Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 5 November 2024
Grand Jury Indicts Norfolk Man for Multiple Child Pornography ChargesRead the Press Release
United States Attorney Susan Lehr announced that the Grand Jury in the District of Nebraska has returned an eight-count Indictment against Noah Hale, age 20, of Norfolk, Nebraska. The Indictment charges Hale with the sexual exploitation of six minors between September 2022 and February 2024.
Counts 1 through 4 of the Indictment charge Hale with production of child pornography—each count involving a separate minor victim. Each of these offenses are punishable by a mandatory minimum term of 15 years and a maximum of 30 years imprisonment, a fine of up to $250,000, a term of supervised release to follow his term of imprisonment of not less than 5 years and up to a lifetime of supervision, and several possible special assessments payable to the court and to special victim funds.
Counts 5 and 6 of the Indictment charge Hale with attempted production of child pornography—each count involving separate minor victims. Both counts are punishable by the same possible punishment as Counts 1-4.
Count 7 of the Indictment charges Hale with receipt of child pornography. This offense is punishable by a mandatory minimum of 5 years and a maximum of 20 years imprisonment, a fine of up to $250,000, a term of supervised release to follow his term of imprisonment of not less than 5 years and up to a lifetime of supervision, and several possible special assessments payable to the court and to special victim funds.
Count 8 of the Indictment charges Hale with possession of child pornography. This offense is punishable by a maximum of 20 years imprisonment, a fine of up to $250,000, a term of supervised release to follow his term of imprisonment of not less than 5 years and up to a lifetime of supervision, and several possible special assessments payable to the court and to special victim funds.
Hale appeared for his arraignment and detention hearing on November 1, 2024, before the Honorable Magistrate Judge Jacqueline M. DeLuca. He was ordered detained pending trial at the conclusion of the hearing. A preliminary examination will not be held as the Grand Jury has found probable cause in returning the Indictment. A finding of probable cause is not a finding of guilt and Hale is presumed innocent of these charges until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Lehr commended the FBI for the intensity with which they investigated this case. Due to their efforts a number of victims were identified and charges were able to be filed.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States 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.
Gallatin Farmer Pleads Guilty to Multi-million Dollar Crop Insurance FraudRead the Press Release
KANSAS CITY, Mo. – A Gallatin, Mo., man whose family farming operation is the setting of a reality TV show pleaded guilty in federal court today to a multi-million dollar fraud scheme involving federal crop insurance benefits he was not entitled to receive.
Steve A. McBee, 52, waived his right to a grand jury and pleaded guilty before U.S. District Judge Stephen R. Bough to a federal information that charges him with one count of federal crop insurance fraud. McBee, the owner of McBee Farming Operations, stars in the reality TV series “The McBee Dynasty: Real American Cowboys” streaming on Peacock.
By pleading guilty today, McBee admitted that he engaged in fraudulent activity from 2018 to 2020 that caused an economic loss to the U.S. Department of Agriculture. Under the terms of today’s plea agreement, McBee must pay restitution as determined by the court. The total loss claimed by the government is $4,022,123. Additionally, McBee must forfeit to the government $3,158,923.
McBee admitted that he made a false report to Rain and Hail, a company reinsured by the Federal Crop Insurance Corporation. McBee submitted fraudulent documents to Rain and Hail that underreported his total 2018 corn crop by approximately 674,812 bushels and underreported his total 2018 soybean crop by approximately 155,833 bushels. As a result of these false reports, McBee received $2,605,943 in federal crop insurance benefits to which he was not entitled, as well as $552,980 in federal crop insurance premium subsidies to which he was not entitled, for a total of $3,158,923.
McBee admitted that his farming operation sold more than 1.2 million bushels of corn and nearly 416,000 bushels of soybeans to another party in 2018. However, McBee’s crop insurance records reported that his farming operations produced only 340,476 bushels of corn and 190,171 bushels of soybeans.
In addition to the specific felony charge to which he pleaded guilty today, McBee admitted he committed additional fraud in 2019 and 2020.
McBee provided false information to Rain and Hail to obtain insurance for the McBee farming operation’s 2019 soybean crop by misrepresenting that soybeans were the first crop in certain fields when wheat had already been harvested from those fields. The Rain and Hail crop insurance policy only allowed insurance coverage on the first crop planted on a piece of land during a given crop year. As a result of the double cropping during the 2019 crop year, McBee was paid federal crop insurance benefits to which he was not entitled.
McBee also provided false information when he obtained crop insurance through NAU Country Insurance in 2020. McBee’s farming operation planted corn after the last planting date in 2020, which made the crop ineligible for insurance. McBee provided false plant dates on crop insurance documents to NAU Country Insurance. As a result, McBee received federal crop insurance benefits to which he was not entitled.
Under federal statutes, McBee is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Bradley Cooper. It was investigated by the U.S. Department of Agriculture, Office of Inspector General.
Former Taylor Employee Sentenced to Prison for Bribery ConspiracyRead the Press Release
DETROIT –Jeffrey Baum, 49, of Allen Park, was sentenced to 18 months in prison for conspiring to accept bribes while he was the Community Development Manager for the City of Taylor, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent-in-Charge of the Detroit Field Office of the Federal Bureau of Investigation.
In 2015, the City of Taylor created the Right of First Refusal program (ROFR). Under this program, each year the City acquired tax-delinquent homes and selected developers to rehabilitate and eventually purchase the properties. Baum was the manager of Taylor’s Community Development Department and was responsible for overseeing the ROFR program. During this time, Baum introduced Shady Awad, a real estate developer interested in acquiring ROFR properties to develop, to then-Mayor Richard Sollars. While Awad was a contractor with the City and Baum was supervising the program, Baum solicited and accepted bribes, including cash from Awad on behalf of himself and Sollars. Baum also accepted bribes from Hadir Altoon, the owner of Dominick’s Market, who was also interested in obtaining ROFR properties. Baum routinely received food and holiday gifts, including cash, from Altoon. Without the knowledge or consent of the City Council and at Sollars’s direction, Baum facilitated the transfer of nine ROFR properties to Altoon.
In addition to being the Community Development Manager, Baum was also the treasurer of Sollars’s campaign fund. As treasurer, Baum was aware that Sollars stole tens of thousands of dollars from the fund. Baum assisted Sollars by giving him pre-signed, blank campaign checks that Sollars used in a fake catering scheme with Altoon. Sollars then made those checks payable to Dominick’s Market in various amounts, each purporting to represent payment for catering services provided to the campaign. At Sollars’s direction, Altoon prepared false invoices for catering services that were not actually provided. Instead, Altoon provided Sollars with some or all of the proceeds from the cashed fraudulent checks for Sollars’s personal use. Following an evidentiary hearing, the Court found that Sollars received $70,362.98 from this, and other wire fraud schemes related to his campaign account. Baum also accepted large cash campaign donations and gave them to Sollars instead of depositing them into the fund’s bank account. Baum further admitted to stealing between $10,000 and $20,000 from the fund for his personal use.
“As the Manager of Community Development for the City of Taylor, Baum had a duty to represent the best interests of the citizens of Taylor. Instead, he used his position of trust and authority to extort money and other items of value from the contractors he was hired to supervise. Mr. Baum’s conviction and sentence should send a strong message to public employees that placing your own interests above those of the citizens of this district will not be tolerated,” stated U.S. Attorney Ison.
The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Frances Carlson and Robert Moran.
Former Owner of a Bend-Based Microbrewery Equipment Company Sentenced to Federal Prison for Mail and Wire FraudRead the Press Release
EUGENE, Ore.— The former owner of a Bend, Oregon-based microbrewery equipment company was sentenced to federal prison today for defrauding nearly two dozen customers out of more than $880,000.
Matthew Mulder, 52, was sentenced to 21 months in federal prison and three years’ supervised release. He was also ordered to pay $887,116 in restitution to his victims.
Mulder used his company, We Can Brewing Systems, LLC, which he co-founded in 2014, to solicit payments for custom-built microbrewery systems, keg washers, and other industrial brewing products. Beginning in at least January 2017 and continuing through June 2018, Mulder solicited and accepted orders for equipment he knew his company was not capable of fulfilling. When customers asked for updates on their orders, Mulder falsely stated that they were on schedule or nearing completion.
At the same time, Mulder would entice customers to make additional payments by sending emails and text messages that included photos of nearly-completed orders prepared for other customers. He would then send the customers fake invoices for shipping costs, which they would pay. Many customers received nothing from Mulder following those final shipping payments.
During the fraud, Mulder solicited and accepted new customer contracts requiring large down payments that he would in-turn use for personal expenses, to pay off loans, and to pay suppliers. In total, Mulder knowingly and intentionally defrauded 23 customers out of more than $880,000.
On February 19, 2020, a federal grand jury in Eugene returned a seven-count indictment charging Mulder with wire and mail fraud. He pleaded guilty to all counts on April 3, 2024.
This case was investigated by the FBI and Bend Police Department. It was prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
Florida Resident Sentenced to Five Years for Possession with Intent to Distribute MethamphetamineRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Dimitri Antoine-Zacharia Grant, age 26, of Miami, Florida, was sentenced to 60 months in prison for one count of Possession with Intent to Distribute Methamphetamine.
The charges arose from an investigation by Homeland Security Investigations, the Oklahoma State Bureau of Investigation, and the Sequoyah County Sheriff’s Office.
On May 14, 2024, Grant pleaded guilty to the charge. According to investigators, on May 8, 2023, a Sequoyah County deputy pulled Grant over for a traffic violation. During the stop, law enforcement discovered Grant in possession of approximately 6,900 grams—over 15 pounds—of methamphetamine packed in seven clear baggies distributed between three backpacks.
The Honorable John C. Coughenour, U.S. District Judge in the United States District Court for the Western District of Washington, sitting by assignment, presided over the hearing in Muskogee. Grant will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Jordan Howanitz represented the United States.
Florida Man and Woman Sentenced for Conspiracy to Sell Counterfeit Drugs on Dark WebRead the Press Release
LEXINGTON, Ky. – A Hialeah, Fla., man, Omar Thomas Wala, 35, and a North Miami, Fla., woman, Vienna Cavanaugh, 33, were sentenced on Tuesday, by U.S. District Judge Robert Wier, to 90 months and 26 months in prison, respectively, for conspiring with others to produce and sell counterfeit drugs.
According to their plea agreements, Wala and Cavanaugh worked with their co-conspirators, Michael Basalyga, Reina Chirinos de Urena, and Philbert Campbell, to make and sell counterfeit alprazolam, commonly known by the brand name Xanax. As part of the conspiracy, Wala, Cavanaugh, and their co-defendants made pills that looked similar to real tablets and were stamped with numbers used by legitimate manufacturers, but they were made from other substances, including clonazolam and etizolam, designed to replicate the effects of alprazolam.
The conspiracy involved selling directly to known customers and by also selling the counterfeit drugs under pseudonyms on darknet marketplaces. People purchased the drugs with cryptocurrency across the United States, including in Kentucky. The Court held Wala responsible for distribution of more than 16.1 million counterfeit alprazolam pills from 2017 to 2022 and has ordered Wala to forfeit more than $6.9 million.
“Counterfeit medicine can be harmful and is a serious problem,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “When purchasing these drugs, consumers may be getting too much, too little, or even the wrong drug, having no way to know it. We have a closed drug distribution system to ensure that our drug supply is safe to use and is not a marketplace for criminals. These defendants were prolific sellers of counterfeit drugs and posed a real threat to their customers. Through the dedicated work of our law enforcement partners, they now face the consequences of their illegal and dangerous profiteering.”
Wala’s and Cavanaugh’s co-defendants are currently scheduled to be sentenced as follows: Campbell is scheduled to be sentenced on November 15, 2024; Basalyga is scheduled to be sentenced on January 14, 2025; and Chirinos de Urena is scheduled to be sentenced March 25, 2025.
Under federal law, Wala and Cavanaugh must serve 85 percent of their prison sentence. Upon their release from prison, they will be under the supervision of the U.S. Probation Office for three years.
United States Attorney Shier and Jim Scott, Special Agent in Charge, DEA, Louisville Field Division, jointly announced the sentence. The investigation was conducted by the DEA, with assistance from the FBI, IRS, and United States Postal Inspection Service. Assistant U.S. Attorney Gregory Rosenberg is prosecuting the case on behalf of the United States.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
– END –
Farrell Man Sentenced to More Than 15 Years in Prison for Trafficking Cocaine Near Public HousingRead the Press Release
PITTSBURGH, Pa. - A resident of Farrell, Pennsylvania, has been sentenced to 188 months in federal prison for cocaine trafficking within 1,000 feet of a public housing location, United States Attorney Eric G. Olshan announced today.
United States District Judge Cathy Bissoon imposed the sentence on Cleo Johnson, 33, also ordering Johnson to serve six years of supervised release following his prison term. Johnson previously pleaded guilty in this case to possessing with intent to distribute cocaine base within 1,000 feet of public housing on October 29, 2021.
According to information presented to the Court, Johnson engaged in cocaine and fentanyl trafficking for months during 2021, including while near public housing and children. Johnson had several prior convictions, and sentences of incarceration, for drug trafficking, gun, and assault crimes throughout the 12 years preceding his 2021 trafficking.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
United States Attorney Olshan commended the Mercer County Drug Task Force, Pennsylvania Office of Attorney General, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Johnson.
Essex County Man Sentenced to 58 Months in Prison for Fentanyl, Cocaine, and Firearms ChargesRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 58 months in prison for his role in a narcotics conspiracy involving approximately one kilogram of cocaine and 100 grams of fentanyl, possessing with intent to distribute approximately 482 grams of cocaine, and possessing three firearms and ammunition as a convicted felon, U.S. Attorney Philip R. Sellinger announced.
Carlos Ovidio Gonzalez, 37, of Newark, previously pleaded guilty before U.S. District Judge Clair C. Cecchi to one count of conspiracy to distribute and possess with intent to distribute cocaine and fentanyl, one count of possession with intent to distribute cocaine, and one count of possession of firearms and ammunition by a convicted felon. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Dec. 19, 2022, Gonzalez and another individual conspired to distribute approximately one kilogram of cocaine and 100 grams of fentanyl and were arrested shortly after arriving at an agreed-upon location in Kearny to complete the sale. After their arrests, a search of Gonzalez’s home and an apartment uncovered two loaded firearms, an unloaded firearm, ammunition, drug packaging materials, and drugs, including approximately 482 grams of heroin. Gonzalez had previously been convicted, in New Jersey Superior Court, Morris County, of first-degree drug distribution, second degree weapons possession during a controlled substance offense, and second degree possession of a firearm for an unlawful purpose, and was sentenced in 2009 to 30 years in prison.
In addition to the prison term, Judge Cecchi sentenced Gonzalez to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, and officers with the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II, with the investigation leading to the sentencing. He also thanked Newark Police Department for its assistance.
The government is represented by Assistant U.S. Attorney Eli Jacobs of the General Crimes Unit in Newark.
Dubuque Man Who Possessed Firearms While Being an Illegal User of Methamphetamine and Cocaine Sentenced to PrisonRead the Press Release
A man who possessed five firearms while being an illegal drug user was sentenced November 1, 2024, to more than one year in federal prison.
Jesse James Zeromski, age 25, from Dubuque, Iowa, received the prison term after a May 10, 2024, guilty plea to one count of possession of a firearm by an unlawful drug user.
At the guilty plea, Zeromski admitted he unlawfully possessed five firearms, including a revolver, two shotguns, and two rifles, while being an unlawful user of methamphetamine, amphetamine, and cocaine.
Zeromski was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Zeromski was sentenced to twelve months’ and one day imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Zeromski is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was prosecuted by Special Assistant United States Attorney Michael Hudson and Assistant United States Attorney Patrick J. Reinert and investigated by the Dubuque Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Iowa Division of Criminal Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-1008.
Follow us on X @USAO_NDIA.
Domestic Violence Offender Indicted for Illegally Trying to Buy FirearmsRead the Press Release
Jacksonville, FL – United States Attorney Roger B. Handberg announces the return of an indictment charging Vance Perry (67, Palatka) with making a false statement to a federally licensed firearms dealer during the attempted purchase of a firearm on two separate occasions. If convicted, Perry faces up to five years in federal prison.
According to the indictment, on February 18, 2023, Perry completed an ATF Form 4473 during the attempted purchase of a firearm from a federally licensed firearms dealer. On March 25, 2024, Perry tried to buy a different gun from another federally licensed firearms dealer. Perry indicated on the required paperwork that he was not convicted of a domestic violence offense. The indictment alleges that this was a false statement, and that Perry was previously convicted of domestic battery on December 28, 2021.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This is another case uncovered through the FBI’s National Instant Criminal Background Check System (NICS). All NICS denials are reported to federal law enforcement and are reviewed daily for potential criminal prosecution. Federal law makes it a felony offense to make a false statement to a firearms dealer when trying to buy a gun.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Frank Talbot.
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.
Confluence Corp. Settles Allegations of False Claims for Payment of Work Performed by Unqualified WeldersRead the Press Release
HONOLULU – United States Attorney Clare E. Connors announced that Confluence Corp. d/b/a Regal Service Company (“Regal”), a Hawaii corporation and Department of the Navy contractor, has agreed to pay $300,000 to settle allegations that it violated the False Claims Act by knowingly submitting false claims for payment for work performed by unqualified welders on the USS Chung Hoon, USS John Paul Jones, and USS William P. Lawrence at the Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility between January 2020 and October 2021.
The United States alleged that after an initial review of Regal’s contract work, the Navy determined Regal had used welders lacking required certifications to perform the identified tasks. During a full-scale review of Regal’s work, the Navy confirmed the welders were unqualified and also determined that the welds were deficient. The United States further alleged that Regal provided the Navy falsified documents to make it appear as though its welders had obtained the required certifications when in fact they had not.
The $300,000 payment from Regal includes $150,000 in restitution to cover costs incurred by the Navy to address the faulty welds.
“When anyone – an individual or corporation – does business with the United States of America, the falsification of documents and other false representations will not be tolerated,” said Clare E. Connors, the United States Attorney for the District of Hawaii. “The failure to perform the terms of a government contract risks harming our servicemembers, and our office will continue to hold companies accountable for such misconduct.”
“Submitting false claims for work performed by unqualified welders harms operational readiness and endangers warfighter safety,” said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS appreciates our investigative partners for their continued efforts to help protect the Department of the Navy from threats posed by such fraud.”
“Department of Defense (DoD) contractors bear a solemn trust to earnestly fulfill their contractual terms. Our military readiness, as well as the health and safety of our brave men and women in uniform, depend upon it,” said Stanley A. Newell, Special Agent-in-Charge of the DoD, Office of Inspector General’s, Defense Criminal Investigative Service (DCIS), Transnational Operations Field Office. “The dedicated professionals of DCIS and our partner agencies will work tirelessly to hold those who violate the public trust accountable.”
The False Claims Act allows for treble damages, and civil penalties of up to $27,894 per violation. DCIS’s Transnational Operations Field Office and NCIS’s Economic Crimes Field Office West investigated the case.
Assistant United States Attorney Sydney Spector handled the matter.
The claims against Regal resolved by the settlement are allegations only and there has been no determination of liability.
Child Pornography Offender Sentenced to 14 Years in PrisonRead the Press Release
TUCSON, Ariz. – Duane “Sparky” Lee Johnsen, 55, of Tucson, was sentenced last week to 168 months in prison by United States District Judge John C. Hinderaker for violations of federal law related to child pornography. Johnsen was found guilty of Receipt, Knowing Access, and Possession of Child Pornography after a three-day federal jury trial in September 2023. When Johnsen is released from prison, he will be on lifetime supervised release and will be required to register as a sex offender.
Johnsen was found in possession of child sex abuse images through an investigation by Homeland Security Investigations (HSI) in Tucson, which located individuals using file-sharing programs to obtain these images. When HSI executed a search warrant at Johnsen’s home in December 2019, agents recovered numerous computers and digital storage devices which contained large amounts of data. Examination of the digital items confirmed that Johnsen had been searching for, downloading, categorizing, and saving very large numbers of child sex abuse images, including prepubescent victims, on several of his devices. Johnsen was also in possession of other material related to child sex abuse, including a manual on how to groom children and animated comics depicting sexual abuse of children.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Homeland Security Investigations Tucson conducted the investigation in this case. Assistant U.S. Attorneys Carin C. Duryee and Carson R. Gilbert, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-01118-JCH
RELEASE NUMBER: 2024-152_Johnsen# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Casa Grande Man Sentenced to 10 Years in Federal Prison for Enticement of a MinorRead the Press Release
TUCSON, Ariz. – Adam Tovar, 32, of Casa Grande, was sentenced on October 22, 2024, by United States District Judge Raner C. Collins to 120 months in prison, followed by lifetime supervised release. Tovar also will be required to register as a sex offender upon his release from prison. Tovar pleaded guilty to Enticement of a Minor on June 17, 2024.
From December 19, 2022, through December 29, 2022, Tovar communicated via Snapchat with a person who he knew was a minor. During that time, he persuaded, induced, enticed, and coerced the victim to engage in sexual activities with him. On December 29, 2022, during a traffic stop by the Marana Police Department, Tovar was found transporting the minor victim in the front passenger seat of his vehicle. In entering his plea of guilty, Tovar admitted that he had intended to transport the victim from the victim’s home to a hotel, where he intended to engage in sexual acts with the victim.
Homeland Security Investigations conducted the investigation in this case. Assistant U.S. Attorneys Nathaniel J. Walters and Sarah J. Precup, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-23-00621-TUC-RCC
RELEASE NUMBER: 2024-151_Tovar# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Caregiver sentenced to federal prison for stealing from elderly Hardin County womanRead the Press Release
BEAUMONT, Texas – A Huffman woman has been sentenced to federal prison and ordered to pay restitution for federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Marcia Nickette Remedies, 71, pleaded guilty to wire fraud and was sentenced to eight months in federal prison by U.S. District Judge Michael J. Truncale on November 5, 2024. Remedies was also ordered to pay $24,887.75 in restitution.
According to information presented in court, in May 2023, the Hardin County Sheriff’s Office contacted the FBI to request assistance in an investigation concerning Marcia Remedies, who operated as a caretaker to a 91-year-old, bed-ridden individual. The victim reported that Remedies had unlawfully withdrew money from her account utilizing her debit card. The victim was on hospice for health-related issues and reported she hired Remedies to assist her in her home with daily affairs and personal needs. She found Remedies through an add on Facebook and hired her around October 2022. Remedies was authorized to use the victim’s debit card for one-time purchases, such as personal need items and groceries. Beginning in November 2022 through April 2023, numerous unauthorized automated teller withdrawals were made at various locations in Southeast Texas and Southwest Louisiana. It was determined that Remedies made automated teller withdrawals at Delta Downs Racetrack Casino and Hotel in Vinton, Louisiana and numerous other unauthorized withdrawals at local stores that were not for the benefit of the victim. Surveillance video captured Remedies on video conducting numerous unauthorized transactions. Remedies made $24,887.75 in unauthorized withdrawals from the victim’s account.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
This case was investigated by the Hardin County Sheriff’s Office and the FBI and prosecuted by Assistant U.S. Attorney Reynaldo P. Morin.
###
Canton Man Sentenced to Five Years in Prison for Possession of Firearm by a Convicted FelonRead the Press Release
Jackson, MS – A Canton man was sentenced to 5 years in federal prison for possession of a firearm by a convicted felon.
According to court documents, on January 2, 2024, Damonik Robinson, 23, was found in possession of a firearm after Capitol Police conducted a traffic stop on Madison Street near Fortification Street in Jackson. There were four firearms found in the vehicle, three of which were equipped with attached machinegun conversion devices, commonly known as “switches,” which convert semi-automatic handguns to automatic weapons. At the time of this possession, Robinson already had a previous felony conviction for drug and gun possession. It is a violation of federal law for a convicted felon to possess a firearm or ammunition.
Robinson was indicted by a federal grand jury on February 21, 2024. He pled guilty on July 18, 2024, to possession of a firearm by a convicted felon.
The U.S. Attorney’s Office has seen an increase in cases involving illegal firearm conversion devices, commonly known as “switches” or “auto sears,” which convert semi-automatic handguns into fully automatic weapons (i.e., machineguns) in a matter of seconds. The rapid fire of firearms converted to machineguns presents a significant danger in our community to both the public and law enforcement. According to a 2023 report by the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF), there was a 570% increase in the number of machinegun conversion devices taken into ATF custody between 2017 and 2021.
U.S. Attorney Todd W. Gee and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
The ATF and Capitol Police Department are investigating the case.
Assistant U.S. Attorney Amber Jones is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
California Man Convicted of Distributing MethamphetamineRead the Press Release
SYRACUSE, NEW YORK – Troy Alexander Mendez, age 25, a resident of Temple City, California, plead guilty on Tuesday to distribution of controlled substances. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
As part of his guilty plea, Mendez admitted that, in August 2023, he sold and shipped over 300 grams of methamphetamine via the U.S. Postal Service to a customer in the Syracuse, New York area. Law enforcement intercepted the package and identified Mendez as the source of the shipment.
Sentencing is scheduled for February 11, 2025, in Syracuse, at which time Mendez faces a mandatory minimum federal prison sentence of 5 years and a maximum sentence of 40 years, a fine of up to $5,000,000.00, and a term of supervised release of at least 4 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The Federal Bureau of Investigation (FBI) is investigating the case, with assistance from the New York State Police and the United States Postal Inspection Service. Assistant U.S. Attorney Ben Gillis is prosecuting the case.
Bridgeport Felon Sentenced to 9 Years in Prison for Possessing Gun with Extended Magazine While on Supervised ReleaseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JORGE MORALES, also known as “Capone,” 38, of Bridgeport, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 108 months of imprisonment, followed by three years of supervised release, for possessing a firearm while serving a term of federal supervised release.
According to court documents and statements made in court, in January 2017, Morales was sentenced in Bridgeport federal court to 46 months of imprisonment and three years of supervised release for distributing heroin. The investigation revealed that in April 2016 Morales distributed heroin to a 21-year-old woman who died of an overdose from the drug. Morales was released from federal prison in September 2019.
On December 17, 2021, while Morales was on federal supervised release, Bridgeport Police conducted a traffic stop of an SUV Morales was driving because the vehicle had been spotted near the scene of a shooting incident and homicide on Barnum Avenue earlier that day. Before the SUV came to a complete stop, a juvenile girl ran from it carrying an object close to her chest. As officers apprehended the girl, she dropped a loaded Glock 22 semi-automatic handgun with an extended magazine. The investigation revealed that the gun belonged to Morales and, as he was being pulled over, he told the girl to take the gun and run. A search of Morales also revealed 169 oxycodone pills separated into two baggies in his front pocket.
In addition to his prior federal conviction, Morales’ criminal history includes state convictions for drug and firearm felony offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm that has moved in interstate or foreign commerce.
Morales has been detained since his arrest on December 17, 2021. On June 18, 2024, he pleaded guilty to unlawful possession of a firearm by a felon.
This matter was investigated by the FBI’s Bridgeport Safe Streets Task Force, the Bridgeport Police Department, and the Stratford Police Department. The case was prosecuted by Assistant U.S. Attorneys Daniel George and Karen Peck.
The prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn.
Bloods Gang Member Sentenced to Seven Years in Prison for Illegal Possession of a FirearmRead the Press Release
ST. PAUL, Minn. – A Brooklyn Center man has been sentenced to 84 months in prison followed by three years of supervised release for illegal possession of a firearm as a felon, announced U.S. Attorney Andrew M. Luger.
According to the evidence presented at trial, in the early morning hours of September 28, 2019, Dante Jospeh Tyus, 30, a member of the Minneapolis Bloods street gang, was stopped by the Minnesota State Patrol for driving erratically. Tyus, who showed obvious signs of intoxication, was arrested for driving under the influence. Tyus’s vehicle was towed and impounded. After being booked at the Hennepin County Jail, Tyus made a series of recorded calls expressing concern to his girlfriend and enlisting her assistance in recovering a firearm that was hidden inside his vehicle. Law enforcement obtained a warrant to search the vehicle and recovered a 9mm semiautomatic handgun hidden inside a door panel.
Because Tyus has prior felony convictions in Hennepin County, he is prohibited under federal law from possessing firearms or ammunition at any time.
On April 19, 2024, following a four-day trial, Tyus was found guilty on one count of possessing a firearm as a felon. He was sentenced last week in U.S. District Court by Judge Susan Richard Nelson.
This case is the result of an investigation conducted by the FBI, U.S. Postal Inspection Service, Minnesota State Patrol, and the Minneapolis Police Department.
Assistant U.S. Attorneys Carla J. Baumel and Allen A. Slaughter prosecuted the case.
Bayside State Prison Corrections Officer Sentenced to 20 Months in Prison for Violating Inmates’ Civil RightsRead the Press Release
NEWARK, N.J. – A former corrections officer at Bayside State Prison in Leesburg, New Jersey, was sentenced today to 20 months in prison for depriving two inmates of their civil rights by failing to intervene when the inmates were assaulted and suffered bodily injury, U.S. Attorney Philip R. Sellinger announced.
Joshua Hand, 35, of Millville, New Jersey, plead guilty on Feb. 26, 2024, before U.S. District Judge Karen M. Williams to an information charging him with depriving two inmates of their right not to be subjected to cruel and unusual punishment. Judge Williams imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
In December 2019, while working as a corrections officer, Hand was inside the officers’ quarters within the kitchen area of Bayside State Prison when the first victim was summoned to that room. Shortly after the victim entered the officers’ quarters, the exit door was blocked and in the presence of Hand, the victim was assaulted simultaneously by several inmates and taken down to the floor. Hand watched and did not attempt to intervene when multiple inmates pinned and restrained the victim on the floor while other inmates delivered multiple punches and other blows to the victim’s torso, arms, and legs. Hand did not report this assault to his supervisors or medical personnel despite knowing that he was required to do so.
Later that same day, the second victim was in the officers’ quarters at the prison with Hand and another corrections officer. Without provocation, the other corrections officer struck the second victim in the legs multiple times with a broomstick. During the assault of the second victim, Hand remained within arm’s reach of the assault and had a reasonable opportunity to intervene but did not attempt to do so. Once again, Hand did not report this assault to his supervisors or medical personnel.
In addition to the prison term, Judge Williams sentenced Hand to three years of supervised release and fined him $10,000.
U.S. Attorney Sellinger credited special agents of the FBI Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation. He also thanked the New Jersey Department of Corrections, under the direction of Commissioner Victoria Kuhn, for its assistance.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the Special Prosecutions Division in Newark.
Ann Arbor Man Charged with Making Online ThreatRead the Press Release
DETROIT – An Ann Arbor, Michigan, man was charged in a federal criminal complaint today with sending a threatening communication, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge, Federal Bureau of Investigation, Detroit Field Division.
Charged was Isaac Sissel, 25, who is currently staying in Ann Arbor.
According to court records, on November 2, 2024, the FBI National Threat Operations Center in West Virginia received an anonymous online threatening submission. The threat read in part: “I shall carry out an attack against conservative christan, (sic) filth in the event trump wins the election. I have a stolen ar15 and a target I refuse to name so I can continue to get away with my plans. Without a specific victim or ability to find the place I hid the gun, there’s not a thing the FBI can do until I complete the attack.”
Sissel was arrested by the FBI this morning and will be making an appearance in federal court this afternoon.
The FBI Detroit Field Office is investigating the case.
This case is part of the Justice Department’s Election Threats Task Force. Created by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation.
The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. Three years after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the task force has begun.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Agreement Reached with East Providence Boys & Girls Club to Resolve Allegations of Disability DiscriminationRead the Press Release
PROVIDENCE, RI – Zachary A. Cunha, United States Attorney for the District of Rhode Island, announced today that the Boys & Girls Club of East Providence, Inc (“EPBGC”) resolved allegations that it violated the Americans with Disabilities Act (“ADA”) by denying children the opportunity to participate in its Kinder Camp program because of their disabilities.
The settlement resolves a complaint filed by the parent of a child with autism, alleging that EPBGC refused to make reasonable accommodations so that her child could attend Kinder Camp, a free 8-week session summer camp for children registered to start kindergarten at East Providence schools. The United States’ investigation determined that during the registration process for Kinder Camp, EPBHC’s Education Director asked parents to submit a copy of their child’s Individualized Education Plan (IEP). Six parents of registered children submitted their child’s IEP to EPBGC, and EPBGC denied admission to five of those six children. One child with an IEP was admitted to Kinder Camp, but only after the parent first explained to EPBGC’s Education Director that the child’s behaviors had improved after the IEP was written and he would not need accommodations. While there was no formal complaint process, parents of three of the children complained about the denial, and the EPBGC Associate Director reversed those denials. However, the complainant and one other guardian of a child who was denied admission were not aware of an appeal or complaint process, and as a result, their children were unable to attend Kinder Camp and had to seek alternate childcare arrangements for the summer.
“Summer fun is for everyone, and when it comes to summer camp, the ADA is clear that nobody should be left out because of a disability,” remarked U.S. Attorney Zachary A. Cunha. “This resolution—our Office’s fourth ADA settlement with a local summer camp—should serve as a reminder that this Office will stand up to make sure that children with disabilities have access to the activities and services that the law requires.”
Under the terms of the settlement agreement, EPBGC will take certain remedial measures, including:
- Train its staff on the ADA;
- Evaluate the application of each child applying to attend the camp, on a case-by-case basis, and make reasonable modifications to permit children with disabilities to attend;
- Adopt a non-discrimination policy;
- Pay $20,000 in compensation to the aggrieved parents and children; and,
- Report to the United States on its compliance annually for two years.
This is the fourth settlement agreement that the U.S. Attorney’s Office has entered into with a camp regarding violations of the ADA. Under the ADA, summer camps, whether private or run by municipalities, must afford reasonable modifications to ensure that children with disabilities can participate fully in camp programs and activities. Camps must evaluate each child on an individual basis and train their staff in the requirements of the ADA. When a parent and a child’s physician determine that it is appropriate for a child to self-administer medication or for a trained layperson to assist a child with care, a camp or childcare program must provide this as a reasonable modification under the ADA, unless doing so would fundamentally alter the program.
The United States’ case was handled by AUSA Amy Romero.
For more information on the ADA, visit www.ada.gov or call the Justice Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD). Any member of the public who wishes to file a complaint alleging that a place of public accommodation or public entity in Rhode Island is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 401-709-5010.
###
settlement_agreement_.pdf
Monday 4 November 2024
West Mifflin Man Pleads Guilty to Escape ChargeRead the Press Release
PITTSBURGH, Pa. - A resident of West Mifflin, Pennsylvania, pleaded guilty in federal court on October 30, 2024, to a charge of escape, United States Attorney Eric G. Olshan announced today.
Jamiel Green, 27, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the Court was advised that Green was serving the final portion of his sentence for violating federal firearm laws at a residential reentry center designed to transition inmates back into society when he was given permission to leave the facility temporarily and was due to return on November 2, 2023. Green did not return as directed and absconded until, several months later, the U.S. Marshals Service arrested him.
Judge Bissoon scheduled sentencing for March 6, 2025. The law provides for a maximum total sentence of up to five years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The U.S. Marshals Service conducted the investigation that led to the prosecution of Green.
Virginia company and two senior executives charged with illegally exporting millions of dollars of U.S. technology to RussiaRead the Press Release
ALEXANDRIA, Va. – Eleview International Inc., Oleg Nayandin, 54, of Fairfax, Virginia, and Vitaliy Borisenko, 39, of Vienna, Virginia, made their initial appearance today in the Eastern District of Virginia pursuant to a now unsealed complaint charging them with conspiracy to violate the Export Control Reform Act.
“We must not allow critical systems and technologies to be transferred to anyone who may use them against America and our global partners,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “Guarding against these transfers is imperative, and violations of the laws that protect our national security will be met with ardent prosecution.”
“As alleged, the defendants — a Virginia company and two of its senior executives — conspired through three evasion schemes to circumvent the export restrictions imposed on Russia following its invasion of Ukraine,” said Assistant Attorney General Matthew G. Olsen. “U.S. companies are responsible for complying with laws that protect our national security. The National Security Division is committed to holding accountable individuals and companies who violate these laws and place financial profit over our collective security.”
“This company allegedly used not one, not two, but three different schemes to illegally transship sensitive American technology to Russia,” said Assistant Secretary for the Department of Commerce Export Enforcement, Bureau of Industry and Security (BIS), Matthew S. Axelrod. “Today’s charges, against both the company and two top executives, are a prime example of our work to bring to justice both the companies and the corporate executives alleged to have circumvented our rules in search of a fatter bottom line.”
“Export control evasion schemes put the American public at risk by concealing the true recipient,” said Special Agent in Charge Derek W. Gordon of Homeland Security Investigations Washington, D.C. “In this instance, HSI, working in partnership with our colleagues at Department of Commerce’s Office of Export Enforcement, uncovered this scheme was supporting a sanctioned country, thus threatening our national security and the safety of other countries. HSI is dedicated to preventing technology with military applications from falling into the wrong hands.”
According to the complaint, between approximately March 2022 and June 2023, Eleview International Inc. (Eleview), a Virginia-based company that operated a freight consolidation and forwarding business; Nayandin, the owner, president, and CEO of Eleview; and Borisenko, who oversaw the day-to-day operations of Eleview’s freight forwarding business, allegedly conspired to illegally export goods and technology from the United States to Russia by transshipping them through three countries bordering or near Russia.
As alleged, the defendants operated an e-commerce website that allowed Russian customers to order U.S. goods and technology directly from U.S. retailers, who shipped the items to Eleview’s warehouse in Chantilly. The defendants then allegedly consolidated the packages before shipping them to the Russian customers, often using other freight forwarders as intermediaries, in exchange for a fee. After the Department of Commerce imposed stricter export controls in response to Russia’s further invasion of Ukraine in February 2022, the defendants allegedly began shipping items to purported end users in Turkey, Finland, and Kazakhstan, knowing that the items were ultimately destined for end users in Russia. To facilitate these illegal exports, the defendants allegedly made numerous false statements to the Department of Commerce and other freight forwarders about the end users and ultimate consignees of the items in these shipments.
As part of the conspiracy, the defendants allegedly engaged in three export-control evasion schemes, each specific to a different intermediary country. In the Turkey scheme, the defendants allegedly exported about $1.48 million worth of telecommunications equipment to a false end user in Turkey, knowing that the equipment was intended for a Russian telecommunications company that supplied the Russian government, including the Federal Security Service, or FSB. The telecommunications equipment that the defendants allegedly exported illegally as part of the Turkey scheme had military applications, including use by the Russian military to create and expand communication networks in its war effort against Ukraine.
In the Finland scheme, the defendants allegedly exported about $3.45 million worth of goods purchased to Russia through Eleview’s e-commerce website to a false end user in Finland that neither purchased nor sold goods. Before consolidating the packages into larger pallets for shipment to Finland, the defendants allegedly affixed to each package a label with a Russian postal service tracking number so that the Russian postal service could easily ship the package to the customer in Russia. The goods that the defendants allegedly exported illegally as part of the Finland scheme included “high priority” items that the Department of Commerce has identified as particularly significant to Russian weaponry, including the same type of electronic component found on Russian “suicide” drones used to destroy Ukrainian tanks and jets.
In the Kazakhstan scheme, the defendants allegedly exported about $1.47 million worth of goods to Russia through an entity in Kazakhstan that advertises its ability to deliver goods to Russia. The goods that the defendants allegedly exported illegally as part of the Kazakhstan scheme included controlled, dual-use items.
If convicted, Nayandin and Borisenko face up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
BIS and HSI are investigating the case.
Assistant U.S. Attorneys Gavin R. Tisdale and Amanda St. Cyr for the Eastern District of Virginia and Trial Attorney Garrett Coyle of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case with past assistance provided by then-First Assistant U.S. Attorney Raj Parekh.
The case is being coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty.
Virginia Company and Two Senior Executives Charged with Illegally Exporting Millions of Dollars of U.S. Technology to RussiaRead the Press Release
Eleview International Inc., Oleg Nayandin, 54, of Fairfax, Virginia, and Vitaliy Borisenko, 39, of Vienna, Virginia, made their initial appearance today in the Eastern District of Virginia pursuant to a now unsealed complaint charging them with conspiracy to violate the Export Control Reform Act.
“As alleged, the defendants — a Virginia company and two of its senior executives — conspired through three evasion schemes to circumvent the export restrictions imposed on Russia following its invasion of Ukraine,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “U.S. companies are responsible for complying with laws that protect our national security. The National Security Division is committed to holding accountable individuals and companies who violate these laws and place financial profit over our collective security.”
“This company allegedly used not one, not two, but three different schemes to illegally transship sensitive American technology to Russia,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Department of Commerce, Bureau of Industry and Security (BIS). “Today’s charges, against both the company and two top executives, are a prime example of our work to bring to justice both the companies and the corporate executives alleged to have circumvented our rules in search of a fatter bottom line.”
“We must not allow critical systems and technologies to be transferred to anyone who may use them against America and our global partners,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Guarding against these transfers is imperative, and violations of the laws that protect our national security will be met with ardent prosecution.”
“Export control evasion schemes put the American public at risk by concealing the true recipient,” said Special Agent in Charge Derek W. Gordon of Homeland Security Investigations Washington, D.C. “In this instance, HSI, working in partnership with our colleagues at Department of Commerce’s Office of Export Enforcement, uncovered this scheme was supporting a sanctioned country, thus threatening our national security and the safety of other countries. HSI is dedicated to preventing technology with military applications from falling into the wrong hands.”
According to the complaint, between approximately March 2022 and June 2023, Eleview International Inc. (Eleview), allegedly a Virginia-based company that operated a freight consolidation and forwarding business; Nayandin, the owner, president, and CEO of Eleview; and Borisenko, who oversaw the day-to-day operations of Eleview’s freight forwarding business, conspired to illegally export goods and technology from the United States to Russia by transshipping them through three countries bordering or near Russia.
As alleged, the defendants operated an e-commerce website that allowed Russian customers to order U.S. goods and technology directly from U.S. retailers, who shipped the items to Eleview’s warehouse in Chantilly, Virginia. The defendants then consolidated the packages before shipping them to the Russian customers, often using other freight forwarders as intermediaries, in exchange for a fee. After the Department of Commerce imposed stricter export controls in response to Russia’s further invasion of Ukraine in February 2022, the defendants began shipping items to purported end users in Turkey, Finland, and Kazakhstan, knowing that the items were ultimately destined for end users in Russia. To facilitate these illegal exports, the defendants made numerous false statements to the Department of Commerce and other freight forwarders about the end users and ultimate consignees of the items in these shipments.
As part of the conspiracy, the defendants engaged in three export-control evasion schemes, each specific to a different intermediary country. In the Turkey scheme, the defendants exported about $1.48 million worth of telecommunications equipment to a false end user in Turkey, knowing that the equipment was intended for a Russian telecommunications company that supplied the Russian government, including the Federal Security Service, or FSB. The telecommunications equipment that the defendants illegally exported as part of the Turkey scheme had military applications, including use by the Russian military to create and expand communication networks in its war effort against Ukraine.
In the Finland scheme, the defendants exported about $3.45 million worth of goods purchased to Russia through Eleview’s e-commerce website to a false end user in Finland that neither purchased nor sold goods. Before consolidating the packages into larger pallets for shipment to Finland, the defendants affixed to each package a label with a Russian postal service tracking number so that the Russian postal service could easily ship the package to the customer in Russia. The goods that the defendants illegally exported as part of the Finland scheme included “high priority” items that the Department of Commerce has identified as particularly significant to Russian weaponry, including the same type of electronic component found on Russian “suicide” drones used to destroy Ukrainian tanks and jets.
In the Kazakhstan scheme, the defendants exported about $1.47 million worth of goods to Russia through an entity in Kazakhstan that advertises its ability to deliver goods to Russia. The goods that the defendants illegally exported as part of the Kazakhstan scheme included controlled dual-use items.
If convicted, Nayandin and Borisenko each face 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 BIS and Homeland Security Investigations are investigating the case.
Assistant U.S. Attorneys Gavin R. Tisdale and Amanda St. Cyr for the Eastern District of Virginia and Trial Attorney Garrett Coyle of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case with past assistance provided by then-First Assistant U.S. Attorney Raj Parekh.
The case is being coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Justice and Commerce Departments designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Victims of cryptocurrency scam awarded restitutionRead the Press Release
WICHITA, KAN. – After a $47.1 million cryptocurrency scheme caused a Kansas bank to fail, a federal judge ordered during a restitution hearing that millions of dollars seized by the government be divided among investors who suffered financial losses.
In August 2024, Shan Hanes, 53, of Elkhart was sentenced to 293 months in prison after pleading guilty to one count of embezzlement by a bank officer.
While the chief executive officer (CEO) of Heartland Tri-State Bank (HTSB), Hanes initiated outgoing wire transfers of bank funds to a cryptocurrency wallet belonging to third parties. This caused Heartland to collapse, and the bank investors to lose approximately $9 million.
The Federal Bureau of Investigation (FBI) was able to recover $8 million in funds associated with the fraud.
“The U.S. Attorney’s Office – District of Kansas thanks the FBI for its diligent investigations that led to the discovery and recovery of over $8 million in stolen funds. Through Hanes’ conviction and prison sentence, the Department of Justice obtained justice for the victims, and now with this court order, those victims will receive some financial relief,” said U.S. Attorney Kate E. Brubacher.
The Federal Bureau of Investigation (FBI), Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG), Federal Reserve Board - Office of Inspector General (FRB-OIG), and Federal Housing Finance Agency – Office of Inspector General ((FHFA-OIG) investigated the case.
Assistant U.S. Attorney Aaron Smith prosecuted the case.
###
Verona Resident Pleads Guilty to Bank Fraud to Embezzle Funds from EmployerRead the Press Release
PITTSBURGH, Pa. - A resident of Verona, Pennsylvania, pleaded guilty in federal court to a charge of bank fraud, United States Attorney Eric G. Olshan announced today.
Christy Myers, 64, pleaded guilty on October 31, 2024, to one count before Chief United States District Judge Mark R. Hornak.
In connection with the guilty plea, the Court was advised that Myers was an employee of an entity involved in installing and monitoring security systems that was purchased by another entity involved in the same business. Myers became an employee of the successor entity, where she had access to accounting records and the authority to issue checks. Through a variety of means and over the course of several years, Myers used that authority to embezzle funds from the successor entity.
Judge Hornak scheduled sentencing for March 11, 2025. The law provides for a maximum total sentence of up to 30 years in prison, a fine of up to $1 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Myers.
Unprovoked Killing of a Young Man in Northeast Results in a Guilty PleaRead the Press Release
WASHINGTON – Michael Grayton, 42, of Washington D.C., pleaded guilty in D.C. Superior Court, in connection with a July 2024 homicide of Danzell Hall in Northeast, announced U.S. Attorney Matthew M. Graves, and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
Grayton pleaded guilty on November 1, 2024, before D.C. Superior Court Judge Maribeth Raffinan to one count of second-degree murder while armed. Judge Raffinan set a sentencing date of April 25, 2025. Although this charge carries a maximum penalty of 40 years in prison and a $250,000 fine, Grayton faces a sentence range of between 14 and 26 years under the District of Columbia Voluntary Sentencing Guidelines.
Grayton was arrested on August 20, 2024, and has been detained ever since.
According to court documents, at approximately 2:52 am, on Friday, July 12, 2024, members of MPD’s Fifth District responded to the 1500 Block of Benning Road, Northeast, where they located Mr. Danzell Hall, unconscious and unresponsive on the sidewalk, suffering from apparent gunshot wounds. DC Fire and EMS personnel responded to the scene and after finding no signs consistent with life, Mr. Hall was pronounced dead at 2:54 am. The decedent remained on the scene until being transported to the District of Columbia Office of the Chief Medical Examiner. The cause of death was later determined to be a gunshot wound to the back and the manner of death ruled as a homicide.
During the investigation MPD personnel reviewed CCTV video from the surrounding areas and identified the defendant as the perpetrator. MPD sought and received an arrest warrant for Grayton and on August 20, 2024, members of the Capital Area Regional Fugitive Task Force (CARFTF) located and arrested him.
This case was investigated by MPD’s Homicide Division and the United States Marshals Service. It was prosecuted by Assistant United States Attorney Nebiyu Feleke.
U.S. Attorney's Office to Monitor Polls in Eight Massachusetts Cities for Compliance with Federal Voting LawsRead the Press Release
BOSTON – Acting United States Attorney Joshua S. Levy announced today that the U.S. Attorney’s Office, in coordination with the Department of Justice, will monitor compliance with federal voting rights laws in eight Massachusetts cities. On Nov. 1, 2024, the Justice Department announced plans to monitor compliance with federal voting rights laws in 86 jurisdictions in 27 states for the Nov. 5 general election.
Election monitors in Massachusetts will be assigned to polling locations in Everett, Fitchburg, Leominster, Lowell, Malden, Methuen, Quincy and Salem. Assistant United States Attorney Anuj Khetarpal has been appointed as Voting Rights Coordinator for the District of Massachusetts and will lead the U.S. Attorney’s Office’s Election Day monitoring efforts. Nationally, the Justice Department’s Civil Rights Division will coordinate the effort which includes monitors from the Civil Rights Division, other Department divisions, U.S. Attorney’s Offices and federal observers from the Office of Personnel Management.
On Oct. 31, 2024, the U.S. Attorney’s Office announced the appointment of a District Election Officer to oversee the handling of Election Day criminal complaints, threats of violence to election officials or staff and election fraud, in consultation with Justice Department in Washington.
The Department’s Civil Rights Division’s Voting Section enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act (VRA), National Voter Registration Act, Help America Vote Act, Uniformed and Overseas Citizens Absentee Voting Act and Civil Rights Acts. The Division’s Disability Rights Section enforces the Americans with Disabilities Act (ADA) to ensure that persons with disabilities have a full and equal opportunity to vote. The Division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.
The Voting Rights Act (VRA) makes it illegal for states and local governments to use voting practices or election rules that deny or restrict voting rights because of a citizen’s race or color, or which result in citizens who belong to a particular language minority group having less of an opportunity than everyone else to vote for and elect their chosen public officials. The VRA also protects voters’ rights to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
“The Department’s longstanding Election Day Program is vital to combatting discrimination at the polls and furthering public confidence in the electoral process. Every citizen must be able to vote without interference or discrimination. My office is proud to be a part of this important effort to protect the sacrosanct right to vote,” said Acting United States Attorney Levy.
The public can direct concerns or complaints about voting rights to the U.S. Attorney’s Office in Boston at 833-634-8669. Complaints about possible violations of the federal voting rights laws can also be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.
Individuals with questions or complaints related to the ADA may call the department’s toll-free ADA information hotline at 800-514-0301 or 833-610-1264 (TTY) or submit a complaint through a link on the department’s ADA website at www.ada.gov.
Complaints related to any disruptions at a polling place should always be reported to local election officials (including officials based in the polling place). Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911. These complaints should also be reported to the department after local authorities have been contacted.
More information about voting and elections, including guidance documents and other resources, is available at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section.
U.S. Attorney's Office Secures Sentencing for 2021 Murder in Church RockRead the Press Release
ALBUQUERQUE – A Smith Lake man was sentenced to 11 years and 4 months in federal prison for the 2021 murder of a man in Church Rock, New Mexico.
There is no parole in the federal system.
According to court documents, on May 17, 2021, Josiah Alan Smith, 30, an enrolled member of the Navajo Nation, arrived at a residence in Church Rock, New Mexico, armed with a rifle. Smith made threats against John Doe before briefly leaving the premises. Smith then returned with a revolver and fired two shots through a bedroom window, striking Doe in the back. The bullet pierced Doe's heart and both lungs, resulting in his death despite lifesaving attempts by a witness.
Following the shooting, Smith fled the scene and attempted to conceal evidence by disposing of the murder weapon. Smith was arrested approximately three months after the incident.
Upon his release from prison, Smith will be subject to five years of supervised release.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Department of Criminal Investigations and the McKinley County Sheriff's Office. Assistant United States Attorney Blake Nichols is prosecuting the case.
# # #
U.S. Attorney's Office Secures Murder Plea in 2020 CaseRead the Press Release
ALBUQUERQUE – An Arizona man pleaded guilty in federal court to second degree murder for his role in the brutal killing of a man on the Navajo Nation in 2020.
According to court documents, between February 6, 2020, and February 14, 2020, Tyran Begay, 40, an enrolled member of the Navajo Nation, participated in the killing of John Doe within the exterior boundaries of the Navajo Nation reservation by binding and beating the victim, assisting in his strangulation, and leaving his body exposed to frigid weather in a remote area near Smith Lake, NM.
Begay will remain detained pending sentencing, which has not yet been scheduled. At sentencing, Begay faces a range of incarceration of no less than 19 years up to 30 years imprisonment. Upon his release from prison, Begay will be subject to up to five years of supervised release.
Begay’s co-defendants, Camille Damon and Ronald Belone, remain in custody pending trial, which has yet been set.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with the assistance of the McKinley County Sheriff’s Office. Assistant U.S. Attorney Mark A. Probasco and Meg P. Tomlinson are prosecuting the case.
View the Plea Agreement (Begay).pdf# # #
U.S. Attorney's Office Secures Guilty Plea in Navajo Nation Shooting CaseRead the Press Release
ALBUQUERQUE – A Pueblo Pintado man pleaded guilty in federal court to two charges stemming from a fatal shooting incident that occurred on the Navajo Nation in 2022.
According to the plea agreement, on May 16, 2022, Rodgerick Tsosie, 31, an enrolled member of the Navajo Nation, aimed a firearm at an individual seated in the front passenger seat of a moving vehicle during a family altercation. Tsosie discharged the weapon, but the bullet missed its intended target and instead struck another person in the backseat, resulting in that individual's death.
Tsosie will remain on conditions of release pending sentencing, which has not yet been scheduled. At sentencing, Tsosie faces up to 10 years in prison with a mandatory minimum of no less than 7 years in prison. Upon his release from prison, Tsosie will be subject to up to five years of supervised release.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.
The FBI’s Albuquerque Violent Crime Task Force investigated this case with assistance from the Sandoval County Sheriff’s Office and the Navajo Nation Police Department. Assistant United States Attorneys Mark A. Probasco and Robert J. Booth II are prosecuting the case.
View the Plea Agreement (Tsosie).pdf# # #
Two Sentenced in Dark Web Identity Theft and Retail Fraud ConspiracyRead the Press Release
RALEIGH, N.C. – Two New York men were sentenced for fraud they committed against major retailers while living in Raleigh. Kavon Kerrick Robinson, 25, was sentenced to 42 months in prison, and Christopher Anthony Hilaire, 27, was sentenced to 16 months in prison for their respective roles in the crime. Both men were also ordered to pay $32,736.74, in restitution. In July 2024, Robinson pled guilty to conspiracy to commit wire fraud and aggravated identity theft, and Hilaire pled guilty to conspiracy to commit wire fraud.
“Retail return frauds, including double-dipping schemes like this one, cost retailers billions of dollars in losses every year,” said U.S. Attorney Michael F. Easley, Jr. “These schemes drive prices higher for the rest of us and harm everyday consumers whose credit card information is stolen to facilitate the scheme. We are proud to partner with the NC Retail Merchants Association to raise awareness of these scams and bring them to a stop.”
“Schemes such as retail return fraud are just one example of organized retail crime in North Carolina. North Carolina’s retailers are appreciative of U.S. Attorney Easley’s commitment to fighting organized retail crime in Eastern North Carolina and his willingness to take an aggressive stance against well-organized professional theft networks that prey on North Carolina businesses,” said Andy Ellen, president and general counsel of the North Carolina Retail Merchants Association. “Organized retail crime is not only a crime against property, but a crime against people, often tied to other serious crimes such as opioids, identity theft, and human trafficking. It is very important that offenders be prosecuted to the fullest extent of North Carolina’s law for the good of the economy and the safety of our communities.”
According to court documents and other information presented in court, Robinson and Hilaire lived together in Raleigh from April 2022 until November 2022. During this time, Robinson would purchase stolen credit card information from the dark web using cryptocurrency. Robinson, Hilaire, and others would use that stolen information to make online purchases from a variety of major retailers (including Lowe’s Home Improvement, Home Depot, Michaels, and Walmart), restaurants, and gas stations. For items purchased from major retailers, Robinson would focus on certain items he knew he could resell. For example, Robinson purchased a large number of Google Nest thermostats from Lowe’s Home Improvement because he had a buyer for those items. Sometimes, Robinson would travel to New York to sell the items. In other instances, he would return the items to obtain a cash refund. In addition to assisting Robinson and obtaining goods for his own use, Hilaire would provide instructions to others regarding how to execute similar schemes.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Federal Bureau of Investigation investigated the cases and Assistant U.S. Attorney Brad DeVoe prosecuted the cases.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case Nos. 5:23-CR-22 and 5:24-CR-46.
Two Romanian Nationals Charged with ATM Skimming and Aggravated Identity TheftRead the Press Release
SYRACUSE, NEW YORK – Radu-Lucian Grigoras, 45, and Gheorghe Nistor, 42, both nationals of Romania, were indicted on two charges of financial institution fraud and two charges of aggravated identity theft.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Grigoras and Nistor were arraigned in federal court last week on a 4-count indictment alleging that from no later than April 2024 through at least August 2024, the defendants participated in a scheme to defraud financial institutions. The indictment alleges that the defendants installed skimming devices and pinhole cameras within ATMs belonging to financial institutions. Those devices captured and stored the debit card information of unsuspecting individuals who conducted transactions at those ATMs. The pinhole cameras recorded the customers entering their PINs to conduct the ATM transactions. The indictment further alleges that after installation of these devices, the defendants returned within five days to remove these devices and caused the stolen account information to be encoded onto the magnetic strips of other cards, which they used at ATMs to fraudulently withdraw money from customers’ accounts. The indictment alleges that the defendants executed the scheme in multiple states, including New York, Kansas, Missouri, and Pennsylvania. The indictment alleges that as a result of the scheme to defraud, the defendants fraudulently withdrew in excess of $175,543.00 The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Each of the fraud counts in the indictment carries a maximum sentence of 30 years’ imprisonment and a $1 million fine. The maximum sentence for aggravated identity theft is a mandatory consecutive 2 years’ imprisonment. The charges also carry a term of supervised release of up to 5 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Federal Bureau of Investigation (FBI) is investigating the case, with assistance from the New York State Police, Pennsylvania State Police, Town of Cicero Police Department, City of Auburn Police Department, Leavenworth, Kansas Police Department, St. Charles City, Missouri Police Department, and the St. Peters, Missouri Police Department. Assistant U.S. Attorneys Matthew J. McCrobie and Paul Tuck are prosecuting the case.
Two National MS-13 Gang Leaders and Other MS-13 Members and Associates Indicted for Murders in Queens and Long IslandRead the Press Release
A 49-count superseding indictment was unsealed today in federal court in Brooklyn that includes new charges relating to murders allegedly ordered and committed by national leaders, members and associates of the violent transnational criminal organization La Mara Salvatrucha, also known as MS-13. To date, multiple MS-13 members and associates have been charged in the case for numerous crimes including the murders of Andy Peralta in 2018, Victor Alvarenga in 2018, Abel Mosso in 2019 and Eric Monge in 2020. The superseding indictment filed today includes new charges against the following MS-13 members and associates:
- Edenilson Velasquez Larin, also known as “Agresor,” “Saturno,” “Tiny,” “Erick” and “Paco,” allegedly a national leader of MS-13 and the Fulton Locos Salvatruchas (Fulton) clique, who is charged with the 2016 murder of Kenney Reyes and for ordering the murders of Monge in 2020 and Oswaldo Gutierrez Medrano in 2022.
- Hugo Diaz Amaya, also known as “21” and “Splinter,” allegedly another national leader of MS-13 and the Park View Locos Salvatruchas clique, who is charged with racketeering conspiracy and the murder of Gutierrez Medrano in 2022.
- Numerous other members of the Fulton clique, all of whom were previously charged in the case, have also now been charged with the murders of Reyes, Monge and Gutierrez Medrano.
Breon Peace, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), William S. Walker, Special Agent in Charge, Homeland Security Investigations (HSI), New York, Thomas G. Donlon, Interim Commissioner, New York City Police Department (NYPD), and Patrick Ryder, Commissioner, Nassau County Police Department (NCPD), announced the arrests and charges.
“My Office and our law enforcement partners have worked tirelessly to hold MS-13 accountable for the unspeakable harm it has done to its victims and our communities. As these charges make clear, our pursuit of those responsible will not be deterred by the passage of time or by the leaders of MS-13’s futile attempts to hide in the shadows,” stated United States Attorney Peace. “This indictment strikes yet another blow at MS-13’s leadership and demonstrates our work to dismantle MS-13 from top to bottom.”
Mr. Peace also thanked the FBI Baltimore Field Office’s Cross Border Task Force, the Nassau County District Attorney’s Office and the Suffolk County District Attorney’s Office for their valuable coordination with the investigation.
“Edenilson Velasquez Larin and Hugo Diaz Amaya, national MS-13 leaders, allegedly assumed the role of executioner by ordering and participating with the other charged defendants in a series of brutal murders to achieve status and revenge. These alleged conspiracies highlight the fearmongering and callousness in which MS-13 leaders and members operate. May today’s charges reflect the FBI’s commitment to continue its close collaboration with our law enforcement partners to rigorously dismantle the MS-13 hierarchy and disrupt all gang violence terrorizing our communities,” stated FBI Assistant Director in Charge Dennehy.
“The defendants’ ruthless violence, in furtherance of the MS-13 gang, has no place in society and our communities,” said Special Agent in Charge William S. Walker. “Everyday, HSI New York and our law enforcement partners are utilizing every tool at our disposal to dismantle transnational gangs that jeopardize the safety of New Yorkers, as demonstrated with today’s announcement. No stone will be left unturned in our pursuit of justice on behalf of the victims slain by MS-13 gang members.”
“These new charges highlight the NYPD’s relentless pursuit of individuals terrorizing our communities,” stated NYPD Interim Commissioner Donlon. “We and our law enforcement partners must continue to find and dismantle the gangs that fuel crime on our streets, and we must hold their members accountable for their senseless acts of violence. I express my gratitude to all of our federal, state, and local partners for their steadfast dedication to our shared public safety goal.”
“We want to thank our partners in federal law enforcement, particularly the United States Attorney’s Office, for this collaborative effort to bring these violent and destructive criminals to justice,” stated Nassau County Police Commissioner Patrick Ryder. “From our patrol officers on the street to the dedicated investigators in our Detective Division, the Nassau County Police Department is committed to fighting gang violence and rooting out those who bring destruction to our communities.”
The U.S. Program
As alleged in court filings, MS-13 is an extraordinarily violent street gang operating through “cliques” or chapters in Queens, Long Island and communities across the United States, as well as El Salvador, Honduras and other countries in the Americas and Europe. The gang primarily makes money through drug trafficking and extortion, and is known for its gruesome murders of perceived gang rivals and gang members and associates who have violated the gang’s rules. MS-13 has been responsible for dozens of murders in the Eastern District of New York alone.
Since approximately 2021, virtually all MS-13 cliques in the United States have been united under a single hierarchy known as the “U.S. Program.” The U.S. Program is led by a group of senior gang leaders, most of whom are incarcerated, known as “La Mesa” or “The Table.” La Mesa, among other roles, allegedly authorizes and directs murders throughout the country, including in New York. Prior to their arrests, Velasquez Larin and Diaz Amaya were allegedly two of the few members of La Mesa outside of prison — Velasquez Larin was living in Colorado and Diaz Amaya was living in Kansas — and were among the top leaders responsible for the gang’s operations on the East Coast.
Murder of Kenny Reyes
The superseding indictment adds charges for the 2016 murder in Uniondale, New York, of 18-year-old Kenny Reyes, who had recently come to the United States from Honduras. As alleged in court filings, Fulton clique member Jose Espinoza Sanchez befriended Reyes and learned that he had been associated with the 18th Street gang, rivals of MS-13. Velasquez Larin and Espinoza Sanchez plotted with other members of MS-13 in Nassau County to murder Reyes to increase their positions in the gang. On May 23, 2016, Velasquez Larin, Espinoza Sanchez and two others lured Reyes to a wooded area to smoke marijuana, where they killed him with machetes and buried his body. For years after the murder, Velasquez Larin bragged about their roles in the killing to other MS-13 members.
Murder of Eric Monge
The superseding indictment charges Velasquez Larin and Espinoza Sanchez for their roles in ordering the murder of Eric Monge, and Jose Guevara Aguilar, Jose Arevalo Iraheta and Erick Zavala Hernandez for their participation in the murder. As alleged, in the early morning hours of September 6, 2020, Guevara Aguilar and fellow Fulton clique member Oscar Hernandez Baires shot and killed Monge while he was seated in the front passenger seat of his parked car near his home in Queens. Monge’s wife had just returned to the car after bringing their young children inside their residence when Hernandez Baires and Guevara Aguilar began shooting. After the shooting, Guevara Aguilar and Hernandez Baires ran back to a car where Arevalo Iraheta and Zavala Hernandez were waiting to help them escape. As they fled to the car, Guevara Aguilar dropped his hat, which was later found to have his DNA on it.
Murder of Oswaldo Gutierrez Medrano
The superseding indictment also adds charges relating to the 2022 murder in Nassau County of 20-year-old Oswaldo Gutierrez Medrano, a member of the Sailors clique of MS-13. As alleged, Velasquez Larin and Diaz Amaya ordered the murder of Gutierrez Medrano, and Diaz Amaya coordinated luring Gutierrez Medrano to meet other MS-13 members under the false pretense that he would be receiving a promotion within MS-13. In Nassau County, on February 13, 2022, Gutierrez Medrano allegedly met with those other members of MS-13, including defendants Arevalo Iraheta, Carlos Alvarado, Erick Galdamez Leon and Jose Mejia Hernandez, who allegedly killed him with machetes and knives, dismembered his body and buried him in a wooded area.
The charges in the superseding indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated as part of the ongoing efforts by the OCDETF, a partnership that brings together the combined expertise of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Today’s charges are the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2009, this Office has obtained indictments charging MS-13 members with carrying out more than 70 murders in the district and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by our law enforcement partners.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Jonathan Siegel, Michael W. Gibaldi, Anna L. Karamigios and Sophia M. Suarez are in charge of the prosecution, with the assistance of Paralegal Specialist Eleanor Jaffe-Pachuilo.
New Defendant:
HUGO DIAZ AMAYA (also known as “21” and “Splinter”)
Age: 36
Kansas City, KansasDefendants Previously Indicted:
RAMIRO GUTIERREZ (also known as “Cara de Malo”)
Age: 31
Flushing, New YorkVICTOR LOPEZ (also known as “Curioso”)
Age: 26
Flushing, New YorkTITO MARTINEZ-ALVARENGA (also known as “Imprudente”)
Age: 24
Flushing, New YorkISMAEL SANTOS-NOVOA (also known as “Profe” and “Travieso”)
Age: 36
Flushing, New YorkEDENILSON VELASQUEZ LARIN (also known as “Agresor,” “Saturno,” “Tiny,” “Erick” and “Paco”)
Age: 35
Thornton, ColoradoCHRISTIAN ALAS LEON (also known as “Pata de Chucho”)
Age: 26
Westbury, New YorkCARLOS ALVARADO (also known as “Brayle” and “Danny”)
Age: 21
Westbury, New YorkJOSE AREVALO IRAHETA (also known as “Splinter,” “Inesperado” and “Daniel”)
Age: 27
Queens, New YorkJOSE ESPINOZA SANCHEZ (also known as “Cable,” “Bleca,” “Clave,” “Fantasma” and “Victor”)
Age: 25
Carrboro, North CarolinaERICK GALDAMEZ LEON (also known as “Truco,” “Burro,” and “Chicle”)
Age: 24
Westbury, New YorkJOSE GUEVARA AGUILAR (also known as “Tranquilo,” “Malhechor,” and “Angel”
Age: 25
Queens, New YorkKEILA HERNANDEZ MAY
Age: 37
Carrboro, North CarolinaYONATHAN HERNANDEZ
Age: 25
Hempstead, New YorkJOSE MEJIA HERNANDEZ (also known as “Mismo” and “Timbre”)
Age: 22
Westbury, New YorkJOSE PEREZ OVANDO (also known as “Domino” and “Incompleto”)
Age: 24
Westbury, New YorkERICK ZAVALA HERNANDEZ (also known as “Berry,” “Berro,” and “Alex”)
Age: 26
Queens, New YorkE.D.N.Y. Docket No. 20-CR-228 (S-3) (LDH)
Two Men Face Federal Charges in Grandparent Scams that Targeted Elderly Victims Across Multiple StatesRead the Press Release
PROVIDENCE, RI – Two men have been arrested and charged for their alleged roles as couriers in grandparent scams that targeted seniors in multiple states including Rhode Island and Massachusetts, announced United States Attorney Zachary A. Cunha.
Roberto Munoz, 29, of Hialeah, FL, and Jason Rhodes, 34, of Flushing, New York, are charged by federal criminal complaint with conspiracy to commit wire fraud and aggravated identity theft. They appeared before a federal Magistrate Judge on Friday and were released on unsecured bond and GPS electronic monitoring.
Grandparent scams often involve an elderly victim receiving a telephone call and being told that a family member, often a grandchild, needs bail because they have been arrested for committing a crime or causing a motor vehicle accident . Scammers identify themselves as a family member, an attorney, or a member of law enforcement, and direct victims to obtain cash and give it to a courier who will either arrive to pick up the money, or meet them at a specified drop-off location.
Couriers frequently operate in a particular geographical area, where they await instructions and victim information from other individuals participating in the scheme. It is alleged that in early March 2024, Munoz and Rhodes, operating as couriers, traveled to various locations in Rhode Island and Massachusetts and collected approximately $230,000 in payments from unsuspecting victims in more than a dozen communities.
Munoz and Rhodes were arrested by Warwick Police on March 8, 2024, as detectives were investigating the third complaint they had received in a single week from area residents, alleging that they had been contacted by, or had fallen victim to, scammers. It is alleged that, after one set of grandparent victims had already turned over $18,000 to a courier to cover what they were told was bail for their grandson, the grandparents were contacted again, were told that their grandchild was now being sued for $100,000, and that a $40,000 payment was immediately required. At this point, recognizing that the demands were part of a scam, the grandparents contacted the Warwick Police Department, which set up surveillance inside and outside the grandparents’ home while waiting for the courier to return. Rhodes was arrested at the house when he allegedly arrived to collect the money; Munoz was arrested while sitting in a car near the home, allegedly waiting the return of Rhodes.
A court-authorized search of the vehicle and a nearby hotel room registered to Rhodes resulted in the seizure of more than $60,000 in cash and other items. A subsequent investigation by Warwick Police and Homeland Security Investigations determined that the defendants had allegedly been provided the names and addresses of grandparent scam victims in Coventry, Newport, Cranston, Hopkinton, West Greenwich, East Greenwich, and Smithfield, RI; in Stanhope, IA; and in Braintree, Hanover, Plymouth, Scituate, Cohasset, Stoughton, and Lakeville, MA. A device allegedly seized from Rhodes at the time of his arrest contained chat messages sent to him by Munoz that appear to contain names and addresses of target victims and their grandchildren in Wisconsin, Illinois, Virginia, Kansas, Maryland, Tennessee, Iowa, North Carolina, and New Jersey.
This investigation remains ongoing, but, based upon local police reports it is believed that numerous families in Rhode Island and Massachusetts been victimized.
A federal criminal is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Ly T. Chin.
The matter was investigated by Homeland Security Investigations, with the assistance of the Newport, Cranston, Hopkinton, West Greenwich, Smithfield, and Coventry, RI Police Departments; Rhode Island State Police; the Braintree, Hanover, Plymouth, Scituate, Stoughton, Lakeville, and Northbridge, MA Police Departments; and the Hamilton County Sheriff’s Department, IA.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available by calling the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m.[ET]. English, Spanish, and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, http://www.elderjustice.gov.
###
Turkish National Arrested for Allegedly Conspiring to Violate Venezuela-Related SanctionsRead the Press Release
WASHINGTON – Taskin Torlak, 37, of Turkey, was arrested in Miami, Florida, on November 2, 2024, for allegedly conspiring to violate U.S. sanctions as part of a scheme to transport oil from Venezuela for the benefit of Petróleos de Venezuela, S.A. (“PdVSA”), Venezuela’s state-owned oil and natural gas company.
The arrest and charges were announced by U.S. Attorney Matthew M. Graves, Assistant Attorney General for National Security Matthew G. Olsen, and Special Agent in Charge Derek W. Gordon, with Homeland Security Investigations (HSI) Washington, D.C.
Torlak was arrested as he attempted to depart the United States to return to Turkey. He is charged by complaint with one count of conspiring to violate the International Emergency Economic Powers Act (“IEEPA”). According to the complaint, Torlak conspired with others to cause U.S. financial institutions to process transactions connected to the transport of Venezuelan oil for the benefit of PdVSA, which the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated as a Specially Designated National (“SDN”) in January 2019.
“This defendant allegedly conspired to illegally sell Venezuelan oil, using deceit and trickery to hide the fact that this oil originated from Venezuela,” said U.S. Attorney Graves. “Venezuela’s state-owned oil company, PdVSA, was sanctioned by the U.S. government to prevent the current regime from further depleting the nation’s resources, while it unlawfully remains in power. We remain dedicated to prosecuting violations of these sanctions until the government of Venezuela takes the necessary steps for these sanctions to be lifted.”
“As alleged, the defendant conspired to evade U.S. sanctions imposed on PdVSA, deploying deception to smuggle black-market oil from Venezuela,” said Assistant Attorney General Matthew G. Olsen. “The Justice Department will continue to hold accountable those involved in criminal efforts to circumvent sanctions imposed on the Maduro regime.”
“These sanctions violations put people at risk at every step - from allegedly tampering with location devices on vessels to supplying to money to areas that will continue to engage in activity that threatens the U.S. ,” said Special Agent in Charge Derek W. Gordon of Homeland Security Investigations Washington, D.C. “HSI will continue to work tirelessly to protect the American people and the integrity of our economic and trade laws.”
According to the complaint, beginning at least in or around November 2020, Torlak and others devised and implemented a complex scheme to violate and evade U.S. sanctions related to petroleum products from Venezuela and Iran. The scheme included obfuscating the identities of tankers moving the oil by re-naming and re-flagging vessels, covering vessel names with paint or blankets, and turning off the electronics that track vessels’ locations for the safety of ships and their crews. Torlak and his co-conspirators allegedly received tens of millions of dollars from PdVSA in payment for transporting Venezuelan oil and hid the ultimate beneficiaries of the related transactions from U.S. financial institutions, who then unwittingly processed payments in furtherance of the scheme. The complaint further alleges that Torlak and his co-conspirators explicitly discussed the need to hide their conduct from the U.S. Government and its agencies, including OFAC, as well as commercial maritime entities.
This case is being investigated by the Department of Homeland Security Investigation’s Washington D.C. Field Office. It is being prosecuted by Assistant U.S. Attorney Maeghan Mikorski from the U.S. Attorney’s Office for the District of Columbia and Trial Attorneys Sean Heiden and Chantelle Dial of the National Security Division’s Counterintelligence and Export Control Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Southern District of Florida.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Turkish National Arrested for Allegedly Conspiring to Violate Venezuela-Related SanctionsRead the Press Release
Taskin Torlak, 37, of Turkey, was arrested in Miami, on Nov. 2 for allegedly conspiring to violate U.S. sanctions as part of a scheme to transport oil from Venezuela for the benefit of Petróleos de Venezuela, S.A. (PdVSA), Venezuela’s state-owned oil and natural gas company.
“As alleged, the defendant conspired to evade U.S. sanctions imposed on PdVSA, deploying deception to smuggle black-market oil from Venezuela,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department will continue to hold accountable those involved in criminal efforts to circumvent sanctions imposed on the Maduro regime.”
“This defendant allegedly conspired to illegally sell Venezuelan oil, using deceit and trickery to hide the fact that this oil originated from Venezuela,” said U.S. Attorney Matthew Graves for the District of Columbia. “Venezuela’s state-owned oil company, PdVSA, was sanctioned by the U.S. government to prevent the current regime from further depleting the nation’s resources while it unlawfully remains in power. We remain dedicated to prosecuting violations of these sanctions until the government of Venezuela takes the necessary steps for these sanctions to be lifted.”
“These sanctions violations put people at risk at every step - from allegedly tampering with location devices on vessels to supplying to money to areas that will continue to engage in activity that threatens the U.S,” said Special Agent in Charge Derek W. Gordon of Homeland Security Investigations Washington D.C. “HSI will continue to work tirelessly to protect the American people and the integrity of our economic and trade laws.”
Torlak was arrested as he attempted to depart the United States to return to Turkey. He is charged by complaint with one count of conspiring to violate the International Emergency Economic Powers Act (IEEPA). According to the complaint, Torlak conspired with others to cause U.S. financial institutions to process transactions connected to the transport of Venezuelan oil for the benefit of PdVSA, which the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated as a Specially Designated National (SDN) in January 2019.
According to the complaint, beginning at least in or around November 2020, Torlak and others devised and implemented a complex scheme to violate and evade U.S. sanctions related to petroleum products from Venezuela and Iran. The scheme included obfuscating the identities of tankers moving the oil by re-naming and re-flagging vessels, covering vessel names with paint or blankets, and turning off the electronics that track vessels’ locations for the safety of ships and their crews. Torlak and his co-conspirators allegedly received tens of millions of dollars from PdVSA in payment for transporting Venezuelan oil, and hid the ultimate beneficiaries of the related transactions from U.S. financial institutions, who then unwittingly processed payments in furtherance of the scheme. The complaint further alleges that Torlak and his co-conspirators explicitly discussed the need to hide their conduct from the U.S. Government and its agencies, including OFAC, as well as commercial maritime entities.
Homeland Security Investigations Washington D.C. is investigating the case.
Assistant U.S. Attorney Maeghan Mikorski for the District of Columbia and Trial Attorneys Sean Heiden and Chantelle Dial of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. Valuable assistance was provided by the U.S. Attorney’s Office for the Southern District of Florida.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Correctional Officers Admit to Violating Civil RightsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Three former correctional officers from United States Penitentiary Hazleton have admitted to their roles in the violation of civil rights involving the assault of a prisoner, announced United States Attorney William Ihlenfeld.
Robert David Sims, 42, of Bruceton Mills, West Virginia, pled guilty to assault resulting in serious bodily injury. According to court documents and statements made in court, during a strip search of an inmate, Sims repeatedly struck him in the face, head, arms, and torso, causing significant injuries.
Joshua David Sines, 39, of Friendsville, Maryland, pled guilty to conspiring to commit an alteration and falsification of records. Sines falsified reports on the incident to protect himself and Sims from disciplinary action or prosecution.
Josiah Dandue Redd, 36, of Morgantown, West Virginia, pled guilty to making a false statement to a federal agent and accessory after the fact to an assault by striking, beating, or wounding. According to statements made in court, Redd also falsified reports and statements to agents about the incident to protect Sims and Sines.
“The defendants abused their powers as correctional officers and now they will be held to account,” said U.S. Attorney Ihlenfeld. “The U.S. Attorney’s Office will continue to prosecute officers who misuse their authority and violate the rights of people in their custody.”
Sims, Sines, and Redd have agreed to resign their positions with the Bureau of Prisons and to not seek or obtain employment in the future with the U.S. Department of Justice, Bureau of Prisons, or any private prison or community corrections center that contracts to house federal prisoners.
“We expect Correctional Officers to conduct themselves with integrity and to foster safe and humane conditions of confinement for inmates. Instead, Sims violently assaulted an inmate and Sines and Redd conspired to cover it up in an attempt to avoid punishment,” said Timothy C. Edmiston, Special Agent in Charge of the U.S. Department of Justice Office of the Inspector General Mid-Atlantic Region. “These acts will not be tolerated. Perpetrators of assault and those who make false statements to cover it up will be brought to justice.”
Sims faces up to 10 years in federal prison. Sines is facing up to five years. Redd faces up to five years for the false statement charge and up to six months for the accessory charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Attorney’s Office is seeking information from persons who may have witnessed or were victims of physical assault while incarcerated at FCC Hazelton. Any witness or victim to any such crimes or crimes or attempts to conceal such crimes are asked to directly contact federal prosecutors in the Northern District of West Virginia by calling 1-855-WVA-FEDS or by sending an email to [email protected].
The U.S. Department of Justice Office of Inspector General investigated the case.
Assistant U.S. Attorney Brandon Flower is prosecuting the case on behalf of the government.
U.S. Magistrate Judge Michael John Aloi presided.
Thibodaux Man Guilty of Social Security TheftRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that NATHANIEL HOPKINS, JR. (“HOPKINS”), age 48, of Thibodaux, Louisiana, pleaded guilty before United States District Judge Jay Zainey to Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to court documents, HOPKINS’s wife was authorized to receive Social Security Administration (“SSA”) Title II – Retirement Survivor Insurance Benefits from 2003 until her death in April, 2014. From April, 2014 to January, 2024, HOPKINS illegally received benefits designated for his wife totaling approximately $144,176.43, after failing to notify SSA of his wife’s death.
Sentencing will occur on January 29, 2025. At sentencing, HOPKINS faces up to ten (10) years imprisonment, up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the Social Security Administration, Office of the Inspector General. The prosecution of this case is being handled by Assistant U.S. Attorney Edward J. Rivera of the Financial Crimes Unit.
Texas Felon Sentenced for Possessing FirearmsRead the Press Release
A man who was stopped for speeding and found in possession of several firearms was sentenced November 1, 2024, to more than three years in federal prison.
Douglas Lynn Greer, age 41, from Fort Worth, Texas, received the prison term after a March 26, 2024, guilty plea to one count of being a felon in possession of a firearm. At the guilty plea, Greer admitted he possessed four firearms in his car when he was stopped for speeding in Clayton, County, Iowa. Greer had previously been convicted of the felony offenses of making terroristic threats and offering a forged check.
Greer was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Greer was sentenced to 40 months’ imprisonment, and he must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Greer 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 Clayton County Sheriff’s Office, the Clayton County Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-01002.
Follow us on X @USAO_NDIA.
Texas Drug Courier Sentenced for Cocaine Distribution Conspiracy and PossessionRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that ISAAC ORTIZ (“ORTIZ”), age 23, a resident of El Paso, Texas, was sentenced on October 29, 2024 to 70 months imprisonment after previously pleading guilty to conspiring to distribute five kilograms or more of cocaine and, possession, with the intent to distribute, five kilograms or more of cocaine, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(A), and 846.
According to court records, ORTIZ, and his 18-year-old sister, were travelling through Louisiana on I-12 when they were stopped by Louisiana State Police for a traffic violation. During the stop, the vehicle was searched, and approximately ten kilograms of cocaine concealed in the vehicle, were discovered.
U.S. District Judge Greg Guidry sentenced ORTIZ to 70 months imprisonment, a four-year term of supervised release and a $100.00 mandatory special assessment fee.
The case was investigated by the United States Department of Homeland Security and the Louisiana State Police and prosecuted by Assistant United States Attorney Maurice Landrieu of the Narcotics Unit.
Ten People Indicted for Federal Firearm and Violent Crimes in Western TennesseeRead the Press Release
Memphis, TN – A federal grand jury returned indictments charging ten people in West Tennessee with federal gun and violent crime offenses, including Lavaughn Gilmore, 26, who is facing charges for illegally possessing a machine-gun conversion device (also known as a “switch”). Acting United States Attorney Reagan Fondren announced the indictments today.
“Violent crime endangers every resident and every family in Western Tennessee,” said Acting United States Attorney Fondren. “These indictments reflect our commitment to tackling violent crime and sending a strong message: if you break federal gun laws, you will face significant penalties. The safety of our citizens remains our top priority and we will continue to pursue justice for our communities.”
The following defendants were charged with other firearm or violent crime offenses:
- Colton Sisco, 30, was indicted on multiple charges involving making and possessing a firearm – specifically a pipe bomb – in violation of the National Firearms Act;
- Anthony Wells, 33, was indicted with being a felon in possession of a firearm;
- Derrico Childs, 21, Exavier Spivey, 25, and James Howard, 22, were charged in a superseding indictment for four counts of armed carjacking and four counts of use of a firearm during a violent crime;
- Derrion Turner, 19, was indicted for two armed car jackings and an attempted armed carjacking in Memphis committed over a 10-day span in August and September 2023;
- Justin Bobo, 33, was indicted for possession of a firearm after having at least three prior convictions for serious drug offenses or violent felonies;
- Keihdra Bledsoe, 28, was indicted for being a felon in possession of a firearm; and
- Mike Alex Burks Jr., 46, was indicted for being a felon in possession of a firearm.
These cases are being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Federal Bureau of Investigation’s Safe Streets Task Force; the Project Safe Neighborhoods Gun Task Force; the Memphis Police Department; and the Shelby County Sheriff’s Office. Anyone with information about switches or other federal gun crimes can call 1-800-ATF-GUNS (1-800-283-4867).
The charges and allegations contained in the indictments are merely accusations of criminal conduct, not evidence. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt and convicted through due process of law. If convicted, each defendant’s sentence will be determined by the Court after review of the factors unique to the case, including the defendant’s prior criminal records (if any), the defendant’s role in the offense, and the characteristics of the violation.
These indictments are 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, using data-driven methods to set focused and strategic enforcement priorities, and measuring the results.
Acting United States Attorney Reagan Fondren thanked the Assistant United States Attorneys prosecuting these cases, as well as the law enforcement partners who investigated the cases.
Telehealth Company Cerebral Agrees to Pay over $3.6 Million in Connection with Business Practices that Encouraged the Unauthorized Distribution of Controlled SubstancesRead the Press Release
Breon Peace, the United States Attorney for the Eastern District of New York, and Anne Millgram, Administrator of the U.S. Drug Enforcement Administration (DEA), announced today that the online mental healthcare company Cerebral, Inc. (Cerebral) has entered into a non-prosecution agreement (NPA) with the U.S. Attorney’s Office for the Eastern District of New York (the Office), and has agreed to pay more than $3.6 million for engaging in practices that encouraged the unauthorized distribution of controlled substances from 2019 to 2022. An additional fine against Cerebral has been deferred in light of the company’s current financial condition.
Under the terms of the NPA, Cerebral agreed to forfeit $3,652,000 to the United States. The NPA requires Cerebral to continue to cooperate with and provide information to the United States for at least the 30-month term of the agreement. The NPA also requires Cerebral to pay a fine of $2,922,000, which the Office has determined that Cerebral does not currently have the ability to pay; as a result, it will be deferred for the term of the NPA, and waived at the expiration of the NPA if Cerebral is in compliance with the NPA and unless the Office determines that Cerebral’s financial performance has changed such that payment of all or a portion of the fine would be warranted. In the event that Cerebral violates the NPA, the Office may prosecute Cerebral for any of the conduct that gave rise to the NPA and any newly discovered criminal activity.
“People seeking care for their mental health conditions should receive high-quality care that is not motivated or driven by greed,” stated United States Attorney Peace. “Cerebral sought to increase its bottom line by increasing the prescription of drugs, including controlled substances that can be highly addictive and dangerous. Since my Office’s investigation came to Cerebral’s attention, the company has cooperated fully and taken significant steps to remediate the institutional failures that allowed this situation to occur in the first place. This resolution ensures that Cerebral will be financially accountable for its unacceptable conduct and serves as a reminder to the healthcare industry that my Office is committed to ensuring patient safety and protecting the public from business practices like those of Cerebral.”
“Today’s settlement holds Cerebral responsible for their failure to protect patients from the harms caused by the unnecessary or overprescribing of potentially-addictive ADHD medications,” said DEA Administrator Anne Milgram. “Cerebral’s exploitation of telemedicine flexibilities deceived patients who were legitimately seeking medical care, putting them at risk in exchange for profit. DEA remains committed to telemedicine accessibility that supports the health of all patients while also ensuring that telemedicine companies and practitioners prioritize patient health and safety above all else.”
Cerebral’s Operations
Cerebral is an online mental health company that operates primarily as a direct-to-consumer business. Since October 2019, Cerebral has promoted or sold subscription services offering online health care treatment, including mental health treatment and medication management services, through its online platforms, to hundreds of thousands of patients struggling with depression, anxiety and other mental health issues. Cerebral generated revenue by offering tiered monthly subscription plans to its patients. Certain of Cerebral’s subscription plans offered patients the ability to obtain medication from Cerebral’s treatment providers.
Attention-Deficit/Hyperactivity Disorder (ADHD) was one of the mental health conditions Cerebral offered treatment for. Cerebral first launched its ADHD line of service in or around February 2021 and began offering ADHD treatment services to the public across the United States, rolling services out on a state-by-state basis. Cerebral’s ADHD services were perceived to be a profitable line of business with the potential to increase patient retention at the company.
Beginning in October 2020, Cerebral expanded its medication offerings to include controlled substances. In addition, beginning in February 2021, Cerebral permitted its treatment providers to prescribe stimulant medication, such as Adderall, to its patients. Prescription stimulants, such as Adderall, are Schedule II drugs under the Controlled Substances Act.
Cerebral’s Prescription Practices
Between February 2021 and October 2022, Cerebral instituted internal measures to increase the prescriptions of medications with the goal of boosting patient retention and, by extension, Cerebral’s revenue.
Cerebral monitored the rates at which its providers prescribed medications, including controlled substances, primarily through two metrics which measured: (1) the number of drug prescriptions issued to patients who enrolled in a medication management subscription plan after their first 30-minute telehealth visit (the Initial Visit Rx Rate); and (2) the number of stimulant prescriptions prescribed to patients diagnosed with ADHD who had no comorbidities (the ADHD Stimulant Rx Metric). Cerebral did not consult with any members of its clinical advisory board—which included multiple experts in the fields of psychology and psychiatry—prior to implementing targeted campaigns to improve both metrics.
Between May 2021 and May 2022, Cerebral sought to increase the Initial Visit Rx Rate to 95%. Cerebral recognized inherent problems with the Initial Visit Rx Rate, including the fact that the metric did not take into account whether patients were diagnosed with conditions where drug prescriptions were clinically appropriate, and that the 95% target goal was not based on any established data or benchmark in medical or scientific literature. Cerebral also recognized that there were a variety of legitimate reasons why its treatment providers would not prescribe drugs to patients immediately after the patient’s first visit, and that the Initial Visit Rx Rate could perversely incentivize its treatment providers into prescribing medication that was not necessary. Nonetheless, the company reviewed treatment providers’ performance using the Initial Visit Rx Rate and engaged in coordinated efforts to increase the Initial Visit Rx Rate, including by implementing a bonus structure that awarded bonuses to supervisory individuals if they increased the Initial Visit Rx metric among their supervisees; and conducting regular reviews of providers’ individual Initial Visit Rx Rate. Despite the Company’s efforts to increase its performance on the Initial Visit Rx metric, it did not improve after December 2021. Cerebral ceased using the Initial Visit metric in or about May 2022, after Cerebral’s former Chief Executive Officer was terminated.
Beginning in at least October 2021, Cerebral also took initiatives to measure the percentage of controlled substances prescriptions issued to patients who had been diagnosed with ADHD without comorbidities. Cerebral subsequently developed an internal plan to increase the ADHD Stimulant Rx Metric to 100% or “near 100%” and regularly audited its providers’ ADHD prescription practices. Cerebral also considered disciplinary measures, such as issuing “flags” and “strikes,” for individuals who the company considered to be underperformers for this metric. Cerebral instituted these measures despite the fact that certain of its treatment providers had expressed concerns to Cerebral’s management about drug diversion risks with ADHD patients. Cerebral ceased all use of the ADHD Stimulant Rx Metric by October 2022.
In addition to the above tactics, Cerebral also provided financial payments that incentivized its providers to issue stimulant medication for ADHD patients. Specifically, prior to May 2022, Cerebral paid its providers an additional $10 to conduct required pre-prescription checks of Prescription Drug Monitoring Programs (PDMP)/Prescription Monitoring Program (PMP) databases. Cerebral did not compensate its providers for conducting PDMP/PMP checks for patients with any other medical diagnoses or patient needs.
Cerebral’s Diversion Risks
According to Cerebral’s admissions, Cerebral also did not maintain effective controls against drug diversion, even when risks of drug diversion were elevated to or acknowledged by its management. For example, Cerebral had thousands of duplicate patient accounts (i.e., multiple accounts that belonged to the same individual) that were not fully addressed internally until at least early 2022. As a result of the failure to timely identify and remove duplicate accounts, at least one patient was able to obtain stimulant prescriptions from multiple providers at Cerebral, even after having been previously flagged as having misused stimulants. As another example, prior to 2022, Cerebral also permitted drug-seeking patients who were not prescribed controlled substances in the first instance to seek reassignment to different providers.
The Non-Prosecution Agreement
Cerebral has agreed to forfeit $3,652,000 to the United States, which represent the amount of proceeds that could be reasonably attributed to the monthly increase in ADHD revenue generated by patients who were diagnosed with ADHD and subsequently prescribed stimulant prescriptions. Cerebral has also agreed to pay a fine of $2,922,000, which the Office has determined that Cerebral does not currently have the ability to pay; as detailed above, it will be deferred for the term of the NPA.
The Office reached this resolution with Cerebral after carefully weighing all of the factors relevant to the appropriate corporate resolution. The NPA recognizes that, although Cerebral’s serious misconduct was reported to the Office before Cerebral self-disclosed it, Cerebral voluntarily took a number of substantial remedial measures beginning in May 2022 to mitigate and correct the effects of the practices described above, including terminating its former Chief Executive Officer, stopping all use of the prescription metrics described above, and improving its compliance measures. In October 2022, Cerebral voluntarily stopped prescribing controlled substances to all of its patients, and has agreed not to prescribe controlled substances in the future. Cerebral also has no prior criminal history in the United States. Furthermore, Cerebral has cooperated extensively with the Office in its investigation, including through detailed disclosures, and has agreed to continue to cooperate fully with the Office.
The agreement announced today is the result of an investigation conducted by the Drug Enforcement Administration, New York Division, Buffalo Diversion Group, Tactical Diversion Squad. The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section and Business and Securities Fraud Section. Assistant United States Attorneys Genny Ngai, Gillian Kassner and Miranda Gonzalez are in charge of the prosecution, with the assistance of the Office’s former Paralegal Specialists Sophia Cronin, Riley Martinez and Jordi Martinez.
The Defendant:
CEREBRAL, INC.
cerebral_agreement.pdf
Claymont, DelawareSinaloa Cartel Associates Sentenced to Federal Prison for Trafficking CocaineRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Anthony Carroll (50, Tampa) to 12 years and 7 months in federal prison for conspiring to possess with intent to distribute 5 kilograms or more of cocaine and possession with intent to distribute 5 kilograms or more of cocaine. The court also ordered Carroll to forfeit $10,340, a facilitating property of the offenses. Carroll was found guilty by a federal jury on April 9, 2024.
According to testimony and evidence presented at trial, Carroll and his co-defendant, Pablo Villalobos (62, Sinaloa, Mexico) agreed with an individual located in Mexico and associated with the Sinaloa Cartel to purchase 30 kilograms of cocaine in Tampa. An undercover agent in contact with the Mexican cartel member was solicited by that individual to transport the 30 kilograms of cocaine from El Paso, Texas to Tampa. The agent met with an unnamed individual in El Paso to take possession of the cocaine and the courier was later surveilled leaving the United States and entering Mexico at Chihuahua, Mexico.
Once in Tampa, the undercover agent contacted the Mexican cartel member who told the agent that two people would be arriving to the meeting location in a white vehicle. Carroll and Villalobos arrived shortly afterwards in Carroll’s white car. The pair met with two undercover agents, paid them the transportation fee, and took possession of the 30 kilograms of cocaine. A short while later, troopers from the Florida Highway Patrol stopped the vehicle, a narcotics dog was deployed, and troopers discovered the cocaine in the trunk of the vehicle. The pair were then arrested.
Villalobos pleaded guilty on April 3, 2024. On July 10, 2024, he was sentenced to four years and nine months’ imprisonment.
This case was investigated by the Drug Enforcement Administration’s Tampa District Office and El Paso Field Division and the Florida Highway Patrol. It was being prosecuted by Assistant United States Attorney Shauna S. Hale.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Sex Offender Sentenced to Prison for Violating the Federal Sex Offender Registration and Notification ActRead the Press Release
CHARLESTON, W.Va. – Gary Allen Swift Jr., 62, was sentenced today to one year and nine months in prison, to be followed by five years of supervised release, for failure to provide information related to interstate travel as required by the Sex Offender Registration and Notification Act (SORNA).
According to court documents and statements made in court, from on or about July 1, 2023 through on or about February 6, 2024, Swift failed to register or update his registration as required by SORNA after he relocated to West Virginia from Iowa.
Swift traveled from Iowa to Huntington, West Virginia, following his conviction for failing to register as a sex offender in Scott County, Iowa, District Court on January 4, 2023. On April 7, 2023, Swift was convicted in Cabell County Magistrate Court for failing to register as a sex offender in West Virginia. Swift then moved from Huntington to Charleston, where he continued his pattern of failing to register until February 2024, resulting in his prosecution by the United States Attorney's Office for the Southern District of West Virginia.
Swift is required to register as a sex offender and comply with SORNA because of his convictions for first-degree sexual abuse in Nicholas County, West Virginia, Circuit Court on March 18, 1986, and criminal sexual assault in Rock Island, Illinois, Circuit Court on November 20, 2006.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Marshals Service (USMS).
Chief United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorney Jonathan T. Storage prosecuted the case.
SORNA is part of the Adam Walsh Child Protection and Safety Act of 2006 and provides a comprehensive set of minimum standards for sex offender registration and notification in the United States. SORNA seeks to strengthen the nationwide network of sex offender registration and notification programs, in part by requiring registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-27.
###
Sequoyah County Resident Sentenced for Federal Firearm ChargeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that James Timothy Mathis, age 43, of Muldrow, Oklahoma, was sentenced to 24 months in prison for illegal possession of a firearm.
The charge arose from an investigation by the Sequoyah County Sheriff’s Office, the Oklahoma State Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On August 8, 2023, Mathis pleaded guilty to one count of Felon in Possession of a Firearm. According to investigators, on March 4, 2023, a Sequoyah County deputy performing a routine traffic stop discovered Mathis in possession of a loaded .38 SPL caliber revolver. At the time of the stop, Mathis had been convicted of a punishable by imprisonment for a term exceeding one year and was prohibited from possessing firearms.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The Honorable John C. Coughenour, Senior U.S. District Judge in the United States District Court for the Western District of Washington, sitting by assignment, presided over the sentencing hearing in Muskogee, Oklahoma. Mathis will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney T. Cameron McEwen represented the United States at the sentencing hearing.
Schenectady Man Charged with Firearm and Drug OffensesRead the Press Release
ALBANY, NEW YORK – Willie Mills, age 31, of Schenectady, New York, was ordered detained last week following his indictment and arrest for possession of a firearm as a prohibited person and distribution of cocaine and fentanyl.
United States Attorney Carla B. Freedman; Bryan Miller, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Field Division, made the announcement.
According to the indictment, on April 27, 2023, Mills unlawfully possessed a firearm as a previously convicted felon. The indictment also charges that Mills distributed cocaine and fentanyl on four separate dates in 2023 and 2024. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charges filed against Mills carry a prison term of at least 5 years and up to 40 years, a fine of up to $5 million, and a supervised release term of at least 4 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Mills was arraigned in Albany on October 29 before United States Magistrate Judge Christian F. Hummel. Following a detention hearing on October 31, Mills was ordered detained pending trial.
DEA is investigating the case with assistance from the Schenectady Police Department and ATF. Assistant U.S. Attorney Matthew Paulbeck is prosecuting the case.
Sarasota Man Sentenced to Nine Years for Possessing A Firearm and Ammunition as A Convicted FelonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington has sentenced John Lewis (34, Sarasota) to nine years in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered Lewis to forfeit a HS Produkt (a/k/a “IM Metal”) 9mm model XDS pistol and assorted ammunition, which are traceable to proceeds of the offense. Lewis entered a guilty plea on August 6, 2024.
According to court documents, at approximately 2 a.m. on November 30, 2023, a deputy with the Sarasota County Sheriff’s Office observed an SUV being driven by Lewis run a red light while traveling more than 100 mph. Despite running over stop sticks deployed by law enforcement, Lewis continued driving recklessly at a high rate of speed. Lewis then lost control of the SUV while going over the south bridge near the Isle of Venice and crashed, coming to a stop in the middle of the bridge. Lewis then fled from the SUV and jumped off the bridge, losing a sandal in the process. Lewis landed on the Venetian Waterway Trail instead of in the Venetian Waterway and continued to flee from law enforcement despite sustaining injuries from the impact. A matching sandal and a black semi-automatic firearm containing four rounds of live ammunition were located on the Venetian Waterway Trail and Lewis was located nearby in a shed. Forensic testing further corroborated Lewis’s possession of the firearm.
Lewis has previously been convicted of multiple felonies, including aggravated assault with a deadly weapon, possession of a weapon or ammunition by a juvenile delinquent, aggravated battery with a deadly weapon, false imprisonment, grand theft of a firearm, possession of cocaine, interference with child custody, and fleeing or attempting to elude. As a convicted felon, he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sarasota County Sheriff’s Office, the Venice Police Department, and the North Port Police Department. It was prosecuted by Assistant United States Attorney Brooke M. Padgett.
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.
San Carlos Fraudster Who Cheated Investors Out of More Than $1 Million Sentenced to over Three Years in Federal PrisonRead the Press Release
SAN FRANCISCO – David Scott Cacchione was sentenced today to 40 months in federal prison for conspiracy to commit wire fraud and wire fraud in connection with an investment fraud scheme and a false federal disaster loan application, and tax evasion. The sentence was handed down by the Honorable James Donato, U.S. District Judge.
Cacchione, 59, of San Carlos, was initially charged by complaint on Jan. 16, 2024, and by superseding information on Aug. 7, 2024. On Aug. 14, 2024, he pleaded guilty to all four counts in the superseding information — one count of conspiracy to commit wire fraud, two counts of wire fraud, and one count of tax evasion in connection with multiple schemes. According to his plea agreement, Cacchione admitted that he and an alleged co-conspirator defrauded multiple investors by convincing them that their money would be used to purchase accounts receivable that did not exist. Instead, Cacchione used the investor funds to pay personal expenses and to reimburse other victims. Cacchione admitted that victim investors were defrauded out of more than $1.13 million in this scheme. As detailed in court documents, in addition to the investment fraud scheme, Cacchione submitted an Economic Injury Disaster Loan application in September 2020 for a company that he falsely claimed had $1 million in revenue and three employees in the 12-month period prior to Jan. 31, 2020. Based on these false statements, Cacchione obtained a $149,900 loan that he used to pay personal expenses.
“The defendant made multiple misrepresentations in order to enrich himself. He did so by convincing multiple individuals to invest in accounts receivable that did not exist and by diverting disaster relief funds intended to help small businesses to a business that was a sham,” said United States Attorney Ismail J. Ramsey. “My office will vigorously investigate and prosecute those who seek to defraud individuals and federal programs.”
“David Cacchione treated other people’s money as his own,” said Federal Bureau of Investigation (FBI) San Francisco Special Agent in Charge Robert Tripp. “He broke promise after promise and paid his own personal expenses instead of investing his victims’ money. Today, however, he learned a lesson in accountability. The FBI is committed to safeguarding the public from fraud schemes and will continue to work alongside our partners to bring perpetrators like Cacchione to justice.”
“White collar crime is not victimless, and today’s sentencing reinforces it does not go unpunished. Mr. Cacchione’s multiple schemes victimized individual investors and preyed upon federal programs designed to help small businesses recover from dire natural disaster impacts,” said IRS Criminal Investigation (IRS-CI) Oakland Field Office Acting Special Agent in Charge Michael Mosley. “IRS-CI stands up for individuals victimized by financial fraudsters and defends the sanctity of benevolent government programs by putting those who willfully abuse them in jail.”
In addition to the 40-month prison term, Judge Donato also ordered defendant to pay more than $1.4 million in restitution, sentenced the defendant to a three-year period of supervised release, and ordered the defendant to forfeit his $450,000 equity stake in a technology company. Defendant has been in custody since Apr. 24, 2024, and will begin serving his sentence immediately.
The announcement was made by United States Attorney Ismail J. Ramsey, FBI Special Agent in Charge Robert Tripp, and IRS-CI Oakland Field Office Acting Special Agent in Charge Michael Mosley.
Assistant United States Attorney Garth Hire is prosecuting the case. The prosecution is the result of an investigation by the FBI and IRS-CI.
Romanian Nationals Indicted for Illegal Re-Entry of Removed AlienRead the Press Release
NEW ORLEANS, LOUISIANA – COSTEL ALIMAN (“ALIMAN”) and SABINA MUNTEANU (“MUNTEANU”), citizens of Romania, were indicted on November 1, 2024, for illegal re-entry of a removed alien, in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans.
According to the indictment, ALIMAN reentered the United States illegally after being previously deported on January 9, 2019, and MUNTEANU reentered the United States illegally after being previously deported on October 4, 2017.
If convicted, ALIMAN and MUNTEANU face up to 2 years imprisonment, up to 1 year of supervised release, up to a $250,000 fine, and a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of United States Homeland Security Investigations, Enforcement and Removal Operations in investigating this matter. Assistant United States Attorney Paul J. Hubbell of the General Crimes Unit is in charge of the prosecution.