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11 December 2024
California CEO Pleads Guilty to Employment Tax CrimesRead the Press Release
A California man pleaded guilty today to not paying employment taxes to the IRS.
According to court documents and statements made in court, John Comeau, of Santa Clara, was the CEO of Vivid Inc., a company that provided metal coating services across various industries in Campbell, California, and elsewhere. From at least the first quarter of 2010 through the end of 2019, Vivid withheld Social Security, Medicare and income taxes from the wages paid to its employees. However, Comeau, who was responsible for ensuring those funds were reported and paid to the IRS, did not do so.
In total, Comeau caused a tax loss to the IRS of approximately $1,150,000.
Comeau is scheduled to be sentenced on April 30, 2025. He faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Ismail J. Ramsey for the Northern District of California made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Mahana Weidler of the Tax Division and Assistant U.S. Attorney Ilham Hosseini for the Northern District of California are prosecuting the case.
Businessman Indicted for Manipulating Five Publicly Traded Companies and Defrauding Investors of over $200MRead the Press Release
Note: A copy of the indictment can be found here.
A federal grand jury in Dallas, Texas, returned an indictment yesterday charging a Texas businessman for his role in a yearslong scheme involving at least five publicly traded companies.
According to court documents, Philip Verges, 59, of Dallas, controlled five publicly traded companies, which he used to engage in an investment fraud scheme from approximately January 2017 through August 2022. As part of the alleged scheme, Verges concealed his involvement in these five companies from the investing public by appointing trusted friends to serve as nominees. Verges then allegedly entered into sham consulting agreements with the companies that allowed the companies to execute convertible notes, which could be converted to shares at a steep discount from their fair market value. Verges allegedly artificially inflated the price and trading volume of shares by, among other things, issuing false public press releases and financial statements. As further alleged, Verges then sold his convertible notes to intermediaries who converted the notes into shares at below-market prices, sold the shares into the market for a profit, and shared the proceeds from the sales with Verges. In total, the alleged scheme resulted in approximately $211 million in losses to the public.
Verges is charged with one count of securities fraud and two counts of money laundering. If convicted, he faces a maximum penalty of 20 years in prison on the securities fraud count and 10 years in prison on each money laundering count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and Special Agent in Charge Gregory D. Nelsen of the FBI Cleveland Field Office made the announcement.
The FBI is investigating the case.
Trial Attorneys Brandon Burkart and Matt Kahn of the Criminal Division’s Fraud Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Brockton Man Sentenced to over Six Years in Prison for Illegally Receiving a Firearm, Distributing Fentanyl and Possessing CocaineRead the Press Release
BOSTON – A Brockton man was sentenced yesterday in federal court in Boston to firearm, cocaine, fentanyl and conspiracy offenses.
Antonio Denziah Fernandes, 23, was sentenced by U.S. District Court Judge Indira Talwani to 78 months in prison, to be followed by four years of supervised release. In September 2024, Fernandes pleaded guilty to two counts of illegally receiving a firearm while under indictment, two counts of distributing and possessing with intent to distribute 40 grams or more of fentanyl, one count of possession with intent to distribute 40 grams or more of fentanyl and cocaine, and one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl. In September 2023, Fernandes was indicted by a federal grand jury and on Sept. 11, 2024, additional charges were brought in a Superseding Information.
In late 2021, law enforcement learned that Fernandes was trafficking firearms and narcotics in the Brockton area, including large quantities of fentanyl. In January 2022, while under indictment in state court for trafficking more than 10 grams of fentanyl, Fernandes received and sold a Glock Model 48, 9mm pistol for $1,700 in the Taunton area. In each of two subsequent transactions in January and February 2022, Fernandes distributed and possessed with intent to distribute approximately 50 grams of fentanyl, for a total of approximately 100 grams. These two transactions took place in the vicinity of Fernandes’s Brockton residence.
Fernandes and a co-conspirator were storing and packaging narcotics in an abandoned van parked outside Fernandes residence and distributing them with a different vehicle. Fernandes was arrested in the passenger seat of the latter vehicle, and a loaded firearm was found wedged against his seat. Fernandes had 2.8g of fentanyl and $1,215 in cash on his person.
During a search of the abandoned vehicle, large quantity of drugs was found inside including approximately 174.7 grams of Fentanyl, 51.5 grams of cocaine, 18.2 grams of Percocet pills and eight grams of mushrooms. Twenty-seven rounds of 9mm ammunition was also recovered. The van also contained various packaging materials for narcotics, such as plastic baggies, corner cut bags, a trash bag full of various used drug packaging materials with white residue, mixing bowls with white residue and latex gloves.
United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the Cape and Islands District Attorney’s Office; the Plymouth County District Attorney’s Office; and the Brockton, Taunton, Whitman, West Bridgewater, East Bridgewater, Bridgewater and Bridgewater State University Police Departments; the Drug Enforcement Administration; and the Massachusetts State Police. Assistant United States Attorney Meghan C. Cleary of the Criminal Division is prosecuting the case.This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Bonners Ferry Woman Sentenced to 15 Years in Federal Prison for Involvement in a Fentanyl Overdose DeathRead the Press Release
COEUR D’ALENE – Twyla Dawn Basil, 46, of Bonners Ferry, was sentenced to 15 years in federal prison for distribution of fentanyl that resulted in serious bodily injury and death. Chief U.S. District Judge David C. Nye also ordered that Basil pay restitution to the family of the victim. Upon completion of her prison sentence, Basil will also be required to serve an additional three years of supervised release.
According to court records, on October 28, 2022, an inmate at the Boundary County Jail was found unconscious in her cell. Despite attempts to revive her by medical personnel, the victim ultimately died. A toxicology report and autopsy showed that the victim had a lethal dose of fentanyl in her system at the time of her death. The coroner ultimately determined that she died of a fentanyl overdose.
Local, state, and federal officers began an immediate investigation into the victim’s death. Jail staff learned that shortly before the victim was found dead, Basil, who was in custody with her, had provided the victim with fentanyl she had smuggled into the facility. Basil had been arrested the day before for driving while under the influence of fentanyl.
Fentanyl is a synthetic opioid that is 50-100 times stronger than morphine. Pharmaceutical fentanyl was developed for severe pain management and prescribed in the form of transdermal patches or lozenges. While prescription fentanyl can be diverted for misuse, most cases of fentanyl-related overdoses in the U.S. are linked to illegally made fentanyl that is sold through illicit drug markets for its heroin-like effect.
Idaho has seen a massive influx of these pills in the last several years. Often, the pills are mass-produced by criminal drug networks and falsely marketed as legitimate prescription pills. The pills are made to look like prescription opioids such as oxycodone (Oxycontin, Percocet), hydrocodone (Vicodin), and alprazolam (Xanax); or stimulants like amphetamines (Adderall). Criminal drug trafficking networks also increasingly distribute illicit fentanyl in powder form. In addition to cases in which fentanyl powder is consumed on its own, authorities have found fentanyl powder mixed with other street drugs.
“No matter the location or the circumstances, any fentanyl-caused death is an intolerable tragedy,” said U.S. Attorney Hurwit. “We have re-doubled our efforts to train law enforcement to help us investigate and prosecute fentanyl deaths. While we are seeing some signs of progress, we will continue the battle against fentanyl for as long as it takes.”
“The Idaho State Police remains steadfast in our commitment to protect our communities from the devastating impact of fentanyl and other illicit drugs,” said Captain Paul Berger with ISP District 1. “This case underscores the tragic consequences of fentanyl trafficking and highlights the critical need for ongoing collaboration between agencies. Together, we will continue to aggressively investigate and prosecute those who bring this deadly substance into our state, holding them accountable for the harm they cause. We extend our deepest condolences to the victim’s family and reaffirm our dedication to preventing further tragedies caused by this dangerous drug.”
U.S. Attorney Hurwit commended the Idaho State Police and the and the North Idaho Narcotics Enforcement (NINE) Taskforce for their thorough investigation on this case. Assistant U.S. Attorney Bryce Ellsworth prosecuted the case.
The NINE Task Force is a multi-jurisdictional group of law enforcement officers working together to target drug trafficking in North Idaho. The task force is comprised of agents and officers from the Idaho State Police, Coeur d’Alene Police Department, the Drug Enforcement Administration (DEA), the Bureau of Indian Affairs, U.S. Border Patrol, the United States Postal Inspection Service, and the National Guard Counter Drug Program.
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Bloomington Woman Sentenced to Six Years in Federal Prison for Racially Motivated Stabbing of 18-Year-old IU Student of Asian DescentRead the Press Release
INDIANAPOLIS- Billie Davis, 57, of Bloomington, has been sentenced to six years in federal prison, followed by three years of supervised release for committing a federal hate crime. The sentence comes after Davis pleaded guilty to willfully causing bodily injury to a victim with a knife, because the victim was of Chinese descent.
According to court documents, on January 11, 2023, an 18-year-old woman of Chinese descent enrolled at Indiana University at Bloomington, was riding a Bloomington Transit bus. Davis boarded the bus and sat behind the student. As the student stood to exit the bus, Davis reached for a folding knife from inside her pocket and stabbed the student in the head approximately seven to ten times. The victim exited the bus screaming in pain. Davis’ attack against the victim caused multiple stab wounds and cuts, requiring medical attention including sutures and staples.
After the attack, Davis sat back down on the bus, where she remained until other passengers confronted her. When Davis exited the bus, another passenger followed and confronted her about the stabbing. Davis used racist slurs when referring to the victim and claimed the victim posed a threat to the bus because she was Asian. Davis was arrested by Bloomington Police. Davis described the victim to police as “some Asian f*cking c*unt” and said she attacked the victim because she was of Chinese descent and so that there was “one less enemy.”
“Racially motivated violence has no place in our society,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant targeted a young woman, who was simply riding a public bus to school, solely because she was Chinese. The sentence imposed for these vicious hate crimes should send a strong message that perpetrators of hate-fueled violence will be held accountable. The Justice Department is steadfast in its commitment to investigating and prosecuting hate crimes wherever they occur in our country.”
“Every person deserves to feel safe in their own community, and no one should be made to fear violence on their way to school simply because of who they are,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Violent hate should have no safe harbor in Indiana or anywhere in our great country. That’s why our Department of Justice has prioritized prosecution of hate crimes and community outreach through our United Against Hate initiative. In recent years we’ve sadly seen an increase of bias crimes targeting people of Asian descent, and the serious federal prison sentence imposed here should demonstrate our commitment to stopping this hate. Anyone who has suffered a potentially hate-based violent incident should call 911 to address immediate safety issues, and then report the event to the Department of Justice or FBI. Together we can make our community safer for everyone.”
“The FBI remains committed to protecting the civil rights of all individuals and this case should serve as a reminder that hate fueled actions will not be tolerated,” said FBI Indianapolis Acting Special Agent in Charge Robert “Alex” Middleton. “We will continue to work with our law enforcement partners to investigate and ensure those who perpetrate such acts of hate are held accountable.”
The FBI Indianapolis Field Office and Bloomington Resident Agency investigated the case, with assistance from the Bloomington Police Department. The sentence was imposed by Chief U.S. District Judge Tanya Walton Pratt.
U.S. Attorney Myers thanked Assistant U.S. Attorney Peter A. Blackett, Trial Attorney Anita Channapati of the Civil Rights Division’s Criminal Section, and Trial Attorney Barry Disney of the Criminal Division’s Mental Health Litigation Unit, who prosecuted the case.
If you have concerns regarding Civil Rights violations in the Southern District of Indiana, you can now report them to our office via email [email protected] or using our online form.
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Billings meth trafficker sentenced to more than 10 years in prisonRead the Press Release
BILLINGS — A Billings man who admitted to trafficking methamphetamine as part of multi-state drug organization was sentenced today to 10 years and eight months in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Anthony Enemyhunter, 37, pleaded guilty in August to possession with intent to distribute meth.
U.S. Attorney Susan P. Watters presided.
In court documents, the government alleged that Enemyhunter was among a group of individuals involved in a multi-state drug trafficking organization that operated from a residence on Sugar Avenue in Billings. A group of males from Washington brought pounds of meth into Montana and used these individuals to distribute meth and fentanyl. Enemyhunter was identified as selling meth from a Billings hotel. A probation search of his hotel room resulted in the seizure of a firearm, ammunition and a small amount of meth. Enemyhunter also sold meth to a confidential source on two occasions. In February, the Montana Highway Patrol stopped his vehicle and found Enemyhunter to be in possession of meth and several firearms, including one that was stolen.
The U.S. Attorney’s Office prosecuted the case. The Drug Enforcement Administration conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
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Bay Area CEO Pleads Guilty to Employment Tax CrimesRead the Press Release
SAN JOSE – A California man pleaded guilty today to not paying employment taxes to the IRS.
According to court documents and statements made in court, John Comeau, of Santa Clara, was the CEO of Vivid, Inc., a company that provided metal coating services across various industries in Campbell and elsewhere. From at least the first quarter of 2010 through the end of 2019, Vivid withheld Social Security, Medicare, and income taxes from the wages paid to its employees. However, Comeau, who was responsible for ensuring those funds were reported and paid to the IRS, did not do so.
In total, Comeau caused a tax loss to the IRS of approximately $1,150,000.
Comeau is scheduled to be sentenced on Apr. 30, 2025, and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ismail J. Ramsey, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, and IRS Criminal Investigation (IRS-CI) Oakland Field Office Special Agent in Charge Linda Nguyen made the announcement.
IRS-CI is investigating the case.
Assistant U.S. Attorney Ilham Hosseini and Trial Attorney Mahana Weidler of the Tax Division are prosecuting the case.
Barbour County Man Sentenced for Methamphetamine TraffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Edward Matthew Wiseman, 37, of Belington, West Virginia, was sentenced to 57 months for possession with intent to distribute methamphetamine.
According to court documents and statements made in court, Wiseman was selling methamphetamine in Elkins. A search of his home resulted in the seizure of methamphetamine, two firearms, and $4802. Wiseman has a criminal history that includes assault, multiple DUIs, reckless driving, a drug conviction, as well as protective orders for domestic violence.
Wiseman will serve three years of supervised release following his prison sentence.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mountain Region Drug Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Attorney General Merrick B. Garland Statement on FBI Director Christopher Wray’s Resignation AnnouncementRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland following FBI Director Christopher Wray’s resignation announcement:
“Chris Wray has served our country honorably and with integrity for decades, including for seven years as the Director of the FBI under presidents of both parties.
In a heightened threat environment, Director Wray has worked tirelessly to protect the American people and to lead an agency of 38,000 dedicated public servants, many of whom put their lives on the line every day to serve their communities.
Under Director Wray’s principled leadership, the FBI has worked to fulfill the Justice Department’s mission to keep our country safe, protect civil rights, and uphold the rule of law.
He has led the FBI’s efforts to aggressively confront the broad range of threats facing our country — from nation-state adversaries and foreign and domestic terrorism to violent crime, cybercrime, and financial crime.
There are few leadership positions more central to keeping the American people safe than the Director of the FBI.
The Director of the FBI is responsible for leading employees located across the country and around the world who dedicate themselves each day to disrupting complex plots and preventing horrific tragedies before they can occur.
The Director of the FBI is responsible for leading the federal law enforcement agency that serves as the connective tissue among the intelligence community, state and local law enforcement agencies across the country, and our international law enforcement partners.
And the Director of the FBI is responsible for protecting the independence of the FBI from inappropriate influence in its criminal investigations. That independence is central to preserving the rule of law and to protecting the freedoms we as Americans hold dear.
Director Wray has done that job with integrity and skill. He has my gratitude, the gratitude of the FBI agents and employees whose respect and admiration he has earned, and the gratitude of the American people.”
Athens Man Sentenced to 30 Years in Prison for Sexually Exploiting a ChildRead the Press Release
ATHENS, Ga. – An Athens resident received the statutory maximum prison sentence allowed under federal guidelines for the sexual exploitation of a 7-year-old child resulting from a Project Safe Childhood investigation.
Chris Adam Valentine, 37, was sentenced to serve 360 months in prison to be followed by a lifetime of supervised release and $90,000 restitution by U.S. District Judge Tilman E. “Tripp” Self, III on Dec. 10. In addition, Valentine will have to register as a sex offender upon release from prison. Valentine previously pleaded guilty to one count of sexual exploitation of a child on May 28. There is no parole in the federal system.
“Our office is determined to identify and remove child predators from our communities and hold them fully accountable for their heinous crimes,” said U.S. Attorney Peter D. Leary. “Protecting the most vulnerable citizens from harm is a priority for law enforcement at every level.”
“Thanks to the diligent efforts of Homeland Security Investigations and its law enforcement partners, this predator will now spend three decades behind bars for his appalling actions,” said Steven N. Schrank, the Special Agent in Charge of HSI Atlanta, which covers Georgia and Alabama. “This investigation underscores our commitment to protecting vulnerable individuals and pursuing justice for those who seek to exploit and harm children.”
"Cases like these exemplify the value of partnerships between local, state and federal agencies,” said Athens-Clarke County Police Chief Jerry Saulters. “These heinous crimes will not be tolerated in our community. We will continue to work with our partners to protect the children of this community and will pursue those who prey on them."
According to the plea agreement, Valentine admitted that between Jan. 1, 2022, and Dec. 31, 2022, he used his cellular phone to film a 7-year-old child engage in sexual conduct with an adult male.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by Homeland Security Investigations (HSI) and the Athens-Clarke County Police Department.
Assistant U.S. Attorney Daniel Peach prosecuted the case for the Government.
Armed Drug Trafficker Sentenced to 15 Years in PrisonRead the Press Release
RALEIGH, N.C. – Daryl Cromartie, 32, of Wilmington, was sentenced to 15 years in prison for possession of a firearm by felon and possession with the intent to distribute fentanyl, cocaine, and phencyclidine (PCP). On February 27, 2024, Cromartie pled guilty to the charges.
According to court records and evidence presented in court, in February 2023, the Wilmington Police Department (WPD), the Federal Bureau of Investigation (FBI) and the New Hanover County Sheriff’s Office (NHCSO) began investigating the drug trafficking activities of Daryl Cromartie. From February 23, 2023, to July 14, 2023, law enforcement utilized confidential informants (CIs) to purchase narcotics from Cromartie. Most of the controlled buys occurred outside of Cromartie’s residence in Wilmington. Prior to the transactions, Cromartie and the CIs communicated via cellphone.
On July 17, 2023, the FBI obtained a search warrant for Cromartie’s residence in Wilmington. Cromartie was present during the search and acknowledged there were various controlled substances, a handgun, and U.S. currency in the home. Officers seized 8.01 grams of cocaine, 42.8 grams of crack cocaine, 55.2 grams of heroin/fentanyl, 37.2 grams of marijuana, a digital scale, $4,360 in U.S. currency and a loaded 9mm handgun from a safe in the master bedroom.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The FBI, WPD, and NHCSO investigated the case. Assistant U.S. Attorney Leonard Champaign prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:23-CR-00094-M.
Alon Alexander, Oren Alexander, and Tal Alexander Charged in Manhattan Federal Court with Sex Trafficking OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Jessica S. Tisch, Commissioner of the New York City Police Department, announced the return today of a three-count Indictment charging ALON ALEXANDER, OREN ALEXANDER, and TAL ALEXANDER (the “ALEXANDER BROTHERS”), with sex trafficking offenses. The defendants were arrested this morning in the Southern District of Florida and will be presented in federal court in Miami, Florida. The case has been assigned to U.S. District Judge Valerie E. Caproni.
U.S. Attorney Damian Williams said: “As alleged in the Indictment, for more than a decade, the Alexander Brothers, alone and together, repeatedly and violently sexually assaulted and raped dozens of female victims. Today, the defendants are charged with multiple sex trafficking offenses. Our investigation is far from over. If you have been a victim of the alleged sexual violence perpetrated by Alon Alexander, Oren Alexander, or Tal Alexander – or if you know anything about their alleged crimes – we urge you to come forward.”
FBI Assistant Director in Charge James E. Dennehy said: “The Alexander brothers allegedly conspired using their wealth and status to prey on innocent women, coercing them into engaging in sexual acts. We will not allow this type of alleged behavior to go unimpeded. Predators forcefully coercing victims into sexual acts cannot and will not be tolerated. The FBI’s investigations into these types of cases are only possible because of the bravery victims show in coming forward. The FBI, along with our law enforcement partners, are committed to investigating sex trafficking and ensuring anyone attempting to engage in it is held accountable in the criminal justice system.”
NYPD Commissioner Jessica S. Tisch said: “The charges outlined in this indictment reflect some of the most heinous and dehumanizing crimes of sexual exploitation that our NYPD detectives investigate. I applaud all the members of our joint FBI-NYPD Child Exploitation and Human Trafficking Task Force for their unwavering dedication to identifying, investigating, and holding accountable those who allegedly prey on vulnerable individuals in such despicable ways.”
According to the Indictment, Superseding Indictment, and other documents and statements in the public record:
From at least in or about 2010, up to and including at least in or about 2021, the ALEXANDER BROTHERS worked together and with others to engage in sex trafficking, including by repeatedly drugging, sexually assaulting, and raping dozens of female victims. The ALEXANDER BROTHERS, who reside primarily in New York and Miami, Florida, have considerable social and financial connections, including through OREN ALEXANDER and TAL ALEXANDER’s positions as prominent real estate agents focused on ultra-luxury markets. The ALEXANDER BROTHERS used their wealth and prominent positions in real estate to create and facilitate opportunities to sexually assault women.
To carry out and facilitate their sex trafficking scheme, the ALEXANDER BROTHERS used deception, fraud, and coercion to cause victims to travel with them or meet them in private locations for various trips and events. The ALEXANDER BROTHERS and others identified women to invite to these events through, among other things, social media, dating applications, in person encounters, or through the use of party promoters who would recruit women for these events.
The ALEXANDER BROTHERS used the promise of luxury experiences, travel, and accommodations to lure and entice women to these events, and then—on multiple occasions—forcibly raped and sexually assaulted women who attended. At times, multiple men, including one or more of the ALEXANDER BROTHERS, participated in these assaults. In some instances, the defendants physically restrained and held down their victims during the rapes and sexual assaults and ignored screams and explicit requests to stop.
In advance of the events, the ALEXANDER BROTHERS and others procured drugs that they agreed to provide to the women, including, among other things, cocaine, mushrooms, and GHB. On multiple occasions during these events and trips, the ALEXANDER BROTHERS and others surreptitiously drugged women’s drinks. Some of the victims experienced symptoms of impaired physical and mental capacity, including limitations of movement and speech and incomplete memories of events. This prevented the victims from being able to fight back or escape during the rapes and sexual assaults.
The agreement between the ALEXANDER BROTHERS encompassed numerous other acts of sexual violence in addition to the sexual assaults during planned trips and events. On numerous occasions, one or more of the ALEXANDER BROTHERS drugged and raped or sexually assaulted women they encountered by chance, including women they met at bars and nightclubs, social events, and on dating applications.
If you have been victimized by the ALEXANDER BROTHERS in any way or have any additional information about their alleged illegal behavior, please call the FBI at 1-800-CALL-FBI, or reach out to us at [email protected].
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ALON ALEXANDER, 37, OREN ALEXANDER, 37, and TAL ALEXANDER, 38, all of Miami, Florida, are each charged with one count of engaging in a sex trafficking conspiracy, which carries a maximum sentence of life in prison; and one count of sex trafficking by force, fraud, or coercion, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 15 years in prison. TAL ALEXANDER is additionally charged with a second count of sex trafficking by force, fraud, or coercion, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 15 years in prison.
The statutory maximum and mandatory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI-NYPD Child Exploitation and Human Trafficking Task Force in New York, as well as the assistance of FBI Miami, the U.S. Attorney’s Office for the Southern District of Florida, the Miami-Dade County State Attorney’s Office, and the Miami Beach Police Department.
This case is being handled by the Office’s Civil Rights Unit in the Criminal Division. Assistant U.S. Attorneys Kaiya Arroyo, Elizabeth A. Espinosa, and Andrew W. Jones are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
u.s._v._alexander_brothers_superseding_indictment_may_2025.pdf u.s._v._alexander_et_al_superseding_indictment.pdfActivity in the U.S. Attorney's OfficeRead the Press Release
Child Sexual Assault Material
Justin Michael Lamb, 29, of Casper, Wyoming, was sentenced to 25 years in federal prison with 15 years of supervised release to follow, for the production of child pornography. According to court documents, in May of 2023, a Wyoming probation agent was supervising the defendant after he was convicted of failing to register as a sex offender. Lamb failed to report to probation and update his offender registration, as required. Around the same time, a tip came in that Lamb was dating a minor. Casper Police Department officers and detectives conducted interviews and searched Lamb's digital devices. They found over 100 files of lude and lascivious material of a minor. The defendant was indicted on July 18, pleaded guilty on Sept. 12, and U.S. District Court Judge Alan B. Johnson imposed the sentence on Dec. 4, in Cheyenne. Wyoming Division of Criminal Investigation and the Casper Police Department investigated the crime. Assistant U.S. Attorney Z. Seth Griswold prosecuted the case. Case No. 24-CR-00099
Gregory Scott Gage, 31, of Casper, Wyoming, was sentenced to 120 months’ imprisonment with 10 years of supervised release to follow, for obscene visual representation of the sexual abuse of children, subsequent offense. According to court documents, on March 25, a Wyoming Division of Criminal Investigation (DCI) Internet Crimes Against Children (ICAC) agent was contacted by a probation officer about Gage possessing electronics containing potential files of child pornography. Gage was under supervision after being sentenced for access with intent to view child pornography. Agents found and forensically investigated three smartphones, all of which contained pornographic depictions of minors. Gage was indicted on July 18, pleaded guilty on Sept 13, and U.S. District Court Judge Kelly H. Rankin imposed the sentence on Dec. 5, in Cheyenne. U.S. Probation and Parole, Wyoming Division of Criminal Investigation, and the Casper Police Department investigated the crime. Assistant U.S. Attorney Z. Seth Griswold prosecuted the case. Case No. 24-00100
Drug Trafficking & Firearms
Larry Arguijo, 46, of Douglas, Wyoming, was sentenced to 46 months with three years of supervised release to follow, for being a felon in possession of a firearm and possession with intent to distribute fentanyl. According to court documents, in June of 2024, agents with DCI Central Enforcement Team (CEET) began an investigation into an ongoing conspiracy to deliver methamphetamine, occurring in Converse and Natrona County. During the investigation, several individuals including Arguijo were identified as part of the conspiracy. Arguijo waived indictment and pleaded guilty on Sept. 11. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Dec. 3, in Casper. Homeland Security Investigations and DCI investigated the crime. Assistant U.S. Attorney Timothy J. Forwood prosecuted the case. Case No. 24-00132
Firearm Offenses
Howard George Lujan, 36, of Riverton, Wyoming, was sentenced to time served from July 30, 2024, up to January 6, 2025, with three years of supervised release to follow, for being a felon in possession of a firearm. According to court documents, law enforcement stopped a vehicle that Lujan was a passenger in and found a gun wrapped up in a sweatshirt under the seat he was sitting in. Lujan is a previously convicted felon and is prohibited from possessing a firearm. Lujan was indicted on July 18, brought into federal custody on July 30, pleaded guilty on Sept. 12 and U.S. District Court Judge Alan B. Johnson imposed the sentence on Dec. 3, in Cheyenne. The Wyoming Division of Criminal Investigation investigated the crime and Assistant U.S. Attorney Timothy W. Gist prosecuted the case. Case No. 24-CR-00122
Kenneth Levi Crawford, 24, of Cody, Wyoming, was sentenced to 12 months and one day in prison with three years of supervised release to follow, for being a felon in possession of a firearm. According to court documents, on May 25, a citizen called the Casper Police Department to report the location of a fugitive, the defendant. Crawford was found where the citizen described, and officers confirmed that Crawford had multiple active warrants. When officers encountered him, he had a pistol in his waistband. Crawford is a previously convicted felon and prohibited from possessing firearms. Crawford was indicted on July 18, pleaded guilty on Sept. 10, and Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Dec. 3, in Casper. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Casper Police Department investigated this crime. Assistant U.S. Attorney Paige Hammer prosecuted the case. Case No. 23-00115
Illegal Re-Entry of a Previously Deported Alien
Arnulfo Perez-Gomez, 31, of Huehuetenango, Guatemala, was sentenced to 6 months’ imprisonment for illegal reentry into the United States. Perez-Gomez will be deported following his sentence. According to court documents, on August 4, Perez-Gomez was found by Immigration and Customs Enforcement (ICE) at the Sweetwater County Detention Center. Perez-Gomez had been arrested for state drug charges. Sweetwater County Sheriff’s Deputies alerted ICE’s Casper office that Perez-Gomez claimed to be a citizen of Guatemala on his booking sheet. ICE agents determined Perez-Gomez had not applied for permission to reenter the U.S. after being formally removed in December 2013. ICE investigated the crime, and Assistant U.S. Attorney Cameron J. Cook prosecuted the case. U.S. District Court Judge Kelly H. Rankin imposed the sentence on Dec. 4, in Cheyenne. Case No. 24-CR-00156Margarito Sanchez-Velazquez, 37, of Chapultenango, Mexico, was sentenced to time served and will be deported for illegal reentry into the United States. According to court documents, in April 2022, Sanchez-Velazquez was encountered in Gillette, Wyoming. Immigration and Customs Enforcement (ICE) was contacted, and they determined that Sanchez-Velazquez did not have permission to reenter the U.S. after being formally removed in May 2019. ICE investigated the crime, and Assistant U.S. Attorney Cameron J. Cook prosecuted the case. U.S. District Court Judge Alan B. Johnson imposed the sentence on Dec. 9, in Cheyenne. Case No. 24-CR-00104
Vitaliano Garcia-Mendez, 49, of Oaxaca, Mexico, was sentenced to time served and will be deported for illegal reentry into the United States. According to court documents, on Feb. 26, Garcia-Mendez was arrested by the Big Horn Sheriff’s Office for driving while under the influence of alcohol. Immigration and Customs Enforcement (ICE) was contacted. A deportation officer processed the defendant and obtained fingerprints matching pre-existing fingerprints in their database indicating Garcia-Mendez was in the U.S. illegally and had not applied for permission to reenter the U.S. after being formally removed in June 2003. ICE investigated the crime, and Assistant U.S. Attorney Cameron J. Cook prosecuted the case. U.S. District Court Judge Alan B. Johnson imposed the sentence on Dec. 9, in Cheyenne. Case No. 24-CR-00108
About the United States Attorney’s Office
The United States Attorney’s Office is responsible for representing the federal government in virtually all litigation involving the United States in the District of Wyoming, including all criminal prosecutions for violations of federal law, civil lawsuits brought by or against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Office is involved in several programs designed to make our communities safer. They include:
Environmental Justice
The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.
Project Safe Childhood
Project Safe Childhood (PSC) is a DOJ initiative that combats the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for sexual contact is well-known and serious.
Project Safe Neighborhoods
Project Safe Neighborhoods (PSN) is a nationwide commitment to reducing gun and gang crime in America by networking existing local programs that target gun crime and providing these programs with additional tools necessary to be successful.
Victim Witness Assistance
The Victim Witness Coordinator for the United States Attorney’s Office for the District of Wyoming is dedicated to making sure that victims of federal crimes and their family members are treated with compassion, fairness, and respect.To report a federal crime, go to: https://www.justice.gov/actioncenter/report-crime
56 Members of a Violent Gang Charged with Drug Trafficking and Firearms Violations in San Juan, and Carolina, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On December 5, 2024, a federal grand jury in the District of Puerto Rico returned an indictment charging 56 violent gang members from the municipalities of San Juan, Carolina, and areas nearby with conspiracy to possess with intent to distribute, possession and distribution of controlled substances, firearms violations, and murder, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. This investigation was led by the Federal Bureau of Investigation (FBI) and the Puerto Rico Police Bureau Carolina Strike Force, with the collaboration of Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), and the United States Marshals Service.
“The prosecution of this drug trafficking organization exemplifies our ongoing efforts to dismantle drug gangs, and reduce violent crime and gun violence,” said U.S. Attorney Muldrow. “I want to thank our federal, local, and state law enforcement partners, as well as the prosecutors and investigators in the U.S. Attorney’s Office, for their relentless work in this case. As demonstrated by this prosecution, our valiant police officers serve and protect our communities with courage, dedication, and bravery every day -- at great risk to their own safety.”
“Combatting violent gangs requires a whole-of-society-approach and I am proud to say that this large-scale gang disruption is the result of the different government components, especially law enforcement, working together with and for the communities,” said Joseph González, Special Agent in Charge of the FBI’s San Juan Field Office. “I am convinced that, with the help of the public and our partners, we can continue to make tangible progress towards peace in the streets of Puerto Rico.”
The indictment alleges that from in or about 2021 through the date of the indictment, the charged drug trafficking organization distributed heroin, fentanyl, cocaine base (commonly known as “crack”), cocaine, marijuana, Tramadol, and Clonazepam within 1,000 feet of the Sabana Abajo Public Housing Project (PHP), the Luis Lloréns Torres PHP, the Los Mirtos PHP, the Lagos de Blasina PHP, the La Esmeralda PHP, the El Coral PHP, the Monte Hatillo PHP, and other areas near those locations, all for significant financial gain and profit. The drug trafficking organizations that operated in and around these areas (hereinafter The Alliance) reached an agreement to conduct their drug trafficking operations as allies, which they referred to as “La Paz” (The Peace). At that time, each housing project organization was controlled by their own leadership and structure. As part of The Alliance, there would not be war between these organizations and members would be able to rely on each other for protection, drugs, and weapons.
The goal of The Alliance was to control all the drug trafficking activities within the municipalities of Carolina, San Juan, and areas nearby using force, threats, violence, and intimidation. In preserving power and protecting territory, the members of the alliance profited from the illegal distribution of narcotics, including transportation to and distribution of kilogram quantities of cocaine in the continental United States. Members of the alliance conducted meetings and frequented each other’s housing projects and the same bars and clubs together; performed in concerts and music videos together, recording videos at each other’s housing projects using real weapons to project their alliance’s power. Members would identify their gang affiliation with jewelry such as pendants allusive to their housing project, organization, or names of record labels, including, but not limited to, “LFC” (La Familia Carolina), “LMM” (Loyalty Music Money) and “LMG” (Loyalty Music Group).
The investigation revealed that during the conspiracy the defendants and their co‑conspirators participated in acts of violence and shootings to further their drug trafficking operations. They also engaged in the trafficking of illegal firearms and ammunition using their social media accounts and other social media applications and platforms. It is also alleged that the defendants obtained information from corrupt police officers to surveil rival gang members and to avoid law enforcement detection. On occasions, the corrupt police officers accessed law enforcement databases to obtain privileged information such as vehicle registration data and personal identifying data.
The defendants acted in different roles to further the goals of the drug trafficking conspiracy, including as leaders, suppliers, drug point owners, enforcers, runners, sellers, lookouts, and facilitators.
The 56 defendants charged in the indictment are:
[1] Victor J. Pérez-Fernández, a.k.a. “La Cone/Vitu/Vitikin/Enano”
[2] David A. Isaac-Febus, a.k.a. “Durant/Davicito”
[3] Jan C. Dalmau-Román, a.k.a. “Yankee/El Árabe”
[4] Charlie J. Dalmau-Román, a.k.a. “Tres Deos/Tres Dedos”
[5] Luis R. Pérez-Vizcarrondo, a.k.a. “Tío/Raúl”
[6] Samuel Santiago-Delgado, a.k.a. “Kule”
[7] Michael J. García-Marquez, a.k.a. “Maco/Menor”
[8] Luis N. Isaac-Sánchez, a.k.a. “Chimbo/CDobleta/Dobleta”
[9] Eli Y. Couvertier-Pollock, a.k.a. “Tata/Maike/Maike Casiano”
[10] Gerald O. Rodríguez-Rodríguez, a.k.a. “Patrón”
[11] Onix Y. Couvertier-Pollock, a.k.a. “Gato/Gatito/Yamil”
[12] Ángel L. Agosto-Andino, a.k.a. “Bilito/Bartolo/Birlito”
[13] Vicyael C. Hernández-Díaz, a.k.a. “Menor/Ozu”
[14] Paul W. Herrera-Rivera, a.k.a. “Polito/Agua Sucia/Negro”
[15] Luis R. Pérez-Colón, a.k.a. “Mencho/Luisito”
[16] Lino J. Calcaño-Rodríguez
[17] Eddie G. Roque-Sánchez, a.k.a. “Edito/Coco”
[18] Ángel L. Sanjurjo, a.k.a. “Vaca”
[19] William E. Boria-Rosa, a.k.a. “Boria”
[20] Christian Luna-Ilarraza, a.k.a. “Chiqui”
[21] Carlos F. Mercado-Molina, a.k.a. “Blanco Perla/Payco”
[22] Orlando Resto-García, a.k.a. “Luli/Potala”
[23] Andyel González-Sáez, a.k.a. “Martino”
[24] Olvin O’Neill-Concepción-Tapia, a.k.a. “Sinfo”
[25] Daniel J. López-Vega, a.k.a. “Dany”
[26] Edwin Y. Flores-Tavárez, a.k.a. “Chizguis/Película/Cheese Wiz”
[27] Jeremy Millán-Isaac, a.k.a. “Pequeño/Zepe”
[28] Bernardo De La Cruz-Pizarro, a.k.a. “Caravela/Armandito”
[29] Yasiel Morales-López, a.k.a. “Pausa/Rubio”
[30] Joshua E. Bula-Cartagena, a.k.a. “Inquilino/El Corista”
[31] José A. González-Herrera, a.k.a. “Teta/Ted”
[32] Josué Isaac-Febus, a.k.a. “Tonto/Doble T”
[33] Ramsell Maldonado-Tatis, a.k.a. “R”
[34] Joshua Jeriel Rivera-Cruz, a.k.a. “Joshi/J”
[35] Jazhiel Ocasio-Herrera, a.k.a. “BV”
[36] Frambel Rijos-Hernández, a.k.a. “Domi”
[37] José Martínez-Serrano, a.k.a. “Tio/Denzel”
[38] Wilfredo Hernández-Vizcarrondo, a.k.a. “Machacho”
[39] Jean C. Fernández-Garay, a.k.a. “Logan/Bebo”
[40] Harold Reynoso-Isaac, a.k.a. “Jandi/Pichi”
[41] Carlos A. Delgado-Torres, a.k.a. “Peter/Papi/Papa Candela”
[42] Isaías Caleb De Jesús-Valentín, a.k.a. “Minor/Mynor/Mynol”
[43] Ángel M. Franqui-González, a.k.a. “Blanquito”
[44] Juan L. Tereforte-Bello, a.k.a. “Tostin”
[45] Justin Landrau-Cirino, a.k.a. “Cheo”
[46] Edgardo D. Rivera-Rivera, a.k.a. “Limba”
[47] Danny Díaz-Soto, a.k.a. “Shorty”
[48] Alexander Y. Encarnación-Febus, a.k.a. “Bebo”
[49] Kevin E. Soto-Peña, a.k.a. “Mostri”
[50] Jacob J. Monge-Vigo
[51] Yander C. Santos-Ramos, a.k.a. “Mingui”
[52] Michael Rodríguez-Seib, a.k.a. “Teco”
[53] Victor Z. Sifonte-Rivera
[54] Eduardo A. Tolentino-Meléndez
[55] Fernando Torres-Galarza, a.k.a. “Perro”
[56] Destiny Crespo-Correa
Thirty-seven defendants are facing one count of possession of firearms in furtherance of a drug trafficking crime and fourteen of those defendants are facing one count of possession of a machinegun in furtherance of a drug trafficking crime.
Count Nine charges the murder of Sergeant Eliezer Ramos Vélez that occurred on March 29, 2024 - during and in furtherance of the conspiracy. Defendants [1] Victor J. Pérez-Fernández, [8] Luis N. Isaac-Sánchez, [23] Andyel González-Sáez, [24] Olvin O’Neill-Concepción-Tapia, and [25] Daniel J. López-Vega are charged with one count of firearm-related murder and are eligible for the death penalty.
If convicted on the drug charges, the defendants face a mandatory minimum sentence of 10 years, and up to life in prison. If convicted of both the drug trafficking and the firearms charges in Count Seven, the defendants face a mandatory minimum sentence of 15 years, and up to life in prison. The defendants charged with possession of machineguns in furtherance of drug trafficking in Count Eight face a mandatory sentence of thirty years in prison to be served consecutive to any sentence imposed on the drug trafficking charges. All defendants are facing a narcotics forfeiture allegation of $31,347,400 that represent a calculation of the proceeds generated from their illegal drug trafficking activities.
Assistant United States Attorney (AUSA) and Chief of the Gang Section Alberto López-Rocafort; Deputy Chief of the Gang Section, AUSA Teresa Zapata-Valladares; and AUSAs Laura Díaz-González, R. Vance Eaton, and Joseph Russell are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
2 Defendants Charged in U.S. Courts as Part of Global Crackdown on ‘Booter’ Services Offering Distributed Denial-of-Service AttacksRead the Press Release
ANCHORAGE, Alaska – The Justice Department today announced the court-authorized seizure of 27 internet domains associated with some of the world’s leading DDoS-for-hire services, as well as criminal charges against two defendants who allegedly oversaw computer attack platforms commonly called “booter” services.
Federal law enforcement is now seizing the websites that allowed paying users to launch powerful distributed denial-of-service (DDoS) attacks that flood targeted computers with information and prevent them from being able to access the internet.
Booter services such as those named in this action allegedly attacked a wide array of victims in the United States and abroad, including educational institutions, government agencies, gaming platforms and millions of people. In addition to affecting targeted victims, these attacks can significantly degrade internet services and can completely disrupt internet connections.
The websites targeted in this operation were used to launch millions of actual or attempted DDoS attacks targeting victims worldwide. While some of these services claimed to offer “stresser” services that could purportedly be used for network testing, the FBI and DCIS determined these claims to be a pretense, and “thousands of communications between booter site administrators and their customers…make clear that both parties are aware that the customer is not attempting to attack their own computers,” according to an affidavit filed in support of court-authorized warrants to seize the booter sites.
“Booter services facilitate cyberattacks that harm victims and compromise everyone’s ability to access the internet,” said United States Attorney Martin Estrada for the Central District of California. “This week’s sweeping law enforcement activity is a major step in our ongoing efforts to eradicate criminal conduct that threatens the internet’s infrastructure and our ability to function in a digital world.”
“Cybercrime service providers, such as those criminals operating DDoS for hire booter websites, affect victims in Alaska and across the world,” said United States Attorney S. Lane Tucker for the District of Alaska. “Because of the scope of the threat, we have partnered with law enforcement in the United States and abroad to achieve meaningful disruptions of these services in order to protect critical internet infrastructure and services.”
“Whether you launch a DDoS attack or hire a DDoS service to do it for you, the FBI considers it a crime. Cybercriminals are increasingly targeting essential services and our critical infrastructure with DDoS attacks that can cost victims valuable time, money and reputational harm,” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “With the FBI’s mix of unique authorities, capabilities, and partnerships, potential users and administrators should think twice before buying or selling these illegal services. Victims of cybercrime are urged to contact their local FBI field office or file a complaint with the FBI’s Internet Crime Complaint Center at ic3.gov.”
“DDoS attacks are a potent cyber weapon with the proven potential to disrupt critical information systems and infrastructure,” said Special Agent in Charge Kenneth DeChellis of the Defense Criminal Investigative Services (DCIS), Cyber Field Office. “Today’s action against DDoS-for-hire services demonstrates the resolve of the DCIS and global law enforcement partners to disrupt the use of these services by hacktivist groups and cybercriminals.”
“In this coordinated law enforcement effort, the FBI seized and disabled powerful computer attack platforms that offered DDoS-for-hire services,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “This action demonstrates our shared commitment with domestic and international law enforcement partners in combatting cybercrime and defending our digital infrastructure.”
Law enforcement has conducted interviews with U.S. customers of these services, with future interviews expected, and authorities are continuing to investigate both administrators and customers of booter services around the world.
This coordinated law enforcement action comes shortly before the Christmas holiday period, which typically brings a significant increase in DDoS attacks across the internet.
Relatedly, one defendant has been charged federally in Los Angeles and one defendant has been charged federally in Anchorage, Alaska, in connection with DDoS-for-hire services.
Central District of California
Prosecutors in Los Angeles this week unsealed one indictment charging one defendant with running booter services.
Ricardo Cesar Colli, a.k.a. “TotemanGames,” 22, of Brazil, is charged with conspiracy to violate and violating the Computer Fraud and Abuse Act related to the alleged operation of a booter service named Securityhide.net (formerly known as Securityhide.com).
Assistant United States Attorney Aaron Frumkin of the Cyber and Intellectual Property Crimes Section is prosecuting the case. Assistant United States Attorney James E. Dochterman of the Asset Forfeiture and Recovery Section is handling the seizure of the domains.
District of Alaska
Prosecutors in Alaska have indicted one defendant with being the administrator of significant booter services. That indictment remains under seal, as the United States continues to work with international partners to pursue an arrest and extradition.
Assistant United States Attorneys Adam Alexander, Ainsley McNerney, and Seth Brickey are prosecuting the case.
In conjunction with the website seizures, Homeland Security Investigations, the United Kingdom’s National Crime Agency, and the Netherlands Police have launched an advertising campaign using targeted placement ads in search engines, which are triggered by keywords associated with DDoS activities. The purpose of the ads is to deter potential cyber criminals searching for DDoS services in the United States and around the globe, as well as to educate the public on the illegality of DDoS activities.
In recent years, booter services have continued to proliferate as they offer a low barrier to entry for users looking to engage in cybercriminal activity. These types of DDoS attacks are so named because they result in the “booting” or dropping of the targeted computer from the internet. For additional information on booter and stresser services and the harm that they cause, please visit: https://www.fbi.gov/contact-us/field-offices/anchorage/fbi-intensify-efforts-to-combat-illegal-ddos-attacks.
The cases announced today are being investigated by the FBI’s Anchorage and Los Angeles field offices, Defense Criminal Investigative Service’s Cyber East and Cyber West field offices, and HSI’s Columbus field office, with additional support provided by the Computer Crime and Intellectual Property Section of the Department of Justice’s Criminal Division.
Invaluable assistance was provided by Germany’s Bundeskriminalamt (BKA); the United Kingdom’s National Crime Agency; the Netherlands Police; Polish Central Cybercrime Bureau; Brazilian Federal Police, High Tech Crimes Coordination; EUROPOL; and the Brandon Police Service in Manitoba, Canada. Akamai, Cloudflare, Digital Ocean, Entertainment Software Association, Flashpoint, Google, Oracle, PayPal, Unit 221B, the University of Cambridge, and other valued private sector partners provided additional assistance.
These law enforcement actions were taken in conjunction with Operation PowerOFF, an ongoing, coordinated effort among international law enforcement agencies aimed at dismantling criminal DDoS-for-hire infrastructures worldwide, and holding accountable the administrators and users of these illegal services.
In previous law enforcement actions involving prosecutors and investigators in Los Angeles and Anchorage over the last four years, the Justice Department charged nine defendants who facilitated DDoS-for hire services and seized more than 75 internet domains associated with DDoS-for-hire services. The multi-prong investigation announced today builds on the success of the prior cases by targeting all known booter sites, shutting down as many as possible, and undertaking a public education campaign.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
2 Defendants Charged in U.S. Courts as Part of Global Crackdown on ‘Booter’ Services Offering Distributed Denial-of-Service AttacksRead the Press Release
LOS ANGELES – The Justice Department today announced the court-authorized seizure of 27 internet domains associated with some of the world’s leading DDoS-for-hire services, as well as criminal charges against two defendants who allegedly oversaw computer attack platforms commonly called “booter” services.
Federal law enforcement is now seizing the websites that allowed paying users to launch powerful distributed denial-of-service (DDoS) attacks that flood targeted computers with information and prevent them from being able to access the internet.
Booter services such as those named in this action allegedly attacked a wide array of victims in the United States and abroad, including educational institutions, government agencies, gaming platforms and millions of people. In addition to affecting targeted victims, these attacks can significantly degrade internet services and can completely disrupt internet connections.
The websites targeted in this operation were used to launch millions of actual or attempted DDoS attacks targeting victims worldwide. While some of these services claimed to offer “stresser” services that could purportedly be used for network testing, the FBI and DCIS determined these claims to be a pretense, and “thousands of communications between booter site administrators and their customers…make clear that both parties are aware that the customer is not attempting to attack their own computers,” according to an affidavit filed in support of court-authorized warrants to seize the booter sites.
“Booter services facilitate cyberattacks that harm victims and compromise everyone’s ability to access the internet,” said United States Attorney Martin Estrada for the Central District of California. “This week’s sweeping law enforcement activity is a major step in our ongoing efforts to eradicate criminal conduct that threatens the internet’s infrastructure and our ability to function in a digital world.”
“Cybercrime service providers, such as those criminals operating DDoS for hire booter websites, affect victims in Alaska and across the world,” said United States Attorney S. Lane Tucker for the District of Alaska. “Because of the scope of the threat, we have partnered with law enforcement in the United States and abroad to achieve meaningful disruptions of these services in order to protect critical internet infrastructure and services.”
“Whether you launch a DDoS attack or hire a DDoS service to do it for you, the FBI considers it a crime. Cybercriminals are increasingly targeting essential services and our critical infrastructure with DDoS attacks that can cost victims valuable time, money and reputational harm,” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “With the FBI’s mix of unique authorities, capabilities, and partnerships, potential users and administrators should think twice before buying or selling these illegal services. Victims of cybercrime are urged to contact their local FBI field office or file a complaint with the FBI’s Internet Crime Complaint Center at ic3.gov.”
“DDoS attacks are a potent cyber weapon with the proven potential to disrupt critical information systems and infrastructure,” said Special Agent in Charge Kenneth DeChellis of the Defense Criminal Investigative Services (DCIS), Cyber Field Office. “Today’s action against DDoS-for-hire services demonstrates the resolve of the DCIS and global law enforcement partners to disrupt the use of these services by hacktivist groups and cybercriminals.”
“In this coordinated law enforcement effort, the FBI seized and disabled powerful computer attack platforms that offered DDoS-for-hire services,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “This action demonstrates our shared commitment with domestic and international law enforcement partners in combatting cybercrime and defending our digital infrastructure.”
Law enforcement has conducted interviews with U.S. customers of these services, with future interviews expected, and authorities are continuing to investigate both administrators and customers of booter services around the world.
This coordinated law enforcement action comes shortly before the Christmas holiday period, which typically brings a significant increase in DDoS attacks across the internet.
Relatedly, one defendant has been charged federally in Los Angeles and one defendant has been charged federally in Anchorage, Alaska, in connection with DDoS-for-hire services.
Central District of California
Prosecutors in Los Angeles this week unsealed one indictment charging one defendant with running booter services.
Ricardo Cesar Colli, a.k.a. “TotemanGames,” 22, of Brazil, is charged with conspiracy to violate and violating the Computer Fraud and Abuse Act related to the alleged operation of a booter service named Securityhide.net (formerly known as Securityhide.com).
Assistant United States Attorney Aaron Frumkin of the Cyber and Intellectual Property Crimes Section is prosecuting the case. Assistant United States Attorney James E. Dochterman of the Asset Forfeiture and Recovery Section is handling the seizure of the domains.
District of Alaska
Prosecutors in Alaska have indicted one defendant with being the administrator of significant booter services. That indictment remains under seal, as the United States continues to work with international partners to pursue an arrest and extradition.
Assistant United States Attorneys Adam Alexander, Ainsley McNerney, and Seth Brickey are prosecuting the case.
In conjunction with the website seizures, Homeland Security Investigations, the United Kingdom’s National Crime Agency, and the Netherlands Police have launched an advertising campaign using targeted placement ads in search engines, which are triggered by keywords associated with DDoS activities. The purpose of the ads is to deter potential cyber criminals searching for DDoS services in the United States and around the globe, as well as to educate the public on the illegality of DDoS activities.
In recent years, booter services have continued to proliferate as they offer a low barrier to entry for users looking to engage in cybercriminal activity. These types of DDoS attacks are so named because they result in the “booting” or dropping of the targeted computer from the internet. For additional information on booter and stresser services and the harm that they cause, please visit: https://www.fbi.gov/contact-us/field-offices/anchorage/fbi-intensify-efforts-to-combat-illegal-ddos-attacks.
The cases announced today are being investigated by the FBI’s Anchorage and Los Angeles field offices, Defense Criminal Investigative Service’s Cyber East and Cyber West field offices, and HSI’s Columbus field office.
Invaluable assistance was provided by Germany’s Bundeskriminalamt (BKA); the United Kingdom’s National Crime Agency; the Netherlands Police; Polish Central Cybercrime Bureau; Brazilian Federal Police, High Tech Crimes Coordination; EUROPOL; and the Brandon Police Service in Manitoba, Canada. Akamai, Cloudflare, Digital Ocean, Entertainment Software Association, Flashpoint, Google, Oracle, PayPal, Unit 221B, Amazon Web Services, the University of Cambridge, and other valued private sector partners provided additional assistance.
These law enforcement actions were taken in conjunction with Operation PowerOFF, an ongoing, coordinated effort among international law enforcement agencies aimed at dismantling criminal DDoS-for-hire infrastructures worldwide, and holding accountable the administrators and users of these illegal services.
In previous law enforcement actions involving prosecutors and investigators in Los Angeles and Anchorage over the last four years, the Justice Department charged nine defendants who facilitated DDoS-for hire services and seized more than 75 internet domains associated with DDoS-for-hire services. The multi-prong investigation announced today builds on the success of the prior cases by targeting all known booter sites, shutting down as many as possible, and undertaking a public education campaign.
10 December 2024
Woman Picking up Package of Meth as Part of a Drug Trafficking Conspiracy SentencedRead the Press Release
SPARTANBURG, S.C. —Stacey Bentley, 53, of Blacksburg, was sentenced to more than three years in federal prison after she pleaded guilty to a methamphetamine trafficking conspiracy.
Evidence presented to the court showed that Bentley was part of a drug trafficking conspiracy when she was caught attempting to pick up a package of three kilograms of methamphetamine from a U.S. Post Office in April of 2023.
United States District Judge Jacquelyn D. Austin sentenced Stacey Bentley to 40 months imprisonment to be followed by a three-year term of court-ordered supervision. The court also ordered $400,000 in forfeiture against Bentley.
This case was investigated by Homeland Security Investigations, U.S. Postal Inspection Service, Cherokee County Sheriff’s Office, Greenville County Sheriff’s Office, and Greenville County Multi-Jurisdictional Drug Enforcement Unit. Assistant U.S. Attorney Jamie Schoen is prosecuting the case.
Washington State Man Sentenced to 15 Years in Federal Prison for Traveling to Oregon to Sexually Abuse a Minor He Met OnlineRead the Press Release
EUGENE, Ore.—A Washington State man pleaded guilty and was sentenced to federal prison today for traveling to Oregon to sexually abuse a minor he met online.
Seth Lee Fabry, 34, pleaded guilty to coercion and enticement of a minor and was sentenced to 188 months in federal prison and 20 years’ supervised release.
According to court documents, in April 2022, Fabry messaged a minor through Discord, a social media platform, after meeting on MeetMe, another social media platform. Undeterred by the minor’s age, Fabry engaged in explicit discussions with the minor and persuaded them to send sexually explicit images. In May 2022, Fabry traveled from Washington to Oregon two times and sexually abused the minor.
On May 29, 2022, Fabry again traveled to the victim’s residence in Oregon but was met by the minor’s mother. She contacted law enforcement and Fabry was arrested.
On October 4, 2022, a federal grand jury in Eugene returned a two-count indictment charging Fabry with sexually exploiting a child and traveling with the intent to engage in illicit sexual conduct.
This case was investigated by the FBI with assistance from the Eugene Police Department. It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.
The FBI CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Washington Man Charged with Threatening Flight Attendants on an AirplaneRead the Press Release
NEWARK, N.J. – A Washington, DC, man was arrested for threatening flight attendants during an incident in which he had to be restrained by flight crew and passengers while aboard a flight to Newark Liberty International Airport, U.S. Attorney Philip R. Sellinger announced.
Kedus Yacob Damtew, 38, of Washington, DC, was charged by complaint in Newark federal court with one count of interference with flight crew members and attendants by assault or intimidation. He appeared before Magistrate Judge Matthew J. Sharbaugh in Washington, DC federal court, and was released.
According to documents filed in this case and statements made in court:
On June 12, 2024, shortly before landing on a flight from Houston, Texas, Damtew removed his shirt; pushed his bare chest into a flight attendant, pinning the flight attendant against the aircraft exit door; shouted epithets and threats of physical violence; and punched an aircraft oven. Damtew then followed the same flight attendant to the rear of the aircraft, where he continued to shout threats and epithets and threw a cup of water. Another flight attendant requested assistance over the airplane’s public address system, prompting several passengers to assist in securing Damtew in flex cuffs in the last row of the plane until the flight landed at Newark.
The charge of interfering with flight crew members and attendants carries a maximum sentence of 20 years in prison and a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the charge. He also thanked the Port Authority Police Department, under the direction of Edward T. Cetnar, for its assistance.
The government is represented by Assistant U.S. Attorney Eli Jacobs of the General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Elizabeth Mullin, Esq., Assistant Federal Public Defender, Washington, DC
damtew.complaint_0.pdfWagoner County Resident Pleads Guilty to Distributing Child Sexual Exploitation MaterialRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Sovana Xiong, age 32, of Tulsa, Oklahoma, entered a guilty plea to one count of Distribution of Certain Material Involving the Sexual Exploitation of a Minor.
The Indictment alleged that beginning on October 15, 2023, and continuing until April 11, 2024, in the Eastern District of Oklahoma, Xiong knowingly distributed visual depictions on the internet of minors engaging in sexually explicit conduct.
The charge arose from an investigation by the Tulsa Police Department — Special Investigations Division.
The Honorable Edward C. 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. Xiong will remain in the custody of the United States Marshals Service pending sentencing.
Assistant U.S. Attorney Dak Cohen represented the United States.
United States Postal Employee Pleads Guilty to Stealing MailRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Jesse L. Anderson (43, St. Petersburg) has pleaded guilty to theft by a postal employee. Anderson faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in May 2023, the United States Postal Service (USPS) Office of Inspector General (OIG) received a complaint regarding stolen mail, which included a credit card and Social Security card. In October 2023, USPS-OIG received another complaint from the same individual regarding a second credit card missing from the mail. Through investigation, it was determined that Anderson used the individual’s credit card after stealing it on his assigned postal route.
This case was investigated by the U.S. Postal Service – Office of Inspector General. It is being prosecuted by Assistant United States Attorneys Erin Claire Favorit and Abigail K. King.
Two Men Sentenced for Trafficking Fentanyl in PocatelloRead the Press Release
POCATELLO – Andrew George Haney, 41, of Torrance, California, and Anthony Michael Stratton, 35, of Pocatello, were sentenced to federal prison for conspiracy and possession with intent to distribute fentanyl, U.S. Attorney Josh Hurwit announced today.
According to court records, in May 2023, Stratton provided Haney with the money to transport 2,000 fentanyl pills from California to Idaho. Haney obtained the multicolored pills and concealed them in candy boxes. The Pocatello Police Department, a member of the BADGES Task Force, initiated a traffic stop on a car Stratton and Haney were traveling in and located the pills, which were later determined to contain fentanyl.
Haney was sentenced by Chief U.S. District Judge David C. Nye on April 23, 2024, to 70 months in federal prison to be followed by three years of supervised release. Stratton was sentenced by Judge Nye to 44 months in federal prison on December 5, 2024. Stratton’s sentence will be served concurrent to a 5-year fixed sentence (plus 10 years indeterminate) from a Bannock County fentanyl distribution case. Once released from his state sentence, Stratton will serve a 3-year term of federal supervised release.
U.S. Attorney Hurwit commended the investigation by the Pocatello Police Department and the Drug Enforcement Administration, with further assistance from the Idaho State Police and the Bannock County Sheriff’s Office, which led to the charges. Assistant U.S. Attorney Blythe H. McLane, a former Special Assistant United States Attorney, prosecuted the case as part of the Eastern Idaho Partnership.
The BADGES Task Force is a collaboration of federal, state, and local law enforcement agencies that focuses primarily on drug trafficking crimes in Bannock County and throughout the region.
This case was handled by the U.S. Attorney Office’s specially deputized Special Assistant U.S. Attorney (SAUSA), funded by the Eastern Idaho Partnership (EIP) and the State of Idaho. The EIP is a coalition of local city and county officials in Eastern Idaho as well as the Idaho Department of Correction.
The EIP SAUSA program allows law enforcement to use the federal criminal justice system – through the EIP SAUSA – to prosecute, convict, and sentence violent, armed criminals and drug traffickers. These criminals often receive stiffer penalties than they might in state courts.
This program was created in January 2016. Since that time, approximately 175 defendants have been indicted by the EIP SAUSA. Of these defendants, 152 have been indicted on drug trafficking charges. The defendants indicted under the program have been sentenced to 10,769 months (approximately 897.42 years) in federal prison, representing an average prison sentence of 74.79 months (6.23 years). Defendants indicted for drug trafficking offenses serve, on average, approximately 61.59 months (5.13 years) in federal prison.
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Two Biotech CEOs Convicted in Securities Fraud SchemeRead the Press Release
A federal jury in Maryland convicted two men yesterday for their roles in a scheme to lie to investors in CytoDyn Inc., a publicly traded biotechnology company based in Vancouver, Washington.
According to court documents and evidence presented at trial, Nader Pourhassan, 61, of Lake Oswego, Oregon, and Kazem Kazempour, 71, of Potomac, Maryland, engaged in a scheme to deceive investors about CytoDyn’s development of an investigational drug to artificially inflate and maintain the price of CytoDyn’s stock and to attract new investors. Between 2018 and 2021, CytoDyn sought approval for the drug from the Food and Drug Administration (FDA) to treat HIV and COVID-19. Pourhassan was the chief executive officer of CytoDyn, and Kazempour was the chief executive officer of Amarex Clinical Research LLC, a Germantown, Maryland-based contract research organization that had been hired to conduct Cytodyn’s clinical trials and was serving as the company’s representative with the FDA. Pourhassan and Kazempour diverted proceeds of the scheme for their own benefit, including by selling personal shares of CytoDyn stock at artificially inflated prices.
“The defendants lied to investors and the public — including during the height of the COVID-19 pandemic — about a drug that purportedly treated HIV and COVID-19 in order to artificially inflate CytoDyn’s stock price,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The Justice Department is committed to protecting the investing public from criminals who would exploit public health crises for personal profit. These convictions confirm the department’s commitment, together with our law enforcement partners, to hold corrupt C-suite executives who abuse their positions and engage in securities fraud accountable for their actions.”
“With false promises of FDA approval, the defendants enriched themselves by the millions while investors lost,” said U.S. Attorney Erek L. Barron for the District of Maryland. “White collar criminals cause irreparable harm to the public, and we will continue to bring them to justice without fear or favor.”
Pourhassan and Kazempour made false and misleading statements about the timeline and status of CytoDyn’s regulatory submissions to the FDA. In spring 2020, the pair falsely stated that the drug had been submitted for approval to treat HIV, when they knew that the submitted application was incomplete and that the FDA would therefore refuse to review it. Immediately after the announcement, Pourhassan sold more than 4.8 million shares of Cytodyn. Around the same time, Pourhassan engaged in a scheme to misrepresent the status of CytoDyn’s investigation and development of leronlimab as a potential treatment for COVID-19, including the results of clinical trials and the likelihood of approval from the FDA. Pourhassan knew that leronlimab’s clinical studies had failed and that the FDA had not approved the drug for use as a treatment for COVID-19 and had expressed concerns that the submitted data was misleading. During the scheme, CytoDyn raised approximately $300 million from investors, of which more than $22 million was paid to Kazempour’s company. In addition, Pourhassan received $4.4 million and Kazempour received more than $340,000 from their sales of CytoDyn stock.
“These convictions highlight the serious consequences of defrauding investors and manipulating stock prices,” said Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division. “This case reinforces the FBI’s commitment to proving that no scheme, no matter how elaborate, is beyond the reach of the law. We will continue to pursue those who put personal profit above public trust.”
“These convictions demonstrate that those who make misleading statements about clinical trial results to the public — including to healthcare providers and patients — will be held accountable for their actions,” said Special Agent in Charge Robert Iwanicki of the FDA Office of Criminal Investigations (FDA-OCI) Los Angeles Field Office. “The agency will continue to work with other agencies to bring to justice those who place profits above public health.”
“These defendants took advantage of two public health crises when they devised a scheme to swindle investors out of millions of dollars to pad their pockets by lying about the results of clinical trials and approvals from the FDA on an HIV and COVID-19 drug,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “Together, with our law enforcement partners, Postal Inspectors will continue the work of keeping financial systems and the investing public safe from fraudsters.”
Pourhassan was convicted of four counts of securities fraud, two counts of wire fraud, and three counts of insider trading. Kazempour was convicted of one count of securities fraud and one count of wire fraud related to his submission of the application for approval from the FDA and attempt to trade Cytodyn shares the following day. They are scheduled to be sentenced at a later date, and they face a maximum penalty of 20 years in prison for each count of securities fraud, wire fraud, and insider trading. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI, FDA-OCI, and USPIS investigated the case.
Trial Attorneys Lauren Archer and Matthew Reilly and Senior Litigation Counsel Vasanth Sridharan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Adeyemi Adenrele for the District of Maryland are prosecuting the case. Law Clerk Kerstin Abolnik and Paralegal Specialists Selam Wehabe and John Lee of the Fraud Section provided assistance.
Two Biotech CEOs Convicted in Securities Fraud SchemeRead the Press Release
Greenbelt, Maryland – A federal jury in Maryland convicted two men yesterday for their roles in a scheme to lie to investors in CytoDyn Inc., a publicly traded biotechnology company based in Vancouver, Washington.
According to court documents and evidence presented at trial, Nader Pourhassan, 61, of Lake Oswego, Oregon, and Kazem Kazempour, 71, of Potomac, Maryland, engaged in a scheme to deceive investors about CytoDyn’s development of an investigational drug to artificially inflate and maintain the price of CytoDyn’s stock and to attract new investors. Between 2018 and 2021, CytoDyn sought approval for the drug from the Food and Drug Administration (FDA) to treat HIV and COVID-19. Pourhassan was the chief executive officer of CytoDyn, and Kazempour was the chief executive officer of Amarex Clinical Research LLC, a Germantown, Maryland-based contract research organization that had been hired to conduct Cytodyn’s clinical trials and was serving as the company’s representative with the FDA. Pourhassan and Kazempour diverted proceeds of the scheme for their own benefit, including by selling personal shares of CytoDyn stock at artificially inflated prices.
“With false promises of FDA approval, the defendants enriched themselves by the millions while investors lost,” said U.S. Attorney Erek L. Barron for the District of Maryland. “White collar criminals cause irreparable harm to the public, and we will continue to bring them to justice without fear or favor.”
“The defendants lied to investors and the public — including during the height of the COVID-19 pandemic — about a drug that purportedly treated HIV and COVID-19 in order to artificially inflate CytoDyn’s stock price,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The Justice Department is committed to protecting the investing public from criminals who would exploit public health crises for personal profit. These convictions confirm the department’s commitment, together with our law enforcement partners, to hold corrupt C-suite executives who abuse their positions and engage in securities fraud accountable for their actions.”
Pourhassan and Kazempour made false and misleading statements about the timeline and status of CytoDyn’s regulatory submissions to the FDA. In spring 2020, the pair falsely stated that the drug had been submitted for approval to treat HIV, when they knew that the submitted application was incomplete and that the FDA would therefore refuse to review it. Immediately after the announcement, Pourhassan sold more than 4.8 million shares of Cytodyn. Around the same time, Pourhassan engaged in a scheme to misrepresent the status of CytoDyn’s investigation and development of leronlimab as a potential treatment for COVID-19, including the results of clinical trials and the likelihood of approval from the FDA. Pourhassan knew that leronlimab’s clinical studies had failed and that the FDA had not approved the drug for use as a treatment for COVID-19 and had expressed concerns that the submitted data was misleading. During the scheme, CytoDyn raised approximately $300 million from investors, of which more than $22 million was paid to Kazempour’s company. In addition, Pourhassan received $4.4 million and Kazempour received more than $340,000 from their sales of CytoDyn stock.
“These convictions highlight the serious consequences of defrauding investors and manipulating stock prices,” said FBI Criminal Investigative Division Assistant Director Chad Yarbrough. “This case reinforces the FBI’s commitment to proving that no scheme, no matter how elaborate, is beyond the reach of the law. We will continue to pursue those who put personal profit above public trust.”
“These convictions demonstrate that those who make misleading statements about clinical trial results to the public — including to healthcare providers and patients — will be held accountable for their actions,” said Special Agent in Charge Robert Iwanicki of the FDA Office of Criminal Investigations (FDA-OCI) Los Angeles Field Office. “The agency will continue to work with other agencies to bring to justice those who place profits above public health.”
“These defendants took advantage of two public health crises when they devised a scheme to swindle investors out of millions of dollars to pad their pockets by lying about the results of clinical trials and approvals from the FDA on an HIV and COVID-19 drug,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “Together, with our law enforcement partners, Postal Inspectors will continue the work of keeping financial systems and the investing public safe from fraudsters.”
Pourhassan was convicted of four counts of securities fraud, two counts of wire fraud, and three counts of insider trading. Kazempour was convicted of one count of securities fraud and one count of wire fraud related to his submission of the application for approval from the FDA and attempt to trade Cytodyn shares the following day. They are scheduled to be sentenced at a later date, and they face a maximum penalty of 20 years in prison for each count of securities fraud, wire fraud, and insider trading. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
FBI, FDA-OCI, and USPIS investigated the case.
Trial Attorneys Lauren Archer and Matthew Reilly and Senior Litigation Counsel Vasanth Sridharan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Adeyemi Adenrele for the District of Maryland are prosecuting the case. Law Clerk Kerstin Abolnik and Paralegal Specialists Selam Wehabe and John Lee of the Fraud Section provided assistance.
Turtle Creek Resident Charged with Producing, Transporting, and Possessing Child Sexual Abuse MaterialRead the Press Release
PITTSBURGH, Pa. – A resident of Turtle Creek, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges related to the sexual exploitation of a minor, United States Attorney Eric G. Olshan announced today.
The three-count Indictment named Ja’re Glavney-Owens, 19, as the sole defendant.
According to the Indictment, Glavney-Owens attempted to and did use, persuade, induce, entice, and coerce a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct in or around November of 2024. The Indictment further charges Glavney-Owens with transporting and attempting to transport child sexual abuse material and with possessing child sexual abuse material.
The law provides for a maximum total sentence of up to 30 years in prison, a fine of up to $1 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Kelly M. Locher is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Topsham Man Serving State Sentence for Sexual Abuse of Children Pleads Guilty to Federal Charges After Discovery of Hidden Devices Containing Child Sexual Abuse MaterialRead the Press Release
PORTLAND, Maine: A Topsham man pleaded guilty today in U.S. District Court in Portland to four counts of sexually exploiting a child.
According to court records, in August 2022, a worker from a Brunswick landscaping company found two laptops and several hard drives hidden under a kayak on the company’s property. The employee opened the devices and discovered that they contained child sexual abuse material. They also recognized a former employee, Henry Eichman, 64, in some of the files. Homeland Security Investigations (HSI) forensically examined the devices and recovered over 500 images and videos containing child sexual abuse material, including videos showing Eichman setting up a recording device and/or participating in the sexual abuse of four minor victims from 2014 to 2016. Eichman entered an Alford plea in state court in 2018 to the sexual abuse of children and is currently serving a 10-year sentence.
Eichman faces 15–30 years in prison and a maximum fine of $250,000, to be followed by five years to life of supervised release on each count. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
HSI investigated the case with assistance from the Topsham Police Department.
To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material – referred to in legal terms as "child pornography" – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer revictimization every time the images are viewed. In 2023, the National Center for Missing & Exploited Children received 36 million reports of the possession, manufacture, or distribution of child sexual abuse materials. To file a report with NCMEC, go to https://report.cybertip.org or call 1-800-843-5678. If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit https://www.justice.gov/usao-me/psc.
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Three Men Sentenced to Federal Prison in Connection with Violent Kidnapping in ChicagoRead the Press Release
CHICAGO — Three men have been sentenced to federal prison terms for their roles in abducting a man in broad daylight and holding him for ransom in a Chicago auto body shop.
In 2015, ANTONIO SALGADO, OCTAVIO ALEJANDRE JR., and ARMANDO DELGADO planned to kidnap a man suspected of involvement in drug trafficking. The kidnapping plan went awry after the abductors realized they kidnapped the wrong man. The victim of the kidnapping was a relative of the intended target. After being taken at gunpoint outside of his suburban Chicago home, the victim was blindfolded, held at gunpoint, and beaten for nearly two days in the auto body shop in Chicago’s Avondale neighborhood. The kidnappers contacted another of the victim’s relatives and demanded drugs or cash.
Unbeknownst to the defendants, several of their phones had previously been intercepted by federal authorities who were conducting an unrelated investigation. In a recorded call between Salgado and Delgado on the day after the kidnapping, Delgado told Salgado, “There is a little situation. It’s the wrong guy because it’s his brother . . . that we’re trying to get.” Salgado replied, “Let the guy go, but beat the [expletive] out of him.” The victim was eventually released.
The three kidnappers pleaded guilty to a federal extortion charge. On Friday, U.S. District Judge Andrea R. Wood sentenced Salgado, 42, of Chicago, to ten and a half years in prison. On Dec. 3, 2024, Judge Wood sentenced Alejandre Jr., 41, of Chicago, to ten and a half years. On Nov. 26, 2024, Judge Wood sentenced Delgado, 44, of Chicago, to 14 years and seven months in prison.
During the prosecution of the kidnapping case, Salgado failed to appear for court proceedings and became a fugitive for nearly eight months, until he was located and arrested. Salgado was charged in a separate criminal case with contempt of court.
The sentences were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration. Valuable assistance was provided by the Berwyn, Ill. Police Department and the Chicago Police Department.
“There is perhaps nothing more serious than grabbing a person off the street at gunpoint, using force and intimidation and beatings to detain them,” Assistant U.S. Attorneys Kartik K. Raman and Erika L. Csicsila argued in the government’s sentencing memorandum. “The kidnapping involved in this case was violent, involved guns and other implements, and resulted in the detention of a victim for over 24 hours.”
The Honorable William J. Baer to Receive Justice Department’s 2024 John Sherman AwardRead the Press Release
The Justice Department’s Antitrust Division will present the Honorable William J. Baer with the John Sherman Award for his lifetime contributions to the substantive development of antitrust law and the preservation of economic liberty. The John Sherman Award is the division’s highest honor.
Mr. Baer will deliver remarks and receive the award during a ceremony at 3:30 pm on Dec. 12 in the Great Hall of the Robert F. Kennedy Department of Justice Building. The ceremony will mark the 30th anniversary of the establishment of the John Sherman Award. The public is invited to watch the ceremony livestream at www.justice.gov/live.
“Few living Americans have contributed more meaningfully or substantially to the life and enforcement mission of our federal antitrust agencies than Bill Baer,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “His storied career was characterized by a deep sense of professionalism, sharp intellect and kindness that propelled Bill to reshape competition law enforcement to better serve the American people, and we are all the beneficiaries. Bill is a generational talent and visionary who could not be more deserving of the John Sherman Award.”
Mr. Baer is the only individual to have served as the top antitrust enforcer at both U.S. antitrust agencies — first as the Director of the Bureau of Competition at the Federal Trade Commission (FTC) from 1995 to 1999 and later as the Assistant Attorney General for the Justice Department’s Antitrust Division from 2013 to 2016.
During his tenure as Assistant Attorney General, Mr. Baer promoted robust antitrust enforcement by successfully prosecuting civil and criminal violations of the antitrust laws, including by dusting off long-dormant theories of harm and investing in the division’s litigation prowess. Under his leadership, the division halted anticompetitive mergers in a variety of markets, including health insurance and beverages, and secured an unprecedented number of fines from companies engaging in illegal cartel activity. He also served as Acting Associate Attorney General, where he oversaw the work of the department’s civil litigating and grant-making components. In that role, he successfully led the effort to hold financial institutions accountable in the Residential Mortgage-Backed Securities crisis, securing record penalties and consumer redress.
Mr. Baer’s storied antitrust career began in 1975 as a Trial Attorney in the FTC’s Bureau of Competition. He later served as Attorney Advisor to the Chair and Assistant General Counsel for Legislation and Relations. After a successful stint in private practice, he returned to the FTC to serve as Director of the Bureau of Competition from 1995 and 1999. During this time, Mr. Baer led the Commission to an unprecedented string of litigation victories and set records for the number of mergers reviewed and challenged. The FTC honored Mr. Baer with the Miles W. Kirkpatrick Lifetime Achievement Award in 2015. When not in public service, he practiced at Arnold & Porter where for many years he headed the antitrust group. Mr. Baer is currently a visiting fellow in Governance Studies at the Brookings Institution.
Mr. Baer received his B.A. from Lawrence University, which would later award him its Distinguished Alumni Achievement Award, and his J.D. from Stanford Law School, where he served as senior article editor of the Stanford Law Review.
Created in 1994, the John Sherman Award is presented by the department's Antitrust Division to a person or persons for outstanding contributions to the field of antitrust law, the protection of American consumers and the preservation of economic liberty. It is named for Senator John Sherman of Ohio, the author of the Sherman Act of 1890, the nation’s first and foremost antitrust law. Sherman, a former congressman and senator, also served as Secretary of the Treasury from 1877 to 1881 and as Secretary of State from 1897 to 1898.
Previous recipients include Judge Douglas H. Ginsburg (2020), Judge Diane P. Wood (2015), James F. Rill (2012), Robert Pitofsky (2010), Herbert Hovenkamp (2008), Robert H. Bork (2005), Judge Richard A. Posner (2003), Milton Handler (1998), Thomas Kauper and William Baxter (1996), Phillip Areeda (1995) and Howard Metzenbaum (1994).
Straw purchaser sent to prison after purchasing 58 firearms for anotherRead the Press Release
McALLEN, Texas – A 29-year-old Mexican resident has been sentenced for her role in straw purchasing firearms to export to Mexico, announced U.S. Attorney Alamdar S. Hamdani.
Martha Padron pleaded guilty Sept. 11 to making false statements during a purchase of a firearm.
U.S. District Judge Drew B. Tipton has now ordered Padron to serve 21 months in federal prison to be immediately followed by two years of supervised release. At the hearing, the court heard additional evidence that Padron communicated with another to purchase firearms so that the firearms could be exported to Mexico. The court also learned Padron purchased 58 firearms from 2021 to 2023. On many occasions, she crossed from Mexico into the United States, purchased the firearm and returned to Mexico the same day.
On or about May 2, 2022, Padron falsely claimed on required forms to reside in the United States. However, the investigation revealed Padron lived in Mexico and often crossed into the United States to purchase firearms. Further investigation revealed the ongoing nature of Padron’s criminal activity
She will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
Assistant U.S. Attorneys Theodore Parran III and Cahal P. McColgan prosecuted the case.
Stockton Fentanyl Trafficker Sentenced to 10 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Travis Jordan Michael, 38, of Stockton, was sentenced today by United States District Judge Kimberly J. Mueller to 10 years in prison for conspiracy to distribute fentanyl, distribution of fentanyl, and possession with intent to distribute fentanyl, United States Attorney Phillip A. Talbert announced.
According to court documents, Michael distributed fentanyl for a Mexico-based drug trafficker who advertised drugs for sale on Snapchat. On April 16, 2021, Michael was stopped by an officer from the California Highway Patrol. After a narcotics-detection canine alerted to the presence of narcotics his Michael’s car, the CHP officer searched the car and found two pounds of methamphetamine and 4,000 fentanyl pills. During a later search of Michael’s residence in Stockton, officers found three pounds of methamphetamine and 9,000 more fentanyl pills.
This case was the product of an investigation by the Drug Enforcement Administration and Stanislaus Special Investigations Unit with assistance from the California Highway Patrol and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Justin Lee prosecuted the case.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
St. Louis Carjacker Sentenced to 19 Years in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Tuesday sentenced a man who carjacked and robbed two people in St. Louis to 19 years in prison.
Shortly after midnight on July 29, 2023, Bradley C. McKinney and an accomplice were both armed with handguns when they approached two people who had just gotten out of a 2015 Chevy Cruze near the intersection of 16th Street and Lucas Avenue. The robbers rummaged through the victims’ pockets and took the keys to the Cruze and other valuables. McKinney got into the Cruze with another accomplice and sped off, accompanied by some of McKinney’s associates in a white GMC Terrain.
After the victims called police, the St. Louis Metropolitan Police Department’s Real Time Crime Center (RTCC) determined both vehicles had crossed into Illinois. Investigators identified the GMC Terrain and put out a “wanted” for both vehicles. The Cruze was found abandoned later that morning in East St. Louis with the key still in the ignition.
The next day, the RTCC received a license plate recognition hit for the GMC Terrain, and officers used a spike strip to deflate several tires. McKinney was the driver and sole occupant. Officers spotted a black Glock handgun with an extended magazine and an auto-sear, or “switch,” installed, making it a machinegun. McKinney admitted owning the firearm, knowing that he was a convicted felon and prohibited from doing so.
McKinney, 36, of St. Louis County, pleaded guilty in August to carjacking, brandishing a firearm in furtherance of a crime of violence and possession of a machine gun.
The St. Louis Metropolitan Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East St. Louis Police Department investigated the case. Assistant U.S. Zachary Bluestone 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.
Shelby County Man Sentenced for Theft of Government BenefitsRead the Press Release
FRANKFORT, Ky. – A Shelbyville man, Jeremy Wayne Harrell, 43, was sentenced on Monday to 6 months in prison, by U.S. District Judge Gregory Van Tatenhove, for theft of government benefits.
According to evidence at his trial, Harrell intentionally stole money from the United States, namely U.S. Department of Veterans Affairs Individual Unemployability (IU) disability payments that he was not entitled to receive.
Specifically, the evidence presented at trial indicated that Harrell was initially awarded IU benefits in 2011. In 2019, Harrell then founded Veterans Club, Inc., and he served as the Founder and CEO of the organization. The evidence showed that Harrell had a high level of work activity for Veterans Club, from 2019 through 2023. This included working 40-60 hours per week, actively running the organization, organizing events, managing over $400,000 in assets and approximately 6,000 volunteers, engaging in news media interviews, appearing on podcasts, appearing and speaking at community events, meeting with business and political leaders, teaching classes, accepting donations, among other work. This evidence confirmed that Harrell, as the active and successful Founder and CEO of Veterans Club, could maintain substantial gainful employment, rendering him ineligible to receive the IU benefits that he received from 2019 through 2023. Additionally, the evidence showed that Harrell made numerous false statements to the government about his daily life and work activities, depicting himself as withdrawn, without the ability to perform work, leading a highly restricted life, and rarely leaving his home; when in truth, he was an active and successful CEO of a vibrant organization. The evidence confirmed Harrell made these false representations to the government to depict himself as unemployable, conceal his active role as CEO of an organization, and attempt to continue to receive IU benefits. In total, Harrell wrongfully received more than $128,000 in IU benefits.
Upon his release from prison, Harrell will be under the supervision of the U.S. Probation Office for one year, six months of which will be spent on home detention.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and VA Inspector General Michael J. Missal, jointly announced the sentence.
The investigation was conducted by U.S. Department of Veterans Affairs Office of Inspector General. Assistant U.S. Attorney James T. Chapman is prosecuting the case on behalf of the United States.
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Shaw man sentenced to prison for illegal firearm possession while selling drugsRead the Press Release
Aberdeen, MS – A Shaw man was sentenced today to more than seven years in prison for possessing a firearm as a previously convicted felon and possessing a firearm in furtherance of drug trafficking crimes.
According to court documents, Javarrea Gilford, 31, had been observed selling drugs from a parked car outside of a convenience store in Shaw, Mississippi. When Gilford drove away, law enforcement initiated a traffic stop to investigate the suspected drug trafficking. Gilford fled from officers, wrecking his car in the process. When Gilford ran from the scene of the wreck, law enforcement observed him toss a 9mm pistol into the brush and the officers immediately recovered the gun. Investigating officers also found illegal narcotics in Gilford’s vehicle. Gilford is a previously convicted felon.
Gilford pled guilty in September 2024 to possession of a firearm by a convicted felon and to possession of a firearm in furtherance of drug trafficking. The latter charge carries a mandatory sentence of five years consecutive to any other sentence imposed. Gilford was sentenced today by U.S. District Judge Sharion Aycock to a total of 87 months in prison followed by five years of supervised release. Gilford was remanded to the custody of the U.S. Marshals.
“The defendant is a previously convicted felon who has committed yet more crimes, and he has more than earned the sentence imposed by the Court,” said U.S. Attorney Clay Joyner. “We will continue to work with our law enforcement partners to keep criminals off of our streets and firearms out of their hands.”
“This case demonstrates the commitment of law enforcement at every level to holding offenders accountable and ensuring the safety of our communities. The combined efforts of the Mississippi Bureau of Narcotics, the Bolivar County Sheriff’s Office, and federal partners highlight the importance of collaboration in combating violent crime and drug trafficking in our state. We will continue to work tirelessly to protect the citizens of Mississippi and make our neighborhoods safer,” said Mississippi Department of Public Safety Commissioner Sean Tindell.
This case was investigated by the Bolivar County Sheriff’s Office and the Mississippi Bureau of Narcotics.
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.
Seattle Police Department awarded $1.5 million to enhance testing of rape kits to reduce backlog and pursue “cold cases”Read the Press Release
Seattle – The Department of Justice’s Bureau of Justice Assistance (BJA) has awarded the Seattle Police Department $1.5 million to support continued investigation and testing of evidence in sexual assault cases, announced U.S. Attorney Tessa M. Gorman.
“This critical support is designed to move cases forward and support crime survivors as they heal,” said U.S. Attorney Gorman. “These funds will support the use of strategies such as genetic genealogy to try to solve cold cases and hold offenders accountable.”
The grant supports the formation of multidisciplinary teams at SPD including prosecutors, victim advocates and service providers. SPD will institute a case management system for tracking and managing investigations and victim services. Advanced DNA testing methodologies and forensic genetic genealogy will be used to move cases forward, especially cold cases. The grant will also support victim-centered notifications and trauma-informed support services, ensuring survivors receive timely and sensitive updates.
St. Croix Man Pleads Guilty to Sexually Coercing a Minor and Possession of Child PornographyRead the Press Release
St. Croix, VI - United States Attorney Delia L. Smith announced today that Juan Bermudez, 66, of St. Croix, pleaded guilty before Magistrate Judge Emile A. Henderson, III, to Coercion and Enticement and Possession of Child Pornography. On his conviction, Bermudez faces a mandatory minimum sentence of 10 years and a maximum of life imprisonment. A federal judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“This case is a painful reminder of the inherent dangers the children of our Territory face every day. We must all work together as a community to report individuals committing sexual abuse. The Department of Justice remains steadfast in its commitment to investigate and pursue justice for those who misuse their positions of trust to sexually abuse our children”, United States Attorney Smith said.
According to documents filed in court, on May 1, 2023, Bermudez engaged in sexual intercourse with a minor victim who was over the age of 13, but under the age of 18 years. Bermudez filmed the sexual act on his cell phone. A search warrant executed on Bermudez’s cell phone revealed multiple images of child sexual abuse material of the minor victim. Court documents further revealed text messages between Bermudez and the minor victim wherein the minor victim asked for help to complete a task and Bermudez responded by asking when he was going to get the “Cookie”. Bermudez further declared that if he assisted the minor victim with completing the task, he “want some Cookie” for two days. When the minor victim pleaded for help from Bermudez, he made the minor victim promise that she would give him her “Cookie.” Bermudez admitted that when he used the term “Cookie”, he was referring to the minor victim’s vagina.
The case was investigated by Homeland Security Investigations and the Virgin Islands Police Department and was prosecuted by Assistant United States Attorneys Rhonda Williams-Henry and Everard Potter. 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 http://www.justice.gov/psc. Homeland Security Investigations encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (800) 981-3030 or by calling (787) 729-6969.
Rockaway Beach Sex Offender Indicted for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Rockaway Beach, Mo., man who is a registered sex offender was indicted by a federal grand jury today for receiving child pornography.
Roy Dean Faux, 51, was charged in an indictment returned by a federal grand jury in Springfield, Mo. Faux has two prior state felony convictions for attempting to entice a child under the age of 15. Due to his prior convictions, Faux is subject to a mandatory minimum sentence of 15 years in federal prison without parole if convicted.
Today’s indictment alleges that Faux received child pornography from July 1, 2023, to May 7, 2024. The indictment also contains a forfeiture allegation, which would require Faux to forfeit to the government two cell phones and a computer tablet, which were used to commit the offense.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Homeland Security Investigations, the Southwest Missouri Cyber Crimes Task Force, and the Taney County, Mo., Sheriff’s Office.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Rioter Federally Charged with Damaging U.S. Government Property at Union StationRead the Press Release
WASHINGTON – Michael Snow Jr., 24, of Durham, North Carolina, was arrested this morning in connection with a federal criminal complaint charging him with destruction of federal property. The complaint alleges that, on July 24, 2024, Snow destroyed an American flag by setting it on fire as a crowd surrounded him chanting “Burn that sh--.”. Moments before, two other individuals took down the flag, which was flying on one of the flagpoles at Columbus Circle in front of Union Station in Washington, D.C.
The charges were announced by U.S. Attorney Matthew M. Graves, Special Agent in Charge Sanjay Virmani of the FBI Washington Field Office Counterterrorism Division, and Chief Jessica M. E. Taylor of the U.S. Park Police (USPP).
Snow will make his initial appearance this afternoon in U.S. District Court in the Middle District of North Carolina. He is charged federally with willfully injuring or depredating any property of the United States.
“Stealing a federal flag and burning it is not speech, it’s destruction of federal property,” said US Attorney Graves. “Hundreds of thousands of people engage in lawful First Amendment protest activity every year in the District of Columbia without incident. The relatively few who chose to cross the line from protest to violence and destruction will be held accountable for the crimes they commit.”
“The FBI does not conduct investigations based solely on First Amendment activities,” said SAC Virmani, “but the FBI will not tolerate those who commit destruction of federal property in the guise of First Amendment activity. That includes taking and burning a federal flag from a federal flagpole as Snow allegedly did.”
According to court documents, on July 24, 2024, an organization was granted a permit to demonstrate in the area of Columbus Circle, located at Massachusetts Ave. NE, and E St. NE, directly in front of Union Station. From about 3 p.m. until 5 p.m., demonstrators gathered in Columbus Circle pulled down flags affixed to the flagpoles; burned flags and objects; sprayed graffiti on multiple statutes and structures; and interfered with law enforcement’s ability to place individuals under arrest.
The flags pulled down from the flag poles, and the statutes and structures in Columbus Circle, are all property of the federal government. The National Park Service estimated the total cost to clean up and repair the site at $11,282.23.
Screen shot from a closed-circuit camera shows Snow (circled in yellow) as he grabbed the fallen American flag from the halyard.
A review of open-source and U.S. Capitol Police surveillance footage show that two individuals lowered an American flag affixed to the eastern flagpole in Columbus Circle. After it was lowered, the flag fell to the ground still attached to its halyard. An individual man later identified as Snow grabbed the flag and carried it into the crowd of protesters.
After throwing the flag onto the ground, the man produced a lighter and held it up to the flag in an apparent effort to light the flag on fire. The man was initially unsuccessful and yelled to the crowd: “I need a better lighter!” Individuals in the crowd surrounding the man chanted “Burn that sh--!” Another open-source video captured images of the man as he attempted to torch the flag.
After the failed attempt to light the flag, someone in the crowd handed Snow a bottle of charcoal lighter fluid. Snow doused the flag with the fluid, then, along with an unidentified individual from the crowd, used lighters to set the flag ablaze.
On July 25, 2024, a user on the social media platform “X” (formerly Twitter), posted pictures in an apparent effort to identify the man who torched the flag. As a result, law enforcement located a driver’s license photograph of Michael Snow, Jr., who resides in North Carolina. Snow’s identity was further confirmed when law enforcement interviewed individuals who personally know Snow, who identified him in a photo from July 24, 2024.
Screenshot from open-source video shows Snow (circled in yellow) and another individual (circled in blue) lighting the flag on fire.
Screenshot from open-source footage depicts Snow (circled in yellow) on the flag
pedestal while the other individual (circled in blue) parades around the
burning American flag.
The case was investigated by the FBI Washington Field Office and the USPP’s Intelligence and Counterterrorism Unit, with assistance from the FBI Charlotte Field Office, Raleigh Resident Agency. It is being prosecuted by Assistant U.S. Attorney Sarah Martin.
A criminal indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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24mj287Richmond County woman sentenced to federal prison for defrauding pandemic relief programRead the Press Release
AUGUSA, GA: A Richmond County woman has been sentenced to federal prison and ordered to pay restitution for defrauding a COVID-19 small business relief program.
Kameka Bausley, 43, of Augusta, was sentenced to 32 months in prison after pleading guilty to Wire Fraud, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Dudley H. Bowen also ordered Bausley to pay $71,933 in restitution and to serve three years of supervised release upon completion of her prison term. There is no parole in the federal system.
“Congress provided more than $600 billion in funding to help small businesses struggling during the COVID-19 pandemic,” said U.S. Attorney Steinberg. “Unfortunately, that level of funding also attracted scam artists. With our law enforcement partners, we will continue to hold accountable those who illegally profit from safety net programs.”
As described in court documents and at sentencing, Bausley, was a U.S. Postal Service employee and collecting workers’ compensation benefits when she defrauded the Small Business Administration by using fabricated revenue and expense information about her catering business to apply for an Economic Injury Disaster Loan and Paycheck Protection Program funding, ultimately receiving deposits totaling $71,933 through the two Coronavirus Aid, Relief, and Economic Security Act Programs.
“This sentencing underlines our dedication to holding people accountable who exploit federal relief programs for personal gain,” said Jonathan Ulrich, Special Agent in Charge of the U.S. Postal Service Office of Inspector General (USPS-OIG). “As proven in this case, our criminal investigators and the legal teams at the U.S. Attorney’s Office will diligently pursue anyone who attempts to commit COVID-19 fraud and exploit programs created to help legitimate people and businesses affected by the global pandemic.”
The case was investigated by the U.S. Postal Service Office of Inspector General, and prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorney George J.C. Jacobs III.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Readout of the Justice Department’s Violent Crime Reduction Steering Committee MeetingRead the Press Release
The Justice Department’s Violent Crime Reduction Steering Committee met yesterday to discuss the significant efforts undertaken by the Department to combat violent crime and the result of those efforts. The Steering Committee is chaired by Principal Associate Deputy Attorney General (PADAG) Marshall Miller and composed of leadership and representatives from across the Department, including law enforcement, prosecutorial, and grantmaking components.
After PADAG Miller called the meeting to order, the committee was briefed on the latest violent-crime statistics. Preliminary data from 85 cities showed that violent crime has continued to decline considerably in 2024, including a 17.5% decline in murder, 7.1% decrease in rape, 3.6% decrease in aggravated assault, and 7.8% decline in robbery over the first three quarters of the year.
“Over the past two years, we have turned the tide against the violent crime that spiked during the pandemic,” said Attorney General Merrick B. Garland. “Additional data from 85 cities released today indicates that between January and September of this year, violent crime again declined, and murders dropped 17.5%. This builds on last year’s historic drop in homicides nationwide and one of the lowest levels of violent crime in 50 years. I am extremely grateful to the Justice Department’s law enforcement agents, prosecutors, and grantmaking experts, as well as our state and local law enforcement and community partners, for their difficult and life-saving work to combat violent crime.”
The committee received an update from the Criminal Division on the continued success of its Violent Crime Initiative (VCI), which works with U.S. Attorneys’ Offices and federal, state, and local law enforcement in Hartford, Connecticut; Houston; Jackson, Mississippi; St. Louis; and Memphis, Tennessee, and surged federal law enforcement resources to Washington, D.C. The briefing specifically highlighted VCI achievements in Houston and Memphis, where crime rates have fallen significantly since the launch of the VCI initiative in those cities.
The committee received updates from the co-chairs of the Department’s Action Network to Terminate Illegal Machinegun Conversion Devices (ANTI-MCD) Committee; U.S. Attorney Robert Troester for the Western District of Oklahoma; and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Deputy Assistant Director Timothy Jones, on the efforts of the ANTI-MCD Committee to address the proliferation of MCDs, including the development of district-specific initiatives targeting MCDs in every federal district across the nation, as well as additional trainings and resources for prosecutors, law enforcement agents, and officers.
The committee also heard from ATF representatives regarding ATF’s recent tracking efforts using e-Trace — an internet-based system that allows authorized law enforcement agencies to submit and receive firearm traces to the ATF National Tracing Center — and ATF’s ongoing intelligence and technology outreach efforts. Finally, the committee heard from FBI regarding the establishment and implementation of carjacking task forces in districts around the country.
At the conclusion of the meeting, PADAG Miller indicated that the Steering Committee will report to Department leadership on developments from the Department’s violent crime reduction initiatives and provide recommendations regarding additional policy and enforcement strategies.
Rapid City Man Sentenced to Federal Prison for Sexual Exploitation of a MinorRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Court Judge Karen E. Schreier has sentenced a Rapid City, South Dakota, man for Sexual Exploitation of a Minor. The sentencing took place on December 5, 2024.
Charles Martinez-Olson, 33, was sentenced to 15 years in federal prison, followed by five years of supervised release. He was ordered to pay $21,000 in restitution to his victims, a $100 special assessment to the Federal Crime Victims Fund, and forfeit his cellular phone. Martinez-Olson will be required to register as a sex offender under the Sex Offender Registration and Notification Act.
A federal grand jury indicted Martinez-Olson in October 2023. He pleaded guilty on September 23, 2024.
Between December 2020 and March 2023, Martinez-Olson used Snapchat to entice two female minors to engage in sexually explicit conduct so Martinez-Olson could record videos of their conduct. Both girls were unmistakably under the age of 12. Martinez-Olson routinely masturbated during these Snapchat video chats while the two female minors exposed their genitals. His Snapchat account contained several videos of the same two girls engaging in sexually explicit conduct at his direction and encouragement. Martinez-Olson also possessed 54 images and 22 videos of other children being sexually abused, including a video of a disabled boy being sexually assaulted.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the South Dakota Internet Crimes Against Children Task Force. Assistant U.S. Attorney Heather Knox prosecuted the case.
Martinez-Olson was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced to Federal Prison for Illegal Gun PossessionRead 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 Possession of a Firearm and Ammunition by a Prohibited Person. The sentencing took place on December 6, 2024.
Derrick Patton, 42, was sentenced to serve four years in federal prison, to be followed by three years of supervised release. He was also ordered to pay a $100 in special assessment to the Federal Crime Victims Fund.
A federal grand jury indicted Patton in May 2024. He pleaded guilty on September 16, 2024.
On March 13, 2024, the Rapid City Police Department were called to do a welfare check on Patton, who was reportedly passed out in a running vehicle for several hours. When officers woke Patton and identified him, they learned he had a felony arrest warrant and had absconded from parole. Patton was in possession of a Ruger 9mm pistol and ammunition. The gun had been reported stolen out of Pine Ridge, South Dakota. Patton also possessed multiple baggies of methamphetamine. Patton is prohibited from possession firearms as a result of a prior felony conviction.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Rapid City Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Heather Knox prosecuted the case.
Patton was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced to 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.
Travis Orr, age 35, was sentenced to 19 ½ years 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.
Orr was indicted by a federal grand jury in July 2023 and pleaded guilty on September 6, 2024.
Between the Fall of 2021 and November of 2022, Orr was part of a drug conspiracy to distribute methamphetamine in South Dakota. Orr obtained the methamphetamine from co-conspirators on multiple occasions and distributed it to others in South Dakota. The group moved approximately 30 pounds of methamphetamine during Orr’s involvement. Orr was also involved in trading firearms for methamphetamine.
This case was investigated by the Unified Narcotics Enforcement Team (UNET) and the South Dakota Highway Patrol. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Orr was immediately remanded to the custody of the U.S. Marshals Service following sentencing.
Raleigh Woman Sentenced to 15 Months for Social Security FraudRead the Press Release
RALEIGH, N.C. – A Raleigh woman was sentenced to 15 months in prison for defrauding the Social Security Administration. On June 26, 2024, Mary Elizabeth Workman pled guilty to one count of theft of government funds.
“Stealing from the system is stealing from those who truly need it,” said U.S. Attorney Michael F. Easley, Jr. “By fraudulently collecting over $200,000 in disability benefits while running a successful business, this case highlights the lengths some go to exploit taxpayer funded programs. We remain committed to exposing fraud and protecting resources for the deserving.”
“This 15-month prison sentence holds Mary Elizabeth Workman accountable for theft of government funds. While working in her own business, she continually received disability benefits she was not entitled to receive. My office will continue to aggressively pursue those who defraud the Social Security Administration,” said Hannibal “Mike” Ware, Acting Inspector General for Social Security. “I appreciate the work of the U.S. Attorney’s Office and Special Assistant U.S. Attorney Lisa Labresh for prosecuting this case.”
According to court documents and other information presented in court, Workman, 51, received over $200,000 in Social Security benefits that she was not entitled to. From 2008 through 2023, Workman received monthly disability benefits based on her claim that she was unable to work due to several medical conditions. However, while Workman was collecting these benefits, she owned and operated a successful tax refund business. Workman never disclosed this business income to the Social Security Administration, and instead continued to collect monthly disability benefits knowing that she did not qualify financially.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Social Security Administration, Office of Inspector General, investigated the case.
Special Assistant U.S. Attorney Lisa K. Labresh prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-00195-BO-BM.
Prison Term for Former MPD Officer Who Sexually Abused a 15-Year-Old GirlRead the Press Release
WASHINGTON – Lucius Kearney, 52, of Washington, D.C., was sentenced today to 90 months in prison for sexually abusing a then 15-year-old girl from 2005 to 2006, announced U.S. Attorney Matthew M. Graves.
Kearney was found guilty by a Superior Court jury on September 27, 2024, to one count of first degree sexual abuse of a child. In addition to the prison term, Judge Maribeth Raffinan sentenced Kearney to 10 years of supervised release. Kearney will also be required to register as a sex offender for 10 years.
According to the government’s evidence at trial, during the 2005-2006 school year, the victim, who was in the tenth grade, met the defendant, then a Fourth District Metropolitan Police Department officer, while doing a school project. The victim and defendant met at the Fourth District Police Station, and exchanged phone numbers and began communicating about the school project. Their conversations turned sexual, and ultimately the defendant engaged in sexual acts with the victim in his truck near a D.C. public library, where the victim was volunteering to complete her high school community service hours. The victim disclosed the abuse in 2020 after a random encounter with the defendant while he was on duty in the area where the victim lived.
In announcing the sentence, U.S. Attorney Graves commended the work of those who investigated the case from Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office including Paralegal Specialists Garcia Clarke and Veronica Yale; Victim Advocate Veronica Vaughan; Supervisory IT Specialist Leif Hickling; Intern Emily Moran, former Assistant U.S. Attorney Rachel Bohlen, who did the initial investigation and indicted the case, and Assistant United States Attorneys Peter Taylor and Richard Kelley, who prosecuted the case.
Pittsburgh Man Charged with Escape After Failing to Return to Residential Reentry CenterRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of escape from custody, United States Attorney Eric G. Olshan announced today.
The one-count Indictment named Ryan Gainer, 44, as the sole defendant.
According to the Indictment, on October 17, 2024, following a 48-hour home pass, Gainer knowingly, and without authorization, failed to return to the residential reentry center where he was serving a federal sentence.
The law provides for a maximum total sentence of up to five years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The United States Marshals Service conducted the investigation leading to the Indictment.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
PennEnergy Resources Agrees to Settlement to Reduce Climate- and Health-Harming Emissions in PennsylvaniaRead the Press Release
Today, the Justice Department, the Environmental Protection Agency (EPA) and the Pennsylvania Department of Environmental Protection (PADEP) announced a proposed settlement with PennEnergy Resources LLC (PennEnergy) resolving alleged Clean Air Act and Pennsylvania Air Pollution Control Act violations involving the company’s oil and gas production operations in Pennsylvania.
If accepted by the court, the consent decree specifies that PennEnergy will undertake various projects to assess, modify and improve monitoring and maintenance of vapor control systems. These projects will result in a reduction of over 8,200 tons of carbon dioxide equivalent emissions per year released as methane, similar to the number of reductions achieved by taking 1,740 cars off the road for one year. The settlement will also eliminate more than 150 tons of volatile organic compound (VOC) emissions annually.
PennEnergy also agreed to pay a $2 million civil penalty. This amount will be shared equally by the United States and the Commonwealth of Pennsylvania, a co-plaintiff in this case. PennEnergy will undertake compliance measures to achieve major reductions in harmful emissions at 17 of its oil and gas production facilities and partial measures at an additional 32 facilities, all located in Butler County and Lawrence County, Pennsylvania.
“Oil and gas producers must comply with the Clean Air Act, which is intended to control air emissions and improve air quality and our environment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “By adhering to the requirements of today’s settlement, PennEnergy will significantly reduce air emissions from its operations.”
“Today’s settlement continues EPA’s efforts to hold oil and gas companies accountable for illegal emissions that hamper air quality and accelerate climate change,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “Penn Energy will undertake projects to improve air quality and reduce emissions of methane at nearly 50 facilities, providing environmental and public health benefits for Pennsylvanians and demonstrating that reducing illegal pollution from oil and gas facilities is good for communities and the planet.”
“When PennEnergy failed to implement an appropriate vapor control system on storage tanks at its facilities in western Pennsylvania, the company not only violated federal law, it allowed a substantial volume of volatile organic compounds to escape into the atmosphere,” said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania. “Today’s settlement reflects this office’s commitment to holding corporate citizens accountable for their wrongdoing and protecting our residents and the air they breathe.”
“This settlement marks a significant step toward reducing emissions and ensuring cleaner air for all residents of the Commonwealth,” said Acting Pennsylvania Department of Environmental Protection Secretary Jessica Shirley. “Every Pennsylvanian is entitled to breathe clean air, and the Shapiro Administration is dedicated to ensuring that polluters are held responsible for any harm to that right.”
This settlement resolves PennEnergy’s failure to comply with federal and state requirements to capture and control air emissions from five of its oil and gas production facilities in Butler County, in western Pennsylvania. EPA identified the alleged violations through field investigations conducted in 2018. As a result of these violations, PennEnergy released methane and VOCs directly into the air instead of capturing and controlling the gas using specially designed equipment. Methane, a climate super pollutant, is a potent greenhouse gas that contributes to climate change, and VOCs contribute to ground-level ozone, which adversely affects human health.
The agreement requires PennEnergy to take the necessary steps to ensure that its systems to control pollutants from atmospheric storage tanks are adequately designed and properly operated and maintained at an estimated cost of $2.4 million. These actions will significantly reduce harmful emissions from the company’s oil and gas operations.
In addition, PennEnergy must undertake a project to mitigate the environmental and public health harm attributable to their violations. Specifically, by Jan. 1, 2025, PennEnergy will be required to replace no fewer than 217 pollutant-emitting pneumatic devices with non-emitting devices in Butler and Lawrence counties, in western Pennsylvania. These measures are estimated to cost $1.2 million.
PennEnergy is a privately-owned oil and gas company headquartered in Cranberry Township, Pennsylvania. Its business is focused on the acquisition and development of unconventional shale resources in the Appalachian Basin, and its natural gas extraction and production operations consist of approximately 370 wells at 107 oil and gas facilities located in western Pennsylvania.
The settlement is part of EPA’s National Enforcement and Compliance Initiative, Mitigating Climate Change. This initiative focuses, in part, on reducing methane emissions from oil and gas and landfill sources.
More information on the settlement agreement is available on EPA’s PennEnergy Resources LLC Settlement web page.
The proposed consent decree was filed with the U.S. District Court for the Western District of Pennsylvania and is subject to a 30-day comment period. The complaint and the proposed consent decree are available at www.justice.gov/enrd/consent-decrees.
EPA and PADEP investigated the case.
Attorneys with the Environment and Natural Resources Division’s Environmental Enforcement Section and the U.S. Attorney’s Office for the Western District of Pennsylvania are handling the case.
PennEnergy Resources Agrees to Settlement to Reduce Climate- and Health-Harming Emissions in PennsylvaniaRead the Press Release
WASHINGTON — Today, the Justice Department, the Environmental Protection Agency (EPA) and the Pennsylvania Department of Environmental Protection (PADEP) announced a proposed settlement with PennEnergy Resources LLC (PennEnergy) resolving alleged Clean Air Act and Pennsylvania Air Pollution Control Act violations involving the company’s oil and gas production operations in Pennsylvania.
If accepted by the court, the consent decree specifies that PennEnergy will undertake various projects to assess, modify and improve monitoring and maintenance of vapor control systems. These projects will result in a reduction of over 8,200 tons of carbon dioxide equivalent emissions per year released as methane, similar to the number of reductions achieved by taking 1,740 cars off the road for one year. The settlement will also eliminate more than 150 tons of volatile organic compound (VOC) emissions annually.
PennEnergy also agreed to pay a $2 million civil penalty. This amount will be shared equally by the United States and the Commonwealth of Pennsylvania, a co-plaintiff in this case. PennEnergy will undertake compliance measures to achieve major reductions in harmful emissions at 17 of its oil and gas production facilities and partial measures at an additional 32 facilities, all located in Butler County and Lawrence County, Pennsylvania.
“When PennEnergy failed to implement an appropriate vapor control system on storage tanks at its facilities in western Pennsylvania, the company not only violated federal law, it allowed a substantial volume of volatile organic compounds to escape into the atmosphere,” said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania. “Today’s settlement reflects this office’s commitment to holding corporate citizens accountable for their wrongdoing and protecting our residents and the air they breathe.”
“Oil and gas producers must comply with the Clean Air Act, which is intended to control air emissions and improve air quality and our environment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “By adhering to the requirements of today’s settlement, PennEnergy will significantly reduce air emissions from its operations.”
“Today’s settlement continues EPA’s efforts to hold oil and gas companies accountable for illegal emissions that hamper air quality and accelerate climate change,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “Penn Energy will undertake projects to improve air quality and reduce emissions of methane at nearly 50 facilities, providing environmental and public health benefits for Pennsylvanians and demonstrating that reducing illegal pollution from oil and gas facilities is good for communities and the planet.”
“This settlement marks a significant step toward reducing emissions and ensuring cleaner air for all residents of the Commonwealth,” said Acting Pennsylvania Department of Environmental Protection Secretary Jessica Shirley. “Every Pennsylvanian is entitled to breathe clean air, and the Shapiro Administration is dedicated to ensuring that polluters are held responsible for any harm to that right.”
This settlement resolves PennEnergy’s failure to comply with federal and state requirements to capture and control air emissions from five of its oil and gas production facilities in Butler County, in western Pennsylvania. EPA identified the alleged violations through field investigations conducted in 2018. As a result of these violations, PennEnergy released methane and VOCs directly into the air instead of capturing and controlling the gas using specially designed equipment. Methane, a climate super pollutant, is a potent greenhouse gas that contributes to climate change, and VOCs contribute to ground-level ozone, which adversely affects human health.
The agreement requires PennEnergy to take the necessary steps to ensure that its systems to control pollutants from atmospheric storage tanks are adequately designed and properly operated and maintained at an estimated cost of $2.4 million. These actions will significantly reduce harmful emissions from the company’s oil and gas operations.
In addition, PennEnergy must undertake a project to mitigate the environmental and public health harm attributable to their violations. Specifically, by Jan. 1, 2025, PennEnergy will be required to replace no fewer than 217 pollutant-emitting pneumatic devices with non-emitting devices in Butler and Lawrence counties, in western Pennsylvania. These measures are estimated to cost $1.2 million.
PennEnergy is a privately-owned oil and gas company headquartered in Cranberry Township, Pennsylvania. Its business is focused on the acquisition and development of unconventional shale resources in the Appalachian Basin, and its natural gas extraction and production operations consist of approximately 370 wells at 107 oil and gas facilities located in western Pennsylvania.
The settlement is part of EPA’s National Enforcement and Compliance Initiative, Mitigating Climate Change. This initiative focuses, in part, on reducing methane emissions from oil and gas and landfill sources.
More information on the settlement agreement is available on EPA’s PennEnergy Resources LLC Settlement web page.
The proposed consent decree was filed with the U.S. District Court for the Western District of Pennsylvania and is subject to a 30-day comment period. The complaint and the proposed consent decree are available at www.justice.gov/enrd/consent-decrees.
EPA and PADEP investigated the case.
Attorneys with the U.S. Attorney’s Office for the Western District of Pennsylvania and the Environment and Natural Resources Division’s Environmental Enforcement Section are handling the case.
Palmer man sentenced to 25 years for attempted production of child pornographyRead the Press Release
ANCHORAGE, Alaska – A Palmer man was sentenced today to 25 years in prison followed by a life term of supervised release for attempting to create child sexual abuse materials by hiding a cell phone in a bathroom at a local supermarket.
According to court documents, Jesse Damon, 35, hid a cell phone and an attached external battery pack behind a vent in the family bathroom at a supermarket in Palmer in an attempt to create child pornography. An employee discovered the phone after noticing that the vent cover was loose.
Supermarket employees opened the video recording application on the hidden cell phone and saw an individual, later identified as Damon, as he inadvertently recorded himself in the process of hiding the phone. Employees ensured the store surveillance cameras were recording the entrance of the family bathroom and notified law enforcement after the camera captured Damon attempting to recover the phone he had hidden.
Law enforcement responded and contacted Damon after his return to the supermarket. A search warrant was issued for Damon’s electronic devices and law enforcement determined that he had secretly recorded a number of individuals, mostly adults, between May 21-24, 2022. Of the individuals captured in Damon’s attempts to create child sexual exploitation material, two were children under the age of 12. The investigation also revealed that Damon had also received and distributed “commercial” images depicting child sexual abuse through the use of digital applications such as Kik, Dropbox and Mega Link.
At the time of his arrest in this case, Damon was on supervision following his prior conviction for possession of child pornography in 3:08-cr-00039-RRB-MMS.
During the sentencing, the court recognized the bravery and strength of the victims in this case, and highlighted the defendant’s serious danger to the public through his recidivist actions.
“Mr. Damon is a repeat offender who presented an escalating danger to our community,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “I commend the vigilant supermarket employees whose swift actions played a crucial role in the successful investigation and prosecution led by the FBI and Palmer Police Department. My office remains unwavering in its commitment to protecting children in our community by working collaboratively to identify, investigate and prosecute those who seek to exploit vulnerable Alaskans.”
The FBI Anchorage Field Office and Palmer Police Department, with assistance from the U.S. Marshals Service and Federal Probation Office, investigated the case.
Assistant U.S. Attorney Adam Alexander prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
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Owner of Medford Construction Company Sentenced for Tax Crimes and Making False StatementsRead the Press Release
BOSTON – A Quincy man was sentenced today in federal court in Boston for a tax fraud scheme that resulted in a tax loss of approximately $2,824,577 and making false statements about a fatal workplace accident.
Mauricio Baiense, 57, was sentenced by U.S. Senior District Court Judge William G. Young to 18 months in prison, to be followed by one year of supervised release and ordered to pay $2,824,577.45 in restitution to the United States. In April 2024, Baiense pleaded guilty to one count of conspiracy to defraud the United States, seven counts of failure to collect and pay over taxes, one count of aiding and assisting in the preparation of a false tax return and one count of making false statements. In August 2022, Baiense was indicted by a federal grand jury.
Baiense owned and operated Contract Framing Builders, Inc. (CFB), a Medford-based construction business. Baiense was responsible for filing CFB’s quarterly employment tax returns and collecting and paying IRS payroll taxes withheld from the wages of the company’s employees. From approximately 2013 through 2017, Baiense facilitated having approximately $11 million worth of checks drawn on CFB’s corporate bank account to purported subcontractors, which were in fact nominee entities controlled by him. Baiense then directed others to cash the checks at a check cashing business and used the money to operate an “off-the-books” cash payroll for CFB’s employees. Baiense did not report the cash wages to the IRS and did not pay employment taxes on wages paid to employees in cash. Baiense also assisted in the preparation of at least one fraudulent employment tax return that understated the actual wages paid to CFB’s employees.
When questioned under oath at a U.S. Department of Labor Occupational Safety and Health Administration interview regarding a fatal workplace accident pertaining to an employee of Baiense’s company, Baiense made false statements to a federal investigator - falsely claiming that the deceased employee did not work for him.
United States Attorney Joshua S. Levy; Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division; Jeff Erskine, Acting Regional Administrator of the Department of Labor OSHA Region 1; Jonathan Wlodyka, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Jonathan Mellone, Special Agent in Charge of the Department of Labor, Office of Inspector General in Boston made the announcement. Valuable assistance was provided by the Department of Homeland Security, OSHA Criminal Investigations Team, Region 1 and the Department of Labor, Office of Inspector General. Assistant U.S. Attorney David Tobin of the Major Crimes Unit and Trial Attorney Thomas F. Koelbl of the Justice Department’s Tax Division prosecuted the case.
Owner of Telemarketing Call Center Sentenced to 121 Months in Prison for Multi-Year Scheme to Defraud PAC DonorsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that RICHARD ZEITLIN, the owner of a telemarketing call center business, was sentenced to 121 months in prison for his leadership role in a scheme to defraud donors of certain political action committees (“PACs”) through false and misleading fundraising calls. The sentence was imposed by U.S. District Judge Lewis A. Kaplan following the defendant’s guilty plea to one count of conspiracy to commit wire fraud on September 10, 2024.
U.S. Attorney Damian Williams said: “Richard Zeitlin’s actions represent a profound breach of trust, as represented by today’s sentencing. The integrity of donor contributions is essential, and this Office will continue to pursue justice against those who undermine it.”
According to the allegations in the Indictment, court filings, and statements made in Court:
PACs are entities registered with the Federal Election Commission that may be tax-exempt and collect money to advocate on behalf of or against certain causes and political candidates. By contrast, charities, unlike PACs, typically provide direct services to communities or causes.
From at least in or about 2017 up to and including in or about 2020, ZEITLIN used his telemarketing call center business and various associated entities to defraud numerous donors of millions of dollars by providing misleading and false information about how the donors’ money would be spent and the nature of the organizations to which they were giving. Specifically, ZEITLIN directed his employees to alter the call scripts used when calling potential donors on behalf of certain PACs in order to mislead potential donors into believing that they would be giving to a direct-services organization (i.e., a charity), rather than to a political advocacy organization (i.e., a PAC). ZEITLIN directed that these lies, misleading statements, and misrepresentations be made so that donors would be more likely to give money, thereby increasing the funds raised and profits for his businesses – which typically received approximately 90% of the funds donated. In some instances, ZEITLIN’s businesses retained 100% of the funds donated with none of the money going to the causes described in telemarketing calls to donors. When one PAC treasurer confronted ZEITLIN with complaints from donors that solicitation calls falsely represented a PAC as a charity, ZEITLIN falsely denied that the calls were being made, acknowledged that such calls would be inappropriate, and refused to give the treasurer any call recordings that would have revealed his fraud.
ZEITLIN lied under oath to conceal his fraud. In December 2020, while testifying under oath during a deposition in connection with a federal civil matter, ZEITLIN falsely stated, in substance and in part, that neither he nor his employees provided input as to the call scripts used by ZEITLIN’s telemarketing call centers when making fundraising calls on behalf of PACs. In truth and in fact, ZEITLIN and his employees frequently provided input on and changed call scripts, including by adding false and misleading statements into the call scripts. In March 2022, in a declaration filed under penalty of perjury to a federal judge, ZEITLIN falsely stated that, among other things, he was not associated with and did not direct, supervise, or control certain business entities relating to ZEITLIN’s telemarketing business when, in truth and in fact, ZEITLIN controlled all of the entities by exercising ultimate authority over managerial, operational, and financial decisions, including at the time he signed this declaration.
In or about May 2022, after ZEITLIN learned that he and his businesses were under federal investigation, ZEITLIN directed his employees to delete electronic messages relating to his businesses.
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In addition to the prison sentence, ZEITLIN, 54, of Las Vegas, Nevada, was sentenced to five years of supervised release and was ordered to pay forfeiture in the amount of $8,906,760.00, which represents ZEITLIN’s proceeds from the crime, and restitution in the amount of $8,906,760.00.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jane Kim, Emily Deininger, and Rebecca T. Dell are in charge of the prosecution.