complaint alleges that CVS’ actions helped to fuel the opioid crisis and that, in some particularly tragic instances, patients died after overdosing on opioids shortly after filling unlawful prescriptions at CVS.
“Our complaint alleges that CVS repeatedly filled controlled substance prescriptions that were unlawful and pressured its pharmacists to fill such prescriptions without taking the time needed to confirm their validity,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The practices alleged contributed to the opioid crisis and opioid-related deaths, and today’s complaint seeks to hold CVS accountable for its misconduct.”
“Opioid deaths remain a scourge on communities across Rhode Island and the nation, robbing families of loved ones and leaving a path of devastation in their wake,” said U.S. Attorney Zachary A. Cunha for the District of Rhode Island. “This lawsuit alleges that CVS failed to exercise its critical role as gatekeeper of dangerous prescription opioids and, instead, facilitated the illegal proliferation of these highly addictive drugs, including by pill mill prescribers. When corporations such as CVS prize profits over patient safety and overburden their pharmacy staff so that they cannot carry out the basic responsibility of ensuring that prescriptions are legitimate, we will use every tool at our disposal to see that they answer for it.”
The government alleges that by knowingly filling unlawful prescriptions for controlled substances, CVS violated the CSA and, where CVS sought reimbursement from federal healthcare programs, also violated the FCA. The complaint alleges that CVS’s actions helped to fuel the opioid crisis. If CVS is found liable, it could face civil penalties for each unlawful prescription filled in violation of the CSA and treble damages and applicable penalties for each prescription reimbursed by federal healthcare programs in violation of the FCA. The court also may award injunctive relief to prevent CVS from committing further CSA violations, including ordering appropriate changes to corporate compliance programs and policies.
“When lives are destroyed or lost to opioid abuse, it doesn’t matter if the supplier is a street-level dealer, a pill mill, or a nationwide corporation,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Our laws regarding the dispensing of opioids and other controlled substances are clear and apply to everyone. We will pursue whatever legal action is necessary to stop any enterprise, regardless of size, that places profit over the safety of our citizens.”
“CVS is alleged to have dispensed large amounts of highly addictive opioid medications to persons they knew had no medical need for them,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “Simply put, they put profits over their obligation to keep their customers safe. A pharmacy is the final step in the pharmaceutical distribution process that is in place to keep customers safe. In the fight against the opioid epidemic, DEA will continue to be relentless in holding those accountable who violate our drug laws and place our communities in danger whether they are a criminal cartel or large pharmacy chain.”
“Pharmacies and pharmacists are critical partners to ensure controlled substances are dispensed lawfully and safely to the public,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG is committed to holding individuals and entities that dispense these controlled substances improperly and without legitimate medical purpose accountable.”
“Protecting TRICARE, the healthcare system for military members and their dependents, is a top priority for the Department of Defense Office of Inspector General Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “Today’s filing demonstrates DCIS’ ongoing commitment to partner with the Department of Justice and our law enforcement partners to investigate health care providers that submit false claims to TRICARE and put its beneficiaries at risk.”
Whistleblower Hillary Estright, who previously worked for CVS, filed an action on Oct. 17, 2019, under the qui tam provisions of the FCA. Those provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over such lawsuits, as it has done here.
The case is captioned United States ex rel. Estright v. Health Corporation, et al., No. 1:22-cv-222 (D.R.I.).
The United States’ intervention in this matter underscores the government’s commitment to combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS, at 800-HHS-TIPS (800-447-8477).
The DEA’s Office of Diversion Control, Washington, D.C. Division, HHS-OIG and DCIS investigated the case. The U.S. Attorneys’ Offices for the Southern District of California and Northern District of Ohio, DEA’s Office of Chief Counsel, Office of Personnel Management, Department of Labor Office of Inspector General, U.S. Postal Service Office of Inspector General and FBI provided substantial assistance in the investigation.
Assistant Directors Amy L. DeLine and C.B. Buente, Senior Litigation Counsel Donald Lorenzen and Trial Attorneys Benjamin Cornfeld and Amanda K. Kelly of the Civil Division’s Consumer Protection Branch; Trial Attorneys Claire L. Norsetter, Joshua Barron and Megan F. Engel of the Civil Division’s Commercial Litigation Branch, Fraud Section; First Assistant U.S. Attorney Sara M. Bloom and Assistant U.S. Attorneys Kevin Love Hubbard and Rachna Vyas for the District of Rhode Island; Assistant U.S. Attorneys Clare Wuerker and John Beerbower for the Eastern District of Virginia; Assistant U.S. Attorneys Sydney Spector and Tracy Weinstein for the District of Hawaii; and Assistant U.S. Attorneys James Gillingham and Adrian Garcia for the Eastern District of Texas are litigating the enforcement action.
The claims asserted against the defendants are allegations only. There has been no determination of liability.
View the complaint here.
View Attachment 1 here.
View Attachment 2 here.
Jury Convicts Felon for Firearm Possession, Assault, and Discharging Firearm During Violent CrimeRead the Press Release
TULSA, Okla. – A federal jury convicted Antonio Jerome Colbert, 37, a member of the Osage Nation, of being a Felon in Possession of a Firearm and Ammunition; Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country; and Carrying, Using, Brandishing and Discharging a Firearm During and in Relation to a Crime of Violence.
“I commend the witnesses and officers for reacting quickly to intervene on behalf of this woman. Without them, Colbert would not be held accountable for his actions,” said U.S. Attorney Clint Johnson. “This case exemplifies the effectiveness of Project Safe Neighborhoods, the federal initiative that brings together law enforcement for intervention and accountability.”
In September 2024, several witnesses called 911, reporting they heard yelling, a gunshot, or witnessed a man assaulting a woman. Tulsa Police officers responded to the shots fired call. Upon arrival, officers observed an SUV parked on the sidewalk with open doors. Officers immediately took Colbert into custody, and he adamantly denied any wrongdoing.
One witness testified that they heard a lot of yelling and looked over the fence to see what was happening. He observed a woman walking down the sidewalk when an SUV crossed the ditch, driving towards the woman. Colbert barely missed the woman and got out of the vehicle, yelling at her. The witness saw Colbert pull a handgun and shoot at the woman. Colbert’s shot missed the woman, and in his fit of rage, he began assaulting her. Body camera evidence presented to the jury showed the woman was visibly shaken, crying, and in need of intervention.
Despite a witness reportedly seeing Colbert shot at the woman, Colbert claimed he did not have a firearm and denied shooting at the woman. After a search of the vehicle that Colbert was driving, officers found a loaded handgun wedged in the seat. The officer who recovered the firearm testified that the handgun was jammed with a shell casing that failed to eject.
Further, the investigation revealed that Colbert was knowingly convicted of other felonies that prohibited him from possessing a firearm or ammunition.
The FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Tulsa Police Department investigated the case. Assistant U.S. Attorneys Valeria Luster and Kenneth Elmore prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about PSN, please visit Justice.gov/PSN.
Jeffersonville Husband and Wife Sentenced for Making False Statements in Acquisition of FirearmsRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on December 17, 2024, Jacob McKenna, 38, of Jeffersonville, Vermont was sentenced by Chief United States District Judge Christina Reiss to time served to be followed by a three-year term of supervised release. Jacob McKenna previously pleaded guilty to making false statements in connection with his acquisition of a firearm.
According to court records, on October 28, 2022, Jacob McKenna went to a federal firearms licensee (FFL) in Williston, Vermont. There, he filled out a written ATF Form 4473 in connection with the purchase of a nine-millimeter pistol. On the form, Jacob McKenna falsely stated he was not a user of illegal drugs. Based on that false statement, Jacob McKenna obtained the pistol. On January 5, 2023, Jacob McKenna returned to the same FFL and tried to buy two more nine-millimeter pistols. When confronted about this conduct on January 6, 2023, Jacob McKenna admitted to purchasing firearms on several occasions intended for persons prohibited from lawfully possessing firearms.
On July 26, 2024, United States District Judge Geoffrey W. Crawford sentenced Jacob McKenna’s wife, Tamira McKenna, 36, also of Jeffersonville, to time served to be followed by a two-year term of supervised release. Tamira McKenna also previously pleaded guilty to making false statements in acquisition of a firearm.
For her part, on March 10, 2022, Tamira McKenna went to the same FFL in Williston, Vermont, where, like her husband, in the course of acquiring a handgun, she filled out paperwork falsely stating she was not a user of illegal drugs. On January 5, 2023, Tamira McKenna returned to the same FFL and tried unsuccessfully to buy two more nine-millimeter pistols, and again lied on an ATF Form 4473. The next day, during an interview with law enforcement Tamira McKenna admitted to her use of controlled substances and that she intended to purchase the firearms to give them to a person prohibited from lawfully possessing firearms.
United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Burlington Police Department, the South Burlington Police Department, the Vermont Fish and Wildlife Department, the Milton Police Department, and the United States Marshal Service.
The case was prosecuted by Assistant U.S. Attorney Zachary Stendig. Tamira McKenna was represented by Lisa Shelkrot, Esq. Jacob McKenna was represented by Robert Behrens, Esq.
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.
International Drug Traffickers Indicted on Charges of Importing and Distributing Fentanyl and Methamphetamine Precursor ChemicalsRead the Press Release
Edward Y. Kim, the Acting United States Attorney for the Southern District of New York, and Anne Milgram, the Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced an Indictment charging XIANG GAO, OLEKSANDR KLOCHKOV, and IGORS KRICFALUSIJS with conspiring to distribute fentanyl and methamphetamine in the U.S., conspiring to import fentanyl precursor chemicals and a methamphetamine precursor chemical with intent to manufacture fentanyl and methamphetamine in the U.S., importing a fentanyl precursor chemical, and conspiring to commit money laundering. GAO, KLOCHKOV, and KRICFALUSIJS were arrested in Morocco by Moroccan authorities on April 17, 2024, extradited to the U.S. on December 11, 2024, and made their initial appearances in the Southern District of New York before U.S. Magistrate Judge Robyn F. Tarnofsky on December 12, 2024.
Acting U.S. Attorney Edward Y. Kim said: “Fentanyl and fentanyl analogues continue to wreak catastrophic damage on the lives of New Yorkers. The defendants are alleged to have aggressively pursued methods to circumvent our ability to stem the flow of the poisons into this country and to bring tons of potentially deadly chemicals to the United States. This Office will continue to work relentlessly to detect and charge international drug traffickers bringing deadly drugs to our borders and to stop the danger long before it arrives.”
Attorney General Merrick B. Garland said: “Those responsible for flooding our country with fentanyl must answer for their crimes. These three international chemical brokers are charged with conspiring to send fentanyl and methamphetamine precursor chemicals into the United States -- now they will face justice in an American courtroom.”
Deputy Attorney General Lisa Monaco said: “Today’s actions reflect our commitment to holding accountable those who peddle the poison responsible for fentanyl deaths in our communities, including those who import the precursor chemicals needed to manufacture these deadly drugs. No matter where in the world these individuals operate, the Department will find them and bring them to justice.”
DEA Administrator Anne Milgram said: “Today’s announcement of charges against three high-level fentanyl chemical brokers highlights DEA’s commitment to attack every part of the global fentanyl supply chain. The defendants indicted today brokered ton-quantities of fentanyl and methamphetamine precursor chemicals from China, knowing that these chemicals would be used to flood American communities with deadly drugs. These defendants also coached drug traffickers on how to use different precursor chemicals to make finished fentanyl destined for the United States. Today’s indictment should serve as a warning to drug traffickers operating across the globe that DEA will stop at nothing to save American lives and bring those responsible to justice.”
As alleged in the Indictment, other court filings, and statements made during court proceedings:[1]
Fentanyl is the single deadliest drug threat that the U.S. has ever encountered. It is the leading cause of death for Americans ages 18 to 49. Fentanyl analogues, similar in chemical makeup and effect to fentanyl, can be even more potent and lethal than fentanyl. Fentanyl and its analogues have ruined countless lives, devastated entire communities, and killed Americans at an unprecedented rate.
The manufacture of fentanyl and its analogues begins with raw chemicals, known as precursors. Today, fentanyl precursor chemicals are principally sourced from China-based chemical manufacturers. These China-based chemical manufacturers ship fentanyl-related precursor chemicals around the world, including to the U.S., Europe, and elsewhere, where clandestine laboratories use the precursor chemicals to synthesize finished fentanyl and fentanyl analogues at scale, and distribute the deadly narcotics into and throughout the U.S.
Aware of sanctions placed on chemical precursors by the U.S. and other nations, Chinese manufacturers have adapted to create and export fentanyl precursor chemicals that are not yet banned, but that are specifically designed to imitate other prohibited chemicals or that can produce finished fentanyl and other drugs. The chemists working at such factories pursue chemical modifications to create new chemical compounds not yet subject to controls but capable of producing novel versions of narcotics that are as deadly or more than fentanyl. These new chemical compounds are marketed to international drug traffickers through broker networks with direct access to the chemical manufacturers, who take custom orders from buyers seeking to create fentanyl and evade customs and law enforcement agencies around the world.
XIANG GAO, OLEKSANDR KLOCHKOV, and IGORS KRICFALUSIJS are international drug traffickers who used their connections with China-based chemical manufacturers to broker deals for fentanyl and methamphetamine precursor chemicals for further distribution in the U.S. and elsewhere. During this investigation, GAO, KLOCHKOV, and KRICFALUSIJS conspired to sell ton-quantities of fentanyl precursor chemicals; provided more than five kilograms of fentanyl precursor chemicals and more than 50 kilograms of methamphetamine precursor chemicals; and shipped those chemicals to New York, Austria, and Spain, intending that the chemicals would be used to manufacture fentanyl and methamphetamine in New York for further distribution there.
Throughout the course of the conspiracy, the defendants repeatedly offered access to factories capable of producing tons of deadly narcotics precursors at a time, and consistently acknowledged that the precursors were designed to evade sanctions on narcotics importation but were purpose-built to make fentanyl and methamphetamine. For example, during one meeting, when GAO acknowledged that fentanyl is illegal in the U.S. and China, KLOCHKOV explained that, as a result, fentanyl “must be created, not purchased.” The defendants further provided instructions, including chemical formulas, to turn the precursors into finished fentanyl destined for distribution throughout New York.
* * *
GAO, 35, a Chinese national; KLOCHKOV, 34, a Ukrainian national; and KRICFALUSIJS, 32, a Latvian national, are charged in the Indictment with: one count of conspiracy to distribute fentanyl and methamphetamine, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; one count of conspiracy to import fentanyl precursor chemicals and a methamphetamine precursor chemical with intent to manufacture fentanyl and methamphetamine, which carries a maximum sentence of 20 years in prison; one count of importation of a fentanyl precursor chemical, which carries a maximum sentence of 20 years in prison; and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.
The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Kim praised the outstanding efforts of the Bilateral Investigations Unit of the DEA Special Operations Division, the U.S. Department of Justice’s Office of International Affairs, and Moroccan and Spanish authorities for their ongoing assistance.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorney Amanda C. Weingarten is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and Complaint, and the description of the Indictment and Complaint set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation.
Indian National Pleads Guilty to Attempting to Meet A 13-Year-Old to Engage in Sexual ActivityRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Kirtan Patel (24, India) has pleaded guilty to attempting to entice a minor to engage in sexual activity. Patel faces a minimum penalty of 10 years, up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, between May 22 and 24, 2024, Patel communicated online with someone whom he believed was a 13-year-old girl. The child, however, was an undercover Homeland Security Investigations (HSI) special agent. Patel engaged in a sexually explicit conversation with the undercover agent. Ultimately, Patel was arrested when he traveled to a location in Marion County to engage in sexual activity with the child.
This case was investigated by Homeland Security Investigations and the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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.
Illinois Man who Transported Child Sexual Abuse Material Sentenced to 15 Years in PrisonRead the Press Release
MIAMI – An Illinois man, who is a registered sex offender and was convicted of transporting numerous images and videos depicting the sexual exploitation of three minor children, was sentenced on Dec. 13, to 180 months in federal prison by U.S. District Judge William P. Dimitrouleas, who sits in Fort Lauderdale, Fla.
According to court record, William Ahart, 42, of Ill., arrived into the Port Everglades cruise ship terminal in Fort Lauderdale from the U.S. Virgin Islands on June 15. Due to Ahart being a registered sex offender, United States Customs and Border Protection (CBP) officers conducted an examination of Ahart’s smartphone and discovered numerous images of child sexual abuse material (CSAM). Special Agents from Homeland Security Investigations (HSI) Fort Lauderdale responded and further reviewed Ahart’s smartphone and discovered the CSAM images were sent to Ahart on messaging applications by three minor females who Ahart had been communicating with over several months. HSI Fort Lauderdale agents arrested Ahart, who admitted to communicating with minor females and receiving and viewing the CSAM images. Further investigation by HSI revealed that during sexually charged conversations between Ahart and one of the minor victims, Ahart encouraged the minor victim to engage in self-harm. Evidence was also uncovered during the investigation that Ahart mailed the minor victim a “fun package” containing knives, candles for hot wax, thumb tacks, and a shock collar so that the victim could continue to engage in self-harm.
On Sept. 20, Ahart pled guilty to transportation of child sexual abuse material.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Anthony Salisbury of HSI Miami made the announcement.
HSI Miami and the South Florida Internet Crimes Against Children Task Force investigated the case with the assistance from CBP and HSI Albany, N.Y. Field Office. Assistant U.S. Attorney M. Catherine Koontz prosecuted it.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about the PSC initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 24-cr-60118.
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Homeland Security Investigations Special Agent Indicted for Drug Distribution ConspiracyRead the Press Release
A grand jury in Salt Lake City returned an indictment today charging Special Agent David Cole of Homeland Security Investigations (HSI), 50, of South Jordan, Utah, with conspiring with another HSI special agent to sell alpha-PHP, a drug commonly referred to as “bath salts,” in Utah.
According to court documents, Cole and another HSI special agent used their status as federal law enforcement officers to acquire bath salts by representing to others in HSI and in other law enforcement agencies that they were going to use the bath salts to conduct legitimate HSI investigations. Cole and his co-conspirator then sold bath salts to HSI confidential human sources for thousands of dollars and allowed those sources to resell the bath salts on the streets of Utah for a profit. Cole and his co-conspirator profited hundreds of thousands of dollars through their illegal drug sales.
“The indictment alleges that David Cole abused his position as a federal law enforcement agent to obtain and sell dangerous drugs for profit,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “A drug dealer who carries a badge is still a drug dealer — and one who has violated an oath to uphold the law and protect the public. Today’s indictment reflects the department’s commitment to holding accountable law enforcement officers who engage in criminal conduct, because no one is above the law.”
“David Cole took an oath to protect and serve. Instead, he allegedly distributed dangerous drugs in our communities for profit,” said Special Agent in Charge Shohini Sinha of the FBI Salt Lake City Field Office. “Cole’s alleged actions not only helped fuel an already devastating drug crisis but also undermines the public’s trust in law enforcement. The FBI remains committed to holding accountable those who violate the law, regardless of their position.”
“Today’s arrest sends a clear message that federal employees who violate the trust of the public and break the law will be prosecuted,” said Inspector General Joseph V. Cuffari of the Department of Homeland Security Office of Inspector General (DHS-OIG). “DHS OIG is grateful for our continued partnership with our law enforcement partners as we continue fighting corruption.”
Cole is charged with one count of conspiracy to distribute and possess with intent to distribute a controlled substance. If convicted, he faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and DHS-OIG are investigating the case, with support from HSI Executive Management.
Trial Attorneys Jordan Dickson, Alexander Gottfried, and Blake Ellison of the Criminal Division’s Public Integrity Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Hartford, Connecticut Man Sentenced to 18 Months in Firearm Possession CaseRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on December 16, 2024, Sharad Collier, 27, of Hartford, Connecticut, was sentenced by United States District Judge William K. Sessions III, to eighteen months’ imprisonment to be followed by a 3-year term of supervised release. Sharad Collier previously pleaded guilty to being a prohibited person in possession of a firearm.
According to court records, on February 28, 2023, Collier fled from a residence in Morristown, Vermont where law enforcement arrested other individuals. Police tracked Collier to a nearby shed-like structure which the defendant refused to exit for approximately two hours. Eventually, Collier surrendered to the police. Police then obtained a warrant to search the residence from which Collier fled where they found a Glock Model 23 .40 caliber semi-automatic pistol in the bedroom previously occupied by Collier and from which Collier fled hours before he surrendered. Collier later admitted to investigators that he was an unlawful user of controlled substances in February 2023. He was therefore prohibited from possessing a firearm. The investigation into Collier further demonstrated that he was involved in trafficking cocaine base and fentanyl in Vermont in February of 2023.
United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Morristown Police Department, the Stowe Police Department, the Lamoille County Sheriff’s Department, and the Vermont State Police.
The case was prosecuted by Assistant U.S. Attorney Zachary Stendig. Collier was represented by Allan Sullivan, Esq.
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.
Harlan Man Sentenced to 7 Years in Federal Prison for Receiving Child PornographyRead the Press Release
COUNCIL BLUFFS, Iowa – A Harlan man was sentenced on December 12, 2024, to 84 months in federal prison for receiving child pornography.
According to public court documents, the National Center for Missing and Exploited Children (NCMEC) received a CyberTip that an account, later determined to be associated with Jesse Daniel Blaine, 42, received files containing child sexual abuse material. Law enforcement seized electronic devices during a search of Blaine’s Harlan residence. A forensic examination of the seized electronic devices showed that Blaine used his electronic devices to receive, view, and possess images and videos of child sexual abuse material, and to search for child sex stories.
After completing his term of imprisonment, Blaine will be required to serve a five-year term of supervised release. There is no parole in the federal system. Blaine was also ordered to pay $21,000 in restitution.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Iowa Department of Criminal Investigation-Cybercrime Bureau, Iowa Department of Criminal Investigation-Internet Crimes Against Children Task Force, Shelby County Sheriff’s Office, and the Federal Bureau of Investigation-Child Exploitation Task Force.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Hampton landlord who racially harassed and evicted tenants sentenced to 17 years in prisonRead the Press Release
NEWPORT NEWS, Va. – A Hampton man was sentenced today to 17 years in prison for wire fraud, aggravated identity theft, and race-based interference with housing and employment.
According to court documents, David L. Merryman, 59, owned 39 rental properties in Newport News and 23 more in Hampton. Many of Merryman’s rental properties were in poor condition and located in low-income neighborhoods. He primarily rented the properties to underprivileged African American tenants with limited credit and housing options.
From 2019 through at least January 2024, Merryman engaged in a multifaceted scheme that included obtaining rent relief benefits to which he was not entitled, as well as fraudulently obtaining large initial payments in the form of security deposits, prepaid rent, and other fees for rental homes that were in poor repair. Merryman represented to prospective tenants that he would lease the rentals for longer tenancy terms but intended to evict them as quickly as possible to restart the cycle of fraud and collect more high initial payments from new tenants.
“David Merryman deliberately targeted families of color with limited means and housing options.” said Jessica D. Aber, U.S. Attorney for the Easter District of Virginia. “Landlords have a responsibility under the law to uphold the housing rights and protect the human dignity of the people to whom they rent. Mr. Merryman failed to uphold that responsibility and is paying a heavy price for his for racial discrimination and fraud.”
“For years, David Merryman used his position of power as a landlord and his tenant’s economic vulnerability to make a profit,” said Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office. “He not only sought out tenants with few housing options to rent, but then continued to racially harass and subject them to unsuitable living conditions. His victims were oftentimes mothers or fathers who just wanted to keep a roof over their family’s head. We’re thankful for today’s sentence which showcases the serious nature of these types of offenses, as well as the FBI’s commitment to investigating the perpetrators of these crimes.”
“Merryman specifically sought to rent his derelict properties to vulnerable minority tenants, and then subjected them to abhorrent racial discrimination and other abusive conduct,” said Rae Oliver Davis, Inspector General for the U.S. Department of Housing and Urban Development. “His criminal actions were in repulsive disregard for both the law and well-being of his low-income tenants. Today’s sentencing stops his cycle of fraud and abuse and brings Mr. Merryman to justice.”
On several occasions, Merryman harassed his minority tenants with slurs, comments about slavery, mocking comments, death threats, and assaultive conduct related to their race, all in violation of their right to occupy and lease a dwelling free from racially motivated harassment, threats, and force. He also interfered with at least one victim’s right to enjoy employment free from racial threats and assaultive conduct.
Merryman fabricated lease documents, often with incorrect information related to the tenants, and backdated documents before forging tenants’ signatures and falsely representing that he was authorized to act on their behalf.
During the COVID-19 pandemic, state and federal governments made rent relief benefits available to those struggling during the national health crisis. Merryman filed fraudulent rent relief applications and used his tenants' names and personal information without their consent and forged their signatures. In many cases, he obtained significant sums of rent relief without telling the tenants, even evicting, or seeking to evict, the very same tenants for unpaid rent. To obtain housing-assistance payments from the Department of Housing and Urban Development (HUD), Merryman also made false representations about the condition of his rental properties and whether he was receiving other payments that would be duplicative of federally funded rental assistance.
Merryman also defrauded tenants by obtaining money and property from them under false pretenses, primarily through false representations that he would repair his properties to induce tenants to pay significant upfront fees for neglected, even uninhabitable, properties that he never intended to improve.
For example, a tenant, identified as L.G., made requests for necessary repairs to the home she was renting, to which Merryman repeatedly made racially derogatory responses. In April 2019, Merryman threatened to turn L.G. and her children into “potting soil.” L.G. obtained a protective order against Merryman, who then responded by, among other things, parking his vehicle just outside the prohibited radius of the order and intimidating L.G. and her family.
Another tenant, identified as E.P., regularly paid Merryman rent from 2015 until she was laid off from her job in 2021 during the pandemic after suffering medical problems resulting in her hospitalization. On May 10, 2021, Merryman applied to the Virginia Department of Housing and Community Development for approximately $15,100 in rent relief benefits for E.P. and forged her signature, all without her consent. Despite obtaining those benefits for E.P., Merryman evicted her, citing her unpaid rent. E.P. then lost all her belongings when Merryman sent a crew to remove them from her home and tow her car when she was hospitalized.
After Merryman failed to complete a driveway construction project, the customer hired a concrete construction business owner, identified as E.S., to finish the job. E.S. had worked in the concrete construction business for more than 40 years. On July 8, 2020, shortly after E.S. finished the project, he received a call from Merryman, who repeatedly threatened him. E.S. obtained a protective order against Merryman, after which, in March 2021, Merryman came to a different jobsite where E.S. was working to intimidate him and his team.
Assistant U.S. Attorney D. Mack Coleman, Julie D. Podlesni, and Brian J. Samuels prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:24-cr-4.
Gulf Cartel drug trafficker sent to prison following major cocaine and cash seizuresRead the Press Release
BROWNSVILLE, Texas – A 42-year-old resident of San Benito has been sentenced for conspiracy to possess with intent to distribute over five kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Salvador Cortez-Nava aka Chava pleaded guilty Aug. 24, 2023.
U.S. District Judge Rolando Olvera has now ordered Cortez-Nava to serve 120 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence that described Nava ordering the kidnapping of a co-conspirator and threatened harm over the loss of several drug loads. In handing down the sentence, the court approved the government’s request to forfeit assets obtained through drug proceeds.
“The Mexican Gulf Cartel is one of Mexico's oldest criminal syndicates, engaging in drug trafficking, violence, human smuggling, and more, reflecting the complex challenges posed by the cartels along Texas’s border with Mexico,” said Hamdani. “Salvador Cortez-Nava, aka Chava, demonstrated his allegiance to this cartel by coordinating the distribution of cocaine and employing ruthless tactics, including ordering kidnappings and threats of violence. His actions underscored the perilous influence of the cartel as he transported drug proceeds back into Mexico. By sending Cortez-Nava to prison, justice delivers another blow against the Gulf Cartel’s violent hold on the narcotics trade.”
“The hard work of our agents leading up to this victory demonstrates Homeland Security Investigation’s (HSI) unique authorities and expertise in financial investigations to combat organized crime,” said Special Agent in Charge Craig Larrabee of HSI - San Antonio. “Through a multi-agency task force, we uncovered over $1.5 million in drug proceeds and seized more than 150 kilograms of cocaine; this amount of poison has no place in our country.”
“The Drug Enforcement Administration’s (DEA) aggressive enforcement continues to hurt the drug trafficking business by shutting down Cortez Nava's significant cocaine trafficking network,” said Special Agent in Charge of the Houston Division Daniel C. Comeaux. “Regardless of the rank or the level of sophistication used to traffic drugs and money, the DEA has always been able to disassemble the structure these drug cartels have in place to move poison into American communities and successfully eradicate the threat.
Cortez-Nava was a key player in a large-scale cocaine trafficking network, importing significant quantities of cocaine from Mexico. He oversaw the transportation and distribution across multiple U.S. cities, including in the Rio Grande Valley as well as North Carolina, Ohio, Georgia, Florida and Indiana.”
Cortez-Nava’s criminal organization employed sophisticated methods, such as using vehicles with hidden compartments at ports of entry to smuggle cocaine from Matamoros, Mexico, into the United States. He also supervised the recruitment of individuals to carry out these smuggling operations.
A multi-agency task force investigating several narcotics and cash seizures from 2016 to 2020 determined Cortez-Nava led the organization.
A series of drug and money seizures resulting from Cortez-Nava’s orders included $501,145.00 in drug proceeds concealed inside a vehicle in February 2016 and 1.10 kilograms of cocaine in April 2017 that was intended to be distributed. After that drug seizure, authorities discovered an additional 48.35 kilograms of cocaine belonging to the Gulf Cartel. These seizures were followed by seizures of 29.45 kilograms of cocaine and $269,996.00 in 2018, and 68.3 kilograms of cocaine and over $812,000 in 2019.
During the investigation, authorities seized over $1.5 million in proceeds and approximately 150 kilograms of cocaine.
As part of his guilty plea, Cortez-Nava agreed to forfeit several properties, a vehicle, two firearms and various jewelry, watches and other items.
Cortez-Nava will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI and DEA conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of the Brownsville Police Department and Customs and Border Protection. OCDETF identifies, disrupts and dismantles drug trafficking organizations and other criminal networks that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal state and local enforcement agencies. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorneys Oscar Ponce and Zachary Blackmon prosecuted the case.
Guatemalan Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who had been deported, illegally returned to the United States, and then used someone else’s social security number to obtain employment was sentenced today to more than one year in federal prison.
Luis Gomez-Otoy, age 39, a citizen of Guatemala illegally present in the United States and residing in Postville, Iowa, received the prison term after an August 21, 2024, guilty plea to one count of unlawful use of identification documents, one count of misuse of a social security number, and one count of illegal reentry into the United States after having been deported following a felony conviction.
At the guilty plea, Gomez-Otoy admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Gomez-Otoy was arrested in May 2008 during an immigration enforcement action in Postville and was deported in October 2008. On May 8, 2024, immigration officials learned Gomez-Otoy had illegally returned to the United States and found Gomez-Otoy at the Clayton County Jail following his arrest on state charges. On July 12, 2024, Gomez-Otoy was convicted in state court of operating while intoxicated, second offense, and sentenced to 7 days’ imprisonment. Gomez-Otoy was previously convicted in the Northern District of Iowa in May 2008 for use of false employment documents, a felony, served five months’ imprisonment and was deported.
Gomez-Otoy also admitted he used a fraudulent Social Security card and a fraudulent Permanent Resident Card, also known as a “green card,” both bearing his name, to prove his authorization to work in the United States when he completed employment and tax forms in May 2022 at a business in West Union, Iowa. The number on the Social Security card was assigned to someone else. The alien registration number on the Permanent Resident card was assigned to a female from Mexico. Social Security and Permanent Resident cards are documents prescribed by statute or regulation for entry into or as evidence of authorized stay or employment in the United States.
Gomez-Otoy was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Gomez-Otoy was sentenced to 13 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Gomez-Otoy is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-1017.
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Grand jury indicts local doctor on false statements, writings charges related to 1989 rapeRead the Press Release
DAYTON, Ohio – A federal grand jury returned a six-count indictment today against a Sycamore Township man whose DNA implicated him in a 1989 rape.
Frederick Louis Tanzer, 66, is charged with four counts of making false statements to an agency or officer of the United States and two counts of making or using a false document or writing. Each count is punishable by up to five years in prison. These federal crimes are prosecutable even if an underlying offense has passed the statute of limitations.
Tanzer has been in custody since his arrest on Dec. 11 and will remain in custody pending trial.
According to court documents, Tanzer’s DNA was confirmed by a forensic laboratory as a match to the DNA the rapist had left at the 1989 crime scene, where the victim was violently raped over the course of five and a half hours in her condominium on Creighton Place in Cincinnati after arriving home from work.
It is alleged that Tanzer made several materially false statements to federal investigators when approached about the rape last week, including denying having seen or interacted with the victim on the date she was raped.
Tanzer is a medical doctor who has lived and practiced medicine in Ohio, Kansas and Colorado.
According to a recent filing relating to detention, during a search warrant executed on Dec. 11 at Tanzer’s home, investigators located restraints, a gag, a black hat and zip ties together in Tanzer’s dresser.
The same filing also detailed that two additional victims have been identified who were repeatedly drugged and raped by Tanzer, including as recently as two and a half years ago in Kansas. The document includes information about Tanzer drugging the women in order to have sex with them without their consent and about Tanzer using a burner phone to engage with sex workers when he traveled for work for weeks or months at a time.
Federal law enforcement officials ask the public to consider the circumstances of the rapes, and the locations where Tanzer has lived, and to contact the FBI with any similar information at 1-800-CALL-FBI.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Division; and Cincinnati Police Chief Teresa A. Theetge announced the arrest. The IRS-Criminal Investigation Cincinnati Field Office assisted in the investigation. Assistant United States Attorneys Kelly K. Rossi and Julie D. Garcia are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Glade Valley Man Is Sentenced to 22 Years in Prison for Producing Child Sexual Abuse MaterialRead the Press Release
CHARLOTTE, N.C. – James Matthew Johnson, 36, of Glade Valley, N.C., was sentenced to 22 years in prison and a lifetime of supervised release today for producing child sexual abuse material (CSAM), announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Johnson was also ordered to register as a sex offender after he is released from prison.
Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Andy LeBeau of the Boone Police Department join U.S. Attorney King in making today’s announcement.
According to court documents and the sentencing hearing, the National Center for Missing and Exploited Children (NCMEC) received a tip that an individual later identified as Johnson was uploading CSAM to a cloud. Law enforcement initiated an investigation and identified the defendant. In June 2023, law enforcement obtained and executed a search warrant, seizing Johnson’s electronic devices. A forensic analysis of the devices revealed that Johnson possessed CSAM, including more than 200 images and 300 videos depicting the sexual abuse of children as young as toddlers. The cell phone analysis further revealed that Johnson had also produced CSAM of a minor victim that included images and videos where the minor victim appeared to be intoxicated. Court records show that, during an interview with law enforcement, Johnson admitted that the minor victim was unaware that Johnson was producing CSAM of the sexual abuse.
On March 22, 2024, Johnson pleaded guilty to production of child pornography. He is in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
In announcing Johnson’s sentence, U.S. District Judge Kenneth D. Bell said, “these offenses are serious, and the Court takes them seriously.”
The investigation was handled by HSI and the Boone Police Department.
Assistant United States Attorney Daniel Cervantes of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Ghanaian National Sentenced to Prison for Role in Money Laundering SchemeRead the Press Release
PITTSBURGH, Pa. - A Ghanaian national pleaded guilty in federal court to violating federal money laundering laws and has been sentenced to 24 months of imprisonment, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge Nora Barry Fischer imposed the sentence on David Kakra Mensah, 31, of Accra, Ghana.
According to information presented to the Court, Mensah engaged in a money laundering conspiracy from in and around April 2022 until in and around June 2022. The court was advised that a Washington, D.C.-based university was the victim of a business email compromise that resulted in the fraudulent transfer of more than $603,000 from a bank account located in the Western District of Pennsylvania into a separate bank account owned by Mensah’s co-defendant, Charles Wilson Stout, who also has pleaded guilty and is pending sentencing.
To obfuscate the source of the fraudulent funds, Mensah and his co-defendant created a shell company and transferred portions of the funds into cryptocurrency that was ultimately deposited into a cryptocurrency account that Mensah owned. In addition to receiving a portion of the funds associated with the business email compromise, Mensah also was involved in a romance fraud scheme in which he obtained and moved money through individual victims living in Pennsylvania, Oregon, and elsewhere.
Assistant United States Attorneys Mark V. Gurzo and Kelly M. Locher prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation and United States Immigration and Customs Enforcement for the investigation leading to the successful prosecution of Mensah.
German Sentenced to 240 Months in Prison for Travel with the Intent to Engage in Illicit Sexual ConductRead the Press Release
NEWARK, N.J. – A German man was sentenced today to 240 months in prison for traveling to New Jersey for the purpose of engaging in sexual conduct with a minor, U.S. Attorney Philip R. Sellinger announced.
Christian Stefan Walther, 40, of Erfurt, Germany, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with travel with intent to engage in illicit sexual conduct.
According to documents filed in this case and statements made in court:
Law enforcement authorities began investigating Walther around January 2023 for child exploitation offenses. Two undercover officers communicated with Walther via email, phone, and an encrypted messaging app concerning Walther’s desire for sexual encounters with young children. Walther sent an undercover officer two videos, each of which depicted an adult male engaging in sexual conduct with a prepubescent aged female child. Walther also expressed his desire to engage in sexual conduct with children aged 8 to 12, described in graphic detail the sex acts he planned to commit against the children, and explained that he had lied to his friends in Germany about the purpose of his trip to the United States. Walther agreed to pay U.S. currency for access to the children.
On March 23, 2023, Walther traveled from Germany to New Jersey to meet the undercover officers in advance of what he believed would be a sexual encounter with one or more children at a hotel. Upon his arrest, Walther admitted that he traveled to the United States to have sex with children under 12.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigation, under the direction of Acting Special Agent in Charge Spiros Karabinas in Newark, with the investigation leading to the charge. He also thanked officers of the New Jersey State Police, under the leadership of Col. Patrick J. Callahan, for its assistance.
The government is represented by Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division.
Garner Hotel in Clarksville Agrees to Settle Allegations that It Violated the Americans with Disabilities ActRead the Press Release
NASHVILLE – Acting United States Attorney Thomas J. Jaworski for the Middle District of Tennessee announced today that the United States has reached an agreement with Triumph Hospitality, LLC and A&S Hospitality Management, LLC, which collectively own and operate the Garner Hotel in Clarksville, Tennessee, to settle allegations that the Garner violated Title III of the Americans with Disabilities Act (“ADA”) by failing to honor a reservation made for an accessible room by an individual with a disability. As part of the settlement, the Garner will implement ADA training, pay the complainant $5,000.00, and pay a $2,000.00 civil penalty to the United States.
“We are committed to enforcing the rights of persons with disabilities in Tennessee,” said Acting United States Attorney Thomas J. Jaworski. “Hotels must have systems in place to effectively manage reservations made for accessible rooms by individuals with disabilities. Questioning a hotel guest’s disability status is prohibited under the ADA and is not an appropriate response when a hotel fails to honor a reservation for an accessible room.”
The United States alleges that the complainant reserved an accessible room, but that the hotel failed to honor the reservation when the complainant presented at the check-in desk. The United States also alleges that the hotel employee at the check-in desk made insensitive and inappropriate comments regarding the complainant’s disability, including questioning the complainant’s disabled status while other individuals in the hotel’s lobby and the complainant’s family were present. The hotel staff were ultimately unable to secure an alternative reservation for an accessible room at the Garner or at another hotel, and the complainant was unable to use the shower in the room where the complainant ultimately stayed.
Under the terms of the Settlement Agreement, the owners and operators of the Garner will implement an ADA policy that complies with the Code of Federal Regulations sections pertaining to hotels, including 28 C.F.R. § 36.302. The owners will also conduct ADA training and pay the complainant $5,000.00 and a civil penalty to the United States of $2,000.00.
The civil claims settled by this Settlement Agreement are allegations only, and there has been no determination of liability.
Assistant U.S. Attorney Mike Tackeff investigated the complaint and negotiated the Settlement Agreement.
The Department of Justice has a number of publications available to assist entities in complying with the ADA. For more information on the ADA and to access these publications, visit www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD). ADA complaints may be filed by email to [email protected].
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Franklin Man Pleads Guilty to Making False Statements to Steal over $118,000 in Welfare BenefitsRead the Press Release
CONCORD – A Franklin man pleaded guilty in federal court to stealing more than $118,000 in Supplement Nutrition Assistance Program (SNAP) and childcare benefits, U.S. Attorney Jane E. Young announces.
Ryan Leblanc, 37, pleaded guilty to one count of making False Statements. U.S. District Court Judge Paul J. Barbadoro scheduled sentencing for March 31, 2025.
Leblanc was living with the mother of his children but did not list her as part of his household. He instead falsely told the New Hampshire Department of Health Human Services that she was an “absent parent” and had not lived with him for several years. Leblanc applied for SNAP benefits and childcare benefits multiple times between March 2019 and December 2023, and each time omitted his partner from his household. Because of that, he underreported household income and financial resources and was able to get over $118,000 in SNAP benefits and childcare payments that he was ineligible for.
The charge of False Statements provides for a sentence of up to 5 years in prison, up to 3 years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The U.S. Department of Agriculture’s Office of Inspector General and New Hampshire Department of Health and Human Services led the investigation. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case.
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Former Member of Congress Charged with Acting as an Unregistered Agent of a Venezuelan NationalRead the Press Release
Note: View the indictment here.
A grand jury in the District of Columbia returned an indictment yesterday charging David Rivera, 59, of Miami, with a scheme to violate the Foreign Agents Registration Act (FARA) and to launder funds to conceal and promote his criminal conduct.
As alleged in the indictment, from in or about June 2019 through in or about April 2020, Rivera carried out a scheme to provide consulting and lobbying services to sanctioned Venezuelan businessman Raul Gorrín, who was added to the Specially Designated Nationals and Blocked Persons List (SDN List) on Jan. 8, 2019, by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC).
On Gorrín’s behalf, Rivera sought to lobby U.S. government officials, including a senior official in the Executive Branch of the U.S. government (Government Official-1), to have Gorrín removed from the SDN List. Rivera received over $5.5 million for these activities and willfully failed to register under FARA, as required by law.
To conceal and promote his criminal activities, Rivera created fraudulent shell companies using names associated with a law firm and with Government Official-1 to give the false appearance that the shell companies were legitimate. In reality, these entities were not affiliated with the law firm or Government Official-1, and neither the law firm nor Government Official-1 were aware that Rivera had created shell companies in their names. Rivera used the money he received from his criminal activities to pay individuals who assisted him in his efforts to lobby senior government officials on Gorrín’s behalf, including by making payments through one of the shell companies.
The FBI Miami Field Office is investigating the case.
Trial Attorneys Sean O’Dowd and Monica Svetoslavov of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Healthcare Executive Sentenced for Mail FraudRead the Press Release
SYRACUSE, NEW YORK – Kevin Harrington, age 50, of Oneonta, New York, was sentenced to serve a three-year term of federal probation and ordered to pay over $150,000.00 in restitution to his former employer in relation to his previous guilty plea to two counts of mail fraud, 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) announced.
At his previous change of plea hearing, Harrington admitted that he was the former executive director at First Community Care of Bassett, LLC (an affiliate of Bassett Healthcare Network). During his employment, Harrington submitted fraudulent expense reports seeking reimbursement for the purchase of continuous positive airway pressure (CPAP) machines. As part of the scheme, Harrington provided invoices to his employer that falsely claimed he had paid thousands of dollars for medical equipment when no such equipment was ever purchased. Unaware that the invoices were fraudulent, First Community Care of Bassett issued and mailed checks to Harrington for reimbursement. In total, Harrington admitted to stealing over $150,000.00 from his former employer.
In addition to his term of probation, Harrington was ordered to serve six months of home confinement and was fined $5,500.00.
The FBI investigated the case, which was prosecuted by Special Assistant U.S. Attorney Paul Tuck.
Former FBI Agent Indicted on Charges of Cyberstalking, Witness Tampering, and Obstruction of Criminal InvestigationRead the Press Release
OAKLAND - A federal grand jury has indicted Paul Raymond Flood with cyberstalking, witness tampering, and obstruction of a criminal investigation by bribery. Flood, 54, of Castro Valley, was arrested yesterday and made his initial appearance in federal court this morning.
According to the indictment, which was filed May 16, 2024, and unsealed today, Flood was a Special Agent with the Federal Bureau of Investigation (FBI) from 2007 through 2019. In early October 2018, Flood met a first-year law student, referred to in the indictment as “Victim-1” or “V-1,” who had contacted him for information on pursuing a future career with the FBI. A family member of V-1’s, referred to in the indictment as “B-1,” knew Flood and referred V-1 to him.
Within a few weeks of meeting V-1, Flood allegedly began to make unwelcome romantic advances toward V-1 and engage in a pattern of harassing and intimidating conduct. The indictment charges that, among other conduct, Flood had a diamond ring delivered to V-1 in mid-October 2018; used different numbers and messaging applications to call and text V-1, creating and using at least 79 different numbers between mid-October 2018 through September 2019; sent messages demonstrating that he was surveilling V-1 and her family; and repeatedly pressured B-1 to have V-1 call or unblock Flood.
Although V-1 initially did not report Flood due to her family’s fear of retaliation, V-1 reported him in June 2019 to federal and local law enforcement authorities. Shortly thereafter, the FBI suspended Flood from duty and the Department of Justice Office of the Inspector General (DOJ OIG) opened an investigation into Flood’s conduct. In response, Flood allegedly employed various means to pressure, harass, intimidate, and persuade V-1 to help him by not providing statements or testimony in the investigations against him, including threatening to commit suicide, offering V-1 various bribes, and pressuring V-1’s family members to persuade her not to cooperate with law enforcement. Flood allegedly succeeded in persuading V-1 to help him obstruct the pending investigations. This included V-1’s evading multiple attempts by DOJ OIG investigators to contact her for an interview and to serve her with a federal grand jury subpoena in July 2019. According to the indictment, Flood also persuaded V-1 to agree to enter a sham marriage with him so that she would not have to testify against him, buying her a $17,000 engagement ring in the process. V-1 did not follow through with the sham marriage plan.
The indictment charges Flood with one count of cyberstalking in violation of 18 U.S.C. § 2261A(2)(B), two counts of witness tampering by intimidation, threats, corrupt persuasion, or misleading conduct in violation of 18 U.S.C. §§ 1512(b)(2) and (b)(3), one count of witness tampering by harassment in violation of 18 U.S.C. §§ 1512(d), and one count of obstruction of a criminal investigation by bribery in violation of 18 U.S.C. § 1510(a).
An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Flood faces a maximum sentence of 20 years in prison on each witness tampering count under 18 U.S.C. § 1512(b), three years in prison on the witness tampering count under 18 U.S.C. § 1512(d), and five years in prison on each count of cyberstalking and obstruction. Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Flood is currently on conditional release. His next appearance in federal court is scheduled for Jan. 15, 2025.
United States Attorney Ismail J. Ramsey and Zachary Shroyer, Special Agent in Charge of DOJ OIG Western Region, made the announcement.
Assistant United States Attorney Anne C. Hsieh is prosecuting the case with the assistance of Mimi Lam, Lakisha Holliman, and Helen Yee. The prosecution is the result of an investigation by DOJ OIG, with assistance from the FBI and Homeland Security Investigations.
Paul Raymond Flood Indictment
Foreign National Previously Extradited from Mexico Pleads Guilty to Leadership Role in Prolific Human Smuggling ConspiracyRead the Press Release
A Mexican national extradited to the United States from Mexico in 2023 pleaded guilty today to leading a human smuggling conspiracy operating in Mexicali on the U.S.-Mexico border for several years.
According to court documents, Ofelia Hernandez-Salas, 63, led a human smuggling organization that facilitated the travel of more than 100 migrants into the United States from and through Bangladesh, Yemen, Pakistan, Eritrea, India, the United Arab Emirates, Uzbekistan, Russia, Egypt, Brazil, Peru, Ecuador, Colombia, Costa Rica, Nicaragua, Honduras, El Salvador, Guatemala, and Mexico. Hernandez-Salas’ organization charged the migrants as much as tens of thousands of dollars to make the journey and directed the migrants where to illegally cross the border into the United States, including by providing them with a ladder to climb over the border fence. Hernandez-Salas and co-conspirators also robbed the migrants of money and personal belongings while armed with guns and knives.
“Hernandez-Salas has pled guilty to leading a criminal organization that smuggled migrants from more a dozen countries into the United States,” said Attorney General Merrick B. Garland. “Her plea is the latest example of Joint Task Force Alpha (JTFA)’s long reach and unwavering commitment to bringing to justice the leaders of the human smuggling operations that victimize migrants for profit and endanger our national security.”
“Human smugglers are ruthless — they lie to, steal from, and gravely endanger their victims, wreaking death and devastation across our region,” said Secretary of Homeland Security Alejandro N. Mayorkas. “The Department of Homeland Security (DHS) will continue to work with our federal and international partners to help dismantle human smuggling operations and bring perpetrators to justice.”
“We launched JTFA three years ago to disrupt the human smuggling networks that cause misery throughout the Western hemisphere,” said Deputy Attorney General Lisa Monaco. “Today, a leader of one such network pleaded guilty, making clear that if you try to profit from the desperation of others, the U.S. justice system will hold you accountable.”
“Hernandez-Salas ran a prolific human smuggling organization that illegally brought migrants from around the world into the United States — charging the migrants thousands of dollars, and often robbing them of additional money and belongings,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Such criminal operations not only violate U.S. law, but they also put migrants at great personal and financial risk. The Justice Department, through JTFA, is committed to working with our foreign law enforcement partners in Mexico and elsewhere to disrupt and dismantle dangerous transnational criminal organizations.”
“Extradition is a powerful tool to hold leaders of transnational criminal organizations accountable to American justice,” said U.S. Attorney Gary Restaino for the District of Arizona. “But it requires cooperation and collaboration with our neighbors. Thanks to all the stakeholders of JTFA throughout the federal government for breaking down barriers and working proactively and collegially with Mexican authorities.”
Hernandez-Salas pleaded guilty to conspiracy to bring an alien to the United States and three substantive counts of bringing an alien to the United States for commercial benefit or private financial gain. She is scheduled to be sentenced on March 10, 2025, and faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
In June 2023, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed corresponding sanctions on the Hernandez-Salas transnational criminal organization.
Hernandez-Salas and co-defendant Raul Saucedo-Huipio, 50, were arrested by Mexican authorities at the request of the United States in March 2023. Saucedo-Huipio remains in custody in Mexico.
Homeland Security Investigations (HSI) Yuma is investigating the case with assistance from the U.S. Border Patrol, Customs and Border Protection (CBP), U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, FBI, and U.S. Marshals Service, working in concert with HSI Tijuana, INTERPOL, and the HSI Human Smuggling Unit in Washington, D.C. CBP’s National Targeting Center/Counter Network Division and OFAC also provided valuable assistance.
JTFA Co-Director Jim Hepburn and Trial Attorney Patrick Jasperse of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Lisa Jennis for the District of Arizona are prosecuting the case.
The Justice Department’s Office of International Affairs (OIA) provided significant assistance in securing the defendant’s arrest and extradition from Mexico. The Justice Department thanks its Mexican law enforcement partners, who were instrumental in arresting and extraditing Hernandez-Salas.
The investigation and prosecutions of Hernandez-Salas and Saucedo-Huipio are being coordinated through JTFA. JTFA was created in June 2021 by Attorney General Garland, in partnership with Secretary Mayorkas, to strengthen the Justice Department’s efforts to combat the rise in prolific and dangerous smuggling emanating from Central America and impacting our border communities. JTFA’s goal is to disrupt and dismantle human smuggling and trafficking networks operating in El Salvador, Guatemala, Honduras, and Mexico, with a focus on networks that endanger, abuse, or exploit migrants, present national security risks, or engage in other types of transnational organized crime.
Since its creation, JTFA has successfully increased coordination and collaboration between the Justice Department, DHS, and other U.S. law enforcement agencies, and with foreign law enforcement partners, including in El Salvador, Guatemala, Honduras, and Mexico; targeted those organizations that have the most impact on the United States; and coordinated significant human smuggling indictments and extradition efforts in U.S. Attorneys’ Offices across the country. In June, the initiative was expanded to Colombia and Panama to combat human smuggling in the Darién. JTFA is comprised of detailees from southwest border U.S. Attorneys’ Offices, including the Southern and Western Districts of Texas, District of New Mexico, District of Arizona, and Southern District of California. Dedicated support for the program is also provided by numerous components of the Justice Department’s Criminal Division that are part of JTFA, led by HRSP and supported by the Office of Overseas Prosecutorial Development, Assistance and Training; Narcotic and Dangerous Drug Section; Money Laundering and Asset Recovery Section; Office of Enforcement Operations; OIA; and Violent Crime and Racketeering Section.
JTFA also relies on substantial law enforcement investment from DHS, FBI, Drug Enforcement Administration, and other partners. To date, JTFA’s work has resulted in over 345 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; over 290 U.S. convictions; 240 significant jail sentences imposed; and forfeitures of substantial assets.
This investigation is also supported by the Extraterritorial Criminal Travel Strike Force (ECT) program, a partnership between the Justice Department’s Criminal Division and HSI’s Human Smuggling Unit. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or raise grave humanitarian concerns. ECT has dedicated investigative, intelligence, and prosecutorial resources. ECT also coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Fentanyl Trafficker Sentenced to 17 Years After Pill Killed 18-Year-OldRead the Press Release
A drug trafficker who sold fentanyl to an 18-year-old girl who died of an overdose was sentenced this week to 17 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Ladraelyn Bolar, 34, was charged via criminal complaint in April and pleaded guilty in July to conspiracy to possess with intent to distribute fentanyl. He was sentenced Tuesday by senior U.S. District Judge Terry R. Means.
According to plea papers, Mr. Bolar admitted he conspired with others to distribute fentanyl. He acknowledged he sold blue M-30 pills containing fentanyl to an undercover ATF agent on March 25, 2024.
A confidential informant introduced the agent to Mr. Bolar and accompanied him to a parking lot in Fort Worth, where Mr. Bolar sold the undercover agent 100 M-30 fentanyl pills for $250, or $2.50 per pill. Later in the day, Mr. Bolar offered the undercover agent a “k-pack” of 1,000 fentanyl pills; the agent then bought 900 more fentanyl pills for $1,400, or approximately $1.55 per pill.
According to the evidence in the case, just five days prior, the friend of a woman who died from a fentanyl overdose told officers that she and the victim had purchased the offending pills from Mr. Bolar.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division and the Fort Worth Police Department conducted the investigation. Assistant U.S. Attorney Levi Thomas prosecuted the case with the assistance of Assistant U.S. Attorney Shawn Smith.
Federal grand jury indicts six men for conspiring to steal and re-sell restaurant cooking oilRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an indictment charging Guodeng Chen, Didi Huang, Fangfang Yan, all of Pittsford, NY, Ruimao Yang, Yan Han, and Wen Xiao Zhang, all of New York, NY, with conspiracy to transport and sell stolen goods in interstate commerce, which carries a maximum penalty of five years in prison. Defendants Chen, Huang, and Yan are also charged with transportation and sale of stolen goods in interstate commerce, which carry a maximum penalty of 10 years in prison.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the indictment and a previously filed complaint, the defendants conspired to commit a series of thefts of used cooking oil, which can be refined into biodiesel fuel and re-sold for $4.00 to $5.00 per gallon, from numerous restaurants within and around Monroe County. Defendants Yang, Han, and Zhang drove trucks to restaurants and Zhang stole used cooking oil from oil collection tanks located outside of those restaurants. The defendants then delivered the stolen cooking oil to Chen, Huang, and Yan at a warehouse. Han worked in the warehouse and assisted in the collection and storage of the stolen cooking oil. Chen, Huang, and Yan subsequently sold the stolen cooking oil to a broker and caused the stolen cooking oil to be transported across state lines to a refinery located in Pennsylvania. On April 8 2022, Chen, Huang, and Yan caused approximately 45,000 pounds of stolen, used cooking oil to be transported from the Western District of New York to Erie, Pennsylvania, receiving more than $5,000 for the shipment. On April 28, 2022, Chen, Huang, and Yan caused another approximately 45,000 pounds of stolen, used cooking oil to be shipped from the Western District of New York to Erie, Pennsylvania, again receiving more than $5,000 for this shipment.
The indictment is the result of an investigation by the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter, Homeland Security Investigations, under the direction of Special Agent-in-Charge Erin Keegan, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Harry Chavis, Acting Executive Special Agent in Charge, New York Field Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Federal Search Warrants ExecutedRead the Press Release
DES MOINES, Iowa – On Wednesday, December 18, 2024, federal search warrants were executed at the following locations in the Des Moines metropolitan area:
- 700 block of SE 6th Street, Des Moines;
- 4700 block of 64th Street, Urbandale;
- 5800 block of Urbandale Avenue, Des Moines;
- 600 block of Kenyon Avenue, Des Moines;
- 7300 block of SE 19th Street, Des Moines;
- 3000 block of East University Avenue, Des Moines;
- 200 East Edison Avenue, Des Moines;
- 7200 block of SE 5th Street, Des Moines;
- 800 block of Knob Hill Drive, Des Moines;
- 14000 block of Lakeview Drive, Clive;
- 1200 block of East 34 Street, Des Moines;
- 5200 block of Douglas Avenue, Des Moines;
- 3700 block of East Sheridan Avenue, Des Moines.
The searches at these locations were an official law enforcement action involving officers, agents, and investigators from Des Moines Police Department, United States Postal Inspection Service – Denver, San Francisco, Chicago, and Houston Divisions, FBI Omaha Field Office, FBI Des Moines Resident Agency, FBI Des Moines Central Iowa Gang Task Force (CIGTF), Iowa Division of Narcotics Enforcement (DNE), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Drug Enforcement Administration (DEA), Iowa State Patrol, Iowa Division of Intelligence and Fusion Center, Iowa State Patrol SWAT, United States Marshals Service, West Des Moines Police Department, Mid-Iowa Narcotics Enforcement Task Force, Polk County Sheriff’s Office, Story County Sheriff’s Office, Pleasant Hill Police Department, Johnston Police Department, Altoona Police Department, Indianola Police Department, Ankeny Police Department, Clive Police Department, Dallas County Sheriff’s Office, Norwalk Police Department, Urbandale Police Department, Waukee Police Department, Mid-Iowa Drug Task Force, Central Iowa Drug Task Force, Suburban Emergency Response Team (SERT), and Metro Special Tactics and Response (STAR), with assistance from the Chicago, Illinois Police Department and Houston, Texas Police Department.
False Claims Act Lawsuits Filed Against Three Individuals for Fraudulently Obtaining Pandemic Relief FundsRead the Press Release
PORTLAND, Maine: U.S. Attorney Darcie N. McElwee today announced the filing of lawsuits against three individuals alleging they fraudulently applied for and received CARES Act pandemic relief funds:
• Jazmyn Paduani (Manchester, New Hampshire) is alleged to have fraudulently applied for, received, and received forgiveness for a Paycheck Protection Program (PPP) loan.
• Devin Vangel (Colorado Springs, Colorado) is alleged to have fraudulently applied for and received a COVID-19 Economic Injury and Disaster Loan Emergency Advance.
• Antoinette Avery (Holden, Maine) is alleged to have fraudulently applied for, received, and received forgiveness for a PPP loan.
As alleged in each of the complaints, the defendants either misrepresented the annual income and payroll costs of their businesses or misrepresented that they operated any business at all. Two defendants who received PPP loans also each received forgiveness for the loans by allegedly misrepresenting how the loan funds were used.
The complaints against Paduani, Vangel, and Avery were brought by the United States under the False Claims Act (FCA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). The FCA provides that any person who “knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval” or “knowingly makes, uses, or causes to be made or used, a false record or statement material to a false or fraudulent claim” is liable to the United States for three times the amount of damages which the United States sustains, plus a civil penalty for each FCA violation. For FCA violations assessed after February 12, 2024, the minimum penalty per violation is $13,946.
Section 951 of FIRREA provides that the Attorney General may recover civil penalties against persons who knowingly make a false statement for the purpose of influencing a decision by the Administrator of the SBA or to obtain a loan, money, or anything of value under the SBA’s business loan program, including the PPP. For FIRREA violations assessed after February 12, 2024, the maximum penalty per violation is $2,449,575.
The complaints filed by the United States are a result of the U.S. Attorney’s Office’s ongoing efforts to identify and investigate fraudulently obtained pandemic relief funds. Recent amendments to federal law have extended the statute of limitations for civil and criminal fraud enforcement actions concerning PPP and EIDL loans from six to ten years.
The civil actions are docketed United States v. Paduani, 24-cv-00439-JCN (D. Me.); United States v. Vangel, 24-cv-00440-JCN (D. Me.); and United States v. Avery, 24-cv-00441-KFW (D. Me.).
The claims asserted against the defendants are allegations only. There has been no determination of liability.
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Evansville Domestic Abuser Sentenced to More Than Sixteen Years in Federal Prison After Shooting Ex-GirlfriendRead the Press Release
EVANSVILLE— Ronald Jeremy McCallister, 51, of Evansville, has been sentenced to 200 months in federal prison, followed by five years of supervised release after pleading guilty to possession of a firearm by a previously convicted felon.
According to court documents, on August 23, 2023, Evansville Police Department officers were called to a home in Evansville in response to a report of gunshots in the area. The officers were later advised that a woman had been shot by her ex-boyfriend, Ronald McCallister.
When officers arrived at the house, they found the woman in the backyard, near a tent, with a gunshot wound to her left ankle. The woman told officers that McCallister had been sending her suicidal messages through Facebook Messenger. After receiving the suicidal messages, she drove to the house where McCallister had been living in a tent in the backyard, hoping to offer him support. The conversation quickly escalated into an argument, at which point McCallister pulled out a gun and placed it next to the woman’s head. McCallister fired one round next to her face, and then pointed the gun at her foot and fired. He then went inside the house, leaving the woman on the ground in the backyard.
During a search of the home, officers found McCallister hiding in a bedroom. They also located McCallister’s gun, a loaded 9mm handgun.
McCallister has a lengthy criminal record, including felony convictions for domestic battery, robbery resulting in bodily injury, battery by means of a deadly weapon, and armed robbery. These previous felony convictions prohibit McCallister from ever legally possessing a firearm ever again.
“We have prioritized federal prosecution of armed domestic abusers because of the extreme danger they pose to those in their homes and the public at large,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “The victim in this case will be protected from her abuser for many years, because of the excellent work of EPD, the ATF, and our federal prosecutor. This sentence should serve as a warning anyone who is involved in domestic violence and illegally armed: get rid of the guns or risk a long term in federal prison.”
“It unfortunately bears repeating that we all deserve to be safest with our closest partners, but for too many that is not the case,” stated Daryl S. McCormick, Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work with our law enforcement partners to investigate and prosecute domestic abusers who possess firearms to ensure our communities are safe from these offenders.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Evansville Police Department investigated this case. The sentence was imposed by U.S. District Judge Richard L. Young.
U.S. Attorney Myers thanked Assistant U.S. Attorney Matthew B. Miller, who prosecuted this case.
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Dominican Man Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Dominican man pleaded guilty today to illegally reentering the United States after deportation.
Salvador Reynoso-Perez, 38, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for March 25, 2025. In November 2024, Reynoso-Perez was charged by indictment.
Reynoso-Perez was deported from the United States on two prior occasions, with the most recent being March 16, 2021. Sometime after his March 2021 removal, Reynoso-Perez unlawfully reentered the United States. Immigration authorities became aware of Reynoso-Perez’s unlawful presence in the United States on Sept. 17, 2024. Reynoso-Perez was serving a state sentence for, among other things, Possession to Distribute a Class A substance.
The charge of unlawful reentry of a deported alien provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Joshua S. Levy and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney Brian Sullivan of the Major Crimes Unit is prosecuting the case.