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18 December 2024
Denver Man Sentenced for Operating Illegal Gambling ParlorRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Jonathan Arvay, 38, of Denver, was sentenced to one year and one day in prison after being found guilty by a federal jury on one count of conducting an illegal gambling business and one count of conspiracy to conduct an illegal gambling business.
According to the facts established at trial, Arvay operated Player One Arcade in Denver, part of a network of gambling parlors extending from Greeley to Pueblo. These parlors offered several electronic forms of gambling through games made to resemble arcade games, as well as virtual slot machines in which customers attempted to earn credits. Upon completing their game of choice, customers would exchange any credits won for a purported cryptocurrency, Obsidian Digital Asset Coin (ODAC), whose only function was to be exchanged for cash at an ATM-like “cryptocurrency teller machine” next door to or within the gambling parlor. Customers were required to pay a transaction fee to exchange the ODAC for U.S. currency.
“This was a modern version of old-fashioned illegal gambling,” said Acting United States Attorney Matt Kirsch. “I am grateful for our local and federal partners who helped put this criminal in prison.”
“This sentence reflects an appropriate resolution to a complicated case: When you launder money and commit fraud against the government, the FBI and our partners will track you down across jurisdictions,” said FBI Denver Special Agent in Charge Mark Michalek.
“IRS-CI remains on the cutting edge of cybercrime investigations as financial crimes continue to become more sophisticated,” said Tom Demeo Acting Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “We are committed to staying one step ahead of criminals and leveraging our partnerships with federal and local law enforcement agencies to protect the U.S. tax system.”
United States District Judge Gordon P. Gallagher presided over the trial. The FBI Denver Field Division, the IRS Criminal Investigation Denver Field Office, and the Pueblo Police Department conducted the investigation. Assistant United States Attorneys Cyrus Y. Chung, Alison Connaughty, and Jena Neuscheler handled the prosecution.
Case Number: 23-cr-00222-GPG
Defendant Sentenced to 10 Years in Prison for Violent Spree of Gunpoint CarjackingsRead the Press Release
Edward Y. Kim, the Acting United States Attorney for the Southern District of New York; Bryan Miller, the Special Agent in Charge of the New York Field Division for the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”); and Jessica Tisch, the Commissioner of the New York City Police Department (“NYPD”), announced that ROBERT FELIX-ARACENA was sentenced yesterday by U.S. District Judge George B. Daniels to 10 years in prison for conspiring to commit a series of gunpoint carjackings in Manhattan, the Bronx, and elsewhere in 2020, and for a related firearms offense.
Acting U.S. Attorney Edward Y. Kim said: “Robert Felix-Aracena and his co-defendants engaged in a violent, armed carjacking spree that endangered lives and terrorized victims. Felix-Aracena, like his co-defendants, is now being held accountable for his actions. Today’s sentence is a reminder that this Office will relentlessly investigate and prosecute those who seek to inflict violence on our communities.”
ATF Special Agent in Charge Bryan Miller said: “This sentencing for these brazen armed carjackings should serve as a clear warning that such criminal acts will never be tolerated. ATF remains steadfast in its commitment to working together with our partners to identify, investigate, and apprehend the most violent offenders in our communities. I want to thank the men and women of the ATF/NYPD SPARTA Task Force, the NYPD Manhattan Robbery Squad, and the U.S. Attorney’s Office for the Southern District of New York for bringing these individuals to justice. We will dedicate all necessary resources to continue collaboration with our local, state, and federal partners to ensure our streets remain safe.”
NYPD Commissioner Jessica S. Tisch said: “This sentencing marks the final dismantling of an organized criminal network that instilled fear in New York City motorists. It is also a testament to the collaborative efforts of the dedicated NYPD investigators and ATF agents on the SPARTA task force. Their tireless work, day and night, is making people safe, making them feel safe, and enhancing the quality of life for all New Yorkers.”
According to the Indictment and statements made in public court documents and proceedings:
In October and November 2020, FELIX-ARACENA and a group of other individuals participated in a series of armed carjackings in Manhattan, the Bronx, and elsewhere. That group also included co-defendant CHRISTIAN CRUZ, who was sentenced earlier this year to 10 years in prison; co-defendant ANDRES CAICEDO, who was sentenced last month to four years in prison; and co-defendant JOSE LAVANDIER, who was previously sentenced to three years in prison. In particular:
- On October 22, 2020, CAICEDO and others participated in a gunpoint carjacking in the Bronx. As a co-conspirator brandished a firearm at the victim, CAICEDO took marijuana, cash, and the victim’s car keys from the victim.
- On November 1, 2020, FELIX-ARACENA, CRUZ, and others participated in a gunpoint carjacking from two victims in the Bronx. FELIX-ARACENA, armed with a TEC-9 firearm, and another carjacker took the vehicle from the victims, with FELIX-ARACENA brandishing a firearm and firing a shot near the foot of one of the victims in the process.
- On November 3, 2020, FELIX-ARACENA, CRUZ, and others participated in a gunpoint carjacking from two victims in Brooklyn. The group was driving the vehicle they had carjacked two days earlier, and CRUZ was armed with, and brandished, the TEC-9. That same day, the stolen vehicle was recovered in the Bronx by law enforcement, after FELIX-ARACENA, CRUZ, and the other carjackers fled from law enforcement in the stolen vehicle and on foot.
- On November 7, 2020, FELIX-ARACENA and others participated in a gunpoint carjacking from multiple victims in Manhattan. The other carjackers, armed with a firearm, approached the victims and took their vehicle, while FELIX-ARACENA and another carjacker remained in the getaway vehicle.
- During the evening of November 10, 2020, and the early morning hours of November 11, 2020, FELIX-ARACENA, CRUZ, and others participated in three gunpoint carjackings and an attempted carjacking.
- Finally, on November 13, 2020, FELIX-ARACENA, LAVANDIER, and others participated in a gunpoint carjacking from two victims in Manhattan. FELIX-ARACENA, armed with a defaced firearm, and another individual took the vehicle from the victims, while the other carjackers remained in the getaway vehicle. The stolen vehicle was located a few hours later, at which time FELIX-ARACENA, LAVANDIER and the others attempted to flee in the stolen vehicle before crashing into a nearby parked car. FELIX-ARACENA, LAVANDIER, and the others then fled on foot.
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In addition to the prison term, FELIX-ARACENA, 24, a citizen of the Dominican Republic residing in the Bronx, New York, was sentenced to three years of supervised release.
Mr. Kim praised the outstanding investigative work of the ATF and the NYPD, in particular, the Strategic Patterned Armed Robbery Technical Apprehension Task Force, which is composed of agents and officers of the ATF and the NYPD.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Adam Z. Margulies and Jonathan L. Bodansky are in charge of the prosecution.
D.C. Accountant Pleads Guilty to Mortgage Fraud and Tax CrimesRead the Press Release
A Washington, D.C. CPA pleaded guilty today to making a false statement on a mortgage loan application and failing to file an income tax return.
According to court documents and statements made in court, Timothy Trifilo worked in tax compliance for several large accounting and finance firms. In recent years, Trifilo was managing director at a tax firm where he specialized in transaction structuring and advisory service, tax compliance and tax due diligence. Nevertheless, for a decade, Trifilo did not file federal income tax returns or pay all the taxes that he owed despite earning more than $7.7 million during that time. He caused a tax loss to the IRS of $2,057,256.40.
In February 2023, Trifilo sought to obtain a $1.36 million bank-financed loan to purchase a home in D.C. and was working with a mortgage company to do so. After the mortgage company told Trifilo that the bank would not approve the loan without copies of Trifilo’s filed tax returns, Trifilo provided the mortgage company with fabricated documents to make it appear as if he had filed tax returns and provided copies of tax returns for 2020 and 2021 that Trifilo never filed with the IRS. On these returns and other documents that he submitted to the mortgage company, Trifilo listed a former colleague as the individual who prepared the returns and uploaded them for filing with the IRS. This individual did not prepare the returns, has never prepared tax returns for Trifilo and did not authorize Trifilo to use his name on the returns and other documents that Trifilo submitted to the mortgage company. Based on Trifilo’s false representation, the bank approved the loan and Trifilo purchased the home.
Sentencing is scheduled for May 19, 2025. Trifilo faces a maximum penalty of 30 years in prison on the charge of making a false statement on a loan application and a maximum penalty of one year in prison on the charge of failure to file a tax return. He also faces a period of supervised release, monetary penalties and restitution. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Melissa S. Siskind and Alexis Fleszar of the Justice Department's Tax Division are prosecuting the case.
Cooper County Sex Offender Sentenced to 45 Years for Child PornographyRead the Press Release
JEFFERSON CITY, Mo. – A Prairie Home, Mo., man was sentenced in federal court today for producing child pornography.
Bradley Leigh Knecht, 30, was sentenced by U.S. District Judge Stephen R. Bough to 45 years in federal prison without parole. The court also ordered Knecht to spend the rest of his life on supervised release following incarceration.
Knecht, who pleaded guilty to producing child pornography on April 4, 2024, is required to register as a sex offender due to prior Arkansas convictions for possessing child pornography.
A detective with the Boone County Cyber Crimes Task Force received a report on Aug. 17, 2022, that a user (later identified as Knecht) had uploaded multiple nude images of girls, approximately three to five years of age, to Snapchat. Knecht was arrested by a Missouri State Highway Patrol trooper during a traffic stop on Sept. 9, 2022, for failing to register as a sex offender in Cooper County, Mo. (to which he later pleaded guilty). His electronic devices were seized at the time of his arrest. Investigators found multiple social media accounts, including a Snapchat account, and identified the original child sexual abuse material that had been reported by Snapchat.
Knecht was using the Snapchat account to portray himself as a minor and engage in inappropriate conversations with other minors on Snapchat.
Investigators also found multiple nude images of a child victim under the age of 14. Knecht, portraying himself as the child victim, used the victim’s identity to solicit other children to produce and send pornographic images to him. For example, Knecht – posing as the child victim – exchanged approximately 284 messages with a user who identified herself as a 13-year-old girl over three days in May 2022. Knecht discussed matters of a sexual nature and requested and received nude images. In another conversation, Knecht, again posing as the child victim, messaged an individual who identified herself as a 14-year-old girl. Knecht sent her videos of the child victim as well as the 13-year-old from the previous conversation; the 14-year-old girl sent nude images of herself to Knecht. A total of 210 images were exchanged from May 12 to June 13, 2022.
Knecht also impersonated the child victim to sell her nude images to others using the CashApp application. Investigators identified more than 100 transactions in the three months prior to Knecht’s arrest on Sept. 9, 2022.
Knecht also had pleaded guilty in 2020 to failure to register as a sex offender in Moniteau County, Mo., as well as residing within one thousand feet of a school.
This case was prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Boone County Cyber Crimes Task Force and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Convicted Felon, Whom Law Enforcement Encountered on Oakland’s “Blade,” Arrested on Firearm Possession ChargeRead the Press Release
OAKLAND – An Oakland man was arrested yesterday on charges of being a felon in possession of a firearm. Jason Nious, 42, made his initial appearance in federal district court this morning.
According to the criminal complaint and court documents unsealed today, Oakland police encountered Nious on Sept. 18, 2024, while searching the 500 block of East 15th Street in Oakland for a different individual who had an active arrest warrant for gun possession. Officers saw Nious standing next to the wanted person and next to a car that was registered to Nious. Officers determined that Nious was a convicted felon, currently on probation. They then searched Nious’s car and found a gun with a live round in the chamber in a bag on the front passenger seat, along with a loaded 10-round magazine. Nious has prior convictions in Alameda County for human trafficking of a minor, providing controlled substances to a minor, and armed robbery.
Nious is next scheduled to appear in federal district court for a detention hearing on Dec. 23, 2024.
As detailed in the criminal complaint, the 500 block of East 15th Street in Oakland is within “the Blade,” an area surrounding International Boulevard between 5th Avenue and 23rd Avenue that is known throughout the Bay Area for its widespread pimping and pandering. The Blade also has seen a significant increase in other violent crimes in recent years. Consequently, this year, the U.S. Attorney’s Office, the Federal Bureau of Investigation (FBI), and the Oakland Police Department have been actively coordinating and increasing enforcement to combat sex trafficking and violent crime in the area.
United States Attorney Ismail J. Ramsey and FBI San Francisco Special Agent in Charge Robert K. Tripp made the announcement.
A criminal complaint merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Nious faces a maximum sentence of 15 years and a fine of $250,000 on the count of being a felon in possession of a firearm in violation of 18 U.S.C. § 922(g)(1). A court would impose any sentence following conviction after considering the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Ivana Djak is prosecuting the case with the assistance of Amala James. The prosecution is the result of an investigation by the FBI and the Oakland Police Department.
Convicted Felon Sentenced to 57 Months in Federal Prison for Possessing A FirearmRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Giovanny Rivera-Sanchez (38, Kissimmee) to 57 months in federal prison for possessing a firearm as a convicted felon. The court also ordered Rivera-Sanchez to forfeit a Glock 22 .40 caliber pistol, which was involved in his offense. Rivera-Sanchez entered a guilty plea on August 21, 2024.
Rivera-Sanchez was convicted of felony offenses in 2004, 2007, and 2008, and was prohibited from possessing firearms and ammunition as a result. On March 25, 2022, when Rivera-Sanchez was serving a term of federal supervised release, the Orange County Sheriff’s Office executed a search warrant at his residence. During the search, law enforcement officers discovered a firearm loaded with twelve rounds of ammunition. Officers interviewed Rivera-Sanchez, who stated that he was aware that the firearm was inside his residence.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Adam J. Nate.
This case was 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 of Justice launched a violent crime reduction strategy strengthening PSN based on the following 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.
Convicted Felon Pleads Guilty to Federal Firearms OffenseRead the Press Release
WASHINGTON – Corey Whittico, 21, of Washington, D.C., pleaded guilty yesterday to a federal firearms offense stemming from his possession of a loaded Glock firearm equipped with a machine gun conversion device in December 2023, announced U.S. Attorney Matthew M. Graves; FBI Special Agent in Charge Sean Ryan of the Washington Field Office Criminal and Cyber Division; and Chief Pamela Smith of the Metropolitan Police Department (MPD).
Whittico pleaded guilty on December 17, 2024, in the U.S. District Court for the District of Columbia to one count of unlawful possession of a firearm and ammunition by a felon. The Honorable John D. Bates scheduled a sentencing hearing for March 24, 2025.
According to court papers, on December 19, 2023, MPD officers familiar with Whittico observed him broadcasting live video over Instagram. The video showed Whittico in the front passenger seat of a moving vehicle in Northeast Washington, D.C. During the live broadcast, Whittico brandished a black Glock handgun that was equipped with an aftermarket machine gun conversion device, which has the effect of converting the firearm to fully automatic and is colloquially known as a “switch.”
As part of the same live broadcast, Whittico reached into the backseat of the vehicle and displayed black and clear plastic bags containing a green leafy substance consistent in appearance with marijuana. Officers located the vehicle in the Clay Terrace neighborhood of Northeast Washington and conducted a traffic stop. Following a search of the vehicle, officers recovered over three pounds of suspected marijuana and two Glock firearms: a Glock 27 equipped with a machinegun conversion device and loaded with 17 rounds of .40 caliber ammunition, and a Glock 45 loaded with 26 rounds of 9mm ammunition. Officers had observed Whittico brandishing one of those firearms—the Glock 27—on the Instagram live broadcast just minutes earlier.
Federal law prohibits Whittico from possessing a firearm because he has previously been convicted of crimes punishable by imprisonment for a term exceeding one year. For example, in 2023, Whittico was convicted of robbery in the Circuit Court for Prince George’s County, Maryland. Whittico was on probation for that offense at the time he possessed the firearm charged in this case.
The case was initially charged in the Superior Court of the District of Columbia. In January 2024, a federal grand jury empaneled by the U.S. District Court for the District of Columbia returned an indictment charging Whittico with the December 2023 offense.
Whittico has remained in custody since his December 19, 2023, arrest.
Whittico faces a maximum sentence of 15 years in prison and up to a $250,000 fine. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentence imposed in this case will be determined by the Court after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by MPD’s Sixth District Crime Suppression Team and the FBI Washington Field Office’s Safe Streets Task Force.
The case is being prosecuted by Assistant U.S. Attorneys Paul V. Courtney and Kyle R. Mirabelli, with valuable assistance from Assistant U.S. Attorney Cameron Tepfer and former Assistant U.S. Attorneys Colin Cloherty and Omeed Assefi.
24cr13
Columbus Man Pleads Guilty to Trafficking Firearms, Including a Machine GunRead the Press Release
A Columbus resident who was advertising the sale of fully automatic weapons on social media—including ghost guns and machine guns—pleaded guilty to trafficking firearms resulting from a Project Safe Neighborhoods investigation.
Matthew Azor, 19, pleaded guilty to firearms trafficking before U.S. District Judge Clay Land on Dec. 17. Azor faces a maximum of 15 years in prison to be followed by at least three years of supervised release and a maximum $250,000 fine. Sentencing will be determined by the Court. There is no parole in the federal system.
“Matthew Azor illegally sold machine guns and ghost guns on social media, making the deadliest of weapons readily available to dangerous individuals,” said U.S. Attorney Peter D. Leary. “Our office and law enforcement partners continue to prioritize prosecutions against those responsible for gun violence in Columbus and across the Middle District of Georgia.”
“The illegal trafficking of machine guns and ghost guns poses an unacceptable threat to the safety of our neighborhoods,” said ATF Assistant Special Agent in Charge Beau Kolodka. “ATF will not waver in its mission to stop dangerous weapons from falling into the hands of criminals and will relentlessly pursue those who profit from this lawlessness.”
“Illegal firearms, especially machine guns and ghost guns, are a direct threat to public safety,” said Columbus Police Chief Stoney Mathis. “We remain committed to working alongside our federal partners to remove these dangerous weapons from the streets and hold those responsible accountable.”
According to plea agreement and other statements referenced in court, on Jan. 18, investigators with the Columbus Police Department’s Gang Unit contacted Azor, who was advertising Glock switches and firearms equipped with machine gun conversion devices for sale on social media. On Jan. 26, an undercover agent (UC) with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) contacted Azor and arranged for the purchase of machine guns. Azor confirmed with the UC that he had firearms which functioned as machine guns available; specifically, an AR pistol and a Glock.
The UC met Azor in Columbus and paid $1,100 for the following: a Glock model 17 9x19mm caliber firearm with an attached switch to convert the semi-automatic pistol to a rapid-fire machinegun; a privately made AR-styled pistol also known as a ghost gun; and three rounds of assorted 9mm ammunition. ATF agents examined the firearms and determined the Glock model 17 was able to fire fully automatic and the ghost gun was semi-automatic. A few weeks later, the UC arranged for the purchase of a fully automatic firearm and a Glock machine gun conversion device (MCD) that Azor claimed he had for sale. On Feb. 29, the UC met Azor and purchased the following: a PA-15 AR-pistol with a loaded magazine and a purported Glock MCD. ATF agents later examined those firearms and determined both were not machine guns.
These cases 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 of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities; supporting community-based organizations that help prevent violence from occurring in the first place; setting focused and strategic enforcement priorities; and measuring the results.
This case was investigated by the Columbus Police Department’s Gang Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Christopher Williams is prosecuting the case for the Government.
Clinton Man Sentenced for Employment Tax Fraud, Mail Fraud and False StatementsRead the Press Release
BOSTON – A Clinton, Mass. man was sentenced today in federal court in Worcester for his involvement in tax and mail fraud, and other offenses.
Juliano Fernandes, 42, of Clinton, was sentenced by U.S. District Court Judge Margaret R. Guzman to five years of probation. In July 2023, Fernandes pleaded guilty to 11 counts of employment tax fraud, two counts of mail fraud and two counts of making false statements to a federal agency.
Fernandes exercised financial control over Force Corporation and AB Construction, both Massachusetts-based construction companies. Between 2015 and 2017, Fernandes willfully failed to account for and pay over employment taxes for these companies to the United States Internal Revenue Service. In addition, from approximately April 2013 through January 2017, Fernandes defrauded worker’s compensation insurance companies by misrepresenting the number of employees at Force Corporation and AB Construction, and the wages paid to the employees. In August 2017, Fernandes also made materially false statements to the U.S. Department of Labor regarding the value of property he owned in Lunenburg, Mass., and that he never had responsibility or control over the payroll of Force Corporation. These statements related to the Department of Labor’s efforts to collect funds from Fernandes and his businesses in connection with alleged civil wage violations.
Co-defendant Anderson Dos Santos, who worked for AB Construction, signed and filed individual tax returns for tax years 2013, 2014, 2016 and 2017, in which he materially under-reported his income.
Dos Santos pleaded guilty and was sentenced in May 2024 to three years of probation.
United States Attorney Joshua S. Levy; Jonathan Wlodyka, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations, Boston Field Office; Jonathan Mellone, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations, Labor Racketeering and Fraud, Northeast Region; and Anthony DiPaolo, Executive Director of the Insurance Fraud Bureau of Massachusetts made the announcement. Assistant U.S. Attorneys Brendan D. O’Shea and Danial Bennett of the Worcester Branch Office and John T. Mulcahy of the Public Corruption & Special Prosecutions Unit prosecuted the case.
Casa Grande Man Sentenced to over 4 Years for Unlawful Possession of a FirearmRead the Press Release
PHOENIX, Ariz. –Eleazar Alfredo Gomez, 32, of Casa Grande, a member of the Gila River Indian Community, was sentenced last week by United States District Judge Douglas L. Rayes to 58 months in prison, followed by three years of supervised release. Gomez pleaded guilty on September 10, 2024, to Felon in Possession of a Firearm. This is his second conviction for possessing a firearm as a convicted felon.
On July 23, 2024, Gomez possessed a firearm after having been previously convicted of Assault with a Dangerous Weapon and Felon in Possession of a Firearm (CR-18-01086-PHX-DLR). Gomez was sentenced to 46 months for possessing the firearm in this case, and an additional 12 months for violating his supervised release in the 2018 case.
The Phoenix Police department conducted the investigation in this case. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-24-01328-PHX-DLR
RELEASE NUMBER: 2024- 177_Gomez# # #
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.CEO of mergers and acquisition advisory firm pleads guilty to defrauding clients of over $2MRead the Press Release
ALEXANDRIA, Va. – An Arlington-based business owner pled guilty yesterday to wire fraud in connection with his scheme to defraud eight companies of over $2 million.
According to court documents, from at least January 2020 through December 2022, Kiel Brendan Brandt, 34, owned and operated Epsilon Acquisition Services, a mergers and acquisitions advisory firm. From at least February 2021 through December 2022, Brandt defrauded companies and individuals by lying about the status of deals and the state of Epsilon’s finances, by falsely claiming that Epsilon would refund fees if deals did not close, and by falsely claiming that refunds had been or imminently would be issued.
When Brandt failed to secure funding and deals did not close, Brandt falsely claimed that the deals were delayed because the lenders and/or partners needed additional due diligence materials, insurance records, or other documentation.
For example, a client company in Argentina paid Epsilon approximately $275,000 in refundable payments and fees to find a buyer to purchase the company. Brandt never closed the deal, but rather than repaying the funds, he told the company that the bank was having payment processing issues, that there were delays in the money posting to the account, that the bank was unable to timely send the funds because of a bank holiday, and that the delays were because of technical complications in transferring funds overseas. To make his supposed efforts appear legitimate, Brandt initiated a transfer from his bank and obtained a confirmation order, but he then canceled the transfer before any of the money was sent from his account. Brandt, nonetheless, sent the confirmation number to the company.
Brandt further obfuscated the scheme by suggesting there had been an internal miscommunication at Epsilon with an employee named “Steph” regarding from which account the transfer should be initiated. In truth, “Steph” was a fictitious employee who did not exist. Brandt also suggested that the company could help facilitate the transfer of funds by opening a U.S. bank account. When that did not result in a refund payment, Brandt communicated that he would open a bank account in Central America from which he would make payment. Approximately a year-and-a-half after the company first sought repayment of its funds, Brandt signed and executed a contract acknowledging that Epsilon had failed to return money held in escrow as well as other refundable fees. Brandt again falsely promised to repay a portion of the $225,000 that he owed the company by September 9, 2022, but did not send any money.
In September 2021, another company agreed to provide Epsilon with a $1 million bridge loan to facilitate transactions for the company. In the loan agreement, Brandt falsely represented Epsilon’s debts, hiding that Epsilon owed hundreds of thousands of dollars to other victims. Rather than using the funds for their intended purpose, Brandt directed over $700,000 in repayments to other clients to whom he owed money and used the remaining funds primarily for transfers to employees and payments to personal accounts.
Brandt also solicited upfront fees by various names including “good faith deposits,” “loan commitment fees,” “insurance fees,” and “prepayments of commissions.” As with the bridge loan, however, rather than directing the funds towards their intended uses, Brandt directed payments to Epsilon’s operating expenses, and made sizeable payments to his personal bank accounts. Brandt also used payments from victims to pay other victims and clients.
In total, Brandt defrauded eight companies of $2,002,750 and he repaid the victims only $193,323. Epsilon also failed to repay $175,000 in advances to a ninth company. In his plea agreement, Brandt agrees to pay $1,984,426 in total restitution.
Brandt is scheduled to be sentenced on April 3, 2025, and faces up to 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Sean Ryan, Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division, made the announcement after U.S. District Judge Patricia Tolliver Giles accepted the plea.
Assistant U.S. Attorneys Jack A. Morgan and Kenneth R. Simon Jr. are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-250.
Bristol Man Pleads Guilty to Making Interstate ThreatsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DENNIS JOHN HERNANDEZ, also known as “DJ Hernandez” and “Jonathan Hernandez,” 38, of Bristol, waived his right to be indicted and pleaded guilty today before U.S. District Judge Sarala V. Nagala in Hartford to making interstate threats.
According to court documents and statements made in court, on July 6 and 7, 2023, Hernandez communicated with an individual via Facebook Messenger and made multiple statements threatening to carry out a shooting incident at UConn. The statements included “I would recommend remaining away from there because when I go I’m taking down everything And don’t give a f--- who gets caught in the crossfire. I’ve died for years now and now it’s others people turn. I’m prepared to give my life. So if I don’t get to see you on the outside know I love you always Not all shootings are bad I’m realizing. Some are necessary for change to happen.”
Court documents allege that Hernandez’s vehicle was identified on UConn’s campus on July 7.
On July 18 and 19, 2023, Hernandez made multiple Facebook posts threatening to harm or kill three individuals who reside out of state, including a state court judge. In addition, on July 19, in a conversation via text message with one of the victims, Hernandez stated “We’re taking lives if s--- isn’t paid up. It’s been years in planning just taking notes, names and locations. They talked their way into this and it’s almost point game. I know we don’t play in my family. If we have to take lives or buildings we will. So just letting you know so you can be prepared for a media circus one way or another.”
Hernandez pleaded guilty to transmitting interstate communications containing a threat to injure, an offense that carries a maximum term of imprisonment of five years. Judge Nagala scheduled sentencing for February 6.
Hernandez has been detained since his arrest on related state charges on July 19, 2023.
This matter is being investigated by the Federal Bureau of Investigation and the Bristol Police Department. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Bridgeport Man Sentenced to 5 Years in Federal Prison for Role in Vehicle Theft SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that ELVIS PEREZ, also known as “Pops,” 60, of Bridgeport, was sentenced yesterday by U.S. District Judge Janet C. Hall in New Haven to 60 months of imprisonment, followed by three years of supervised release, for his participation in a multistate identity theft scheme that defrauded dozens of individuals and businesses out of more than $1 million.
According to court documents and statements made in court, Perez was involved in a multistate identity theft scheme led by his son-in-law, Tyshon Walker, and his daughter and Walker’s spouse, Stephanie Perez. Beginning in September 2020, Walker obtained personal information stolen from residents of Connecticut and other states and used it to apply for vehicle loans at dealerships in Connecticut, New Jersey, Pennsylvania, Delaware, and Rhode Island for motorcycles, an all-terrain vehicle, and other performance vehicles. Once the loan was approved by the dealership using the identity theft victim’s information, Walker would send “runners,” including Elvis Perez, to pick up the vehicle utilizing a fictitious driver’s license that included the identity theft victim’s information and a photograph of the runner. The vehicle was then transported back to Connecticut for resale on Facebook Marketplace.
Perez, sometimes alone and sometimes with an accomplice, travelled to at least four different car dealerships and stole at least four different vehicles as part of this scheme. Walker paid him for his work acquiring and transporting each vehicle.
Perez’s criminal history includes 12 felony convictions.
Perez has been detained since his arrest on July 19, 2023. On June 11, 2024, he pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft.
Walker and Stephanie Perez have pleaded guilty and await sentencing.
This matter has been investigated by the Federal Bureau of Investigation’s New Haven Safe Streets/Gang Task Force, the Bridgeport Police Department, the Hopkinton (R.I.) Police Department, the Westtown – East Goshen Regional (Pa.) Police Department, and the Washington Township (N.J.) Police Department. The case is being prosecuted by Assistant U.S. Attorneys Lauren C. Clark and Heather M. Cherry.
Belmont County man pleads guilty to child exploitation crimes in plea agreement that calls for 30-to-60-year prison sentenceRead the Press Release
COLUMBUS, Ohio – Dennis Stopar, 65, of Flushing, Ohio, pleaded guilty in U.S. District Court today to sexually exploiting minors and possessing child pornography. The plea agreement includes a sentence recommendation of 30 to 60 years in prison.
According to court documents, between 2022 and 2023, Stopar sexually assaulted multiple female minor victims, forced a minor male victim to engage in sexual activity with another child and created hundreds of videos and images of the horrific abuse.
In December 2023, Dropbox, Inc. submitted a cyber tipline to the National Center for Missing and Exploited Children (NCMEC) regarding child pornography being uploaded to a Dropbox account. Dropbox identified the IP address associated with the account within 24 hours. Further investigation revealed Stopar, a convicted sex offender, lived in a trailer on the property identified as the IP address.
On December 28, Belmont County Sheriff’s Office deputies executed a local search warrant and seized Stopar’s electronic devices. Stopar’s electronic devices were subsequently processed via a federal search warrant, and he was charged federally in April 2024.
Stopar’s prior sex offense is a rape conviction for sexually abusing a victim beginning when the victim was approximately 6 years old until the victim was 16 years old.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Belmont County Sheriff David L. Lucas announced the guilty plea entered today before U.S. District Judge Michael H. Watson. Assistant United States Attorneys Emily Czerniejewski and Jennifer M. Rausch are representing the United States in this case.
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Baltimore Man Sentenced to Life in Federal Prison for Sexually Exploiting 16 ChildrenRead the Press Release
Baltimore, Maryland – Today, Chief U.S. District Judge George L. Russell, III, sentenced Gary Rocky Jones, 43, of Baltimore, Maryland, to life in federal prison followed by lifetime supervised release, for the sexual exploitation of 16 minors.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno, Federal Bureau of Investigation (FBI), Baltimore Field Office, and Commissioner Richard Worley, Baltimore Police Department.
Already a twice-convicted sex offender, Jones was found guilty in September 2023 of 27 counts of sexually exploiting a child. Additionally, Jones was convicted of 15 counts of using an interstate commerce facility — specifically the internet — to entice a minor to engage in illegal sexual activity, commissioning a felony crime involving a minor by a registered sex offender, and distributing and possessing child sexual abuse material.
According to the evidence presented at trial, between 2014 and 2015, twice, Jones produced images and videos of a minor male — who was 14 to 15 years old at the time — engaging in sexually explicit conduct. Additionally, as detailed during the trial, from September 2018 through August 2020, Jones used social media accounts to persuade, entice, and coerce an additional 15 minor males, who were from several different states and ranged from eight to 17 years old, to engage in sexually explicit conduct.
During these internet-based communications, Jones convinced the victims to produce livestreamed and recorded visual depictions of themselves engaging in sexually explicit conduct, alone and with others. Then Jones had the boys send him the sexually explicit images and videos via the internet.
On April 2, 2018, Jones used a social media account to distribute child sexual abuse material. Additionally, from December 2, 2014, through January 31, 2020, and from May 29, 2017, through July 14, 2020, respectively, Jones possessed child sexual abuse material, in connection with two separate email addresses and related storage accounts. The jury found that, based on the evidence presented at trial, between 2015 and 2020, Jones committed felony offenses involving minors while he was required to register as a sex offender under Maryland law.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
U.S. Attorney Barron commended the FBI Baltimore Field Office and the Baltimore Police Department for their work in the investigation. Mr. Barron also thanked Assistant U.S. Attorneys Paul E. Budlow and Colleen E. McGuinn, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Armed Robbery of Three Postal Workers Leads to 21+ Years in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Wednesday sentenced a man who robbed U.S. Postal Service letter carriers in St. Louis County as part of a conspiracy to steal checks from the mail to 21 years and three months in prison.
Xavier Sean Boyd, 20, of Jennings, was one of five people involved in a conspiracy in the summer of 2022 to rob postal workers of the arrow keys that unlock mail collection boxes, use those keys to steal checks and then use those checks to commit fraud.
Boyd robbed a postal carrier at gunpoint on June 1, 2022, on Chambers Road in St. Louis County. The conspirators used that key four days later to steal mail from collection boxes in Berkeley, West Florissant, Normandy, Overland and Ferguson.
Boyd and co-conspirator Roy Lee Jones deposited $19,199.60 in stolen checks into Jones' credit union account on June 7, 2022. They next day, they tried to withdraw the entire amount, but were only able to obtain $8,500. They also deposited checks into Xavier Boyd 's bank account but were not able to withdraw any of the stolen funds.
Jones robbed a second postal carrier of his arrow key on June 9, 2022. Boyd robbed a third carrier less than 20 minutes later. Both were in Boyd’s mother’s SUV at the time. The third postal carrier noted the license plate of the SUV and police spotted the vehicle within minutes. Boyd initially pulled over and then sped away, sparking a high-speed chase that ended when Boyd crashed. Both men fled, carrying pistols. Police tackled Boyd within feet of the SUV and arrested Jones on the front steps of a nearby day care center.
In a video call from jail after his arrest, Boyd warned one of his co-conspirators to try and thwart the investigation, according to court documents. Boyd had just graduated from a prestigious local high school and had at least one college acceptance at the time he was terrorizing postal workers.
“Postal Service employees play an integral role in our communities delivering mail to the American people. As public servants, postal employees must be allowed to do their job safely and securely. Postal Inspectors will aggressively investigate anyone who brings harm to these invaluable public servants,” said Inspector in Charge, Ruth Mendonça, who leads the Chicago Division of the U.S. Postal Inspection Service, which includes the St. Louis Field Office.
Boyd pleaded guilty in September to three counts of robbery and two counts of possession and brandishing a firearm in furtherance of a robbery.
Last month, Judge Schelp sentenced Jones, 22, to 84 months in prison. Jones pleaded guilty in August to one count of robbery, one count of theft of a mail key and one count of possession and brandishing a firearm in furtherance of a robbery.
The U.S. Postal Inspection Service and the St. Louis County Police Department investigated the case. Assistant U.S. Attorney Jason Dunkel prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Arizona Man Indicted for Sending Antisemitic Death Threats and StalkingRead the Press Release
Edward Y. Kim, the Acting United States Attorney for the Southern District of New York, and Nelson I. Delgado, the Acting Special Agent in Charge of the Federal Bureau of Investigation (“FBI”) Newark Field Office, announced the return today of a three-count Indictment charging DONOVAN HALL with making interstate threats and interstate stalking. HALL was arrested on November 22, 2024, in Mesa, Arizona, and was subsequently presented in federal court in the District of Arizona. The case has been assigned to U.S. District Judge Jennifer H. Rearden.
Acting U.S. Attorney Edward Y. Kim said: “Donovan Hall allegedly unleashed a campaign of terror against several Jewish New Yorkers, allegedly sending scores of hateful, violent, and antisemitic death threats. No individual deserves to be at the receiving end of these types of threats or to be targeted because of their religion. This Office is committed to aggressively prosecuting hate crimes of all kinds and seeking justice for the victims of these offensive and harmful acts.”
Acting Special Agent in Charge Nelson I. Delgado said: “We allege Hall used graphic and hate-filled rhetoric to terrorize several victims in New York City and around the U.S. These malicious phone calls escalated to text messages brazenly displaying his weapons, furthering his victims' worst fears. The FBI has ZERO tolerance for hate-filled speech, threats and violent actions. We will not rest until those who commit these types of crimes are held accountable.”
According to the Complaint, the Indictment, and other documents and statements in the public record:
Over a period of three months, HALL contacted several individuals located in New York, New York, (the “Victims”) approximately 1,000 times and made anti-Semitic and violent threats to torture, mutilate, and murder them and their families. In particular, starting in August 2024, HALL made dozens of threatening phone calls—many of which were anti-Semitic in nature—to the owner of a hotel located in Manhattan, the owner’s family members, and hotel staff. During these calls, HALL threatened numerous times to kill the Victims.
In October 2024, HALL escalated his threatening conduct by texting photographs of two firearms and a machete to the hotel owner, along with threats to use those weapons to harm the owner and his family. During a search of HALL’s residence in Arizona conducted on November 22, 2024, the firearms depicted in the text messages, among other weapons and ammunition, were recovered. The two firearms—neither of which is registered in HALL’s name—were located alongside his wallet in his backpack. One of the firearms was loaded.
HALL’s threats toward the Victims were part of a larger pattern of death threats sent to various other individuals. The targets of his threats are located throughout the U.S. In these communications, HALL consistently used violent and threatening language, and often targeted Jews.
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HALL, 34, of Mesa, Arizona, has been charged with two counts of making interstate threats, which each carry a maximum sentence of five years in prison, and one count of interstate stalking, which carries a maximum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Kim praised the outstanding investigative work of the FBI’s Newark Field Office. Mr. Kim also thanked the New York Police Department, the U.S. Attorney’s Office for the District of Arizona, the FBI Phoenix Field Office, the Mesa Police Department, and the Clifton Police Department in Clifton, New Jersey.
This case is being handled by the Office’s Civil Rights Unit in the Criminal Division. Assistant U.S. Attorney Sam Adelsberg is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
After-Market Firearm Accessory Manufacturer and Distributor Sentenced for Illegal Distribution of Firearm SilencersRead the Press Release
BOSTON – A New Hampshire company was sentenced for violating the National Firearms Act (NFA) by distributing interoperable components for firearm silencers.
KBC Capital, LLC d/b/a “Lethal Eye” was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to three years’ probation and ordered to pay a $260,000 fine. In September 2024, KBC pleaded guilty to 26 counts of transferring a firearm in violation of the NFA.
“Silencers allow for the proliferation in criminal activity by reducing the sound of gunfire and affecting the ability to identify the location and source of a shot. By knowingly misbranding these devices, KBC flooded our streets with dangerous devices and impeded law enforcement,” said Acting United States Attorney Joshua S. Levy. “The U.S. Attorney’s Office and our law enforcement partners take all gun crimes seriously and will continue to work together to hold those accountable who violate our gun laws.”
“ATF takes violations of the National Firearm Acts very seriously, and suppressors in the wrong hands possesses significant threats to public safety. Today’s sentence, reinforces ATF’s commitment to arresting and prosecuting individuals who violate the NFA statutes,” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division
“Each and every illicit silencer has potential for violent use and today’s sentence accounts for each transfer of a silencer made by KBC confirmed by this investigation. Companies in the firearms trade have a duty to follow regulations to ensure a safe, lawful firearms industry. This case brings together several of our law enforcement partners and underlines our commitment of holding sellers accountable when they try to subvert the law,” said Special Agent in Charge Michael J. Krol for Homeland Security Investigations in New England.
“Postal inspectors are committed to ensuring the U.S. Postal Service is not a mechanism to distribute illicit firearms or firearm components,” stated Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service. “The sentence handed down in this case serves as a reminder that postal inspectors, along with our law enforcement partners, remain steadfast in our resolve to protect our communities from dangerous weapons.”
“This investigation is an example of DEA’s dedication to working with our local, state and federal partners in identifying, targeting and investigating those who are involved in selling dangerous devices,” said Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “We will continue to work with our law enforcement partners to stop illegal activities so our communities can be safe places to be.”
KBC operated a website using the trade name “Lethal Eye,” selling a variety of firearms accessories. Despite marketing one of these products as a “muzzle break,” the product actually served as a principal part of a firearm silencer. This part was interoperable with other KBC products that, together, along with other generally available consumer products, could be combined to generate a firearm silencer. According to court documents, while doing business as “Lethal Eye,” KBC sent 26 illegal suppressor parts to Massachusetts residents. On Aug. 18, 2023, a search of Lethal Eye’s principal place of business resulted in the recovery of 327 items classified as illegal firearm silencers. At no time, was KBC an FFL and at no time did KBC pay the appropriate tax to manufacture a single silencer.
The NFA imposes taxes on the making and transfer of NFA Firearms, as well as a special occupational tax on Federal Firearms Licensees (FFLs) engaged in the business of importing, manufacturing and dealing in NFA firearms. Only certain classes of FFLs may lawfully manufacture NFA weapons. The NFA requires registration of all NFA firearms with the Attorney General in the National Firearms Registration and Transfer Record. The purpose of the NFA is to regulate transactions which are deemed to be more dangerous than those not regulated by the NFA due to their proliferation in criminal activity at the time the NFA was enacted.
United States Attorney Levy; ATF SAC Ferguson; HSI SAC Krol; USPIS INC Larco-Ward; and DEA Acting SAC Belleau made the announcement today. Valuable assistance was provided by Nashua (N.H.) and Hollis, (Mass.) Police Departments. Assistant U.S. Attorney Evan Panich of the Criminal Division is prosecuting the case.
25th Patient of Missouri Chiropractic Office that Aided Disability Fraud SentencedRead the Press Release
ST. LOUIS – The 25th patient of a Jefferson County, Missouri chiropractic office involved in a multi-million dollar disability fraud conspiracy was sentenced Wednesday as part of an ongoing fraud investigation. Six more patients are set for sentencing next year.
U.S. District Judge Stephen R. Clark sentenced Donald Furrer, 67, to one year of probation. Prior to sentencing, Furrer repaid just under $462,000 that he received from the Social Security Administration’s Disability Trust Fund and private disability benefit insurance providers by falsely claiming to be disabled.
The two chiropractors who owned and operated PowerMed Inc., Thomas G. Hobbs and Vivian Carbone-Hobbs, are in federal prison, serving four-year prison terms. Hobbs was ordered to repay $4.3 million; Carbone-Hobbs was ordered to repay $16.4 million.
One employee, Christina Barrera, was sentenced to 14 months in prison. Another, Clarissa Pogue, was sentenced to five years of probation, including six months of house arrest.
Many patients worked at Anheuser-Busch. Some are spouses of other defendants. They have been sentenced in a range from one year of probation to the 15 month term of imprisonment imposed on patient Elizabeth Guetersloh. All were ordered to repay the money they reaped via fraud, ranging from $47,087 to more than $470,000.
James Ralston was sentenced to five years of probation and ordered to repay more than $2.1 million. He was a former Anheuser-Busch union steward who referred his former co-workers and coached them as they falsified their disability applications.
Hobbs charged patients fees of thousands of dollars to prepare disability forms and coach them on how to lie about their ability to perform basic daily tasks such as lifting, standing, walking, sitting and taking care of their personal needs. According to evidence and testimony presented at the trials of Carbone-Hobbs, Barrera, Pogue, and Guetersloh, some patients were presented with a “Disability Package Pricing” sheet that listed the fees ranging as high as $8,600 for PowerMed to handle various disability claims options, including qualifying for Social Security disability, short-term disability, private insurance and insurance that would pay off auto or other loans. The total fees exceeded more than $13,000 for some patients.
Hobbs, who also falsely claimed to have a medical license, submitted fraudulent medical reports to support patient claims. He and Carbone-Hobbs also submitted fraudulent claims for reimbursement to health care benefit programs for medical services that were used to bolster those claims.
Although PowerMed patients claimed to be disabled and unable to work or do many of the basic functions of life, they travelled nationally and internationally, danced, hiked or rode roller coasters. Some bought new homes or second homes with the money.
“This investigation is ongoing, but has already resulted in convictions of 31 people, as well as the recovery of more than $6 million that will go to the Social Security Administration and the private insurers who were defrauded,” said U.S. Attorney Sayler A. Fleming. “This outcome would not have been possible without the dogged work by investigators.”
“Social Security disability benefits are intended for persons who are unable to work because they have a medical condition. Donald Furrer made false statements and misrepresentations to SSA to fraudulently receive disability benefit payments from SSA totaling more than $317,000. This sentence holds him accountable for his criminal behavior,” said Jason Albers, Special Agent in Charge, Social Security Administration Office of the Inspector, Dallas Kansas City Field Division. “In this comprehensive investigation and complex prosecution of this case, involving multiple subjects and agencies, investigators and prosecutors have done exemplary work. I commend them all for their diligent efforts in this years-long process to bring forth justice.”
“When unscrupulous individuals lie to obtain disability benefits, they are taking away resources from those who truly need it,” said FBI Acting Special Agent in Charge Greg Heeb. “I commend our agents and the prosecutors who successfully unraveled such a large conspiracy to recover millions of dollars defrauded from taxpayers who fund this critical program.”
The cases were investigated by the Social Security Administration – Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorneys Tracy Berry, Dorothy McMurtry, Diane Klocke and Gwendolyn Carroll have prosecuted the cases.
Anyone who suspects fraud involving the Disability Insurance Benefit Program should contact the Social Security Administration Office of Inspector General Hotline at: 1-800-269-0271 or https://oig.ssa.gov/report/.
17 December 2024
Wisconsin Man Sentenced to 2 Years for Possessing Destructive DevicesRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that James Morgan, 31, Jefferson, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 2 years in federal prison for possessing destructive devices. He pled guilty to the charge on April 16, 2024.
The FBI received information indicating that Morgan made and possessed destructive devices. Acting on that information, on December 21, 2023, local and federal law enforcement agents executed a federal search warrant at Morgan’s travel trailer in Janesville, Wisconsin. Morgan was living in the trailer at the time. Inside a locked safe in the trailer, agents found six improvised explosive devices. The devices were homemade and had several nails glued to the outside. The devices were rendered safe and sent to the FBI lab for formal testing. Experts from the FBI lab determined that the devices contained explosive powder and were in fact “destructive devices” under federal law.
During an interview with agents, Morgan admitted he made the devices with his father and referred to them as “grenades.” He said he knew they were illegal.
“We take these cases very seriously and will do everything necessary to ensure that individuals who make and possess destructive devices will be prosecuted in federal court,” said U.S. Attorney O’Shea.
“Homemade explosive devices pose a risk to the safety of Wisconsin residents,” said FBI Special Agent in Charge Michael Hensle of the Milwaukee Division. “Mr. Morgan’s reckless behavior could have caused destruction and death or serious bodily injuries. The FBI continues to work with our local law enforcement partners to hold criminals accountable and ensure public safety throughout the state.”
At sentencing, Judge Peterson expressed concern over Morgan’s decision to make and possess destructive devices, especially considering Morgan’s history of posting racist and anti-government sentiments on social media. Judge Peterson noted that explosive devices are inherently dangerous and that Morgan’s decision to add nails to the outside of the devices suggested a purpose beyond a simple fascination with explosives. Judge Peterson expressed hope that the federal prosecution would interrupt Morgan’s criminal conduct and give him an opportunity to redirect his life.
Morgan is still facing charges in the Eastern District of Wisconsin for possessing chemical weapons based on chemicals found in his storage locker in Whitewater, Wisconsin, the same day as the destructive devices were found in the Western District of Wisconsin. If convicted of this charge, Morgan faces a maximum penalty of life in prison. Unless and until Morgan is convicted of this charge, he is presumed innocent.
The charges in the Eastern and Western Districts of Wisconsin are the result of an investigation by the Federal Bureau of Investigation, the Janesville Police Department, and the Whitewater Police Department. Assistant U.S. Attorney Meredith Duchemin for the Western District of Wisconsin, Assistant U.S. Attorney John Scully for the Eastern District of Wisconsin, and Trial Attorney Justin Sher of the Justice Department’s National Security Division’s Counterterrorism Section are prosecuting the cases.
Wilmington Man Pleads Guilty in Federal Court to Kidnapping Resulting in DeathRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced today that Kimon Burton-Roberson, age 31 of Wilmington, Delaware, pleaded guilty yesterday to Conspiracy to Commit Kidnapping, which resulted in the death of a Wilmington resident. The Honorable Chief U.S. District Judge Colm F. Connolly accepted the plea.
According to court documents, in the early hours of July 21, 2021, Mr. Burton-Roberson and co-conspirators, entered a residence in Wilmington, Delaware where they knew their victim to be staying. Mr. Burton-Roberson and others beat the victim with a blunt object until the victim was bleeding, tying the victim’s hands together with zip ties. Mr. Burton-Roberson and others then forcibly removed the victim from the residence, placed the victim into Mr. Burton-Roberson’s car, and drove the victim across state lines into Pennsylvania. Members of the conspiracy shot the victim in the head, leaving the victim’s body in an industrial park in Delaware County, Pennsylvania.
Mr. Burton-Roberson will be sentenced on April 24, 2025. He faces a sentence of up to life in prison. Chief Judge Connolly will determine his sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Weiss stated, “By working together across jurisdictions, federal and local law enforcement identified the perpetrator of this heinous crime and brought him to justice. We are proud of the tireless, cooperative efforts of our law enforcement partners.”
"The Yeadon Police Department is pleased to have greatly assisted in bringing this fugitive to justice, which brings closure to this sad, epic story that had unfortunately ended up in Yeadon. We are pleased to be able to work together with our federal partners in the FBI, Department of Justice and regional authorities including our Delaware County DA's Office as well as neighboring boroughs, in bringing this matter to a close. This illustrates how cooperation between law enforcement partners can serve to the benefit of all concerned citizens."
"Crimes like these, in which actors perpetrate offenses across jurisdictional boundaries, underscore the critical importance of our strong partnerships with our partner law enforcement agencies," said Wilmington Police Chief Wilfredo Campos. "It is our hope that the charges in this case, and now this guilty plea, will bring some measure of comfort to the family of the victim in this case."
"With this plea, Burton-Roberson is being held accountable for the horrific murder and cruel disregard he showed his victim. This type of violence is intolerable," said FBI Baltimore SAC William J. DelBagno. "The FBI's Wilmington Violent Crime and Safe Streets Task Force works every day to make our community safer by removing violent criminals like Burton-Roberson from our streets. We are proud of the partnerships and dedication shown by all agencies to bring justice in this case."
This investigation involved close collaboration between the FBI, the Yeadon Borough Police Department, the Wilmington Department of Police and Delaware Probation and Parole. Assistant U.S. Attorneys Kevin P. Pierce, Michelle L. Morgan, and Benjamin L. Wallace are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 22-CR-17-1-CFC.
White River Junction Man Charged with Possession of an Unregistered SilencerRead the Press Release
Burlington, Vermont – The United States Attorney’s Office stated that Joseph Vaillancourt, 42, of White River Junction, Vermont, has been charged by criminal complaint with possessing a silencer that was neither registered to him nor identified by a serial number.
On December 16, 2024, Vaillancourt appeared before United States Magistrate Judge Kevin J. Doyle, who ordered that Vaillancourt be detained pending further proceedings later this week.
According to court records, on October 18, 2024, Hartford, Vermont police located the silencer along with thirteen firearms and over 1,200 rounds of ammunition during the execution of a search of Vaillancourt’s residence pursuant to an unrelated state warrant. Agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) identified the silencer as subject to the National Firearms Act.
The United States Attorney’s Office emphasizes that the complaint contains allegations only and that Vaillancourt is presumed innocent until and unless proven guilty. Vaillancourt faces up to ten years in prison if convicted. The actual sentence, however, would be determined by the District Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the ATF, the Hartford Police Department, and the Windsor County Sheriff’s Department.
The prosecutor is Assistant United States Attorney Eugenia Cowles. Vaillancourt is represented by Assistant Federal Public Defender Sara Puls.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Washington State Man Sentenced to Federal Prison for Role in Debt Consolidation SchemeRead the Press Release
PORTLAND, Ore.—A Vancouver, Washington man was sentenced to federal prison today for intentionally defrauding customers during a multiyear debt consolidation scheme.
Javier Antonio Banuelas Urueta, 55, was sentenced to 21 months in federal prison and three years’ supervised release. He was also ordered to pay $115,750 in restitution to his victims.
According to court documents, between April 2019 and April 2024, Banuelas and his co-conspirator devised and carried out a scheme whereby they collected money and property from clients in exchange for purported debt consolidation services through their company, ConsoliDebt Solutions, LLC (ConsoliDebt).
Banuelas paid for advertisements offering debt consolidation services on radio stations in Oregon and Washington despite not being licensed to work in the industry or provide such services. When victims called ConsoliDebt they reached Banuelas who would discuss their debts, create monthly payment plans, and falsely claim to consolidate or reduce the victim’s debt.
As part of the scheme, Banuelas directed clients to deposit funds directly into ConsoliDebt bank accounts, transfer funds to the company, or mail in personal checks, cashier’s checks, or money orders. To instill trust in the company, victims received falsified monthly statements detailing account information, payments received, and debt amounts settled. Instead of paying victims’ debts as promised, Bauelas used client funds to pay for personal expenses such as car leases, residential rent, and various wire transfers.
On April 4, 2024, a federal grand jury in Portland returned a seven-count indictment charging Banuelas with conspiring to commit and committing mail and wire fraud.
On August 1, 2024, Banuelas pleaded guilty to conspiring to commit and committing mail and wire fraud.
This case was investigated by Homeland Security Investigations. It was prosecuted by Rachel K. Sowray, Special Assistant U.S. Attorney for the District of Oregon.
Utah Man Sentenced to Prison After Fraudulently Collecting over Half a Million Dollars in Disability BenefitsRead the Press Release
SALT LAKE CITY, Utah – Robert Anthony Monsen, 49, of Herriman, Utah, was sentenced today to 18 months’ imprisonment, three years’ supervised release, and ordered by the court to pay over $561,000 in restitution to the Social Security Administration (SSA) and Medicare after he fraudulently collected over 13 years’ worth of SSA disability and Medicare benefits.
The sentence, imposed by Senior U.S. District Court Judge Ted Stewart, comes after Monsen pleaded guilty in September 2024 to theft of public money, property, or records.
According to court documents and statements made at Monsen’s change of plea and sentencing hearings, Monsen collected SSA disability and Medicare benefits for the period of September 2010 to November 2023, claiming severe back injuries that rendered him unable to work. Mr. Monsen continually claimed that he was too disabled to work. However, he worked several jobs – including active work for the bail bonds, security, and restaurant businesses. During this time, Monsen concealed his income and functionality from SSA, in part by routing his paychecks through an LLC in another individual’s name. He also took several vacations in the U.S. and overseas, snorkeling, enjoying the beach, and assisting fighters inside the ring at a mixed martial arts event.
According to court documents, until November 2023, Monsen continued to receive Title II Disability benefits at a rate of $1,981.00 per month for himself, in addition to other family benefits. During the 13 years of disability benefits, he did not report any improvements in his condition to SSA, despite continuous reminders that he was obligated to do so if his health improved or if he was able to begin work. In total, Monsen fraudulently obtained over half a million dollars ($561,050.70) in federal funds set aside for some of society’s most vulnerable members. The calculation includes $274,479.10 in Title II disability benefits, $59,492.00 in child auxiliary benefits, and $227,079.60 in Medicare claims.
“Mr. Monsen not only fraudulently obtained over half a million dollars from taxpayers, but he took benefits reserved from individuals who cannot work due to a severe medical condition,” said U.S. Attorney Trina A. Higgins. “Protecting the community and vulnerable populations is a priority for my office and we will continue to work with our law enforcement partners to seek justice through prosecution.”
“This 18-month prison sentence was based on Mr. Monson’s deceitful and criminal scheme to defraud SSA. Social Security disability insurance benefits are vital to individuals and their families who qualify to receive them. My office will continue to protect these essential benefits by pursuing perpetrators,” said Hannibal “Mike” Ware, Acting Inspector General for SSA. “I thank the U.S. Attorney’s Office and Special Assistant U.S. Attorney Sachiko J. Jepson for prosecuting this case.”
The case was investigated by the Social Security Administration, Cooperative Disability Investigations Unit.
Special Assistant United States Attorney Sachiko J. Jepson of the U.S. Attorney’s Office for the District of Utah prosecuted the case.
U.S. Attorney's Office Secures Guilty Pleas for Theft and Bank FraudRead the Press Release
ALBUQUERQUE – Two Chimayo women pleaded guilty in federal court to a theft in Indian Country and a bank fraud scheme targeting multiple financial institutions across Sandoval, Santa Fe, and Rio Arriba Counties.
According to court documents, on May 22, 2022, shortly after 4:00 AM, Billie Jo Gussler and Angelica Dominguez entered the Valero gas station located on Tesuque Pueblo and stole property valued at over $1,000, including lottery tickets and cigarettes. Neither Gussler nor Dominguez is a member of a federally recognized Indian tribe.
Furthermore, between January 6, 2020, and August 19, 2022, Gussler and Dominguez engaged in an extensive bank fraud scheme across Sandoval, Santa Fe, and Rio Arriba Counties. The pair targeted multiple federally insured financial institutions, including Del Norte Credit Union, Bank of America, U.S. Bank, Century Bank, Enterprise Bank and Trust, Washington Federal Bank, and SoFi Bank.
The fraudulent activities involved altering and forging checks to withdraw funds unlawfully from account holders and financial institutions.
Gussler and Dominguez will remain in custody pending sentencing, which has not yet been scheduled. At sentencing, Gussler and Dominguez each face up to 30 years imprisonment. Upon their release from prison, Gussler and Dominguez will be subject to up to five years of supervised release.
U.S. Attorney Alexander M.M. Uballez made the announcement today.
The Bureau of Indian Affairs investigated the theft case with assistance from the Tesuque Tribal Police and Quay County Sheriff’s Office. The U.S. Postal Inspection Service investigated the fraud case with the assistance of the Santa Fe Police Department, Espanola Police Department, and New Mexico State Police. Assistant United States Attorneys Meg Tomlinson and Maria Stiteler are prosecuting the cases.
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U.S. Attorney Jesse Laslovich announces dismantling of Great Falls fentanyl trafficking ringRead the Press Release
GREAT FALLS — U.S. Attorney Jesse Laslovich, for the District of Montana, along with multiple law enforcement partners, today announced the dismantling of a large fentanyl trafficking ring that brought tens of thousands of pills to the community from Washington for distribution and led to convictions of 10 individuals on federal charges. The investigation also led to individuals facing charges in state court.
U.S. Attorney Laslovich, along with Great Falls Police Chief Jeff Newton and Cascade County Attorney Joshua Racki, discussed the investigation during a news conference at the Great Falls Civic Center and were joined by representatives of the Russell Country Drug Task Force. The drug task force is composed federal, state and local law enforcement agencies, including the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, Montana Division of Criminal Investigation and Great Falls Police Department and Cascade County Sheriff’s Office.
“Taking down fentanyl trafficking rings to reduce drug-related violence and overdoses and death caused by this extremely dangerous drug is critical to the health and safety of our communities, like Great Falls. These traffickers try to move in and enlist local dealers to profit off persons who are addicted to fentanyl. Dismantling this drug organization was possible only through the unwavering commitment and cooperation of our law enforcement partners and prosecutors to bring these defendants to justice. We know the work needs to continue and we will continue to do it,” U.S. Attorney Laslovich said.
“Already this year, in 2024, the Russell Country Drug Task Force interdicted a huge shipment of methamphetamine destined for Great Falls, and the amount of cocaine they’ve seized is nearly triple that of 2023,” Great Falls Police Chief Newton said.
“The Cascade County Attorney’s Office is dedicated to combatting the influx of illicit drugs by holding accountable those who bring them into our communities,” Cascade County Attorney Racki said.
The investigation into fentanyl trafficking in the Great Falls area began in the fall of 2022 and led to a supplier in the Tacoma, Washington, area. The supplier, Joseph Allen Conner, was arrested in June 2023, followed by the arrests of most of the other defendants in a coordinated multi-agency takedown in October 2023 in Great Falls. Several remaining federal defendants were sentenced in October in U.S. District Court in Great Falls.
The investigation determined that Conner made multiple trips to Montana, including Great Falls, to sell fentanyl pills and to distribute to other local dealers. Conner possessed "buckets full" of fentanyl pills and was seen with what one individual described as a "volleyball size bag" of pills. Conner was sentenced in May to five years in federal prison after he pleaded guilty to a conspiracy charge. Overall, the investigation led to the seizure of tens of thousands of fentanyl pills and at least seven firearms.
In addition to defendant Conner, nine other individuals were charged in federal indictments and convicted.
The federal defendants include:
- Joseph Allen Conner, of Yakima, Washington: conspiracy to distribute and to possess with intent to distribute controlled substances. Sentenced to five years in prison.
- Nicholas Cocklin, of Great Falls: possession with intent to distribute controlled substances. Sentenced to one year in prison.
- Alanna Corcoran, of Great Falls: conspiracy to distribute controlled substances. Sentenced to Glacier drug court.
- Terry McIntire, of Great Falls: conspiracy to distribute controlled substances. Sentenced to two- and one-half years in prison.
- Michael McIntire, of Great Falls: possession with intent to distribute controlled substances. Sentenced to 12 months and one day in prison.
- Paul Regimbal, of Great Falls: possession with intent to distribute controlled substances. Sentenced to 12 months and one day in prison.
- Iesha Berry-Harris, of Tacoma, Washington: possession with intent to distribute controlled substances. Sentence to 15 months in prison.
- David Prien-Pinto, of Great Falls: possession with intent to distribute controlled substances. Sentenced to five years in prison.
- Courtney Price, of Great Falls: possession with intent to distribute controlled substances. Sentenced to three years and two months in prison.
- Casey Louis Ream, of California: possession with intent to distribute fentanyl and prohibited person in possession of a firearm. Sentenced to eight years and eight months in prison.
The U.S. Attorney’s Office prosecuted the cases. The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, U.S. Postal Inspection Service, Russell Country Drug Task Force, Great Falls Police Department and the Cascade County Attorney’s Office investigated the case.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
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Two Washington Men Found Guilty of Producing and Distributing Child Sexual Abuse MaterialRead the Press Release
Spokane, Washington – United States Attorney Vanessa R. Waldref announced that a jury returned a verdict in the trial of Tony J. Bolen, age 43, and Casey Allen Greer, age 47. Bolen and Greer were found guilty of Production of Child Pornography, Conspiracy to Produce Child Pornography, and Commission of a Felony Sex Offense by an Individual Required to Register as a Sex Offender. Greer was additionally found guilty of Distribution of Child Pornography, and Bolen was found guilty of one count each of Receipt and Transportation of Child Pornography.
Based on court documents and evidence presented at trial, beginning in October 2021, and continuing to December 2021, Bolen and Greer worked together to produce child sexual abuse material of a young child that Greer had been sexually abusing since as early as May 2021. Both Bolen and Greer discussed when Greer would have access to the minor and how Greer would medicate the victim to ensure the victim’s compliance during the sexual abuse. Greer also repeatedly sent images and videos of the sexual abuse to Bolen. In written text messages, Bolen also directed Greer to sexually abuse the victim in a specific way, record the abuse, and send it to him.
Bolen and Greer both have prior Washington State convictions for Child Molestation. Because of these convictions, Bolen and Greer were required under state and federal law to register as sex offenders.
“My heart goes out to the young victim in this case. The harm and trauma that Mr. Bolen and Mr. Greer caused will last long after this trial, but I am hopeful the guilty verdicts provide some comfort and closure to the victim and their loved ones. I am grateful for the investigators and prosecutors that work every day to prevent horrific victimization of children, remove dangerous offenders from our community, and protect the most vulnerable among us.”
“HSI special agents won’t ever relent when it comes to protecting children and arresting individuals like Bolen and Greer who prey on the most vulnerable population,” said Matthew Murphy acting Special Agent in Charge, HSI Seattle. “Child sex abuse is one of the most serious crimes HSI investigates due to the lasting psychological and physical damage it can inflict on victims. We are proud to work closely with our law enforcement partners and the U.S. Attorney’s Office to make Washington safer from predators like these.”
“The Washington State Patrol is honored to be a part of the team that successfully worked this case. We will always do our best to protect our vulnerable children and make our communities safer,” said Chief John R. Batiste.
United States District Judge Mary K. Dimke presided over the trial for Bolen and Greer, which began December 9, 2024. Sentencing in this matter is set April 23, 2025, in Spokane, Washington.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated jointly by Homeland Security Investigations, the Washington State Patrol, and Spokane Police Department, as part of the Internet Crimes Against Children Task Force. It is being prosecuted by Assistant United States Attorneys Ann T. Wick and Laurel J. Holland.
2:23-cr-00074-MKD
Two New York Men Sentenced to Lengthy Prison Sentences for Committing Three Gunpoint Robberies and Conspiring to Commit Additional RobberiesRead the Press Release
NEWARK, N.J. – Two Brooklyn, New York, men were sentenced to lengthy prison terms today for their roles in three gunpoint robberies of check cashing locations in different parts of New Jersey in 2021 and 2022, as well as conspiring to commit robberies in New Jersey, New York, and Pennsylvania, U.S. Attorney Philip R. Sellinger announced.
Ramel Harris, a/k/a Ramel Harrison, 43, of Brooklyn, and Neville Brown, 40, of Brooklyn, were both sentenced today by U.S. District Judge Claire C. Cecchi in Newark federal court to 186 months in prison. Both men previously pleaded guilty before Judge Cecchi to three counts of an Indictment charging them with Hobbs Act conspiracy, Hobbs Act robbery, and using, carrying, and brandishing a firearm during and in relation to a crime of violence, namely the Hobbs Act robbery.
According to documents filed in this case and statements made in court:
On several dates between January 2021 and January 2022, two individuals, later identified as Harris and Brown, attempted to rob a check cashing location in Nanuet, New York, and thereafter successfully robbed three check cashing locations in Parsippany, New Jersey, Old Bridge, New Jersey, and Hackettstown, New Jersey while brandishing a firearm and using zip ties to restrain female employees at each location. During those robberies, Harris and Brown stole approximately $563,566.35.
During the subsequent investigation, law enforcement learned that the conspirators surveilled check cashing locations in the following locations: Mount Kisco, New York, Allentown, Pennsylvania and West Chester, Pennsylvania. Law enforcement obtained video surveillance footage that ultimately linked Harris and Brown to the robberies. Furthermore, historical cell phone records indicate that Harris’s and Brown’s cellular telephones were in or around the locations of the various robberies around the times that they were committed.
In addition to the prison term, Judge Cecchi sentenced Harris and Brown to five years of supervised release.U.S. Attorney Sellinger credited members of the FBI’s New Jersey field office, under the direction of Acting Special Agent in Charge Nelson I. Delgado; members of the FBI’s New York field office, under the leadership of Assistant Director In Charge James E. Dennehy; members of the FBI’s Philadelphia field office, under the leadership of Special Agent in Charge Wayne A. Jacobs; members of the Hackettstown Police Department, under the direction of Police Chief Aaron Perkins; members of the Old Bridge Police Department, under the leadership of Chief of Police Thomas J. Montagna; members of the Parsippany-Troy Hills Police Department, under the leadership of Police Chief Richard Pantina; members of the Morris County Prosecutor’s Office, under the leadership of Prosecutor Robert J. Carroll; members of the Clarkstown Police Department, under the leadership of Police Chief Jeffrey Wanamaker; members of the Westchester County (New York) Department of Public Safety; and members of the Borough of West Chester (Pennsylvania) Police Department, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Benjamin Levin, Chief of the General Crimes Unit in Newark.
harrisbrown.indictment.pdf
Two Men Sentenced to Federal Prison in Connection with an Assault on the Pine Ridge ReservationRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Camela C. Theeler has sentenced two Pine Ridge, South Dakota men. The sentencings took place on November 18, 2024.
Angelo Poor Bear, 40, was convicted of Misprision of a Felony and sentenced to one year and one day in federal prison, followed by one year of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Jadan Poor Bear, 31, was convicted of Aiding and Abetting Assault Resulting in Serious Bodily Injury and sentenced to one year and eight months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. The Court ordered Jadan Poor Bear’s prison sentence to be served consecutively to a one year and eight months sentence he received for another assault he committed on the Pine Ridge Reservation.
Angelo and Jadan Poor Bear were indicted for Assault Resulting in Serious Bodily Injury and Assault with a Dangerous Weapon by a federal grand jury in February 2024. Jadan pleaded guilty on August 27, 2024, and Angelo pleaded guilty on September 5, 2024.
The charges stemmed from Jadan beating the victim with a baseball bat, causing serious injuries, and Angelo taking steps to prevent law enforcement from discovering the crime. The assault occurred on the Pine Ridge Indian Reservation in January 2024.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety Criminal Investigations Division. Assistant U.S. Attorney Anna Lindrooth prosecuted the case.
Both men were immediately remanded to the custody of the U.S. Marshals Service.
Two Maryland Men Sentenced to Imprisonment for Participating in a Romance Fraud SchemeRead the Press Release
BISMARCK – United States Attorney Mac Schneider announced that on December 17, 2024, U.S. District Court Judge Daniel M. Traynor sentenced Chinedu Ikenna Nwafor, age 42, from Bowie, Maryland, to serve 25 months in federal prison, 3 years of supervised release, and payment of $180,000.00 in restitution after he pleaded guilty to Conspiracy to Commit Mail Fraud for participating in a romance fraud scheme that targeted elderly women.
Additionally, on August 8, 2024, Judge Traynor sentenced Nwafor’s codefendant, Vitus Uzoma Uzowuru, age 56, from Glendale, Maryland, to time served imprisonment, which amounted to approximately 10 months’ imprisonment, 3 years of supervised release, and payment of $50,000.00 in restitution after he pleaded guilty to Aiding and Abetting Mail Fraud for participating in a romance fraud scheme that targeted elderly women.
Finally, on April 12, 2023, a federal grand jury located within the District of North Dakota returned an Indictment charging Juliet Chinyere Molenda with Wire Fraud related to her participation in a romance fraud scheme. The United States District Court for the District of North Dakota has scheduled her trial date for July 24, 2025, before U.S. District Court Judge Daniel Hovland. An indictment is an accusation and notice of charges. Juliet Molenda is presumed innocent under the law unless and until proven guilty.
As noted in court documents filed by the United States Attorney’s Office—which documents the nature and extent of this romance fraud scheme—foreign actors falsely and fraudulently posed as high-ranking United States military members, stated they were deployed to a foreign country, and created fake social media or internet profiles, which advanced these falsehoods. Thereafter, the foreign actors, while falsely pretending to be military members, targeted elderly females by contacting them through social media or internet profiles and entered into what the romance fraud victims believed were legitimate romantic relationships. Over time, the foreign actors cultivated the romance fraud victims trust and fraudulently induced them to send money at their request to United States based coconspirators, including Nwafor, Uzowuru, and Molenda, normally by concocting elaborate and false stories that convinced the victims to send money to these coconspirators—such as requesting that the victims pay for a sudden legal issue or customs dispute that prevented the purported military officer or his property from traveling to the United States.
Nwafor served as a United States based middleman to the foreign actors by obtaining money from romance fraud victims and then sent a large portion of these funds to the international actors. As noted in court documents, Nwafor admitted that he received a package from a New Town, North Dakota, victim that contained a $150,000.00 cashier’s check, which foreign actors fraudulently obtained from this New Town victim as part of a romance fraud scheme by posing as either a “General Joseph Martins” or a “Diplomat David Jones.” Uzowuru also served as a United States based middleman to both Nwafor and the foreign actors. As noted in court documents, Uzowuru admitted that he also received a package from the New Town, North Dakota, victim that contained $50,000.00, which foreign actors fraudulently obtained from this New Town, North Dakota, victim.
“This sentence shows that romance scammers will face justice in United States District Court when they target the hard-earned savings of North Dakotans,” Schneider said. “It’s also a reminder to be vigilant about protecting yourself and your loved ones against schemes like this one. Fraudsters will be pursued by law enforcement and prosecuted federally for their crimes, but the best course is to prevent fraud before it occurs.”
"These individuals preyed on the trust and emotions of vulnerable victims, exploiting their desire for connection," said Special Agent in Charge Alvin M. Winston Sr. "Today's sentencing serves as a reminder that the FBI will continue to investigate and dismantle these scams, working to safeguard the American people from such exploitation."
To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov.
To learn more about the U.S. Department of Justice’s elder justice efforts, please visit the Elder Justice Initiative page HERE.
Further, please visit the US Attorney’s Office’s press release on World Elder Abuse Awareness Day for awareness and increased understanding of the many forms of elder abuse, as well as resources available to those at-risk HERE.
This case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the Defense Criminal Investigative Service, and the Williams County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Jonathan J. O’Konek.
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Two KC Men Indicted for Illegally Trafficking FirearmsRead the Press Release
KANSAS CITY, Mo. – Two Kansas City, Mo., men were indicted by a federal grand jury today for their roles in a conspiracy to illegally traffic firearms and for illegally possessing firearms.
Ernest L. Hall, 61, and Rodney O. Ellison, 57, were charged in a 12-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces federal criminal complaints that charged Hall and Ellison separately on Nov. 27, 2024. Both Hall and Ellison remain in federal custody without bond.
The indictment alleges that Hall and Ellison participated in a conspiracy to traffic firearms from June 15 to Nov. 26, 2024. The indictment also charges Hall and Ellison together with one count of engaging in firearm sales without a license, and charges Hall and Ellison separately with five counts each of trafficking firearms. Hall and Ellison each also are charged with being a felon in possession of firearms.
According to an affidavit filed in support of the original criminal complaint, a confidential informant working with the Bureau of Alcohol, Tobacco, Firearms and Explosives purchased firearms from both Ellison and Hall on several occasions at their residences. Between June 18, 2024, and Nov. 25, 2024, the confidential informant allegedly purchased six firearms from Ellison and five firearms from Hall.
On Nov. 26, 2024, law enforcement officers executed search warrants at the residences of both Hall and Ellison. Ellison was arrested at his residence but Hall left his residence carrying a large bag and drove away as officers were approaching. When law enforcement began to follow him, Hall turned off his headlights and drove into oncoming traffic to elude them. Investigators then executed the search warrant for Hall’s residence and seized one firearm. Officers seized seven firearms from Ellison’s residence, including two firearms with obliterated or missing serial numbers.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Hall has three prior felony convictions for armed criminal action, two prior felony convictions for robbery, and prior felony convictions for tampering with a motor vehicle, voluntary manslaughter, unlawful use of a weapon, assault, and endangering the welfare of a child. Ellison has prior felony convictions for murder, armed criminal action, and tampering with service utility.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
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.
Two Colombian Human Smugglers Arrested on U.S. ChargesRead the Press Release
Note: View a copy of the indictment here.
On Dec. 13, Colombian authorities arrested two men charged with human smuggling conspiracy for moving migrants through Colombia en route to the United States. In the course of that conspiracy, the defendants are alleged to have put lives in jeopardy, including by placing some of the 40 migrants and two boat captains on a boat that disappeared on its way to Nicaragua after leaving San Andres Island on Oct. 21, 2023.
Hernando Manuel de la Cruz Rivera Orjuela, 52, and Luis Enrique Linero Pinto, 40, both Colombian nationals, were arrested in Colombia at the request of the United States for their alleged roles in the transnational human smuggling operation, based on an indictment obtained on Oct. 23 from a federal grand jury sitting in the Western District of Texas.
According to the indictment unsealed yesterday, the defendants participated in a conspiracy that unlawfully smuggled migrants, transporting them from other locations to San Andres Island, and from there to Nicaragua via boats, north through Central America and Mexico, before reaching their final destination in the United States. Allegedly, Rivera Orjuela and Linero Pinto advised the migrants how to get to San Andres Island, personally received them once they arrived on the island, arranged for their accommodation, and brought them to the boats that transported them to Nicaragua so they could enter the United States illegally. Linero Pinto is alleged to have bribed uniformed service members of the Colombian Navy to acquire real-time intelligence about the position of Navy patrol vessels located between San Andres Island and Nicaragua, enabling the boats carrying migrants to avoid detection.
“Through coordination with our domestic and international law enforcement partners, we have secured the arrest of two Colombian nationals we allege took part in a human smuggling operation that resulted in the disappearance of a boat carrying 40 migrants,” said Attorney General Merrick B. Garland. “As this indictment makes clear, Joint Task Force Alpha (JTFA) continues to be one of the Justice Department’s most effective tools for countering insidious human smuggling operations that fuel suffering and exploitation.”
“For over three years, JTFA has deployed every tool at our disposal to disrupt and dismantle human smuggling networks,” said Deputy Attorney General Lisa Monaco. “This latest indictment demonstrates the Department’s continuing commitment to combat human smuggling across the Western hemisphere and bring those responsible to justice.”
“The indictment alleges that, as part of their participation in a conspiracy to smuggle migrants to the United States, these defendants put several migrants on the boat that disappeared off the coast of Nicaragua in October 2023,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “This indictment reflects the importance of JTFA’s expansion to address human smuggling in and through Colombia. Today’s announcement also underscores the Criminal Division’s commitment to investigating and prosecuting the transnational criminal organizations whose business model puts human lives at risk for financial gain.”
“As alleged in the indictment, these defendants are charged for their roles in the disappearance of dozens of migrants, and the allegations detail many of the dangers we see too often in combating human smuggling — from bribery to the deadly risks migrants take every day,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “I appreciate the combined efforts of JTFA, our international partners, and the prosecutors involved. These partnerships are essential in dismantling the criminal organizations that impact us all and prioritize illicit financial gain over human life.”
“These alleged conspirators orchestrated a complex human smuggling operation that recklessly risked human lives for ill-gotten gain,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “The devoted Special Agents of HSI work diligently to combat criminal enterprises that profit from the victimization of innocent people. HSI remains committed to dismantling human smuggling networks that exploit and subject their victims to hazardous and oppressive conditions. These transnational organizations profit by preying on vulnerable individuals, and HSI will continue to dismantle such operations.
The defendants are each charged with one count of conspiracy to encourage and induce unlawful aliens to come to, enter, and reside in the United States and with placing a life in jeopardy during that conspiracy. If convicted, the defendants face a maximum penalty of 20 years in prison and a fine of up to $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
HSI is leading the investigation with participation from their McAllen, El Paso, and Cartagena Field Offices. HSI’s Human Smuggling Unit, Customs and Border Protection’s National Targeting Center International Interdiction Task Force, and the Justice Department’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT); Office of International Affairs (OIA); and Narcotic and Dangerous Drug Section (NDDS)’s Judicial Attaché Office in Bogotá provided valuable assistance. The Justice Department thanks Colombian law enforcement officials, who were instrumental in furthering this investigation.
JTFA Co-Director Jim Hepburn and Deputy Director Daria Andryushchenko of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Jose Luis Acosta for the Western District of Texas are prosecuting the case.
The indictment of these defendants is the result of the coordinated efforts of JTFA. Attorney General Merrick B. Garland created JTFA in June 2021 to marshal the investigative and prosecutorial resources of the Justice Department, in partnership with the Department of Homeland Security (DHS), to combat the rise in prolific and dangerous smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. In June 2024, the initiative was expanded to Colombia and Panama to combat human smuggling in the Darién. JTFA comprises detailees from U.S. Attorneys’ Offices along the southwest border, including the Southern and Western Districts of Texas, District of New Mexico, District of Arizona, and Southern District of California. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by HRSP and supported by OPDAT, NDDS, the Money Laundering and Asset Recovery Section, Office of Enforcement Operations, OIA, and Violent Crime and Racketeering Section.
JTFA also relies on substantial law enforcement investment from DHS, FBI, the Drug Enforcement Administration, and other partners. To date, JTFA’s work has resulted in over 345 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; over 290 U.S. convictions; over 240 significant jail sentences imposed; and forfeitures of substantial assets.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tunica Man Sentenced to 10 Years in Prison for Possession of Child Sexual Abuse MaterialRead the Press Release
Aberdeen, MS – A Tunica man was sentenced today to 10 years in prison for possession of child sexual abuse material by U.S. District Court Judge Sharion Aycock.
According to court documents, Michael Ray Hall, 32, was indicted by a federal grand jury in August 2023, and charged in a two count Indictment with distribution of child sexual abuse material on or about October 12, 2022, and possession of child sexual abuse material on or about October 26, 2022. On August 27, 2024, Hall pled guilty to Count 2 of the Indictment.
“People like this defendant who possess and disseminate images of the sexual abuse of young children belong in prison – period,” stated US Attorney Clay Joyner. “This case serves as an example of what the continued cooperation between this office, the FBI, and the Mississippi Attorney General’s Office can accomplish.”
“Working together, the FBI, my office, and the U.S. Attorney Clay Joyner’s office have helped put another predator behind bars before he could do more harm,” said Attorney General Lynn Fitch. “My office is dedicated to removing these predators from our communities and serving justice to their victims, and we are grateful to have such strong partners in these efforts.”
"The FBI is committed to ensuring that predators who seek to exploit the youth of our communities will not go unpunished,” said FBI SAC Robert A. Eikhoff. “Mr. Hall 's deliberate actions in targeting children is a danger to society. The FBI, USAO, and the Mississippi AGO will continue to aggressively investigate and prosecute those that prey on our most vulnerable population- our children."
The Mississippi Attorney General’s Office and Federal Bureau of Investigation Task Force Officers David Allen and Brian Taylor investigated the case.
Assistant U.S. Attorney Paul Roberts prosecuted the case.
Tucson Man Sentenced to 10 Years for Distributing Fentanyl Resulting in DeathRead the Press Release
TUCSON, Ariz. – Thomas Franklin Wilson, also known as “Tee Woopin,” 29, of Tucson, was sentenced last week by United States District Judge Rosemary Márquez to 10 years in prison, followed by five years of supervised release. On March 13, 2024, Wilson pleaded guilty to Distribution of Fentanyl connected to the overdose death of a 17-year-old that occurred in April 2021.
In April 2021, Wilson sold 13 pills to the teen and her friend, which caused the teen to overdose and die from fentanyl toxicity.
Homeland Security Investigations, Bureau of Indian Affairs, and the Tohono O’odham Police Department conducted the investigation in this case. Assistant U.S. Attorney Stefani Hepford, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-02452-TUC-RM
RELEASE NUMBER: 2024-176_Wilson# # #
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.Thirty-four Individuals Indicted for Drug Trafficking within the Puerto Rico Prison SystemRead the Press Release
SAN JUAN, Puerto Rico – On December 12, 2024, a federal grand jury in the District of Puerto Rico returned an indictment charging 34 individuals with conspiracy to distribute controlled substances within the Puerto Rico prison system, and other offenses, including charges relating to four overdose deaths.
According to court documents, defendants distributed fentanyl, suboxone, heroin, cocaine, marijuana, and synthetic marijuana within Puerto Rico Department of Corrections and Rehabilitation facilities. Members of the drug organization smuggled the drugs into the jails using unmanned aerial vehicles (“drones”) that carried packages containing the illegal substances. Other smuggling methods included the use of legal mail, family visits, official corruption/indifference, catapulting or throwing drugs into the prison yards (“picheos”), and hiding drugs inside other items brought into the prisons (e.g., PlayStations, remote controls, food items, and bags of ice).
During the time period relevant to the Indictment, the illegal substances introduced by this drug trafficking organization also caused many overdoses, including at least four overdose deaths attributed to a drug mixture containing fentanyl.
Many of the defendants arrested today were part of a prison gang known as Group 31 or “Los Tiburones”. Group 31 established and maintained control of the distribution of significant quantities of illegal substances within numerous institutions operated by the Puerto Rico Department of Corrections and Rehabilitation. Those institutions included, but were not limited to: Institución Correccional Guerrero, Aguadilla; Complejo Correccional Las Cucharas Sgto. Pedro Joel Rodríguez Matos, Ponce; Institución Correccional Bayamón (501); and Institución Correccional Guayama Máxima Seguridad (1000). The defendants charged in the indictment are:
[1] Juan Carlos Ortiz-Vázquez, a.k.a. “Flaco”
[2] Cristina Guevara-Casellas
[3] Elías Martínez-Rivera, a.k.a. “Viejo-Coli”
[4] José Luis Audain-Rodríguez, a.k.a. “Wichy/Negre/Doble V-W/Dobleta”
[5] Christopher Sánchez-Asencio, a.k.a. “Guayna”
[6] Moisés Mojica-Torres, a.k.a. “Moi”
[7] Ernesto Malavé-Santiago, a.k.a. “Ponce”
[8] Steve Vergeli-Negrón, a.k.a. “Bocillo”
[9] Jim Almodóvar-Quirindongo, a.k.a. “Jim Ball”
[10] Ángel Abdiel Archilla-Montalvo
[11] Efraín González-Serrano, a.k.a. “El Señor De Los Cielos/Junito”
[12] Ernesto Vargas-Rodríguez, a.k.a. “Golo”
[13] Eddiber Pérez-Burgos, a.k.a. “Coamo”
[14] Abraham Rodríguez-Cruz, a.k.a. “Bebe”
[15] Alexander Alvarado-Almestica, a.k.a. “Bala”
[16] Jensen Medina Cardona
[17] Edgardo Santiago-Colón, a.k.a. “Cuco”
[18] Edwin Sánchez-Rijos, a.k.a. “Tocayo”
[19] Félix Serrano-Román, a.k.a. “Coba”
[20] Harry Acevedo-Méndez, a.k.a. “La H”
[21] Heriberto Romero-Corchado, a.k.a. “Eri”
[22] James Santana-González, a.k.a. “Pilin”
[23] Julio Vargas-Jiménez, a.k.a. “Julio Gatillo”
[24] Kervin López-Torres, a.k.a. “Beethoven/Gordo/Gemelo”
[25] Kevin Hernández-Ruiz, a.k.a. “Pesadilla”
[26] Miguel González-Concepción, a.k.a. “Omy Barber/Omy Gallina”
[27] Luis Meléndez-García, a.k.a. “Luisito Humacao”
[28] Aníbal Ramírez-Alicea, a.k.a. “Nibby/Aníbal Martínez-Alicea”
[29] Benny Rodríguez-Mercado
[30] Christian Candelaria-Feliciano, a.k.a. “Garbanzo”
[31] Donato Cortés-Matos
[32] Wesley Correa-López
[33] Milagros Jeanette Rivera-González, a.k.a. “Janet”
[34] Minerva Román-Domínguez
“Gang activity poses a grave risk of harm to our communities and within correctional institutions,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “For several years, these gang members and their associates distributed significant quantities of lethal drugs within the local prison system, through the enforcement of strict rules and violence. This indictment is the culmination of a coordinated federal and state law enforcement investigation aimed at dismantling this criminal organization.”
“This operation represents a critical step in our fight against the influx of fentanyl and other dangerous drugs into Puerto Rico’s correctional facilities,” said Denise Foster, Special Agent in Charge of the DEA Caribbean Division. “By dismantling this organization and disrupting their use of drones to smuggle contraband, we are not only holding criminals accountable, but also saving lives. This success highlights the power of collaboration between federal, state, and local agencies, and underscores our commitment to protecting the people of Puerto Rico from the devastating effects of drug trafficking.”
The defendants are scheduled for their initial court appearances today before U.S. Magistrate Judge Giselle López Soler of the U.S. District Court for the District of Puerto Rico. If convicted, they face a maximum sentence of life in prison on the drug trafficking and firearm charges, and a maximum sentence of ten years for the money laundering charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Drug Enforcement Administration is in charge of the investigation with the collaboration of the Puerto Rico Police Bureau Ponce Strike Force, Puerto Rico Department of Corrections and Rehabilitation, Puerto Rico Department of Justice, Puerto Rico Forensic Sciences Institute, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Border Patrol, United States Customs and Border Protection, the United States Marshals Service, the High Intensity Drug Trafficking Area, and Homeland Security Investigations.
Assistant U.S. Attorney Jorge L. Matos of the Transnational Organized Crime Section is prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Taylor County Man Sentenced for Firearms OffenseRead the Press Release
CLARKSBURG, WEST VIRGINIA – David Allen Starkey, 37, of Flemington, West Virginia, was sentenced to 165 months in federal prison for the unlawful possession of a firearm.
According to court documents and statements made in court, officers were executing an arrest warrant for another defendant for a parole violation at a home in Barbour County. Starkey was hiding inside, where officers also found an assault rifle and a handgun. Starkey has prior drug, burglary, grand larceny, firearms, and battery convictions, prohibiting him from having firearms.
Starkey will serve three years of supervised release after his prison sentence.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Mountain Region Drug Task Force, a HIDTA-funded initiative; the United States Marshals Service; and the Barbour County Sheriff’s Office investigated.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government.
Chief U.S. District Judge Thomas S. Kleeh presided.
Tahlequah Resident Sentenced for Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Heath Tyler Bryan, age 34, of Tahlequah, Oklahoma, was sentenced to 92 months in prison for one count of illegally possessing a firearm and ammunition.
The charge arose from an investigation by the Oklahoma Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On May 15, 2024, Bryan pleaded guilty to one count of Felon in Possession of Firearm and Ammunition. According to investigators, on January 1, 2024, troopers discovered Bryan in possession of a loaded .38 special revolver and one round of ammunition. Bryan possessed the firearm and ammunition despite knowing that he had been previously convicted of a crime punishable by a term of imprisonment exceeding one year.
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 Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Bryan will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant U.S. Attorneys Edith Singer and Rachel Geizura represented the United States.
St. Paul Man Pleads Guilty to Armed Robbery of Postal EmployeesRead the Press Release
ST. PAUL, Minn. – A St. Paul man has pleaded guilty to the armed robbery of U.S. Postal Service employees on two separate occasions, announced U.S. Attorney Andrew M. Luger.
According to court documents, on November 18, 2023, Rubin David Adams, 26, assisted another person who approached a letter carrier in Edina, pointed a handgun at them, and demanded the “mailbox key,” which the victim did not have. Instead, the victim handed over two sets of USPS vehicle keys. The following day, Adams himself approached another USPS letter carrier in Brooklyn Center. Adams pointed a handgun at the victim’s head, demanded and then stole two USPS mailbox keys. Mailbox keys are valuable to criminals who use them to steal mail, cash, checks, and other financial instruments. Mailbox keys are the property of the USPS, and it is a federal offense for an unauthorized person to possess one.
Adams pleaded guilty today to two counts of armed robbery of a mail carrier in U.S. District Court before Judge Eric C. Tostrud. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by the U.S. Postal Inspection Service, the FBI, Hennepin County Violent Offenders Task Force, Edina Police Department, the Brooklyn Center Police Department, the St. Louis Park Police Department, and the Minnesota Alcohol and Gambling Enforcement Division.
Assistant U.S. Attorney Emily A. Polachek is prosecuting the case.
St. Francis Man Sentenced to Five Years in Federal Prison for Assault with a Dangerous WeaponRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Eric C. Schulte has sentenced a St. Francis, South Dakota, man convicted of Assault With a Dangerous Weapon. The sentencing took place on December 16, 2024.
Martin Metcalf, age 52, was sentenced to five years in federal prison, followed by two years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Metcalf was indicted by a federal grand jury in December 2023. He pleaded guilty on September 19, 2024.
The conviction stems from an incident that occurred on November 24, 2023, in Todd County, South Dakota, within the boundaries of the Rosebud Sioux Indian Reservation. On that date, Metcalf entered his girlfriend’s home and threatened to kill her and her children with an AR-15-style rifle. At one point, Metcalf struck his girlfriend on the arm with the rifle. One of the children called 911 while Metcalf was distracted, and law enforcement responded shortly thereafter. Metcalf will forfeit ownership of the firearm to the United States.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Senior Litigation Counsel Kirk Albertson prosecuted the case.
Metcalf was immediately remanded to the custody of the U.S. Marshals Service.
Springfield Business Owner Sentenced for $14 Million Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., business owner was sentenced in federal court today for his role in a nearly $14 million wire fraud conspiracy that utilized his businesses, as well as fake businesses, to fraudulently receive loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
John Michael Felts, 49, was sentenced by U.S. District Judge Stephen R. Bough to two years in federal prison without parole. The court also ordered Felts to pay $8,173,736 in restitution. Felts also must forfeit to the government personal property and real estate purchased with the proceeds of the wire fraud conspiracy as asserted in two civil forfeiture complaints. That property includes four parcels of real estate in Springfield, six vehicles, a yacht, two Rolex watches, five additional pieces of valuable jewelry, a 1952 Topps Jackie Robinson baseball card, a 1980-1981 Topps Larry Bird, Julius Erving, and Magic Johnson card (signed by all three players), and a 1909-1911 Ty Cobb baseball card.
On July 31, 2023, Felts pleaded guilty to one count of conspiracy to commit wire fraud and one count of wire fraud.
Felts was the owner of several restaurants, including Taco Habitat in Springfield and Branson, Mo. Felts admitted that he participated in a wire fraud conspiracy that fraudulently attempted to obtain $13,925,534 through commercial loans as well as Paycheck Protection Program loans and Economic Injury Disaster loans and grants under the CARES Act from January 2018 to Sept. 13, 2022. Although Felts admitted that he attempted to obtain almost $14 million, the court today ruled that the actual loss amount was $8,173,736, for which Felts must pay restitution.
The purpose of the CARES Act was to provide emergency financial assistance due to the economic impact caused by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration to provide low-interest Economic Injury Disaster Loans to eligible small businesses that experienced substantial financial disruption due to the economic impact of the COVID-19 pandemic. Additionally, the Paycheck Protection Program (PPP) authorized forgivable loans to small businesses to retain workers and maintain payroll, and make mortgage interest payments, lease payments, and utility payments. Under the PPP, both the principal and interest on those loans were eligible for forgiveness.
Felts and another person, a San Antonio, Texas, resident identified in court documents as “Individual-1,” applied for PPP loans and Economic Injury Disaster loans and grants for various businesses they controlled. The conspirators made material misrepresentations about the businesses in the applications, including the purpose of the funding, and submitted fake and forged documents as a part of the application process.
Felts and Individual-1 also created fake businesses that they controlled, under fake identities they created. The conspirators then used these fake businesses and identities, as well as false financial and business documents, to apply for loans.
Felts did not utilize the loan proceeds for the purpose he represented to the lenders in the application process. Instead, he utilized proceeds for his own personal benefit (including vehicles, a yacht, jewelry, rare sports cards, and construction related to personal residences) and for the benefit of other businesses he controlled.
According to a parallel federal civil complaint filed on Sept. 13, 2022, Felts applied for 12 PPP loans using several different companies under his ownership or control. Most of these companies did not have employees and were not in operation at the time of application. Felts also applied for 13 PPP loans using synthesized or fabricated identities and companies under his control.
$2 Million Fraudulent Diagnostic Equipment, Inc., Loans
For example, in January 2020 Felts and Individual-1 set up a business, Diagnostic Equipment, Inc., for the purpose of representing it as a legitimate business, when in fact it was not and did not have any business operations. On April 26, 2020, they submitted a fraudulent PPP loan application for Diagnostic Equipment. Felts, using a fake identity, submitted false materials in support of the PPP loan application, such as false tax statements and payroll summaries. On June 18, 2020, they applied for an EIDL in the name of Diagnostic Equipment.
After receiving $1,029,100 in PPP and EIDL proceeds, Felt spent $157,000 of the proceeds to pay off a personal real estate loan, spent $39,000 to pay off a loan for a 2018 Cadillac CT6, spent $40,000 to pay off a loan for a 2018 Jeep Wrangler (which he gave as a gift to a relative), and spent $5,000 to make a down payment for the purchase of personal real estate.
On April 25, 2021, Felts submitted a fraudulent PPP loan application for Diagnostic Equipment for a second round of PPP loans. Felts received $1,054,494 in PPP loan proceeds and spent $150,000 for a corporate suite sponsorship with the Kansas City Chiefs, spent $213,000 to pay a loan on a 2021 Galeon 470SKY Yacht, spent $30,000 for construction on his personal residence, and spent $12,180 on sports memorabilia.
$310,000 Fraudulent Taco Habitat Loan
In May 2020, Felts and Indivdiual-1 submitted a PPP loan application for Taco Habitat in Branson. This application contained material misrepresentations, including the number of employees for the business.
After Felts received $310,000 in PPP proceeds for Taco Habitat in Branson, he spent $58,594 to purchase a 2020 Jeep Wrangler (which he gave as a gift to another individual) and spent $125,707 for the purchase of personal real estate.
This criminal case was prosecuted by Assistant U.S. Attorney Casey Clark and the civil case is being handled by Assistant U.S. Attorney Anthony M. Brown. Both the criminal and civil cases were investigated by IRS-Criminal Investigation.
Spokane Valley Woman Sentenced to Federal Prison for Drug TraffickingRead the Press Release
Spokane, Washington – On December 17, 2024, United States District Judge Mary K. Dimke sentenced Shannon Ray Ault, age 38, of Spokane Valley, Washington, to 10 years in prison on drug distribution charges. Judge Dimke also imposed 5 years of supervised release.
According to court documents and information presented at the sentencing hearing, in February of 2024, investigators with the Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted a “controlled buy” of two pounds of methamphetamine from Ault. The controlled buy, which involved the purchase of the illegal drugs, was carefully monitored and controlled by ATF agents.
After the controlled buy, Ault was arrested in Spokane. At the time of her arrest, Ault was sitting inside her car with several fentanyl pills in her lap. In connection with her arrest, agents searched Ault’s car. During the search, ATF located $1,627 in cash and an airsoft gun that looked like an AR-style rifle. ATF also recovered drug ledgers, which confirmed that Ault was distributing relatively large quantities of methamphetamine and illicit fentanyl pills.
“Ms. Ault was responsible for distributing a significant quantity of deadly drugs into our community, said U.S. Attorney Waldref. “Working closely with federal, state, local, and Tribal law enforcement, my office will continue to vigorously disrupt the sources of drugs in our communities to keep neighborhoods safe from illegal narcotics and criminal drug networks.”
“ATF will always investigate those causing great harm to our communities,” said ATF Seattle Special Agent in Charge Jonathan Blais. “Ms. Ault is one of those, and this sentence is appropriate for her illegal actions.”
This case was investigated by the ATF and the Drug Enforcement Administration.
2:24-cr-00034-MKD.
Sioux Falls Woman Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, woman convicted of Possession of Child Pornography. The sentencing took place on December 16, 2024.
Asha Graystone, age 34, was sentenced to ten years in federal prison, followed by five years of supervised release, restitution in the amount of $6,000, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Upon release from federal prison, Graystone must register as a sex offender.
Graystone was indicted by a federal grand jury in May 2023. She pleaded guilty on October 2, 2024.
The conviction stemmed from incidents between December 6, 2022, and January 10, 2023, when Graystone knowingly possessed digital files depicting minors engaged in sexually explicit conduct. Graystone has a prior state-level conviction for possession of child pornography out of Minnehaha County, South Dakota in 2020 for which she received a probation sentence.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the Sioux Falls Police Department, the South Dakota Division of Criminal Investigation, and Homeland Security Investigations. Assistant U.S. Attorney Elizabeth A. Ebert-Webb prosecuted the case.
Graystone was allowed to self-surrender to the custody of the U.S. Marshals Service on or before January 6, 2024.
Sioux Falls Man Sentenced to Federal Prison for Nearly Four Years for Possessing and Selling a Firearm as a FelonRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schrier has sentenced a Sioux Falls, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on December 16, 2024.
Jerad Wade Olson, 35, was sentenced to three years and 10 months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Olson was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in May 2024. He pleaded guilty in September 2024.
In December 2023, Olson was identified by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) as a seller of firearms in the Sioux Falls area. Olson is prohibited from possessing firearms due to previous felony convictions. ATF conducted an operation targeting Olson on December 13, 2023, during which an agent established contact with Olson and posed as a buyer of firearms. Olson agreed to sell the agent a Walther 9mm pistol for $500. The agent met with Olson and completed the sale later that day at Olson’s residence in Vermillion.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the ATF and the Sioux Falls Police Department. Special Assistant U.S. Attorney Mark Joyce prosecuted the case.
Olson was immediately remanded to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced to 12 ½ Years in Federal Prison for Transportation of Child PornographyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, man convicted of Transportation of Child Pornography. The sentencing took place on December 16, 2024.
Jeffrey Michael Dicus, age 40, was sentenced to 12 years and seven months in federal prison, followed by five years of supervised release, restitution in the amount of $3,000, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Upon release from federal prison, Dicus must register as a sex offender.
Dicus was indicted by a federal grand jury in June 2023. He pleaded guilty on September 24, 2024.
The conviction stemmed from incidents between January 5, 2017, and February 8, 2023, when Dicus transported child pornography using his Dropbox account. Dicus created his Dropbox account in 2017 and used the online platform to trade images and videos of child pornography with other individuals. He was found in possession of over 5,000 videos and almost 20,000 images of child pornography. The videos and images contained depictions of victims as young as toddler-age engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the Sioux Falls Police Department and Homeland Security Investigations. Assistant U.S. Attorney Elizabeth A. Ebert-Webb prosecuted the case.
Dicus was immediately remanded to the custody of the U.S. Marshals Service.
Sioux City Man Sentenced to 106 Months in Federal Prison for Meth and Firearm ChargesRead the Press Release
COUNCIL BLUFFS, Iowa – A Sioux City man was sentenced today to 106 months in federal prison for possessing a distribution quantity of methamphetamine and a firearm in furtherance of his drug trafficking.
According to public court documents, Rodney Lamard Hall, II, 31, was found in possession of a distribution quantity of pills containing approximately 37 grams of methamphetamine, marijuana, and a loaded nine-millimeter pistol with an extended magazine. At the time he committed this offense, he was on probation for possessing a firearm and marijuana in April 2023, with the Iowa District Court for Woodbury County.
After completing his term of imprisonment, Hall will be required to serve a four-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Harrison County Sheriff’s Office and the Iowa Division of Narcotics Enforcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Shelby Man Is Sentenced to Prison for Two Armed RobberiesRead the Press Release
ASHEVILLE, N.C. – Raymond Tracy Mintz, III, 32, of Shelby, N.C., was sentenced today to 178 months in prison followed by five years of supervised release for the armed robberies of two local businesses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Brad Fraser of the Shelby Police Department, join U.S. Attorney King in making today’s announcement.
According to court documents and the sentencing hearing, on November 10, 2022, Mintz entered the Vape and Brew store in Shelby. Mintz was armed with a firearm and was wearing gloves, a beanie, and a bandana over his mouth. He also wore black sweatpants with a small “Tasmanian Devil” cartoon character on one pant leg and sneaker-style shoes with distinct gold accents. Mintz brandished his firearm at two employees and threatened to shoot them. Court records show that Mintz then walked behind the counter and stole more than $1,600 before he fled the scene.
Officers located Mintz at an area hotel where he was staying two days later. Mintz was arrested and the pistol Mintz was suspected of using during the robbery was recovered. During the investigation, law enforcement reviewed the hotel’s video surveillance footage from the day of the robbery which showed Mintz walking towards the dumpster with a distinctly colored trash bag and then returning to his room without it. Law enforcement located the trash bag which contained the black sweatpants with a small “Tasmanian Devil” emblem and the sneaker shoes that Mintz wore during the Vape and Brew robbery.
According to filed court documents, the second armed robbery occurred on December 1, 2023. On that date, Mintz robbed the Curve View Express in Shelby. Court records show that Mintz entered the store, brandished a black handgun with an extended magazine at two store clerks, and fled on foot with $1,604, which he had placed in a black grocery-style bag. An officer found Mintz shortly after the robbery near the Curve View Express carrying the black grocery-style bag. Mintz ran from the officer when the officer attempted to speak to him. The officer caught up to Mintz who was now openly carrying a firearm down by his side. Mintz then threw the black handgun with an extended magazine into the nearby grass. Officers arrested Mintz and recovered the stolen $1,604 from the black bag, as well as the firearm that Mintz used during the robbery.
On August 14, 2024, Mintz pleaded guilty to Hobbs Act Robbery and possessing and brandishing of a firearm in furtherance of a crime of violence. He is in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
The investigation was handled by HSI and the Shelby Police Department, with the assistance of the Kings Mountain Police Department.
Special Assistant United States Attorney Annabelle Chambers of the U.S. Attorney’s Office in Asheville prosecuted the case. Ms. Chambers is a state prosecutor with the office of the 43rd Prosecutorial District and was assigned by District Attorney Ashley Welch to serve as SAUSA with the U.S. Attorney’s Office in Asheville. Ms. Chambers is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 43rd Prosecutorial District and the United States Attorney’s Office. The SAUSA position helps ensure the effective and vigorous prosecution of federal court cases that impact the counties within the 43rd Prosecutorial District.
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.
Securities Trader Sentenced for Market Manipulation ConspiracyRead the Press Release
BOSTON – A securities trader was sentenced yesterday for his role in a sophisticated, multi-year market manipulation conspiracy involving securities traded on exchanges within the United States, including the New York Stock Exchange and NADSAQ.
Xiaosong Wang, 36, of Upton, Mass., was sentenced by U.S. Senior District Court Judge William G. Young to 30 days in prison. Wang was also ordered to forfeit $1,041,084 in illicit proceeds and ordered removed to China upon completion of his prison sentence. On Sept. 12, 2024, Wang pleaded guilty to one count of conspiracy to commit securities fraud.
From approximately 2013 through 2018, Wang participated in the manipulative trading activity of a group of securities traders located in China and, at times, in Massachusetts. Specifically, Xiaosong Wang and his co-conspirators, including Jiali Wang, used several brokerage accounts in their names, and in the names of others with whom Xiaosong Wang and Jiali Wang had relationships, to artificially depress or inflate the prices of thinly traded securities. They did so by repeatedly placing relatively small sell (or buy) orders designed to send a false signal about a security’s supply (or demand) and to depress (or inflate) the security’s price. Xiaosong Wang and his co-conspirators then immediately placed relatively large buy (or sell) orders on the other side of the market to take advantage of their manipulations. Once the large orders executed, Xiaosong Wang and his co-conspirators canceled their outstanding manipulative orders.
Jiali Wang pleaded guilty in August 2022 and was sentenced in December 2022 to time served (three months in prison) and nine months of home detention. Jiali Wang was also ordered to forfeit $7.75 million in illicit proceeds and was later ordered removed to China.
United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney James R. Drabick of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Sanford Felon Pleads Guilty to Possessing Firearms and Distributing Narcotics Near A PlaygroundRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that San’Drevious Jerome Lane (23, Sanford) has pleaded guilty to carrying a firearm during a drug trafficking crime and distributing narcotics near a playground. Lane faces a minimum penalty of six years, up to life, in federal prison. His sentencing hearing is scheduled for March 13, 2025.
According to court records, Lane was convicted of felony offenses in 2022 and was released from the Florida Department of Corrections on April 3, 2024. On May 21, 2024, Lane distributed cocaine in Sanford. During the transaction, he possessed a firearm. Officers located two fingerprints on the firearm, one belonging to Lane. As a convicted felon, Lane is prohibited from possessing a firearm or ammunition under federal law. In addition, on June 3, 2024, Lane sold approximately 28 grams of cocaine. The transaction took place approximately 800 feet from a playground.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Seminole County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Adam J. Nate.
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.
Rutherfordton Man on State Probation Is Sentenced to Prison for Illegal Possession of Multiple FirearmsRead the Press Release
ASHEVILLE, N.C. – Kailyn Leroy Flack, 29, of Rutherfordton, N.C., was sentenced today to 92 months in prison followed by three years of supervised release for possession of a firearm by a felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to court documents and court proceedings, on September 26, 2022, North Carolina probation officers were attempting to locate Flack, after the defendant, who was on state probation for a drug trafficking conviction, had removed his electronic ankle monitor. When the probation officers arrived at Flack’s residence, they observed Flack’s vehicle in the driveway with all the doors open. The probation officers drove to a nearby location and waited for back up. While they were waiting, Flack drove up to the probation officers and was subsequently placed under arrest. When law enforcement searched Flack, they found a handgun holster on his hip. Law enforcement then searched Flack’s vehicle, where they found multiple firearms, including a Smith & Wesson, model M&P, .40 caliber pistol, a Sig Sauer, model 516, 556/.223 caliber rifle loaded with a 30-round magazine, a Smith & Wesson, .38 special revolver, and a Taurus, model The Judge, .45/.410 caliber revolver. Three of the four recovered firearms had been reported stolen.
On June 27, 2024, Flack was found guilty of possession of a firearm by a felon following a bench trial. He is in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
The investigation was handled by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the North Carolina Department of Public Safety’s Division of Community Supervision, and the Rutherford County Sheriff’s Office.
Assistant U.S. Attorney Don Gast and Special Assistant U.S. Attorney Annabelle Chambers of the U.S. Attorney’s Office in Asheville prosecuted the case. Ms. Chambers is a state prosecutor with the office of the 43rd Prosecutorial District and was assigned by District Attorney Ashley Welch to serve as SAUSA with the U.S. Attorney’s Office in Asheville. Ms. Chambers is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 43rd Prosecutorial District and the United States Attorney’s Office. The SAUSA position helps ensure the effective and vigorous prosecution of federal court cases that impact the counties within the 43rd Prosecutorial District.
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.
Rochester business owner sentenced on tax chargeRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney Trini E. Ross announced today that James Leonardo, 56, of Rochester, NY, who was convicted of filing a false tax return, was sentenced to time served and one year supervised release by Chief U.S. District Judge Elizabeth A. Wolford. Leonard was also ordered to pay restitution totaling $2,267,315.42.
Assistant U.S. Attorney Richard A. Resnick, who handled the case, stated that Leonardo is the sole member and owner of MY PI, LLC. The company owns a 110-foot yacht named “Pure Insanity,” which resulted in rental income for MY PI, LLC. Leonardo was required to report net profits or losses from the business use of the yacht on his personal federal income tax returns. For the years 2015 through 2018, Leonardo reported the rental income received by MY PI, LLC. However, to reduce the taxes owed, he falsely deducted all the losses incurred with respect to operation and maintenance by falsely claiming that the yacht was used 100% of the time for business purposes. In actuality, the yacht was only used for business purposes one-third of the time. As a result, Leonardo was only entitled to deduct one-third of the losses generated for operation and maintenance. As a result, he failed to report and pay additional income taxes totaling $872,869 for 2015 through 2018.
The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Harry Chavis, Acting Executive Special Agent in Charge, New York Field Office, and the Department of Defense, Office of Inspector General’s, Defense Criminal Investigative Service, under the direction Special Agent-in-Charge Patrick J. Hegarty, Northeast Field Office.