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17 December 2024
Rochester business owner pleads guilty to tax evasionRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney Trini E. Ross announced today that Scott Reeves, 72, of Victor, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to tax evasion, which carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that Reeves owns Fussy Contracting Inc. aka Mr. Fussy, a roofing business that operated out of a Portland Avenue location in Rochester during the tax years 2017 through 2022. After providing roofing services to residential and commercial customers, Fussy Contracting was paid primarily by check, which Reeves deposited to bank accounts and also cashed at a local check casher. Reeves was required to pay income taxes based on income he received from Fussy Contracting. For the tax years 2017 through 2022, he failed to file his Individual Income Tax Returns as well as the Income Tax Returns for the corporation, which resulted in no taxes being paid on the profits earned from operating Fussy Contracting. For the tax years 2017-2022, Reeves failed to report gross receipts totaling $5,398,008.27. After paying material expenses, labor expenses, and check cashing fees, Reeves kept the remaining $1,538,215.00, resulting in a tax loss of $248,394.00 to the IRS.
The plea 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.
Sentencing is scheduled for March 3, 2025, at 2:00 p.m. before Judge Wolford.
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Repeat Offender Sentenced to 12 Years in Prison for Distributing MethamphetamineRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston for distributing methamphetamine hydrochloride (“crystal meth”).
Vincent Lambert, 41, was sentenced by U.S. District Court Judge Indira Talwani to 12 years in prison, to be followed by five years of supervised release. In June 2024, Lambert pleaded guilty to three counts of distribution of and possession with intent to distribute methamphetamine. In June 2023, Lambert was indicted by a federal grand jury.
In August 2022, Lambert was identified as a supplier of crystal meth in the Boston area by a cooperating source. Lambert distributed 24 grams of crystal meth to the cooperating source in Boston on Feb. 15, 2023. On March 2, 2023, Lambert distributed another 110 grams of crystal meth in Cambridge to the cooperator. On April 4, 2023, Lambert distributed another 83 grams of crystal meth in Dorchester to the cooperator.
On June 7, 2023, 1,102 grams of crystal meth; 4,437 grams of butanediol; 100 grams of fentanyl; 43 grams of ketamine; 39 grams of cocaine; and 25 grams of MDMA were seized during a search of Lambert’s residence.
Lambert, a career offender, was sentenced to 18 months in prison for drug charges in West Roxbury District Court in 2017. In 2019, Lambert was sentenced to one year in prison for drug charges in Cambridge District Court. Later in 2019, Lambert was also sentenced to 3.5-5 years in prison for additional drug charges in Suffolk Superior Court.
Acting United States Attorney Joshua S. Levy and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorney Samuel R. Feldman of the Narcotics & Money Laundering Unit prosecuted the case.
Real Estate Developer Sentenced to Nearly 13 Years in Prison for Embezzling Millions from the Failed Washington Federal Bank in ChicagoRead the Press Release
CHICAGO — A federal judge in Chicago has sentenced a real estate developer to nearly 13 years in prison for participating in a conspiracy that embezzled millions of dollars from the failed Washington Federal Bank for Savings in Chicago.
Washington Federal, which was based in Chicago’s Bridgeport neighborhood, was shut down in 2017 after the Office of the Comptroller of the Currency determined that the bank was insolvent and had at least $66 million in nonperforming loans. For more than a decade, developer MAREK MATCZUK was part of a conspiracy that embezzled millions of dollars in bank funds. The embezzled funds were disguised as purported real estate development loan disbursements to Matczuk and others. The conspirators were not required to repay these purported loans, and they never did.
A jury in federal court last year convicted Matczuk, 61, of Park Ridge, Ill., of conspiring to commit embezzlement and falsify bank records, and aiding and abetting embezzlement by bank employees. On Monday, U.S. District Judge Virginia M. Kendall sentenced Matczuk to 12 years and eleven months in prison and ordered him to pay more than $5.9 million in restitution.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Vincent R. Zehme, Special Agent-in-Charge of the Chicago Region of the FDIC’s Office of Inspector General; Machelle L. Jindra, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; Ramsey E. Covington, Acting Special Agent-in-Charge of IRS Criminal Investigation Chicago Field Office; Korey Brinkman, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI; Andrea Peacock, Special Agent-in-Charge of the Department of the Treasury, Office of Inspector General; Deborah Witzburg, City of Chicago Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General. Valuable assistance was provided by the U.S. Trustee Program. The government was represented by Assistant U.S. Attorneys Michelle Petersen, Kristin Pinkston, and Jeffrey Snell, and Special Assistant U.S. Attorney Brian Netols.
The federal investigation into the collapse of Washington Federal led to criminal charges against 16 defendants, including the bank’s Chief Financial Officer, Treasurer, and other high-ranking employees, for conspiring to embezzle at least $31 million in bank funds. Matczuk and three others were convicted after jury trials, while ten defendants pleaded guilty and two entered into deferred prosecution agreements.
Much of the embezzled money was transferred to Chicago attorney ROBERT M. KOWALSKI and other individuals outside the bank without all of the required documentation and often without any documentation whatsoever. A jury convicted Robert Kowalski on bankruptcy fraud, bank embezzlement, and false statement charges. Judge Kendall in August sentenced Robert Kowalski to 25 years in federal prison. Robert Kowalski’s sister, JAN R. KOWALSKI, also an attorney, pleaded guilty and was sentenced to more than three years in prison for fraudulently enabling her brother to conceal more than $357,000 from creditors and the trustee in his bankruptcy case.
Three former members of Washington Federal’s Board of Directors pleaded guilty to conspiring to falsify bank records to deceive the OCC. WILLIAM M. MAHON was sentenced to 18 months in prison; GEORGE F. KOZDEMBA was sentenced to a year in prison; and JANICE M. WESTON was sentenced to three months in prison.
Chicago attorney PATRICK D. THOMPSON was convicted by a jury in 2022 of making false statements to the FDIC regarding the amount of money he received from Washington Federal via a purported loan and other unsecured payments. He was also convicted of filing tax returns in which he falsely deducted interest that he had not actually paid to Washington Federal. Thompson was sentenced to four months in federal prison.
Rapid City Man Sentenced to 2 ½ Years in Federal Prison for Drug TraffickingRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Rapid City, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance.
Jeffrey Cooley, age 36, was sentenced to two years and six months in federal prison, followed by five years of supervised release, and ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100.
Cooley was indicted by a federal grand jury in April 2024 and pleaded guilty on September 20, 2024.
Cooley was part of a drug conspiracy to distribute cocaine in South Dakota. He obtained the cocaine from a co-conspirator on multiple occasions and distributed it to others in South Dakota. The co-conspirator would send packages containing cocaine to Cooley’s home. In April 2023, law enforcement intercepted one of these packages, which contained approximately half a pound of cocaine. In total, the group moved multiple kilograms of cocaine during Cooley’s involvement.
This case was investigated by the U.S. Postal Inspection Service, Unified Narcotics Enforcement Team from Rapid City, and the Internal Revenue Service. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Cooley was immediately remanded to the custody of the U.S. Marshals Service following sentencing.
Randolph County Man Admits to Drug TraffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – William Durnal, 60, of Elkins, West Virginia, has admitted to methamphetamine possession and distribution.
According to court documents and statements made in court, Durnal was part of a drug trafficking organization that was supplying large amounts of methamphetamine, fentanyl, and cocaine in Morgantown, West Virginia. In a separate case, during a search of his home, officers found hundreds of grams of methamphetamine.
Assistant U.S. Attorneys Zelda Wesley and Stephen Warner are prosecuting the cases on behalf of the government.
Investigative agencies include the Mon Metro Drug Task Force and the Mountain Region Drug Task Force, both HIDTA-funded initiatives.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Magistrate Michael John Aloi presided.
Placer County Man Pleads Guilty to Child Exploitation ChargesRead the Press Release
SACRAMENTO, Calif. — Randy Anger, 57, of Carnelian Bay, pleaded guilty today to distribution and receipt of child pornography, United States Attorney Phillip A. Talbert announced.
According to court documents, in May 2021, Anger distributed and received child sexual abuse material on the Kik Messenger app while communicating with Brent Hooton. Hooton was separately charged and convicted in the Eastern District of California with production and distribution of child pornography and was sentenced to 27 years in prison. In November 2021, Anger also received several images of child sexual abuse material on the Wickr app.
This case was the product of an investigation by the Federal Bureau of Investigation, with assistance by Homeland Security Investigations and the Placer County Sheriff’s Office. Assistant United States Attorney Denise N. Yasinow is prosecuting the case.
Anger is scheduled to be sentenced on March 31, 2025, by U.S. District Judge Dale A. Drozd. On both the distribution and receipt counts, he faces a mandatory minimum sentence of 5 years in prison and a maximum statutory penalty of 20 years in prison per count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Peoria Man Sentenced to 102 Months in Prison for Heroin and Cocaine Trafficking Involving Firearms and for Violating Federal Supervised ReleaseRead the Press Release
Peoria, Ill. – A Peoria, Illinois man, Terrance J. Shaw, 43, was sentenced on December 12, 2024, to 102 months in federal prison for heroin and cocaine trafficking offenses involving firearms and for violating the terms of his federal supervised release. His sentence includes a six-year term of supervised release to be served upon completion of his term of confinement.
At the sentencing hearing before U.S. District Judge Jonathan E. Hawley, the government established that in early March 2024, Peoria Police responded to two ShotSpotter alerts of gunfire in the 700 Block of Lasalle Street. Officers located shell casings and focused their investigation on a residence associated with Shaw. At that time, Shaw was on federal supervised release for trafficking crack cocaine and possession of a firearm by a felon. On March 7, 2024, federal agents of the Peoria Area Federal Firearms Task Force and Peoria Police executed a search warrant at Shaw’s home. During the search, agents located 82 grams of heroin, 10 grams of cocaine, 312 grams of cannabis, drug packaging materials, digital scales and utensils with cocaine residue, multiple cellphones, a 9mm pistol and ammunition, and an AR-15 rifle with .223 caliber ammunition. Agents also located over $14,000 in U.S. currency in the home.
A criminal complaint was filed against Shaw in March 2024. A federal grand jury returned an indictment on March 19, 2024, charging him with drug trafficking offenses and firearms offenses. In August 2024 he pleaded guilty to possession with intent to distribute heroin, possession with intent to distribute cocaine, and possession of a firearm in furtherance of a drug trafficking crime. Shaw also admitted that he had violated the terms of his supervised release by committing the new drug and firearm offenses.
Shaw’s total sentence of 102 months is a combination of the terms of imprisonment on the drug trafficking and gun offenses and a term of imprisonment for violating supervised release.
The statutory penalties for possession with intent to distribute the quantities of heroin and cocaine involved in the case are up to 30 years imprisonment, followed by 6 years of supervised release. The penalties for possession of a firearm in furtherance of a drug trafficking crime are 5 years to life imprisonment, followed by 2 to 5 years of supervised release. Imprisonment on the firearm count must be served consecutive to the other counts.
The Peoria Area Federal Firearms Task Force, comprised of agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Peoria Police Department; the Peoria County Sheriff’s Department; Illinois Department of Corrections; and the Illinois State Police, investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
The case against Shaw 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.
Parmelee Man Sentenced to Nearly Five Years in Federal Prison for Assaulting a Fellow Jail Inmate and Possessing a Firearm While a FelonRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Eric C. Schulte has sentenced a Parmelee, South Dakota, man convicted of Assault with a Dangerous Weapon and Possession of a Firearm by a Prohibited Person. The sentencing took place on December 16, 2024.
Daryl John Plumman, age 32, was sentenced to four years and nine months in federal prison, followed by three years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Plumman was indicted by a federal grand jury in September 2023. He pleaded guilty on July 24, 2024.
The convictions stem from two different incidents that occurred in 2023 in the Rosebud Sioux Indian Reservation. On April 21, 2023, law enforcement was looking for Plumman in Parmelee in connection with an alleged assault that happened earlier in the day. Plumman was located sitting in the driver seat of a parked vehicle, with a loaded 9 mm pistol under his seat. He was previously convicted of Abusive Sexual Contact in federal court. As a result of this conviction, it is illegal for Plumman to possess firearms or ammunition.
On July 29, 2023, Plumman was an inmate at the Rosebud Sioux Tribe Adult Correctional Facility. On that day, Plumman and another man attacked a fellow inmate and assaulted him with a pencil.
The assault 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 Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Kirk Albertson and Brian Murphy prosecuted the case.
Plumman was immediately remanded to the custody of the U.S. Marshals Service.
Ocala Man Indicted for Double RobberyRead the Press Release
Ocala, FL – United States Attorney Roger B. Handberg announces the return of an indictment charging Danny Anzardo (45, Ocala) with two counts of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence. If convicted of the robbery offenses, Felix faces a maximum sentence of 20 years in federal prison for each robbery. The firearm offense carries a minimum sentence of seven years, up to life, in federal prison, which must be served consecutively to any prison term imposed for the robberies.
According to court documents, Anzardo robbed two establishments—a general retail store and a jewelry store—on October 29, 2024. During the first robbery, Anzardo pointed a firearm at the cashier, demanding money from the cash register. Anzardo took approximately $88 from the cash register and fled. A few hours later, Anzardo robbed the jewelry store. Anzardo implied to the victim that he had a firearm inside his backpack and threatened to kill the victim. Anzardo stole approximately $13,000 worth of jewelry from the store. Anzardo was arrested the following day and confessed to both robberies. He admitted that he used a firearm during the first robbery and that he disposed of it in a lake before he robbed the jewelry store.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Ocala Police Department, and the Marion County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Belkis H. Callaos.
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.
New York City Man Arrested for Drug DistributionRead the Press Release
BOSTON – A New York City man has been arrested and charged for allegedly distributing multiple kilograms of fentanyl in the greater Boston area that he transported from New York.
Cesar Nunez Lopez, 42, was charged with three counts of distribution and possession with intent to distribute controlled substances. Lopez was arrested on Dec. 13, 2024 and, following an initial appearance in federal court in Boston later that day, agreed to voluntary detention.
According to the charging documents, in November 2024, Lopez was identified as a fentanyl trafficker. On Nov. 15, 2024, in a supermarket parking lot in the greater Boston area, Lopez distributed 99.4 grams of fentanyl wrapped in a clear plastic bag inside a black sock. It is further alleged that on Nov. 25, 2024, Lopez distributed approximately 500 grams of suspected fentanyl at a store parking lot in Watertown.
On the morning of Dec. 13, 2024, Lopez allegedly travelled from New York to a parking lot in Watertown where he distributed approximately 2.5 kilograms of fentanyl inside shopping bag.
The charge of distribution and possession with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigation, Boston Field Office made the announcement. Valuable assistance was provided by the Watertown and Waltham Police Departments. Assistant U.S. Attorney Steve Hassink of the Narcotics & Money Laundering Unit is prosecuting the case.
This investigation was led by members of the Organized Crime Drug Enforcement Task Forces (OCDETF) Boston Strike Force. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Muskogee Resident Pleads Guilty to Federal Firearm ChargeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Rickey Everett Ballard, age 29, of Muskogee, Oklahoma, entered a guilty plea to one count of Felon in Possession of a Firearm and Ammunition.
The Superseding Indictment alleged that between May 1, 2024, and May 29, 2024, Ballard knowingly possessed a semiautomatic .300 blackout caliber pistol and twenty-nine rounds of ammunition after having been convicted of a crime punishable by imprisonment for a term exceeding one year.
The charges arose from an investigation by the Muskogee Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Ballard will remain in the custody of the United States Marshal Service pending sentencing.
Assistant U.S. Attorney Jonathan E. Soverly represented the United States.
Michigan Man Pleads Guilty to Hate Crime for Plotting Mass Shooting of Gay CommunityRead the Press Release
A Michigan man pleaded guilty today to one count of committing a hate crime by attempting to carry out a mass killing.
According to court documents, Mack Davis, 22, of Owosso, admitted that he attempted to conduct a mass killing of individuals at a political party headquarters and a nearby bar in the Eastern District of Michigan because he associated both locations with gay people.
“This defendant amassed an arsenal of firearms, rounds of ammunition and bombmaking parts that he intended to use to carry out the mass killing of gay people. This kind of vile and heinous hate-fueled violence, intended to target innocent people based on their sexual orientation, runs contrary to our values as Americans,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Bias-motivated crimes targeting the LGBTQI+ community will not be tolerated. The Justice Department will continue using every tool at our disposal to protect communities from the scourge of hate-fueled violence by prosecuting those who carry out or attempt to carry out such crimes.”
“Davis’ plans were chilling. He intended to commit mass shootings at two locations — destroying countless lives and devastating our community — all because of his fanatical hatred for gay people,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “I applaud the work of law enforcement in disrupting this awful plot and arresting Davis before he could carry out his planned attacks. Today’s guilty plea is a reflection of my office’s commitment to prosecuting bias crimes and is a critical step in holding this defendant accountable for his actions.”
“Mack Davis’ guilty plea to a federal hate crime highlights the unwavering dedication of law enforcement to uphold the safety and security of every community in Michigan,” said Special Agent in Charge Cheyvoryea Gibson of FBI Detroit Field Office. “This case serves as a stark reminder that there is no tolerance for hate-fueled violence. Davis confessed to devising a plan motivated by his deep-seated hatred, targeting innocent individuals associated with the LGBTQIA+ community. The FBI’s Detroit Field Office, Flint Resident Agency, in collaboration with the Owosso Police Department, the Bureau of Alcohol, Tobacco and Firearms (ATF), and the Michigan State Police, acted swiftly to prevent this malicious scheme from being carried out. Our collective action disrupted a serious threat and reaffirmed our commitment to protecting vulnerable communities from harm. Michigan law enforcement remains committed to ensuring all individuals live free from fear of violence or discrimination. We are dedicated to combating hate, protecting the safety and well-being of Michigan residents, and fostering a safe environment where everyone, regardless of identity, can thrive in peace.”
According to court documents, from at least July 2023 through June 2024, Davis accessed search engines and social media sites to research, post about, and pay tribute to mass killers, and wrote about dozens of mass killers in journals and on other items in his home. During that period, Davis also began to plot his own mass killing, by, among other things, drafting lists of weapons and tactical gear he owned and intended to acquire for use in his mass killing. By June, Davis had crossed off every item on the list of weapons and tactical gear he intended to acquire, and had amassed an arsenal that included two firearms, magazines, hundreds of rounds of ammunition, a crossbow and arrows, assorted bomb-making parts, smoke grenades, tactical gear and clothing and several knives. Davis inscribed one of the knives with the anti-gay slur, “FAGGOT Killer.”
From April through June, Davis solidified his plan to commit the mass killing. Among other acts, Davis posted on a social media site that he intended to commit a mass killing at a political party headquarters, which Davis referred to as “Location 1,” that Davis wrote was “filled with far-left liberal, faggot scum.” Davis wrote that he would continue the mass killing at “Location 2,” a nearby bar that Davis wrote was “a faggot bar.” Davis researched both locations online, conducted physical surveillance of both locations and posted about his research and surveillance on the social media site. During that period, Davis also vandalized two cars that belonged to his neighbors, whom he knew to be gay, by spray-painting the word “fag” on one of the cars. Days later, Davis also test-fired one of his firearms, an illegal short-barreled rifle, by firing approximately 60 bullets into several of his neighbors’ properties, including one of the cars that he had previously vandalized.
The Owosso Police Department arrested Davis for that shooting. Davis was later transferred to federal custody, where he has remained since.
A sentencing hearing will be scheduled for a later date. Because Davis’s hate crime involved an attempt to kill, he faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Detroit Field Office investigated the case, with assistance the from the Owosso Police Department, ATF and Michigan State Police.
Assistant U.S. Attorneys Frances Lee Carlson and Christopher W. Rawsthorne for the Eastern District of Michigan and Trial Attorney Erin Monju of the Civil Rights Division’s Criminal Section are prosecuting the case.
Mexican National Indicted for Illegal Re-Entry of Removed AlienRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that JUAN CARLOS MORALES-HINOJO (“MORALES-HINOJO”), age 39, a native of Mexico, was indicted on December 13, 2024 for illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a) and (b)(1).
According to the indictment, on November 8, 2024,MORALES-HINOJO reentered the United States after being previously deported on August 15, 2019. For this offense, MORALES-HINOJO faces up to ten years imprisonment, a fine of up to $250,000, up to one year of supervised release, and a mandatory $100 special assessment fee.
United States Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of United States Immigration and Customs Enforcement, Enforcement Removal Operations in investigating this matter. Assistant U.S. Attorney Mary Katherine Kaufman of the General Crimes Unit is in charge of the prosecution.
Meriwether County Man Sentenced to Prison for Armed Drug TraffickingRead the Press Release
COLUMBUS, Ga. – A West Georgia resident with a criminal past who is currently serving a life sentence in a state prison, was sentenced to serve more than 14 years in a federal prison after he was convicted at a bench trial of firearms and drug trafficking charges.
Howatdrick Jamal Jones, 32, of Woodbury, Georgia, was sentenced to serve 175 months in prison to be followed by five years of supervised release to run concurrently to his state prison sentence by U.S. District Judge Clay Land on Dec. 17. Jones was found guilty of one count of possession of cocaine base with intent to distribute, one count of possession of a firearm during a drug trafficking crime and one count of possession of a firearm by a convicted felon following a bench trial on Sept. 23. There is no parole in the federal system.
“Violent reoffenders must be held accountable for their crimes,” said U.S. Attorney Peter D. Leary. “This case is a testament to the ongoing collaboration with our law enforcement partners from every level to bring to justice those creating the most havoc in our communities.”
“Guns, drugs and violence are unfortunately all too common tools of the drug trafficking organizations operating in our communities,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “Cases like this clearly demonstrate the resolve of the DEA to hold violent drug traffickers accountable.”
“I would like to thank all of the law enforcement entities involved for their hard work on this case,” said Waverly Hall Police Chief Jason Durham. “This is another proven example that illegal drugs and guns will not be tolerated.”
According to the evidence at trial, Jones was stopped by a Waverly Hall Police Department officer on Oct. 16, 2019, after the officer’s automatic license plate reader triggered an alert that the owner of the car had active arrest warrants. The officer smelled marijuana and searched the vehicle, finding cocaine, a digital scale and a razor blade next to the drugs. Jones was concealing a .45 caliber pistol. At the time, Jones had several prior felony drug convictions; it is illegal for a convicted felon to possess a firearm. Jones was convicted of bank robbery on Sept. 20, 2023, in the Superior Court of Pike County, Georgia, and is serving a life sentence for his crime.
This case was investigated by the Drug Enforcement Administration (DEA) and the Waverly Hall Police Department with valuable assistance from the FBI and the Harris County Sheriff’s Office.
Assistant U.S. Attorneys Christopher Williams and Crawford Seals prosecuted the case for the Government.
Member of Cypress Gangsta Crips Gang Charged with 2015 MurderRead the Press Release
Earlier today, a two-count indictment was unsealed in federal court in Brooklyn charging Jason Soto, also known as “Twin,” a member of the Cypress Gangsta Crips (CGC), a subgroup of the Eight Trey Crips based in the Cypress Hills Houses of East New York, Brooklyn, with the February 2015 murder of Shakim Rivera, the leader of the CGC. The defendant was arrested this morning and will be arraigned before United States Magistrate Judge Sanket J. Bulsara.
Breon Peace, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the arrest and indictment.
“This indictment makes clear that my Office and our law enforcement partners are relentless in our pursuit of violent gang members who have committed murders and harmed communities like the Cypress Hills Houses for far too long,” stated United States Attorney Peace. “We are reducing gang and gun-related violence and saving lives through a coordinated effort to target the most violent offenders, like this defendant.”
“Jason Soto, a Crips gang member, allegedly appointed himself as judge, jury, and executioner to murder his own leader as twisted justice for the death of a fellow member. Soto’s alleged actions contributed to the infestation of gang violence plaguing a Brooklyn housing complex and endangered the lives of thousands of its residents. With the assistance of our law enforcement partners, the FBI will continue to apprehend any gang member wreaking havoc in our communities,” stated FBI Assistant Director in Charge Dennehy.
“The residents of the Cypress Hills Houses, along with all New Yorkers in every neighborhood, deserve to live their lives without fear,” stated NYPD Commissioner Tisch. “The NYPD and our law enforcement partners are dedicated to systematically dismantling the gangs and crews responsible for crime and violence in New York City. I commend the collaborative efforts of our NYPD investigators, the FBI, and the U.S. Attorney’s Office for the Eastern District of New York in identifying and holding accountable those who terrorize our communities.”
As detailed in the indictment and other court documents, since at least February of 2015, Soto was a member of the CGC, which operated in the Cypress Hills Houses and elsewhere. CGC members committed acts of violence to promote the gang, enforce the rules of the gang, keep rivals in fear of CGC and earn money for the gang through firearm and narcotics trafficking and robberies.
The investigation revealed a deadly gang turf war fought in the Cypress Hill Houses—in the midst of residential buildings, stores and a playground—between gangs that have aligned themselves by where their members live within the housing complex. The Bloods gang associated with the “Frontside” section of Cypress feuded with the CGC members of the “Backside” and “Teamside” sections of Cypress. An internal war broke out in 2015 within the CGC when high-ranking member Demetrius Graham, also known as “Duke,” was murdered on February 19, 2015. Believing that CGC leader Shakim Rivera was responsible for Graham’s murder, members of CGC planned retaliation.
On February 19, 2015, Soto traveled from Pennsylvania to Brooklyn to carry out Rivera’s murder. On February 22, 2015, Soto lured Rivera to the vicinity of 9011 Bayview Place in the Canarsie neighborhood of Brooklyn. As alleged, Soto and another member of the CGC shot and killed Rivera, the leader of CGC, in retaliation for Graham’s murder.
The indictment is the result of a long-term investigation initiated by the FBI, the NYPD and the Office in 2015 in response to gang-related violence in and around the Cypress Hills Houses. The investigation has resulted in charges against over 20 defendants for drug trafficking, illegal weapons possession, robbery and murder.
If convicted, the defendant faces a mandatory sentence of life in prison, or possibly the death penalty.
The charges announced today are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Emily J. Dean and Andy Palacio are in charge of the prosecution, with the assistance of Paralegal Specialist Theodore Rader.
The Defendant:
JASON SOTO
Age: 36
Queens, New YorkE.D.N.Y. Docket No. 24-CR-511 (RER)
McAlester Resident Pleads Guilty to MaimingRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Cody Ray McFadden, age 36, of McAlester, Oklahoma, entered a guilty plea to one count of Maiming in Indian Country.
The Indictment alleged that on July 17, 2022, McFadden, intending to maim and disfigure, disabled the victim.
The crimes occurred in Pittsburg County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Pittsburg County Sheriff’s Office, the Oklahoma Highway Patrol, and the Federal Bureau of Investigation.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. McFadden will remain in the custody of the United States Marshals Service pending sentencing.
Assistant U.S. Attorney Joshua Satter represented the United States.
Maryland Woman Charged with Tax Refund FraudRead the Press Release
A federal grand jury in Greenbelt, Maryland, returned an indictment, unsealed last week, charging a Maryland woman with tax fraud and theft of government funds.
According to the indictment, from 2014 to 2024, Monica Patricia McGinley assisted with the preparation and filing false tax returns, so that McGinley could receive large refunds from the IRS to which she was not entitled. On those returns, McGinley allegedly claimed nonexistent payments or withholdings and requested nearly $12 million in refunds. The IRS allegedly issued refunds to McGinley totaling over $1.5 million. In one instance, she allegedly received a U.S. Treasury check for over $1 million.
If convicted, McGinley faces a maximum penalty of 10 years in prison for the theft of government funds charge and a maximum penalty of three years in prison for each of the six counts of aiding and assisting in the preparation and presentation of false tax returns. Upon conviction, 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 Christina Grimes and Jeffrey McLellan of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Man Who Conspired to Sexually Exploit a Child Pleads GuiltyRead the Press Release
A man who conspired to sexually exploit a child and who possessed child sexual abuse material pled guilty today in federal court in Cedar Rapids, Iowa
Benjamin Paul Egli, age 30, from North Liberty, Iowa, was convicted of one count of conspiracy to sexually exploit a child and one count of possession of child pornography.
At court hearings and in a plea agreement, Egli admitted that on multiple occasions in 2023, he used Snapchat to make video calls to another person. In those video calls, at Egli’s request, the other person engaged in sexually explicit conduct with a toddler. Egli screen-recorded the sexual conduct and saved those videos on his phone. He also possessed other images and videos of child sexual abuse material on his phone, including images of children performing sexual acts on animals and sadistic and masochistic conduct.
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.”
Sentencing before United States District Court Chief Judge C.J. Williams will be set after a presentence report is prepared. Egli remains in custody of the United States Marshal pending sentencing. Egli faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 50 years’ imprisonment, a $500,000 fine, $77,200 in special assessments, and a life term of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Devra T. Hake and was investigated by the Federal Bureau of Investigation, the Iowa Division of Criminal Investigation, the Tipton Police Department, and the Joint Forensic Analysis Cyber Team.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-53.
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Louisville Man Sentenced to over 7 Years in Federal Prison for Illegally Possessing a Firearm and a MachinegunRead the Press Release
Louisville, KY – A local man was sentenced this week to 7 years and 2 months prison for possession of a firearm and ammunition by a convicted felon and illegal possession of a machine gun.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Chief Paul Humphrey of the Louisville Metro Police Department made the announcement.
“I commend the work of ATF and LMPD in this case,” stated U.S. Attorney Bennett. “The combined partnership of federal and state law enforcement in the Louisville Metro area continues to pay dividends as we continue to remove the most violent individuals from the streets and send them to federal prison.”
According to court documents, Aaron Kidwell, 34, was sentenced to 7 years and 2 months in prison, followed by 3 years of supervised release, for illegally possessing a Glock, Model 17, 9-millimeter pistol, ammunition, and a Glock Switch device (machinegun conversion device). A Glock Switch device allows a semi-automatic handgun to function as an automatic and is defined as a machine gun under federal law. On February 19, 2024, Kidwell led detectives on a chase while driving a large Kubota tractor through residential areas while armed with the loaded Glock, Model 17, 9-millimeter pistol with a Glock Switch attached to it. Kidwell was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses.
On December 7, 2009, in Floyd Superior Court No. 1, Floyd County, Indiana, Kidwell was convicted of criminal trespass.
On February 27, 2014, in Floyd Superior Court No. 1, Floyd County, Indiana, Kidwell was convicted of dealing in marijuana.
On February 12, 2018, in Floyd Superior Court No. 3, Floyd County, Indiana, Kidwell was convicted of strangulation.
On September 17, 2018, in Clark Circuit Court No. 3, Clark County, Indiana, Kidwell was convicted of identity deception.
There is no parole in the federal system.
This case was investigated by the ATF with assistance from the Louisville Metro Police Department.
Assistant U.S. Attorney Erwin Roberts 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.
This case is also a part of the Prohibited Firearm Possessor Initiative (PFP), a collaborative partnership between all levels of law enforcement and prosecutors to reduce violent crime and firearm offenses. On January 23, 2024, Louisville Metro initiated a gun crime reduction initiative focused on investigating and prosecuting illegal firearm possession. The PFP partners include the Louisville Metro Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Jefferson County Attorney’s Office, the Jefferson County Commonwealth’s Attorney’s Office, the Kentucky Attorney General’s Office, and the U.S. Attorney’s Office for the Western District of Kentucky.
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Lexington Doctor Sentenced for Engaging in International Money Laundering Scheme and Importing Illegal and Misbranded DrugsRead the Press Release
BOSTON – A Lexington, Mass. doctor was sentenced yesterday in federal court in Boston for an international money laundering scheme involving importing illegal, misbranded drugs.
Rahim Shafa, 66, was sentenced by U.S. District Court Judge Margaret R. Guzman to three years in prison, to be followed by three years of supervised release. Shafa was also ordered to pay $115,765 in restitution and a fine of $150,000. In February 2024, Shafa was convicted after a 14-day jury trial of international money laundering, illegally importing merchandise contrary to law and receiving and delivering misbranded drugs. The defendant was indicted by a federal grand jury in August 2020 and subsequently charged in a superseding indictment in June 2021.
Shafa was a psychiatrist who owned and operated Novel Psychopharmacology (Novel). From approximately January 2008 through January 2018, Shafa engaged in an international money laundering scheme to purchase naltrexone pellet implants as well as disulfiram pellet implants and injections from Hong Kong. Naltrexone and disulfiram are approved by the U.S. Food and Drug Administration (FDA) in certain forms for the treatment of alcohol dependence and alcohol and opioid dependence, respectively. However, the implantable pellet form of the drug that Shafa purchased are not approved by the FDA. Shafa falsified shipping documents to conceal that the packages containing the drugs were shipped from Hong Kong to Shafa in Massachusetts. For example, packages containing naltrexone pellet implants were falsely declared as ‘plastic beads in plastic tubes’ in shipping documents. Shafa sold these drugs to patients of Novel and implanted them into patients, without fully understanding the risks of the drugs. Patients testified at trial regarding infections and complications they experienced from the pellet implantation procedure.
United States Attorney Joshua S. Levy, Fernando P. McMillan, Special Agent in Charge of the New York Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations and Special Agent in Charge Roberto Coviello of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) made the announcement. Valuable assistance was provided by the Massachusetts State Police, the Milford Police Department and the Lexington Police Department. Assistant U.S. Attorneys John T. Mulcahy, Howard Locker and Kaitlin J. Brown of the Criminal Division prosecuted the case.
Leader of Large-Scale Fentanyl Trafficking Conspiracy Sentenced to 22.5 Years in PrisonRead the Press Release
BOSTON – A Rhode Island man was sentenced in federal court in Boston for his role in a large-scale fentanyl trafficking conspiracy responsible for the distribution of large quantities of fentanyl across Massachusetts, Rhode Island, New York and other states.
Jasdrual a/k/a Josh Perez, 36, of Cranston, R.I., was sentenced by U.S. District Court Judge Leo T. Sorokin to 22.5 years in prison to be followed by five years of supervised release. Perez was also ordered to pay a fine of $1 million. In addition, Perez was ordered to forfeit his rights to the residence from which Perez distributed fentanyl.
“Fentanyl kills over 2,000 people a year in Massachusetts. That is unacceptable. Jasdural Perez was running a business that pumped over 200 kilograms of this deadly poison onto the streets of Massachusetts and neighboring states, wreaking havoc and destroying lives. This was not some low-level street dealer. This is a man who bought industrial pill presses to churn out millions of pills containing highly addictive and dangerous fentanyl.” said United States Attorney Joshua S. Levy. “This office and our federal partners will stay relentless in holding accountable the people contributing to this deadly crisis. We commend the tireless work of our law enforcement partners who continue, day in and day out, to root out, dismantle and punish these organizations and the people who sit atop them.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison, especially in the form of pills designed to look like real prescription medication, in order to profit and destroy lives,” said Acting DEA Special Agent in Charge Stephen Belleau, New England Field Division. “Illegal drug distribution ravages the very foundations of our families and communities so every time we take fentanyl off the streets, lives are saved. This investigation demonstrates the strength of collaborative local, county and state law enforcement efforts in Massachusetts and our strong partnership with the U.S. Attorney’s Office.”
“The sentence of Jasdural Perez sends a strong message to all those who seek to endanger the welfare and wellbeing of our communities in order to enrich themselves,” said Jonathan Wlodyka, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office. “Perez led a syndicate whose sole intent was flooding our streets with large quantities of deadly drugs. By concealing fentanyl as pharmaceutical grade prescription drugs, Perez further endangered his clients lives by selling them a product that is much more potent and deadly.”
Perez was the leader of a drug trafficking organization (DTO) based in Providence, R.I., that distributed significant quantities of fentanyl. Perez and his DTO pressed fentanyl powder into pills designed to look like pharmaceutical grade Oxycodone or Percocet pills and sold these pills across multiple states. Perez and his DTO distributed an estimated 200 kilograms of fentanyl and manufactured and sold millions of counterfeit pills containing fentanyl. Perez led the DTO, had multiple people working for him and manufactured fentanyl pills himself.
On Feb. 7, 2022, a search of a home owned by Perez resulted in the seizure of two industrial-sized pill presses and kilograms of fentanyl, including bags containing fentanyl powder and over 50,000 counterfeit oxycodone pills containing fentanyl.
Perez fled from Rhode Island to New York upon hearing of the searches on his properties. While he was fleeing, Perez orchestrated another fentanyl deal, this time for the sale of 19,000 pills. Those drugs were also seized.
Perez was arrested on Feb. 11, 2022 and has been in custody since his arrest. Last week, co-defendant Erik Ventura was sentenced to 10 years in prison for his role in this conspiracy.
U.S. Attorney Levy; DEA Acting SAC Belleau; Acting IRS SAC Wlodyka; and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Special assistance in the investigation was provided by the United States Attorney’s Office for the District of Rhode Island; Rhode Island State Police; Massachusetts State Police; and the Cranston, Warwick, and West Warwick, RI Police Departments. Assistant U.S. Attorneys Kunal Pasricha, Lindsey Weinstein and Craig Estes of the Criminal Division and Alexandra Amrhein of the Asset Forfeiture Unit represented the government.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Lead defendant in drug trafficking conspiracy sentenced to nearly 15 years in federal prisonRead the Press Release
SAVANNAH, GA: A Chatham County man identified as a leader in a drug trafficking network has been sentenced to nearly 15 years in prison.
Kenyona Pinckney, 33, of Savannah, was sentenced to 178 months in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine, Methamphetamine, and Marijuana, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. The sentence will be served consecutive to Pinckney’s current term of state imprisonment for a separate conviction. U.S. District Court Chief Judge R. Stan Baker also ordered Pinckney to serve three years of supervised release upon completion of his prison term.
There is no parole in the federal system.
“The conspiracy identified in this investigation was responsible for distributing multiple kilograms of illegal drugs in the greater Savannah area and beyond,” said U.S. Attorney Steinberg. “This sentence is a credit to the outstanding investigative work of our law enforcement partners.”
As described in court documents and testimony, Pinckney was housed in the Georgia Department of Corrections Transition Center in Columbus, Ga., serving a state sentence for trafficking methamphetamine, and was using contraband cell phones to coordinate shipments of multiple kilos of cocaine and methamphetamine into the Savannah area, including Chatham, Bulloch, Effingham, and Laurens counties. The conspiracy first came to the attention of investigators when Drug Enforcement Administration agents in Virginia determined that drugs coming into that state were coordinated by one of Pinckney’s co-conspirators in Savannah.
The January 2024 indictment in USA v. Pinckney et al. charged Pinckney and 12 co-defendants in the conspiracy. Four of those co-defendants have been sentenced after pleading guilty; two have entered guilty pleas and are awaiting sentencing; while five defendants are awaiting further proceedings and are presumed innocent unless and until proven guilty.
“Whether drug dealers operate out on the street or behind bars, the Drug Enforcement Administration stands ready to deliver justice,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division.
“Customs and Border Protection officers remain committed to working with our valued local, state, and federal partners to keep dangerous drugs from reaching our community’s streets and protecting the residents of Georgia,” said Andrea Coffey, Acting Area Port Director, CBP Savannah.
“This case highlights the broad reach of the law enforcement community to bring together federal, state and local partners to dismantle a large distributor of illicit drugs,” said Jason Krizmanich, Acting Inspector in Charge of the Atlanta Division. “Postal Inspectors objectives are to rid the mail of illegal drug trafficking, preserve the integrity of the mail system, and provide a safe environment for postal employees and the American public.”
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.
The case was investigated by the Drug Enforcement Administration, the Georgia Ports Authority Police Department, U.S. Customs and Border Protection, U.S. Postal Inspection Service, Chatham Savannah Counter Narcotics Team, the Georgia Department of Corrections, the Georgia State Patrol, the Savannah Police Department, the Chatham County Police Department, the Liberty County Sheriff’s Office, and the Laurens County Sheriff’s Office, and prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorneys Michael Z. Spitulnik and OCDETF Coordinator Marcela C. Mateo.
Kern County Woman Sentenced to Five Years for $825,000 Credit Card Fraud Scheme Where She Used Identities Stolen from Health Care ProvidersRead the Press Release
FRESNO, Calif. — Karina Arceo, 34, of Wasco, was sentenced to 60 months in prison and 3 years of supervised release for conspiring to commit bank fraud and committing aggravated identity theft in a long-running credit card fraud scheme, U.S. Attorney Phillip A. Talbert announced today.
“The defendant used patient healthcare files to commit fraud and identity theft instead of treating those files with the care and sensitivity they deserve,” said U.S. Attorney Talbert. “Let this case serve as a warning those who consider abusing such access to patient files: my office will work tirelessly with the FBI and our law enforcement partners to investigate and prosecute fraud and identity theft crimes committed with sensitive patient information.”
“Arceo violated her employer’s trust by abusing her access to personally identifiable information, fueling an elaborate, greed-driven scheme that she and her partner enjoyed until they were taken into custody,” said FBI Sacramento Special Agent in Charge Sid Patel. “This case should serve as a reminder to all to freeze and routinely check your credit to ensure accounts are not opened without your knowledge. It is also a reminder to would-be criminals that the FBI will identify and pursue anyone who abuses a position of trust to exploit others for personal gain.”
According to court records, from February 2016 through August 2022, Arceo and her partner and co-defendant, Miguel Leyva, stole the personally identifiable information (PII) for more than 125 victims. They stole much of the PII from patient files at health care providers in Kern County where Arceo worked.
As part of their fraud scheme, Arceo and Leyva used the stolen PII to open thousands of fraudulent credit cards in the victims’ identities and made hundreds of thousands of dollars in fraudulent purchases on the credit cards in Fresno County, Kern County, the Bay Area, and elsewhere. The fraudulent purchases included home appliances, furniture, wall art, automobile accessories, designer clothing and shoes, luxury camping equipment, tickets to concerts and sporting events, and travel, among other items. Indeed, they used fraudulent purchases to remodel their home kitchen and their child’s room.
Arceo and Leyva also resold many of the items that they fraudulently purchased for cash and reaped a windfall because they did not actually pay for the items. They also used checks that had been stolen from companies in Kern County to access the companies’ bank accounts and make fraudulent payments towards the credit cards so as to keep their scheme going. Altogether, their scheme caused a total actual loss of more than $825,000.
Selfie of defendants celebrating after fraudulent purchase at Bed, Bath, & Beyond
Arceo’s sentence was enhanced because text messages that she exchanged with Leyva showed that she was the leader of the scheme. Arceo would pull the stolen PII used to open the fraudulent credit cards from her cloud account and send it to Leyva. The text messages also showed that Arceo would coach Leyva on how to make the fraudulent purchases. For example, she would tell him which cashiers to target at the stores and what to say if the cashiers started asking questions. Finally, the text messages showed that Arceo used lyrics from a popular hip-hop song at the time to describe herself as being “the boss” of the scheme who “makes money move” and to Leyva as just being a “worker.”
Leyva was previously sentenced to 65 months in prison.
At the sentencing hearing, Arceo submitted a letter to the court that Leyva wrote from prison where he tried to minimize her role in the scheme and identified himself as being the leader. That argument was rejected by the court.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Joseph D. Barton and Arelis M. Clemente are prosecuting the case.
Justice Department Sues City of Brunswick, Georgia, for Trying to Close Christian Resource Center for Homeless IndividualsRead the Press Release
The Justice Department announced yesterday that it filed a lawsuit alleging that the City of Brunswick, Georgia, violated the Religious Land Use and Institutionalized Persons Act (RLUIPA) through its efforts to interfere with and permanently close The Well, a faith-based resource center affiliated with the United Methodist Church for those experiencing homelessness.
“Federal law protects the right of religious groups such as The Well to use their land to help others,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The division will continue to vindicate the rights of groups to exercise their religion and fight local land use laws that unlawfully restrict those rights.”
“We will take the steps necessary, including filing suit, to protect religious exercise against unreasonable and improper restrictions,” said U.S. Attorney Jill Steinberg for the Southern District of Georgia. “This office will steadfastly defend against unlawful local action the right of institutions like The Well to lawfully use their land to help their communities as an expression of their religious beliefs.”
The lawsuit filed in the U.S. District Court for the Southern District of Georgia alleges that, since 2014, The Well, as an expression of its staff’s Christian faith, has operated a daytime hospitality and religious resource center for those experiencing homelessness, offering showers, laundry, meals and other services. In public filings seeking federal funding, the city touted The Well’s services as part of the city’s efforts to reduce and end homelessness, but the city later engaged in a campaign to close The Well, blaming it for unrelated criminal activity in Brunswick. Even after The Well adopted safety and security measures suggested by the Brunswick Police Department, the city filed a lawsuit in state court seeking to close it.
The complaint alleges that the city’s efforts to close The Well have imposed a substantial burden on The Well’s religious exercise, that the city lacks a compelling interest and has not employed the least restrictive means of enforcing its purported interest. The complaint seeks injunctive relief prohibiting the city from substantially burdening The Well’s religious exercise.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office at [email protected] or the Civil Rights Division’s Housing and Civil Enforcement Section at (800) 896-7743, or may submit a report through the complaint portal on the Place to Worship Initiative website.
Jury Conviction and Prison for Tossing Loaded Firearm in D.C. BackyardRead the Press Release
WASHINGTON – Jamal Walters, 26, of Washington, D.C., was sentenced to 16 months in prison for unlawful possession of a firearm, announced by U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
On October 29, 2024, Walters was found guilty of one count each of unlawful possession of a firearm, carrying a pistol without a license, possession of an unregistered firearm, and possession of ammunition. In addition to the prison term, Superior Court Judge Jason Park ordered Walters to serve three years of supervised release.
According to the government’s evidence, at approximately 9:40 a.m. on February 7, 2022, Walters was in the 2200 block of Savannah Street Southeast. Officers with the Metropolitan Police Department attempted to stop Walters who was leaving a grocery store armed with a handgun loaded with 17 rounds. Walters fled on foot through residential backyards in the 3400 block of 23rd Street Southeast. Walters jumped a backyard fence and tossed the gun. Officers were then able to stop Walters and safely recover the firearm.
This case was investigated by the Metropolitan Police Department and the U.S. Attorney’s Office for the District of Columbia. The case was prosecuted by Assistant United States Attorneys Katelyn Benton and Nickolas Reck. eys Katelyn Benton and Nickolas Reck.
Jacksonville Woman Sentenced to 8 Years in Federal Prison for Supervising Armed Drug Trafficking Operation and Laundering More Than $1 MillionRead the Press Release
Jacksonville, Florida – U.S. District Judge Harvey Schlesinger has sentenced Yaquasia Delcarmen (28, Jacksonville) to eight years in federal prison for conspiracy to distribute 50 kilograms or more of marijuana and conspiracy to commit money laundering. The court also entered an order of forfeiture of $1,760,210, the proceeds of the drug trafficking conspiracy. Delcarmen pleaded guilty on June 27, 2024.
According to court documents, between October 2022 and her arrest in April 2024, Delcarmen served as a manager and supervisor of an armed drug trafficking organization (DTO), led by her boyfriend, Nathaniel Hatcher, III. The DTO acquired bulk quantities of marijuana from various grow operations in northern California, where they used one of Hatcher’s residences to weigh and package the marijuana. From there, DTO members, including Delcarmen, smuggled the marijuana in suitcases they flew commercially back to Jacksonville. Once the marijuana arrived back in Jacksonville, Delcarmen and her co-conspirators distributed the marijuana from various short-term rental homes throughout Jacksonville, primarily in the Riverside and San Marco neighborhoods. Delcarmen and other DTO members possessed and carried firearms at these residences to protect their drugs, their drug proceeds, and themselves during drug sales. Delcarmen specifically was responsible for collecting drug proceeds from the DTO’s various dealers and laundering the proceeds back into bank accounts controlled by her and Hatcher. During the conspiracy, Delcarmen and others used sham business accounts that were formed for the purpose of laundering illicit proceeds. Hatcher and Delcarmen spent the drug proceeds on lavish lifestyle items, including luxury vehicles and rental homes, and vacations to Miami, Hawaii, and California.
After federal agents arrested Hatcher in February 2024, Delcarmen conducted drug trafficking activities on Hatcher’s behalf while he was incarcerated. At Hatcher’s direction, Delcarmen coordinated additional drug sales and attempted to obstruct the federal investigation. Specifically, at Hatcher’s direction, Delcarmen posted the identity of a witness in the investigation publicly on social media with the intent of intimidating the witness and preventing their testimony. After her arrest, Delcarmen violated her bond conditions more than 1,000 times by maintaining direct and indirect contact with Hatcher, who she had been ordered to have no contact with while on bond. During the drug trafficking conspiracy, Delcarmen was responsible for trafficking between 100 and 400 kilograms of marijuana. During the money laundering conspiracy, Delcarmen was responsible for laundering at least $1.7 million in drug proceeds.
In related court proceedings, Delcarmen’s co-conspirators pled guilty to their roles in the Hatcher DTO. Specifically, Desmond Maxwell pled guilty to straw-purchasing firearms in furtherance of a drug trafficking crime and faces up to 25 years in federal prison. Al’Donta Easterling pled guilty to conspiracy to distribute 100 kilograms or more of marijuana and possession of a firearm in furtherance of a drug trafficking crime. He faces a minimum of 10 years, up to life, in federal prison. James Toney pled guilty to conspiracy to distribute 100 kilograms or more of marijuana, a drive-by shooting in furtherance of a major drug offense and discharging a firearm during and in relation to a crime of violence. He faces a minimum of 15 years, up to life, in federal prison. Nathaniel Hatcher has been charged by indictment and is scheduled for trial next year.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
This case was investigated by Homeland Security Investigations, the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service, the St. Johns County Sheriff’s Office, the Jacksonville Sheriff’s Office, the Clay County Sheriff’s Office, and the Florida Highway Patrol. It is being prosecuted by Assistant United States Attorneys Aakash Singh and Kirwinn Mike.
Jacksonville Felon Sentenced to 7 Years in Federal Prison After Setting Off Explosives and Possessing FirearmsRead the Press Release
Jacksonville, Florida – U.S. District Judge Wendy Berger has sentenced William Earl Union, Jr. (32, Jacksonville) to seven years in federal prison for possession of firearms by a convicted felon. The court also ordered Union to forfeit a Mossberg shotgun, a Smith and Wesson revolver, and all related ammunition. Union entered a guilty plea on August 22, 2024.
According to court documents, on November 25, 2023, emergency medical technicians (EMTs), the Jacksonville Fire and Rescue Department (JFRD), and the Jacksonville Sheriff’s Office (JSO) responded to a 911 call of shots fired at a residence along Rugby Road in Jacksonville. Upon their arrival, JFRD and EMTs encountered Union, who had sustained what appeared to be penetration wounds near his chest and multiple injuries to his hands, including burns. EMTs transported Union to the hospital for medical treatment.
JSO officers observed blood drops on the front porch of the home and a blood trail leading toward the center of the backyard. Officers entered the backyard to conduct a protective sweep of the area and followed the blood trail to what appeared to be a blast site near a stone fire pit. The JSO Hazardous Devices Unit examined the blast site and observed a single drywall screw partially submerged in the dirt. Officers also found two live 12-gauge shotgun shells on the ground. JSO detectives secured a search warrant for the residence for explosives, firearms, and ammunition. Inside the residence, JSO located three firearms, including a Taurus International pistol, a Smith and Wesson revolver, and a Mossberg shotgun.
Prior to November 25, 2023, Union had been convicted of several felony offenses, including aggravated battery on a law enforcement officer, aggravated fleeing or attempting to elude a law enforcement officer, dealing in stolen property, burglary, grand theft auto, and possession of cocaine. Therefore, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Aakash Singh.
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.
Irving Man Pleads Guilty to Bankruptcy Fraud After Filing 10 TimesRead the Press Release
An Irving man who filed 10 bankruptcies in 12 years in an effort to stave off foreclosure pleaded guilty Tuesday to bankruptcy fraud, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Michael Shaub, 62, was charged via felony information and pleaded guilty Tuesday to one count of bankruptcy fraud.
According to court documents, Mr. Shaub and his spouse purchased a house in Irving, Texas, incurring a mortgage loan secured by their ownership interest in the property.
In January 2012, he filed a Chapter 13 voluntary bankruptcy petition, which was dismissed without prejudice for failing to timely pay the Bankruptcy Trustee as specified in the Debtor’s Plan.
Over the ensuing seven years, he filed five additional bankruptcy petitions, the last of which was dismissed with prejudice, barring him from filing any more bankruptcies for two years, through May 2021.
Less than five months after the dismissal, however, Mr. Shaub filed a seventh bankruptcy petition under his wife’s name without her knowledge or consent. The fraudulent petition – which Mr. Shaub admitted was intended to circumvent the court order prohibiting him from filing bankruptcies for two years – was dismissed without prejudice in October 2019.Roughly two months after that dismissal, Mr. Shaub filed an eighth bankruptcy petition in contravention of the order barring him from filing through May 2021. In that petition, in response to a question asking whether he had filed any bankruptcies within the last eight years, Mr. Shaub listed only one of his bankruptcies and not the bankruptcy that resulted in the order barring him from filing.
In February 2020, a month after the eighth petition was filed, the Bankruptcy Court dismissed it with prejudice and barred Mr. Shaub from filing any more bankruptcies for a period of five years, through February 2025.
Roughly two years after that dismissal, Mr. Shaub filed a ninth bankruptcy, which was also dismissed with prejudice. This time, the Court barred Mr. Shaub from filing any bankruptcies for a period of ten years, through June 2032.
And yet just 14 months later, in August 2023, Mr. Shaub filed his tenth bankruptcy petition, which was dismissed with prejudice the same day.
Mr. Shaub now faces up to five years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Marty Basu is prosecuting the case.
International Cocaine Trafficker from Colombia Sentenced in D.C. to 70 Months in Federal PrisonRead the Press Release
WASHINGTON – Gilberto Javier Apraez-Munoz, 55, of Puerto Milan Caquetá, Colombia, was sentenced today in U.S. District Court in Washington D.C. to 70 months in prison for using his relatively complex drug trafficking network, which included drug facilities in the Colombian jungle, to prepare and distribute large amounts of cocaine into the United States, specifically Washington, D.C.
The sentencing was announced by U.S. Attorney Matthew M. Graves of the District of Columbia and FBI Acting Special Agent in Charge David Geist of the Washington Field Office Criminal and Cyber Division.
Apraez-Munoz, aka “Veneno,” was extradited from Colombia on March 15, 2024, and pleaded guilty on September 17, 2024, to unlawful distribution of 500 grams or more of cocaine for importation into the United States. In addition to the prison sentence, U.S. District Judge Amy Berman Jackson ordered Apraez-Munoz to serve 60 months of supervised release. He will also face deportation proceedings upon completion of his prison sentence.
According to court documents, in 2019 the FBI began a long-term investigation coordinated alongside Colombian law enforcement into narcotics trafficking intended for distribution into the United States. In August 2019, a confidential source (CS) and an undercover officer (UC) met with Apraez-Munoz in a café in Palmira, Colombia, to discuss a potential cocaine deal. During the meeting, Apraez-Munoz said he had been selling cocaine since 1996 and that most of his cocaine had been destined for Europe, but that he also sold cocaine sent to the United States. He added that he was familiar with drug routes, pricing, and the need for quality control related to his product. Apraez-Munoz noted his experience in producing significant amounts of high-quality cocaine because he operated his own cocaine production facility. He was aware that the cocaine would ultimately reach the District of Columbia.
Apraez-Munoz told the CS and UC that the price would be $4,800,00 Colombian Pesos (COP) or approximately $1,300 per kilogram. The UC gave Apraez-Munoz a downpayment of $20,000,000 COP for a 10-kilo purchase. Before completing the transaction, Apraez-Munoz drove the UC to his manufacturing facility in the Colombian jungle to show him the operation, which included mixing and production labs. Ten days later, Apraez-Munoz brought 10 bricks of cocaine to a hotel room in Colombia. He reassured the UC of that the cocaine was high quality because of its intended destination of Washington, D.C. The UC gave Apraez-Munoz an addition $28,000,000 COP in exchange for the cocaine. The cocaine was later transported to a DEA laboratory in the U.S. for testing where it was confirmed that the substance was approximately 10 kilograms of cocaine.
This case was investigated by the FBI Washington Field Office. The matter is being prosecuted by Special Assistant U.S. Attorney Ernesto J. Alvarado and Assistant U.S. Attorney Nihar Mohanty with the Violence Reduction and Trafficking Offenses section for the U.S. Attorney’s Office for the District of Columbia.
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Idabel Resident Sentenced for Federal Drug CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Teresa Leona Dean, age 55, of Idabel, Oklahoma, was sentenced to 6 years in prison for one count of Distribution of Methamphetamine.
The charge arose from an investigation by the Drug Enforcement Administration.
On June 5, 2024, Dean pleaded guilty to the charge. According to investigators, on August 17, 2023, Dean distributed over 5 grams of methamphetamine, a Schedule II controlled substance.
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. Dean 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. Richard J. Lorenz represented the United States.
Houston gun dealer heads to prison for assisting in illegal firearms traffickingRead the Press Release
HOUSTON – A 45-year-old Cypress resident has been sentenced for aiding and abetting engaging in the business of dealing in firearms without a license, announced U.S. Attorney Alamdar S. Hamdani.
Nicah Anderson pleaded guilty Aug. 9.
U.S. District Judge Keith Ellison ordered Anderson to serve 24 months in federal prison to be immediately followed by one year of supervised release.
“Anderson selfishly prioritized his profits over public safety,” said Hamdani. “Anderson claimed his gun store was not as profitable as he hoped, but that’s no excuse for turning a blind eye so many suspect gun sales. Today, the court held him accountable for his wrongdoing. Just as important, he is now forced to disgorge his ill-gotten gains.”
“Violent crime threatens the safety and wellbeing of every community, and illegal firearms trafficking fuels that violence,” said Special Agent in Charge Michael Weddel of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “It is our duty to ensure that those who exploit the system, especially licensed gun dealers who break the trust placed in them, are caught and held accountable. We are taking critical steps toward reducing violent crime and protecting innocent lives by targeting those who enable the flow of illegal firearms.”
Anderson was a federal firearms licensee and former majority owner and operator of NE Guns.
Between December 2022 and March 2023, Anderson allowed people to straw purchase numerous firearms. Some included Barret .50 caliber, military-grade sniper rifles; FN SCAR 17S, .308 caliber rifles and 9 millimeter pistols. These guns are known weapons of choice for Mexican drug cartels.
Law enforcement executed a search warrant at NE Guns July 19, 2023. Among other things, they seized 266 firearms, 138,940 rounds of ammunition, seven silencers and NE Guns’ business records.
The investigation found that between October 2022 and August 2023, NE Guns received $115,000 from purchases suspected straw purchasers made.
As part of the investigation, Imran Ali, 28, Spring, Averyl Pereyra, 27, Houston, and Ammar Ali, 26, Spring, admitted to conspiracy to straw purchase firearms.
According to their plea agreements, Imran Ali was prohibited from purchasing firearms and enlisted Pereyra - his girlfriend – and his brother - Ammar Ali - to purchase firearms for him. Imran Ali would select the firearms, arrange the purchases and have Pereyra and Ammar Ali make the purchases. Imran Ali would then quickly resell the guns, which resulted in at least $97,700 in profits.
In total, the group purchased 60 firearms, six of which were later recovered at crime scenes in Mexico.
U.S. District Judge Keith Ellison will impose sentencing Feb. 11, 2025. At that time, they each face up to five years in federal prison. All remain on bond pending that hearing.
Anderson was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The ATF conducted the investigation. Assistant U.S. Attorneys Kate Suh and John Ganz prosecuted the case.
Honduran National Sentenced for Being an Illegal Alien in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – VARION ROGELIO LOBO-BARAHONA (“LOBO-BARAHONA”), age 31, a native of Honduras, was sentenced on December 10, 2024 by United States District Judge Brandon S. Long, for being an illegal alien in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(5)(A), announced U.S. Attorney Duane A. Evans. LOBO-BARAHONA was sentenced to time served, supervised release for three (3) years and payment of a $100.00 mandatory special assessment fee.
According to court documents, on or about November 23, 2023, LOBO-BARAHONA, an alien present illegally in the United States, was found in possession of a Smith and Wesson handgun. Jefferson Parish Sheriff’s Office (JPSO) deputies observed a vehicle without a license plate being driven carelessly at a high speed, while attempting to flee, and succeeded in pulling over the vehicle. The JPSO then noticed a handgun in the defendant’s waistband. The gun, a .38 caliber Smith and Wesson Model SD40, was manufactured out of state and had been reported stolen. JPSO learned from federal immigration authorities that the defendant was a Honduran citizen, who had been deported on July 5, 2013 and had not received permission to come back to the United States.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement Agency and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Heart Butte man admits manslaughter charge in fatal crash on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Heart Butte man today admitted to causing a fatal crash on the Blackfeet Indian Reservation after he had been drinking and driving, U.S. Attorney Jesse Laslovich said.
The defendant, Chasen James Kipp, 25, pleaded guilty to involuntary manslaughter. Kipp faces a maximum of eight years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for April 23, 2025. Kipp was released pending further proceedings.
The government alleged in court documents that on Oct. 31, 2023, Kipp was driving a 2022 Dodge Charger near the Cut Bank airport on the Blackfeet Indian Reservation when he crossed the center line of traffic and collided with a sedan. The crash killed the sedan’s driver, identified as Jane Doe. Law enforcement responded and observed Kipp. An officer described Kipp staggering and could smell alcohol on him. A toxicology report showed Kipp had a blood alcohol concentration of .114 and had cocaine in his system. A crash investigation determined that Kipp was going 82 mph in a 65-mph zone when he crossed the center line and struck Doe’s vehicle. Doe was pronounced dead at the scene from blunt force trauma suffered in the crash.
The U.S. Attorney’s Office is prosecuting the case. The Blackfeet Law Enforcement Services, Cut Bank Police Department, Glacier County Sheriff’s Office, Montana Highway Patrol and FBI conducted the investigation.
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Hastings Man Charged in Child Exploitation CaseRead the Press Release
MINNEAPOLIS – A Hastings man has been charged with multiple counts related to the production and possession of child sexual abuse material, announced United States Attorney Andrew M. Luger.
According to court documents, on May 19, 2022, Hunter James Geidl, 27, knowingly possessed a video file of a minor victim engaging in sexually explicit activities. From approximately July 29, 2022, until March 22, 2024, Geidl employed and used minor victims to engage in sexually explicit conduct for the purpose of producing sexually explicit video images.
Investigators believe there may be other victims relevant to this investigation. If your minor dependent(s) have been in contact with Hunter James Geidl, please contact the FBI at 1-800-CALL-FBI (800-225-5324) or tips.fbi.gov.
The indictment charges Geidl with three counts of production and attempted production of child pornography and one count of possession of child pornography. Geidl made his initial appearance in U.S. District Court on December 13, 2024. He was ordered to remain in custody pending further proceedings at his detention hearing today by Magistrate Judge David T. Schultz.
This case is the result of an investigation conducted by the FBI with assistance from the Hastings Police Department. It 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. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant U.S. Attorney Jordan L. Sing is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Hardin man admits promoting prostitution of minor girlRead the Press Release
BILLINGS — A Hardin man accused of offering to pay a minor girl for sexual contact and providing her alcohol admitted today to a prostitution-related crime, U.S. Attorney Jesse Laslovich said.
The defendant, William Serges Joseph, 76, pleaded guilty to use of a facility in interstate commerce in aid of racketeering. Joseph faces a maximum of five years in prison, a $250,000 fine and three years of supervised release. Under the terms of plea agreement, the parties agree that a sentence of not less than one year in prison is appropriate.
U.S. District Judge Susan P. Watters presided. The court set sentencing for April 18, 2025. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Joseph was detained pending further proceedings.
In court documents, the government alleged that during an interview in March 2023 in Hardin, a juvenile girl, identified as Jane Doe, discussed that she began showing her breasts to Joseph in September 2022. The two messaged each other on Facebook, and Joseph was aware of Doe’s age. Doe disclosed that she allowed Joseph to touch her sexually in exchange for alcohol, and that he asked her for pictures of her naked. In a later interview, Doe said Joseph continued to message her and offered her $50 for sexual contact. A review of Doe’s cellular phone identified a February 2023 message from Joseph with a picture of male genitalia.
The U.S. Attorney’s Office is prosecuting the case. The FBI and Bureau of Indian Affairs conducted the investigation.
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 Justice.gov/PSC.
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Greenville man sentenced to prison for drug traffickingRead the Press Release
Aberdeen, MS – A Greenville man was sentenced today to more than five years in prison for selling illegal drugs.
According to court documents, Damien Brown, 48, previously pled guilty to distribution of 50 grams or more of a mixture and substance containing methamphetamine, a charge which carries a mandatory minimum term of imprisonment of five years. U.S. District Judge Sharion Aycock sentenced Brown today to 71 months of incarceration followed by five years of supervision upon release from prison. Following sentencing, Brown was remanded to the custody of the U.S. Marshals.
“This case demonstrates the continued effectiveness of our partnership with the Greenville Police Department,” US Attorney Clay Joyner said. “We will continue to hold accountable those that spread this poison in our communities.”
“The Greenville Police Department will continue to use all available resources to pursue individuals that spread illegal drugs in our community. The distribution and use of illegal drugs such as methamphetamine has traumatic consequences that not only affect the user, but the entire community. We would like to thank each agency involved in the success of this conviction and for aiding us in creating a safer environment for individuals to work and live.”
This case was investigated by the Greenville Police Department. The case was prosecuted by AUSA Robert Mims.
Grand jury charges Cincinnati man with crimes related to $6.5 million fraud schemeRead the Press Release
CINCINNATI – A local man was indicted on charges alleging he defrauded victims out of more than $6.5 million through an online laundry and dry-cleaning pickup and delivery business.
Benjamin Cantey, 41, of Cincinnati, was charged in a six-count indictment that was unsealed yesterday.
According to the indictment, in 2019, Cantey started Carbon IQ Inc., doing business as Rumby, as a Delaware corporation that he operated out of Cincinnati. Rumby was a venture-backed startup that purported to provide an e-commerce platform for pickup and delivery of laundry and dry cleaning. Cantey sought to raise investment money as the founder and CEO of the company.
It is alleged that from 2020 through 2022, Cantey defrauded investors and potential investors of money and property. Cantey allegedly lied about his business experience and prior business success to recruit investors. He also allegedly communicated false information that overstated Rumby’s revenue, profits, bank balance, growth and potential growth. He allegedly sent false presentation decks to victims.
For example, Cantey claimed that Rumby ended May 2022 with a $1.5 million bank balance when in reality the account had a negative balance of approximately -$53,000.
The defendant allegedly spent $850,000 in investor money to help purchase a 5,000-square-feet, $1.7 million home on Garden Place in Cincinnati.
Cantey is charged with four counts of wire fraud and two counts of engaging in monetary transactions in property derived from specified unlawful activity.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; announced the charges. Assistant United States Attorney Matthew C. Singer is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Gonzales Man Charged in Multimillion-Dollar Scheme to Defraud the COVID-19 Employee Retention Credit ProgramRead the Press Release
United States Attorney Ronald C. Gathe, Jr., announced that a Bill of Information has been filed charging Damian R. Raby, age 41, of Gonzales, Louisiana, with conspiracy to launder money and obstructing the administration of the internal revenue laws, relating to a multimillion-dollar scheme to defraud a COVID-19 economic relief program.
According to the Bill, between August 2022 and April 2023, Raby devised a scheme to defraud the United States, through the Internal Revenue Service, by preparing and filing tax forms fraudulently claiming Employee Retention Credit (ERC) tax credits on behalf of numerous businesses purportedly located in the Baton Rouge area, businesses that either did not exist during the COVID-19 pandemic or that did not have any legitimate business activity prior to the pandemic. The ERC program was a new tax credit provided by the Coronavirus Aid, Relief, and Economic Security Act (“CARES” Act), intended to encourage businesses to keep employees on their payroll during the COVID-19 pandemic.
As part of the scheme, Raby would file documents with the IRS asking the IRS to assign Employer Identification Numbers (EINs) to the fraudulent businesses, he would open bank accounts in the names of the fraudulent businesses, and he would file tax forms in which he falsely represented the businesses’ number of employees and payroll amounts and falsely claimed that the businesses were entitled to large tax credits. According to the Bill, Raby filed fraudulent applications on behalf of dozens of businesses and caused the IRS to issue more than 30 checks totaling approximately $4.4 million.
According to the Bill, as Raby and his associates received the proceeds of the fraudulent scheme, they would quickly make additional financial transactions to move the fraudulent proceeds among the various accounts Raby controlled, in an attempt to conceal, disguise, and spend the proceeds. The Bill alleges that Raby used the proceeds to make large payments on numerous luxury vehicles, the mortgage of his personal residence, and numerous other large purchases.
Finally, according to the Bill, after Raby became aware of a pending investigation into his conduct, he obstructed and impeded the investigation, including by making false statements to an IRS agent, sending fictitious documents to the IRS, and encouraging one of the witnesses to provide false information to the IRS.
This matter was investigated by the Internal Revenue Service - Criminal Investigation, and the United States Treasury Inspector General for Tax Administration, with valuable assistance from the East Baton Rouge Parish Sheriff’s Office and is being prosecuted by Assistant United States Attorneys Alan A. Stevens, who also serves as Senior Litigation Counsel, and J. Brad Casey.
NOTE: A Bill of Information is an accusation. The defendant is presumed innocent until and unless adjudicated guilty.
Garland Man Sentenced in Methamphetamine ConspiracyRead the Press Release
United States Attorney Susan Lehr announced that Steven Butler, age 54, of Garland, Nebraska, was sentenced December 17, 2024, in federal court in Lincoln, Nebraska for conspiracy to distribute and possession with intent to distribute methamphetamine. Senior United States District Judge Joseph Bataillon sentenced Butler to 108 months’ imprisonment. There is no parole in the federal system. After Butler’s release from prison, he will begin a 3-year term of supervised release.
On May 6, 2022, Steven Butler sold meth to a confidential informant working with law enforcement. The meth weighed approximately 57.4 grams.
On May 12, 2022, investigators were surveilling Butler’s residence and observed him to leave in a vehicle. Knowing he had a suspended license, a Deputy from Seward County Sheriff’s Office conducted a traffic stop on the vehicle Butler was driving. Butler admitted to using meth and agreed to let investigators go to his residence to collect the meth he had there. Butler unlocked the cabinet and investigators located a cigar box with three separate baggies of meth. The bags each weighed 6.9 grams, 4.8 grams and 3.8 grams. Butler admitted that he had been distributing meth to other individuals.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Fulton Man Sentenced to 15 Years for Meth TraffickingRead the Press Release
JEFFERSON CITY, Mo. – A Fulton, Mo., man was sentenced in federal court today for possessing methamphetamine with the intent to distribute.
Clayton Key Craddock, 40, was sentenced by U.S. District Judge Brian C. Wimes to 15 years and eight months in federal prison without parole. Craddock was sentenced as a career offender due to his prior felony convictions.
On Feb. 29, 2024, Craddock pleaded guilty to one count of possessing methamphetamine with the intent to distribute.
On Aug. 2, 2022, law enforcement officers executed a search warrant at Craddock’s residence after a confidential informant reported observing Craddock conduct methamphetamine transactions. Officers found four vacuum-sealed bags that contained a total of 114 grams of methamphetamine, 24 bags of marijuana with a total weight of 1.4 pounds, and $761 in cash.
Craddock was on probation and parole at the time of the offense for distributing a controlled substance and assaulting a law enforcement officer. Craddock has three prior felony convictions for possessing a controlled substance, three prior felony convictions for resisting arrest, and prior felony convictions for assaulting a law enforcement officer, kidnapping, domestic assault, and burglary.
This case was prosecuted by Assistant U.S. Attorney Jim Y. Lynn. It was investigated by the MUSTANG Drug Task Force, the Drug Enforcement Administration, the Callaway County, Mo., Sheriff’s Department and the Fulton, Mo., Police Department.
Fox Point Man Sentenced to 24 Months’ Imprisonment for Investment Fraud SchemeRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on December 16, 2024, David Braeger (age 57), of Fox Point, Wisconsin, was sentenced to 24 months’ incarceration for committing an investment fraud scheme that resulted in a loss of over $2,500,000 to investors.
According to court records, David Braeger was previously barred by the Financial Industry Regulatory Authority (FINRA) from serving as a broker or otherwise associating with a broker-dealer firm. In 2017, Braeger incorporated an entity known as Blue Star Automotive Fund (“Blue Star”), in which he sold limited partnership shares to twenty-seven investors who gave him over $5.4 million for those shares. Braeger represented to those investors that those funds would primarily be used to fund an automobile dealership. Although Braeger provided approximately half of the money to the dealership, he misappropriated more than $2.5 million of investor funds in ways contrary to his representations. He spent his victims’ money on his own living expenses, including, but not limited to the purchase of several luxury vehicles and personal legal fees. Braeger also used his victims’ money to purchase the Silver Spring House Restaurant in Glendale, sponsor a NASCAR driver, and buy cryptocurrency. In addition to the Blue Star Scheme, Braeger also stole $100,000 from an investor as part of a venture he called IEF, which Braeger claimed would be used to fund litigation related to a Ugandan Energy company. Instead, Braeger misappropriated most of that money for his own personal use.
At the sentencing hearing, U.S. District Judge Lynn Adelman focused on the pain and suffering Braeger caused to his victims and noted that Braeger’s crime called for a significant period of incarceration because Braeger was motivated by “greed and self-aggrandizement.” In addition to the 24-month period of incarceration, Braeger was ordered to pay restitution to his victims in the amount of $2,535,103.19.
“Mr. Braeger, who held no other job and earned no other income during the relevant period, used his background and connections to steal millions of dollars from over two dozen victims,” said U.S. Attorney Haanstad. “Braeger also added insult to the extensive financial injuries he caused, seeking to intimidate or bully some victims even after his scheme began unraveling. I commend all involved in seeking to hold Mr. Braeger accountable for his actions and for pursuing justice for his victims.”
“Mr. Braeger was brought to justice for engaging in a fraudulent scheme that duped investors and caused them losses of over $2.5 million, while he selfishly used the fraudulently obtained money to fund his own personal living expenses,” said Special Agent in Charge Vincent R. Zehme, of the Federal Deposit Insurance Corporation Office of Inspector General Chicago Region. “The FDIC OIG will continue to work closely with our law enforcement partners to investigate and hold accountable those who orchestrate such schemes that harm consumers and undermine the integrity of our Nation’s financial system.”
The case was referred to the U.S. Attorney’s Office by the Wisconsin Department of Financial Institutions. It was investigated by the Federal Deposit Insurance Corporation Office of the Inspector General and prosecuted by Assistant United States Attorney Julie F. Stewart.
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Founders of Illegal Pyramid Scheme Sentenced for Roles in Fraud That Caused over $23M in Losses to VictimsRead the Press Release
Three individuals were sentenced yesterday for their roles in founding and operating an illegal pyramid scheme. Alex Dee, 50, of Fate, Texas, was sentenced to 36 months in prison and ordered to pay $1,845,600 in forfeiture; Brian Kaplan, 53, of Fort Collins, Colorado, was sentenced to 22 months in prison and ordered to pay $2,838,700 in forfeiture; and Jerrold Mauer, 58, of North Bellmore, New York, was sentenced to 22 months in prison and ordered to pay $1,545,500 in forfeiture.
According to court documents, from approximately January 2017 through March 2019, Dee, Kaplan and Maurer founded and operated 8 Figure Dream Lifestyle (8FDL), a Wyoming corporation, as an illegal pyramid scheme. Dee, Kaplan, and Maurer advertised 8FDL as an online marketing business that allowed members to easily earn millions of dollars by selling memberships into 8FDL. The business purportedly allowed its members to access various digital videos, mostly related to online marketing and self-help lessons, but the videos had nominal value and served merely as a vehicle for the company to appear legitimate. The main purpose of the company, however, was to allow members to make money by recruiting new members and selling additional memberships. In marketing the 8FDL memberships, Dee, Kaplan, and Maurer falsely represented to the public that typical members with no prior skills or experience would make substantial sums in a short period of time, including earning more than $10,000 within 60-90 days. In fact, the vast majority of 8FDL members never made a single sale, and Dee, Kaplan, and Maurer made these false statements to induce others to join 8FDL. In total, more than 2,800 individuals joined 8FDL, which resulted in approximately $23.5 million in losses to victim members.
In November 2023, both Kaplan and Maurer pleaded guilty to one count of conspiracy to commit wire fraud.
In July, Dee pleaded guilty to one count of conspiracy to commit wire fraud.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group made the announcement.
USPIS investigated the case.
Trial Attorneys Brandon Burkart and Andrew Jaco of the Criminal Division’s Fraud Section prosecuted the case.
Former Tampa Resident Sentenced to Two Decades in Prison for Transporting and Sexual Exploitation of a MinorRead the Press Release
ERIE, Pa. - A former resident of Tampa, Florida, has been sentenced in federal court to 20 years in prison, to be followed by 10 years of supervised release, on his conviction of transportation of a minor with intent to engage in criminal sexual activity and sexual exploitation of a minor, United States Attorney Eric G. Olshan announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Thomas Edward Grossman III, 49, also ordering Grossman to pay $3,000 in restitution and a $5,200 special assessment.
According to information presented to the Court, Grossman transported a female minor from Pennsylvania to West Virginia with the intent to engage in criminal sexual activity. Grossman also persuaded a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct and enticing a minor to engage in criminal sexual activity.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation, Pennsylvania State Police, West Virginia State Police, and the Summersville, West Virginia, Police Department for the investigation leading to the successful prosecution of Grossman.
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 (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former South Bay High School Coach Arraigned on Charges of Enticement of Minors and Receipt of Child Sexual Abuse MaterialsRead the Press Release
SAN JOSE – Todd Baldwin, a former sports coach, teaching assistant, and operations manager at Valley Christian High School in San Jose, was arraigned in federal court this afternoon on charges of enticement of minors and receipt of child pornography.
Baldwin, 44, currently of Bremerton, Wash., was charged by complaint on Oct. 10, 2024, and by information on Nov. 19, 2024. According to the complaint, Baldwin allegedly persuaded, induced, and enticed two minor boys, both high school students at the time, to produce child sexual abuse materials in exchange for money from December 2022 to August 2023. Baldwin allegedly paid thousands of dollars via mobile payment services to the minor boys and to at least two other students whom Baldwin had recruited to create child sexual abuse materials for resale online. The complaint further alleges that Baldwin designated some of the exploited minors as his “Teacher Assistants.” The information formally charges Baldwin with two counts of enticement of minors in violation of 18 U.S.C. § 2422(b) and two counts of receipt of child pornography in violation of 18 U.S.C. §§ 2252(a)(2) and (b).
An information merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Baldwin faces a maximum sentence of life imprisonment and a minimum sentence of 10 years’ imprisonment, a maximum fine of $250,000, a term of supervised release, and restitution. Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Baldwin surrendered to federal authorities in San Jose on Oct. 28, 2024, and made his initial appearance in federal court on the same day. He is currently on conditional release. He is next scheduled to appear before the Honorable Beth Labson Freeman, U.S. District Judge, on Feb. 4, 2025.
United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp made the announcement.
Assistant United States Attorney Marissa Harris is prosecuting the case with the assistance of Sahib Kaur. The prosecution is the result of an investigation by the FBI and the San Jose Police Department’s Internet Crimes Against Children Squad.
- Baldwin Information
- Baldwin Complaint
Former Restaurant Owner Indicted for Arson and Related ChargesRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on December 17, 2024, a federal grand jury returned a four-count indictment against Arletta Allen (age 43) of Fond du Lac, Wisconsin. The indictment charges Allen with arson of a commercial building in violation of Title 18, United States Code, Section 844(i) (Count One); wire fraud and attempted wire fraud in violation of Title 18, United States Code, Sections 1343 and 1349 (Count Two); arson in connection with a federal felony in violation of Title 18, United States Code, Section 844(h)(Count Three); and making false statements to law enforcement, in violation of Title 18, United States Code, Section 1001(a)(Count Four).
According to the indictment, on or about October 10, 2021, Allen maliciously damaged by fire a restaurant known as “A Family Affair Soulfood Kitchen” located at 417 S. Main Street in Fond du Lac, Wisconsin. The indictment further alleges that Allen executed a scheme to defraud Germantown Mutual Insurance Company by setting fire to the restaurant and signing a sworn proof of loss claim seeking insurance proceeds for losses caused by the fire, while falsely representing that she did not cause or procure the fire. The indictment also alleges that Allen lied to law enforcement officers on multiple occasions about her activities and location prior to the fire.
If convicted, Allen faces the following penalties: Count One, mandatory minimum of 5 years’ and up to 20 years’ imprisonment; Count Two, up to 20 years’ imprisonment; Count Three, mandatory minimum 10 years’ imprisonment which must run consecutive to any other sentence; and Count Four, up to 5 years’ imprisonment.
The case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Wisconsin Department of Justice, Division of Criminal Investigations (DCI). It is being prosecuted by Assistant United States Attorneys Kelly B. Watzka and Porchia S. Lewand.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government must prove her guilty of each offense beyond a reasonable doubt.
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Former Nurse Pleads Guilty to Tampering with MedicationRead the Press Release
FRANKFORT, Ky. – A Lexington, Ky., woman, Abigail Hall, 51, pleaded guilty on Monday, before U.S. District Judge Gregory Van Tatenhove, to tampering with a consumer product.
According to her plea agreement, between January 2023 and August 2023, Hall worked as a contract registered nurse at several facilities in Kentucky, including a health care facility in Lawrenceburg, Ky., that focused on care for the elderly and infirm. Then, on August 27, 2023, Hall took morphine that had been prescribed for three patients that she was treating at the healthcare facility, all of whom had significant disease and pain concerns. Hall replaced the stolen morphine with water and blue food coloring, to resemble the real medication. Ultimately, Hall took at least seven syringes of stolen morphine and administered the tampered morphine to one of the patients.
“Instead of actually caring for the patients in her charge – patients who needed their pain medication – she stole their medicine and even administered fake medicine to one of them,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Her conduct was as disgraceful as it was deceptive and callous. Fortunately, through the hard work of our law enforcement partners, she will now face the consequences of her profound betrayal.”
“Patients suffering from pain trust their health care providers to provide relief through effective and appropriately dosed medications,” said Special Agent in Charge George A. Scavdis, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to pursue and bring to justice healthcare professionals who violate their position of trust and jeopardize patients’ health and well-being by tampering with their pain medications.”
United States Attorney Shier and Special Agent in Charge Scavdis, jointly announced the guilty plea.
The investigation was conducted by FDA-OCI. Assistant U.S. Attorney Kate Smith is prosecuting the case on behalf of the United States.
Hall is scheduled to be sentenced on March 24, 2025, at 1:30 p.m. She faces a maximum of 10 years in prison and may be ordered to pay restitution and fines. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Former Latino Peace Officers Association Fundraiser Sentenced for Wire Fraud Conspiracy and Tax EvasionRead the Press Release
United States Attorney Susan Lehr announced that Jack Olson, age 68, formerly of Council Bluffs, Iowa, was sentenced on December 17, 2024, in federal court in Lincoln, Nebraska, for conspiracy to commit wire fraud and tax evasion. Senior United States District Judge John M. Gerrard sentenced Olson to a total of 33 months’ imprisonment: 21 months for the conspiracy charge and 12 months for tax evasion. The sentences were ordered to be served consecutively. There is no parole in the federal system. After Olson’s release from prison, he will begin a 3-year term of supervised release. Senior Judge Gerrard ordered Olson to pay $136,178.75 in restitution.
Between 2017 and April 2023, Olson conspired to defraud the Latino Peace Officers Association (LPOA) for his own personal benefit. Olson, a/k/a “Cody Jones,” would solicit funds from individuals and entities in the District of Nebraska on behalf of LPOA. LPOA donor letters represented that “every penny” of the donations went to athletic programs to keep target youths out of gangs and to other LPOA causes. The LPOA website similarly represented that 100% of donations went to athletic programs for children. As part of the conspiracy to defraud the LPOA, the percentage of LPOA donations Olson kept for himself increased from 65% of gross donations to 80% of gross donations without LPOA board approval. Olson spent a significant amount of those funds on himself and others for personal expenses unrelated to business dealings.
Between 2018 and 2021, while soliciting funds for the LPOA, Olson also conducted business using extensive amounts of cash and avoided making records that would allow the IRS to ascertain his tax liability for his fundraising business. Despite being paid 65% to 80% of donated funds to LPOA, Olson failed to file income tax returns for tax years 2018 through 2021, resulting in a federal tax loss of $95,705.
Co-defendants Johnny Palermo, age 48, of Omaha, was sentenced in April 2024 to 24 months’ imprisonment for conspiracy to commit wire fraud, and Richard Gonzalez, age 56, of Papillion, Nebraska, was sentenced in January 2024 to 18 months’ imprisonment for the conspiracy charge. Both were ordered to pay restitution: $65,014.67 for Palermo; and $66,749.35 for Gonzalez.
This case was investigated by the Federal Bureau of Investigation and IRS Criminal Investigations.
Former Landlords Resolve Allegations That They Violated the Fair Housing ActRead the Press Release
CONCORD – United States District Judge Steven J. McAuliffe has approved a consent decree resolving allegations that former Manchester landlords Marc Morin and Tracy Stapula Morin violated the Fair Housing Act (FHA), U.S. Attorney Jane Young announces.
In a complaint filed on December 4, 2024, the United States alleged that the Morins discriminated against a tenant at a residential rental property in Manchester by refusing to consider the tenant’s reasonable accommodation request. The tenant sought an exception to the property’s no-pets rule to reside with an Emotional Support Animal (ESA), a Yorkshire terrier mix. The tenant, who has diagnosed mental health disorders, had the dog as an ESA. After the tenant requested permission to have the ESA reside with her and shared a letter from her health care provider recommending that she have the ESA to assist with her disability, the Morins refused and instead attempted to evict the tenant three times. The Morins later sold the property.
The Consent Decree resolves the claims in the government’s complaint. The Morins have agreed to pay the tenant $8,500, enact reasonable accommodation policies for its residential properties that comply with the FHA should they become landlords again, and complete FHA training.
“Emotional support animals are a lifeline to the world for many people with disabilities,” said U.S. Attorney Jane E. Young. “The Fair Housing Act outlines a landlord’s responsibilities to make reasonable accommodations for individuals with disabilities, including support and companionship from animals when necessary. In this case, the tenant provided documentation of her disability and a letter from her therapist recommending emotional support from an animal. The U.S. Attorney’s Office is committed to ensuring individuals with disabilities live a life free of discrimination and have the reasonable accommodations afforded to them by the Fair Housing Act.”
“Many individuals with disabilities rely on assistance animals to maintain their independence and fully enjoy the place they call home,” said HUD’s Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity, Diane M. Shelley. “HUD commends the Department of Justice for this settlement and for holding housing providers accountable for compliance with the reasonable accommodation requirements of the Fair Housing Act.”
This lawsuit arose from an administrative complaint filed by the tenant with the U.S. Department of Housing and Urban Development (HUD). Upon investigation, HUD determined that there was reasonable cause to believe that the FHA had been violated. One of the parties to the complaint elected, pursuant to the FHA, to have HUD’s determination resolved in federal court, and HUD referred the matter to the Justice Department.
The FHA prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Individuals who believe that they have been victims of housing discrimination can call the Justice Department’s Housing Discrimination Tip Line at 1- 833-591-0291 or submit a report online, or contact HUD at 1-800-669-9777.
The case was handled by the Department of Justice’s Housing and Civil Enforcement Section and Assistant United States Attorney Matthew Vicinanzo.
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Former Executive of Airline and Co-Conspirator Sentenced in A Money Laundering ConspiracyRead the Press Release
Edward Y. Kim, the Acting United States Attorney for the Southern District of New York, announced that SHUKHRATJON MIRSAIDOV and SHUKHRAT ABDULLAEV were sentenced to one year and a day and 24 months in prison, respectively, for their roles in operating a money laundering scheme from June 2019 to February 2022, using the U.S. bank account of an international airline (“Airline-1”) with a hub at John F. Kennedy International Airport in New York, where MIRSAIDOV was the lead U.S.-based executive. U.S. District Judge Loretta A. Preska imposed MIRSAIDOV’s sentence today and ABDULLAEV’s sentence on September 4, 2024, following the defendants’ guilty pleas to conspiracy to commit money laundering.
Acting U.S. Attorney Edward Y. Kim said: “For years Shukhratjon Mirsaidov and Shukrat Abdullaev engaged in a scheme to launder healthcare fraud proceeds through the accounts of an international airline in order to conceal the illicit nature of these funds. Laundering schemes that use real businesses to conceal crime proceeds are often particularly difficult for law enforcement to detect. This case demonstrates that this Office will continue to root out money laundering, no matter how sophisticated, wherever it occurs and that those responsible will be held to full account."
According to allegations in the Indictment, the criminal Complaint, public filings, and statements made in court:
In the course of the money laundering conspiracy, MIRSAIDOV and ABDULLAEV used a U.S. company bank account for Airline-1 (the “Airline-1 Bank Account”) to operate a check-cashing scheme and to launder hundreds of thousands of dollars of healthcare fraud proceeds. As a senior executive, MIRSAIDOV was one of two signatories for the Airline-1 Bank Account. Between approximately June 2019 and August 2021, MIRSAIDOV deposited into the Airline-1’s Bank Account over 100 checks drawn from accounts controlled by seven shell companies that were used to launder the proceeds of healthcare fraud. For example, the shell companies had received insurance payments for medical services purportedly provided by a doctor, but the doctor did not, in fact, provide such services. The shell companies were primarily funded by payments from medical clinics, physicians, and medical diagnostic testing companies and had no relation whatsoever to the airline industry.
MIRSAIDOV obtained the checks from the shell companies from ABDULLAEV, who was not an employee of Airline-1 and who obtained the checks from the perpetrators of the healthcare fraud scheme. MIRSAIDOV and ABDULLAEV collected cash generated from Airline-1 ticket sales and fees, and instead of depositing that cash into Airline-1’s bank account, used the cash to illegally cash the shell company checks. ABDULLAEV gave the cash generated from the airline ticket sales and fees to the perpetrators controlling the shell companies.
MIRSAIDOV and ABDULLAEV not only used the Airline-1 Bank Account to launder healthcare fraud proceeds from the shell companies, but also used the Airline-1 Bank Account to launder funds represented to be fraud proceeds in a series of sting transactions. Between approximately June 2021 and February 2022, law enforcement, with the assistance of a confidential source (“CS-1”), conducted a series of sting money laundering transactions involving MIRSAIDOV, ABDULLAEV, and the Airline-1 Bank Account. CS-1 asked ABDULLAEV to cash checks and transmit funds abroad and agreed to pay ABDULLAEV a four percent fee to do so. ABDULLAEV told CS-1 a portion of the fee went to MIRSAIDOV. During the transactions, CS-1 represented to ABDULLAEV that the funds were healthcare fraud proceeds. Overall, CS-1 provided ABDULLAEV with 14 checks totaling $210,000 issued from a covert law enforcement account held in the name of a fictitious company. MIRSAIDOV, working with ABDULLAEV, deposited 12 of the checks totaling $190,000 into the Airline-1 Bank Account. CS-1 received cash from ABDULLAEV in exchange for the checks, and in one instance, ABDULLAEV coordinated the delivery of U.S. currency to an individual abroad in exchange for some of the checks. During the course of these sting transactions, in a recorded conversation with CS-1, MIRSAIDOV admitted, in sum and substance, that he received many checks from ABDULLAEV and that MIRSAIDOV gave ABDULLAEV cash in exchange for the checks. CS-1 informed MIRSAIDOV, in sum and substance, that the checks from CS-1 came from a medical company and that the company disguised the check payments in its financial reporting by claiming the check deposits were for business class flight tickets. MIRSAIDOV nevertheless expressed a willingness to work directly with CS-1 to conduct check cashing using the Airline-1 Bank Account.
Participants in the underlying healthcare fraud scheme who laundered their crime proceeds with the assistance of MIRSAIDOV and ABDULLAEV using the Airline-1 Bank Account have been charged by this Office in U.S. v. Tariverdi, et al, No. 24 Cr. 599 (JPO).
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In addition to the prison sentence, MIRSAIDOV, 46, of Fort Lee, New Jersey, was ordered to pay forfeiture in the amount of $674,171. ABDULLAEV, 39, of Brooklyn, New York, was sentenced to three years of supervised release and was ordered to pay forfeiture in the amount of $704,171.
Mr. Kim praised the outstanding work of the Federal Bureau of Investigation.
The case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Cecilia Vogel, Christopher Brumwell, and Vladislav Vainberg are in charge of the prosecution.
Former Alabama Police Sergeant Sentenced for Federal Civil Rights Violation for Using Excessive ForceRead the Press Release
A former Alabama sergeant was sentenced today to 16 months in prison and two years of supervised release for assaulting an arrestee.
Ryan Phillips, 42, a former sergeant with the Daleville, Alabama, Police Department (DPD), previously pleaded guilty to one count of depriving an arrestee of his civil rights.
During his plea, Phillips admitted that, in March 2022, after a verbal dispute, he willfully used unreasonable force against an arrestee after he removed his badge and firearm, entered the victim’s jail cell and struck the victim in the upper body and face multiple times. Phillips further admitted that he had no legitimate law enforcement purpose for engaging in this conduct, and the victim suffered bodily injury including multiple lacerations and bruises to the face and chest.
“People being held under arrest have the right to be treated humanely and not to be violently assaulted behind bars,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendant disregarded his oath to protect and serve his community, abused his power and violated the victim’s civil rights when he entered that jail cell and repeatedly hit the victim. This sentence should serve as a reminder to all law enforcement that a badge is not a license to answer verbal insults with physical violence and excessive force. The Justice Department will hold accountable officials who violate arrestee’s civil rights.”
“Phillips’ assault not only violated the victim’s constitutional rights, his crime also dishonored his profession,” said Acting U.S. Attorney Kevin Davidson for the Middle District of Alabama. “The purpose of this prosecution is not merely to punish Phillips for losing his composure and unlawfully beating an arrestee, this prosecution is also intended to protect the reputation of every honest and hardworking law enforcement officer risking his or her life every day.”
“Law enforcement officers are entrusted to safeguard everyone’s civil rights,” said Special Agent in Charge Paul Brown of the FBI Montgomery Field Office. “In this case, that trust was broken, and the officer egregiously violated an individual’s civil rights. It will remain a top priority for the FBI to ensure anyone violating someone’s civil rights is held accountable, especially those within law enforcement.”
The FBI Montgomery Field Office, Montogomery Resident Agency investigated the case.
Trial Attorney MarLa Duncan of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Eric Counts for the Middle District of Alabama are prosecuting the case.