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5 December 2024
Tulsan Found Guilty of Shooting with Intent to do Bodily Harm in Indian CountryRead the Press Release
TULSA, Okla. – A federal jury convicted Bruce Mitchell Cass, 50, of Tulsa and citizen of the Choctaw Nation of Oklahoma, was convicted of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence, and being a Felon in Possession of a Firearm.
In July 2024, Tulsa Police Officers were dispatched to a shooting. When officers arrived on the scene, they found the victim, shot once in the abdomen. Medical personnel rendered aid and transported the victim to a local hospital for emergency surgery. Before surgery, the victim identified Cass as the shooter.
Witnesses testified that there was a heated dispute at the home earlier in the evening that led to someone being sprayed with wasp spray. Police officers were called, and a report of the incident was made. Witnesses further stated that later in the evening, Cass walked into the home wearing a mask and pointed a gun at several people, including a toddler, before he shot the victim once.
The FBI, the Tulsa Police Department, and the Muscogee Creek Nation Lighthorse Police Department investigated the case.
Assistant U.S. Attorneys Aaron Jolly and Ammon Brisolara prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about PSN, please visit Justice.gov/PSN.
Townsend man admits illegal possession of gun after shooting, killing dogRead the Press Release
GREAT FALLS — A Townsend man accused of illegally possessing guns after he fatally shot his girlfriend’s dog following an argument admitted to a firearms crime on Dec. 4, U.S. Attorney Jesse Laslovich said today.
The defendant, Gabriel Martin Puga, 33, pleaded guilty to prohibited person in possession of firearms and ammunition. Puga faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for April 16, 2025. Puga was detained pending further proceedings.
The government alleged in court documents that Puga was convicted of felony criminal endangerment in January in Broadwater County and was prohibited from possessing firearms or ammunition. On March 21, Puga got into an argument with his girlfriend regarding her dogs. The girlfriend told law enforcement that Puga threatened her numerous times, including to use a gun. The same day, Puga took possession of his girlfriend’s .380-caliber pistol and her one-year-old white labrador. Puga asked a friend to go with him to the mountains to help him kill the dog.
The government further alleged that the friend met Puga with the dog in the mountains that day. Puga took possession of the friend’s .45-caliber pistol and shot the dog twice. Puga gave the .45-caliber pistol back to his friend and returned to his girlfriend’s house. The girlfriend said Puga told her he shot the dog twice and showed her a photo of the dog’s pawprint in the snow from where he had shot him. Multiple photos of the deceased dog and messages where Puga referenced shooting the dog were found on the same phone as the photo of the dog’s pawprint. Law enforcement located the deceased dog in the mountains and recovered fur and .45-caliber cartridge casings that were confirmed to have been fired from the friend’s pistol.
The U.S. Attorney’s Office is prosecuting the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Broadwater County Sheriff’s Office and Helena Police Department 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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Three Admit Selling Anabolic SteroidsRead the Press Release
ST. LOUIS – Three men have pleaded guilty in federal court and admitted conducting thousands of sales of anabolic steroids.
David Underwood, 44, pleaded guilty in U.S. District Court in St. Louis Thursday to one count of conspiracy to distribute and possess with the intent to distribute anabolic steroids. Andrew Moore, 39, pleaded guilty to that charge Monday. Jeffrey Swanson, 33, of Edwardsville, Ill., pleaded guilty in April to two counts of the same charge and was sentenced in July to 13 months in prison.
Their plea agreements say that in November 2018, Swanson and a partner were distributing anabolic steroids via Facebook. By mid-2019, Swanson and Moore formed a new partnership to sell anabolic steroids through a Facebook page called “SP Online,” also known as “SP Pharma.” Moore and Swanson obtained raw steroids, then processed and packaged them for retail distribution. Customers ordered from a “menu” posted on the SP Online page and typically paid by mailing cash. Moore and Swanson then mailed out the steroids.
An undercover officer made several purchases of anabolic steroids from Moore. During one buy, Moore told the undercover officer he purchased approximately one kilogram of raw product at a time.
In roughly May 2020, Underwood and Swanson established a Facebook page labeled “LLL Online” to sell steroid products under the “Lay Low Labs” banner in the same manner as SP Online. Underwood later took over LLL Online and continued to sell steroids through the page. Swanson continued to sell steroids on his own.
During the investigation, investigators recovered thousands of orders for steroids made from each page. Swanson admitted that more than 60,000 units of product were attributable to his actions or the conduct of other conspirators reasonably foreseeable to him. Underwood accepted responsibility for between 20,000 and 40,000 units and Moore for 40,000 to 60,000 units.
The Drug Enforcement Administration, the U.S. Postal Inspection Service, the U.S. Food and Drug Administration and the Internal Revenue Service Criminal Investigations investigated the case. Assistant U.S. Attorney Stephen Casey is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Texas Man Who Falsely Claimed to be Delta Force Veteran to Defraud Dozens of Victims Sentenced to 40 Years in Federal PrisonRead the Press Release
AUSTIN, Texas – A Manor man was sentenced in a federal court in Austin Wednesday to 480 months in prison for four counts of wire fraud and one count of money laundering.
According to court documents, Saint Jovite Youngblood, aka Kota Youngblood, 52, committed wire fraud against his victims by claiming Mexican drug cartel members were planning to commit violence against them. Youngblood falsely claimed to have been part of the U.S. Army’s Delta Force special operations unit and offered protection to his victims from the cartels in exchange for money. Youngblood also represented that funds obtained from his victim “investors” would be paid back with a significant return on the money. Instead, Youngblood used most of the money on junkets to Las Vegas to gamble in casinos. Over the course of his scheme, Youngblood defrauded 32 victims for more than $12 million. He was arrested July 31, 2023 and convicted by a federal jury April 23, 2024.
In addition to the 40 years of imprisonment, Youngblood was ordered to pay the full restitution of $12,766,384.
“This fraudster developed close relationships with dozens of individuals, building an immense amount of trust seemingly just to destroy their lives financially through elaborate, deceitful misrepresentations,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “The 40-year sentence that Youngblood will now serve in federal prison, along with the full restitution paid back to the victims, demonstrates the gravity of these crimes, and it is my hope that the individuals and families impacted by his schemes are able to repair any loss they have suffered. Thanks to our partners at the FBI for their investigative efforts that assisted greatly with this successful outcome of justice.”
“Many of Youngblood’s victims were terrorized thinking their families were in danger; others lost their livelihoods to his schemes. This sentence reflects the despicable nature of Mr. Youngblood's lies and criminal actions,” said Special Agent in Charge Aaron Tapp for the FBI’s San Antonio Field Office. "The FBI is committed to identifying scams such as this - and ensuring anyone who endeavors to financially fleece innocent Americans is held to account. We want to thank the U.S. Attorney’s Office for their work on this case - and their continued assistance in gaining justice for victims of financial crimes.”
The FBI investigated the case.
Assistant U.S. Attorneys Dan Guess and Matt Harding prosecuted the case.
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Suburban Chicago Man Sentenced to 35 Years in Prison for Sex Trafficking, Possession of Child Pornography, and Escaping from CustodyRead the Press Release
CHICAGO — A federal judge has sentenced a man to 35 years in prison for sex trafficking seven women in the Chicago area, escaping from custody while awaiting trial on those charges, and possessing child pornography.
BRIAN JOHNSON, 59, of Evergreen Park, Ill., used multiple aliases to pose as the male owner or female employee of an art gallery and film production company with purported connections to major magazines, overseas distributors, and film producers. He sought amateurs seeking to start a career in artistic nude modeling and film, enticing his victims with false promises of full-time employment at a lucrative salary, professional connections, and foreign travel. In preparation for what he told the women would be an “audition,” Johnson provided alcohol and encouraged the women to drink it. During the “audition,” he took explicit photos and videos of the victims and had sex with them. Afterward, Johnson claimed that his distributor found the photos and videos unsatisfactory and that the women would need to pose and have sex with him again in a “re-shoot” in order to get paid. In reality, there was no gallery, film company, or distributor.
When victims expressed reluctance to re-shoot the video, Johnson threatened to distribute their images, and did, in fact, distribute their images online. Johnson continued to harass his victims, even years later, by sending them the explicit photos and reminding them of their encounters with him. None of the victims ever received any money from Johnson.
A jury in U.S. District Court in Chicago earlier this year heard testimony from seven of Johnson’s victims before convicting him of sex trafficking and other offenses. Johnson also pleaded guilty prior to trial to an escape charge for failing to return to a federal jail in Chicago after being granted a three-hour furlough to attend his mother’s visitation. After briefly attending the visitation, Johnson returned to his home, packed a suitcase, and fled. Among the possessions he took with him were numerous images of the sex trafficking victims, including images which he knew were child pornography. After a three-day search, the FBI found and arrested Johnson at a restaurant near Midway Airport in Chicago.
U.S. District Judge Rebecca R. Pallmeyer imposed the 35-year prison sentence on Monday in federal court in Chicago.
The sentence was 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, Phillip Arnold, Chief of the Shorewood, Ill. Police Department, and Michael Saunders, Chief of the Evergreen Park, Ill. Police Department. Valuable assistance was provided by the Illinois Secretary of State’s Office and the Cook County Sheriff’s Office. The government was represented by Assistant U.S. Attorneys Elly Moheb and Maureen M. Merin.
If you or someone you know may have been a victim of human trafficking, you are encouraged to contact the National Human Trafficking Hotline by logging on to https://humantraffickinghotline.org or by calling 1-888-373-7888. The service is available 24 hours a day, seven days a week.
St. Louis Man Sentenced to 27 Years in Prison for Multiple Restaurant RobberiesRead the Press Release
ST. LOUIS – U.S. District Judge Stephen R. Clark on Thursday sentenced a man who robbed three restaurants and tried to rob a fourth to 27 years in prison.
Evidence and testimony presented at the trial of Kammeron Davis in May showed that Davis robbed a Penn Station restaurant at gunpoint in St. Louis on Sept. 13, 2020, less than a month after he was released from parole for his 2009 robbery of a Penn Station. On Sept. 16, 2020, an armed Davis tried to rob a Subway restaurant in Maplewood but was chased off by a broom-wielding employee. About 15 minutes later, he robbed a Subway in St. Louis by leaping over the counter and stealing money from the cash register. On September 20, Davis and another person robbed a different Subway in St. Louis.
The robberies were captured on video, as was the car Davis used. Three people also identified Davis as the robber in court. Jurors found Davis, 33, guilty of three counts of robbery, one count of attempted robbery and three counts of brandishing a firearm in furtherance of a crime of violence.
Judge Clark also ordered Davis to pay restitution of $4,788 to three of the restaurants and two employees.
The FBI, the St. Louis Metropolitan Police Department and the Maplewood Police Department investigated the case. Assistant U.S. Attorney Donald Boyce 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.
St. Louis County Woman Sentenced to 20 years in Prison for Prostituting MinorRead the Press Release
ST. LOUIS – U.S. District Judge John A. Ross on Thursday sentenced a woman who prostituted a minor to 20 years in prison.
Beginning as early as 2018, Carrie Little recruited women and had others recruit women to engage in prostitution. Among those recruited was a 17-year-old minor. Little provided the victim with a place to live and placed sexually suggestive and explicit photos of the minor in online ads for commercial sex. Little took calls to arrange sexual encounters and to arrange the price. After the encounters, men paid Little or the victim, who was required to give most of the money to Little.
“There was a very toxic combination of verbal abuse, physical abuse, sexual exploitation, neglect, blaming and much more that all resulted in mental strain and the feeling of shame, which a child should never have to feel,” wrote the victim, who is now an adult, in a letter to the court. Little, she wrote, began by having her handle phone calls and post ads for others before bringing her on “dates,” “slowly preparing me for the worst.” “I was sold to many men to perform sexual acts to make money for you. You controlled my every move, money, and everything else. You allowed my innocence and the chance of a normal childhood to be completely taken away for your selfish intentions.”
Little, 44, pleaded guilty in August to one count of coercion or enticement of a minor.
The St. Louis County Police Human Trafficking Task Force investigated the case as part of the FBI St. Louis Child Exploitation and Human Trafficking Task Force. The Hazelwood Police Department also investigated the case. Crisis Aid International and the International Institute of Saint Louis assisted victims associated with the case. Assistant U.S. Attorneys Dianna Edwards and Nathan Chapman prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division'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, please visit www.justice.gov/psc.
South L.A. Man Arrested on Complaint Alleging Armed Robbery Spree, Including One Incident in Which He Twice Shot VictimRead the Press Release
SANTA ANA, California – A South Los Angeles man has been arrested on a federal criminal complaint alleging he committed a series of armed robberies in parking lots in Los Angeles and Orange counties, including one incident in which he shot a victim twice outside the South Coast Plaza shopping mall in Costa Mesa, the Justice Department announced today.
Oshae Pollard, 21, of the Manchester Square neighborhood of Los Angeles, is charged with interference with commerce by robbery (Hobbs Act) and use of a firearm in furtherance of a crime of violence. He was arrested Wednesday.
Pollard is scheduled to make his initial appearance this afternoon in United States District Court in Santa Ana.
“The violence alleged in this complaint shocks the conscience,” said United States Attorney Martin Estrada. “It is essential that we hold perpetrators of violence accountable for victimizing our community. My office – through the Operation Safe Cities initiative – is collaborating with local law enforcement and using powerful federal tools to target the worst offenders of violent gun crime.”
According to an affidavit filed with the complaint, from August 25 to September 22, Pollard targeted victims in parking lots in Southern California in a series of crimes – at least three armed robberies and one attempted armed robbery.
The first robbery occurred late at night on August 25, 2024, at the Hustler Casino parking lot in Gardena, where Pollard ran toward the victim and pushed her to the ground. The victim held onto her purse and yelled for help. Pollard began pulling on the victim’s purse and pulled out a black semi-automatic pistol, placed it into the victim’s mouth – breaking her teeth in the process – and said, “If you yell again, I’ll kill you.” A witness began yelling and Pollard grabbed the victim’s purse – stealing between $1,000 and $2,000 – retreated to a car and drove away.
During the early morning of August 26, Pollard and an accomplice robbed a taxi driver sitting inside his cab in the parking lot of a Winchell’s Donut House in Carson, struck the victim in the face, entered his car, and held the victim at gunpoint until he handed them his wallet and Samsung cellphone.
Late night on the same day, Pollard and an accomplice approached two victims standing near their Rolls-Royce and Ferrari vehicles in the parking lot of the Fashion Island shopping center in Newport Beach. Pollard pointed a semi-automatic pistol at the victim standing near the Rolls-Royce and demanded all the victim’s cash. The victim handed over a luxury watch, a wallet, and the keys to the Rolls-Royce. When the other victim started the Ferrari and attempted to drive away, Pollard ran to the driver’s door of the Ferrari and fired one round from his pistol into the car, barely missing the victim. The victim drove to a nearby gas station and asked the gas station clerk to call police, who later recovered one 9mm shell casing from the scene. The total value of the items stolen was approximately $44,000.
On September 22, Pollard approached a victim who was entering his car parked in the parking lot of the South Coast Plaza shopping mall in Costa Mesa, and demanded, “Give me the watch. Give me the ring. Give me the car,” and later threatened to shoot the victim, according to the affidavit. When the victim didn’t comply, Pollard shot the victim in the left hand, then pointed his pistol at the victim’s chest and said, “You’re a dead man.”
Pollard then shot the victim in the left thigh as the victim began to remove his watch. The victim then kicked Pollard, who fell to the ground. The victim then kicked Pollard several times, fought with him for up to 15 seconds, then got back into his car and drove away. Pollard ran to a Kia Forte and fled the scene. The victim survived the gunshot wounds.
“Reducing violent crime in our community and throughout our country is a priority of the ATF,” said ATF Los Angeles Field Division Special Agent in Charge Christopher Bombardiere. “I could not be more pleased with the outcome of this investigation by the ATF Orange County Violent Crime Task Force. Cases like this highlight the importance of authentic relationships between law enforcement agencies to keep our communities safe. This arrest illustrates the task force’s unrelenting resolve to hold accountable anyone who engages in violent criminal activity.”
“These are crimes of violence that not only terrorize the intended targets, but our community as a whole, making shoppers think twice about whether a trip to the mall will erupt in gunfire,” said Kimberly Edds, Director of Public Affairs for the Orange County District Attorney’s Office. “As a result of the unrelenting pursuit of justice by the U.S. Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Orange County District Attorney’s Office, this arrest continues to send a strong message that crime doesn’t pay in Orange County.”
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted of all charges, Pollard would face a statutory maximum sentence of life in federal prison.
Operation Safe Cities establishes strategic enforcement priorities with an emphasis on prosecuting the most significant drivers of violent crime. Across this region, the most damaging and horrific crimes are committed by a relatively small number of particularly violent individuals. This strategic enforcement approach is expected to increase the number of arrests, prosecutions and convictions of recidivists engaged in the most dangerous conduct. It is designed to improve public safety across the region by targeting crimes involving illicit guns, prohibited persons possessing firearms, or robbery crews that cause havoc and extensive losses to retail establishments.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Orange County Violent Crime Task Force is investigating this case. This task force is comprised of federal and local law enforcement agencies, which include ATF, the Brea Police Department, the Placentia Police Department, the Fullerton Police Department, the Santa Ana Police Department, and the Orange County District Attorney’s Office with the assistance of the Newport Beach Police Department and the Costa Mesa Police Department.
Assistant United States Attorneys Jena A. MacCabe and Kevin J. Butler of the Violent and Organized Crime Section are prosecuting this case.
Sikeston Man Sentenced to Serve 10 Years in Federal Prison for Trafficking FentanylRead the Press Release
CAPE GIRARDEAU - U.S. District Judge Stephen N. Limbaugh Jr. on Thursday sentenced Cameron L. Robinson, 31, of Sikeston, Missouri, to 10 years in prison for trafficking fentanyl.
Court documents reflect that in March 2023, law enforcement officers responded to Robinson’s residence in Sikeston to arrest him on an outstanding warrant. While on the premises, officers discovered a large bag containing over a half-pound of fentanyl concealed in a barbecue grill on the back porch.
At a guilty plea hearing in U.S. District Court in cape Girardeau earlier this year, Robinson pleaded guilty to possession with intent to distribute fentanyl and admitted that the fentanyl belonged to him and that he intended to distribute it. After serving the 10-year sentence, Robinson will be placed on supervised release for three years.
This case was investigated by the Drug Enforcement Administration and the Sikeston Department of Public Safety. Assistant U.S. Attorney Jack Koester handled the prosecution for the Government.Shiprock Woman Charged with Assault as U.S. Attorney's Office and FBI Investigate Stabbing IncidentRead the Press Release
ALBUQUERQUE – A Shiprock woman has been charged with assault with a dangerous weapon following an incident that left another woman hospitalized with multiple stab wounds.
Angelia Garcia, 34, an enrolled member of the Navajo Nation, appeared before a federal judge and will remain in custody pending trial, which has not been scheduled.
According to the criminal complaint, on November 21, 2024, the Navajo Nation Police Department responded to a call at the Northern Navajo Medical Center regarding a patient with multiple stab wounds. The victim was found with stab wounds to her face, neck, arm, and abdomen.
The victim identified Garcia as the attacker, and Garcia was later located and detained. Garcia initially denied involvement, but eventually admitted to stabbing the victim, claiming self-defense due to the victim “talking shit.”
If convicted, Garcia faces a maximum of 10 years in prison followed by three years of supervised release.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Farmington Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Navajo Nation Department of Investigation and Department of Criminal Investigations. Assistant United States Attorney Caitlin L. Dillon is prosecuting the case.
View the Criminal Complaint (Garcia).pdfA criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Rock Hill Man Sentenced as Career Offender for Drug TraffickingRead the Press Release
COLUMBIA, S.C. — Freddie Antwon Thompson, 34, of Rock Hill, was sentenced to more than 14 years in federal prison after pleading guilty to possession with intent to distribute marijuana and crack cocaine.
Evidence presented to the court revealed that on Nov. 2, 2022, officers with the Rock Hill Police Department discovered Thompson, in possession of a loaded firearm, ammunition, marijuana, crack cocaine, and oxycodone following a routine traffic stop. During his arrest on federal charges, Thompson was found with another loaded firearm, additional marijuana, and a digital scale.
As a result of prior felony convictions, Thompson was prohibited from possessing firearms and ammunition under federal law. His criminal history includes convictions for offenses such as distribution of imitation controlled substances, distribution of marijuana, distribution of ecstasy, trafficking in methamphetamine and cocaine base, unlawful carrying of weapons, unlawful possession of stolen firearms, and resisting arrest. Due to his prior drug convictions, Thompson was sentenced as a career offender.
United States District Judge Sherri A. Lydon sentenced Thompson to 170 months imprisonment, to be followed by a six-year term of court-ordered supervision. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rock Hill Police Department. Assistant U.S. Attorney Ariyana Gore prosecuted the case.
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Richmond man sentenced to nine years in prison after firing a rifle near a neighborhood playgroundRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to nine years in prison for being a felon in possession of a firearm.
According to court documents, on February 11, 2024, Richmond Police heard two gunshots near a Fairfield Court neighborhood playground. The officers observed two individuals fleeing and began a foot pursuit. One of the individuals, later identified as Bobby Nathaniel Scott, 39, tripped and fell near a set of trashcans and dropped a rifle on the sidewalk. The officers quickly apprehended Scott and recovered the rifle, which was loaded with a 20-round magazine.
Scott has ten prior felony convictions, including for, among other crimes, domestic assault, grand theft auto, possession of cocaine, possession of cocaine with intent to distribute, distribution of cocaine, and eluding the police. Scott was on active probation at the time of his arrest and faces pending charges in Prince George County for robbery, strangulation, and malicious wounding. As a convicted felon, Scott cannot legally possess a firearm or ammunition.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Anthony A. Spotswood, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Colette Wallace McEachin, Commonwealth’s Attorney for the City of Richmond; and Rick Edwards, Chief of Richmond Police, made the announcement after sentencing by U.S. District Judge Roderick C. Young.
Special Assistant U.S. Attorney Katherine E. Groover, an Assistant Commonwealth’s Attorney with the Richmond Commonwealth’s Attorney Office, and Assistant U.S. Attorney Olivia L. Norman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-72.
Prior felon going back to prison for possession of child pornographyRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Cameron Stroke, 43, of Depew, NY, who was convicted of possession of child pornography following a prior conviction, was sentenced to serve 124 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that in October 2019, Stroke was convicted on a federal charge of possession of child pornography and sentenced to five years’ probation. On May 23, 2023, U.S. Probation Officers conducted a home inspection at Stroke’s residence and found an unauthorized cell telephone in his possession. A forensic review recovered approximately 181 images and 12 videos of child pornography stored on the device. Some images depicted prepubescent minors.
The sentencing is the result of an investigation by the Federal Bureau of Investigation Child Exploitation Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, and the Town of Tonawanda Police Department, under the direction of Chief James P. Stauffiger.
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Previously Convicted Felon from Duquesne Pleads Guilty to Narcotics and Firearms ChargesRead the Press Release
PITTSBURGH, Pa. - A former resident of Duquesne, Pennsylvania, pleaded guilty in federal court on December 4, 2024, to charges of violating federal narcotics and firearms laws, United States Attorney Eric G. Olshan announced today.
Taiwan Donje Rodgers, 27, pleaded guilty to two counts before Senior United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the Court was advised that, on or about May 18, 2020, Rodgers unlawfully possessed with intent to distribute heroin and fentanyl. Additionally, Rodgers possessed firearms and ammunition as a convicted felon. Federal law prohibits a convicted felon from possessing a firearm or ammunition.
Judge Conti scheduled sentencing for April 3, 2025. The law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $1 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Carl J. Spindler is prosecuting this case on behalf of the government.
The Duquesne Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation in this case.
President and CEO of Las Vegas-Based Company Sentenced for Role in Investment Fraud Scheme Where He Stole Millions in Victim Investor FundsRead the Press Release
A Nevada man was sentenced yesterday to 51 months in prison and ordered to pay $6.1 million in restitution stemming from his role in a years-long fraud scheme.
According to court documents, Mykalai Kontilai, formerly Michael Contile, 55, of Las Vegas, facilitated an investment fraud scheme involving his company, Collector’s Coffee Inc., doing business as Collector’s Café (Collector’s Coffee), a company incorporated in California and headquartered in Las Vegas. From 2012 to 2018, Kontilai made or caused to be made numerous materially false and misleading representations to induce victims to invest in Collector’s Coffee — a company he claimed was on the verge of launching an online auction house for third-party owned collectibles, such as Hollywood and sport memorabilia. As a result of Kontilai’s numerous false and misleading statements, including that investor funds would be used for legitimate business purposes, that Kontilai had personally invested millions of his own money in the company, and that he did not take a salary, Kontilai successfully raised approximately $23 million from Collector’s Coffee investors. However, rather than using the proceeds as represented, Kontilai stole approximately $6.1 million for his own personal use, including for the purchase of luxury goods, apartments, and vehicles.
The U.S. Securities and Exchange Commission (SEC) began investigating Kontilai for misappropriating investor funds in or around 2017. Kontilai obstructed the investigation by forging documents that he caused to be transmitted to the SEC and lied under oath to the SEC. Kontilai was charged in connection with this conduct both in the present case on June 3, 2020, and in a separate case in the District of Colorado on March 10, 2020. While under investigation but prior to charging, Kontilai fled to Russia and was ultimately arrested on an Interpol Red Notice in Germany in 2023. He was extradited back to the United States to face the pending charges in May.
On Nov. 21, Kontilai pleaded guilty to one count of wire fraud. As part of the plea agreement in this case, the government has moved to dismiss the Colorado case.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Jason M. Frierson for the District of Nevada; Special Agent in Charge Spencer L. Evans of the FBI Las Vegas Field Office; and Special Agent in Charge Carissa Messick, IRS Criminal Investigation (IRS-CI)’s Phoenix Field Office made the announcement.
FBI and IRS-CI investigated the case. The Justice Department’s Office of International Affairs provided significant assistance in securing the extradition from Germany of Kontilai.
Trial Attorneys Brandon Burkart and Sara Hallmark of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jessica Oliva for the District of Nevada prosecuted this case. Former Fraud Section Trial Attorney Emily Scruggs provided valuable assistance.
President and CEO of Las Vegas-Based Company Sentenced for Role in Investment Fraud Scheme Where He Stole Millions in Victim Investor FundsRead the Press Release
LAS VEGAS — A Nevada man was sentenced yesterday to 51 months in prison and was ordered to pay $6.1 million in restitution stemming from his role in a years-long fraud scheme.
According to court documents, Mykalai Kontilai, formerly Michael Contile, 55, of Las Vegas, facilitated an investment fraud scheme involving his company, Collector’s Coffee Inc., doing business as Collector’s Café (Collector’s Coffee), a company incorporated in California and headquartered in Las Vegas. From 2012 to 2018, Kontilai made or caused to be made numerous materially false and misleading representations to induce victims to invest in Collector’s Coffee — a company he claimed was on the verge of launching an online auction house for third-party owned collectibles, such as Hollywood and sport memorabilia. As a result of Kontilai’s numerous false and misleading statements, including that investor funds would be used for legitimate business purposes, that Kontilai had personally invested millions of his own money in the company, and that he did not take a salary, Kontilai successfully raised approximately $23 million from Collector’s Coffee investors. However, rather than using the proceeds as represented, Kontilai stole approximately $6.1 million for his own personal use, including for the purchase of luxury goods, apartments, and vehicles.
The U.S. Securities and Exchange Commission (SEC) began investigating Kontilai for misappropriating investor funds in or around 2017. Kontilai obstructed the investigation by forging documents that he caused to be transmitted to the SEC and lied under oath to the SEC. Kontilai was charged in connection with this conduct both in the present case on June 3, 2020, and in a separate case in the District of Colorado on March 10, 2020. While under investigation but prior to charging, Kontilai fled to Russia and was ultimately arrested on an Interpol Red Notice in Germany in 2023. He was extradited back to the United States to face the pending charges in May.
On Nov. 21, Kontilai pleaded guilty to one count of wire fraud. As part of the plea agreement in this case, the government has moved to dismiss the Colorado case.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Jason M. Frierson for the District of Nevada; Special Agent in Charge Spencer L. Evans of the FBI Las Vegas Field Office; and Special Agent in Charge Carissa Messick, IRS Criminal Investigation (IRS-CI)’s Phoenix Field Office made the announcement.
FBI and IRS-CI investigated the case. The Justice Department’s Office of International Affairs provided significant assistance in securing the extradition from Germany of Kontilai.
Trial Attorneys Brandon Burkart and Sara Hallmark of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jessica Oliva for the District of Nevada prosecuted this case. Former Fraud Section Trial Attorney Emily Scruggs provided valuable assistance.
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Postal Employee Pleads Guilty to Pandemic Relief Program FraudRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that Myaika Gross, age 40, of Denham Springs, Louisiana, pled guilty before U.S. District Judge John W. deGravelles to wire fraud in connection with her defrauding of the COVID-19 relief programs.
According to admissions made as part of her guilty plea, Gross worked as a United States Postal Employee in Louisiana between May of 2020 and June of 2021. Yet, during that time period she applied for Pandemic Unemployment benefits in five different states (California, Kansas, Indiana, Colorado and Louisiana), claiming she worked in each and had been laid off for COVID-19 related reasons. Additionally, Gross applied for and received a Paycheck Protection Program (PPP) loan using fraudulent information during this time frame. In total, Gross took $65,928 in pandemic funds she was not entitled to receive.
This matter is being investigated by the United States Postal Service-Office of Inspector General, and the United States Department of Labor-Office of Inspector General, and is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill, who also serves as the Deputy Chief of the Economic Crime Unit.
Anyone with information about allegations of pandemic fraud can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Pittsburgh Felon Sentenced to Prison for Federal Supervised Release Violations After Being Found in Possession of Drugs and AmmunitionRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, pleaded guilty to violations of federal narcotics and firearms laws and was sentenced to 37 months in federal prison for his crimes, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Derrick Jaquay Holliday, 39, who pleaded guilty to possession with intent to distribute quantities of fentanyl, cocaine, cocaine base, ketamine, and buprenorphine, and possession of ammunition as a convicted felon. Judge Conti also ordered Holliday to serve six years of supervised release following his prison term.
Prior to sentencing, the Court was informed that, on July 23, 2024, law enforcement conducted a search of Holliday’s apartment as a condition of his existing term of federal supervised release. During the search, law enforcement recovered the controlled substances, ammunition, and a taser cartridge, as well as drug paraphernalia known to be used for the packaging and sale of narcotics. He has a 20-year history of committing serious crimes, including several prior drug trafficking and weapons crimes.
Assistant United States Attorneys Ross E. Lenhardt and Kelly M. Locher prosecuted this case on behalf of the government.
The United States Federal Probation and Pretrial Services Office of the Western District of Pennsylvania; United States Marshals Service’s Western Pennsylvania Fugitive Task Force; Bureau of Alcohol, Tobacco, Firearms and Explosives, and Pittsburgh Bureau of Police’s Fugitive Apprehension Unit conducted the investigation that led to the prosecution of Holliday.
Palmer man guilty of aviation violationsRead the Press Release
ANCHORAGE, Alaska – A federal jury convicted a Palmer man yesterday for violating multiple aviation regulations.
According to court documents and evidence presented at trial, for roughly 30 years, William Marsan, 57, held an Airman Certificate as an Airline Transport Pilot issued by the Federal Aviation Administration (FAA). He operated an aviation business out of Palmer, Alaska, and owned a Piper Cherokee aircraft.
In June 2023, the FAA received a report that Marsan, as the pilot in command of the Piper Cherokee aircraft, failed to radio his intention to take off from Warren “Bud” Woods Palmer Municipal Airport and operated the aircraft against the flow of landing traffic, resulting in a near mid-air collision with another aircraft attempting to land.
Law enforcement investigated the June 2023 incident and discovered that Marsan was operating an aircraft without a valid license or valid registration. The investigation revealed that in June 2022, Marsan sent a letter to the FAA revoking the registration of his aircraft. Investigators also discovered that Marsan allowed his medical certificate to lapse in 2020 and 2021, which was required to keep his pilot’s license.
When FAA inspectors contacted him in July 2023 as part of the investigation, Marsan refused to provide his airman certificate, aircraft registration and airworthiness certificates, all of which are requirements through the FAA, and claimed he was not required to have any of those documents. As a result of the investigation, the FAA issued an Emergency Order of Revocation of Marsan’s pilot’s license in January 2024, which required the immediate surrender of his pilot’s license or the filing of an appeal of the decision within 10 days. Marsan failed to file an appeal or surrender his license but continued to fly his aircraft until his initial arrest in July 2024. Marsan was released pending trial. He failed to appear for multiple court hearings prior to his trial and he was rearrested in September 2024.
Marsan was convicted of one count of operating an aircraft without a license and one count of operating an unregistered aircraft. The jury was unable to reach a unanimous verdict on one count of operating an aircraft displaying a false aircraft registration mark.
“Aviation is a pillar of our state’s transportation infrastructure. Mr. Marsan’s actions flagrantly violated critical aviation regulations designed to safeguard both the industry and those who rely on it,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Let this conviction serve as a clear message that those who choose to violate these rules will face prosecution. I also want to extend appreciation to the law enforcement officers and investigators whose dedication led to the successful prosecution of this case.”
“The use of unregistered or unauthorized aircraft poses a significant risk to public safety and undermines the integrity of Alaska’s airspace,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “The FBI will continue to work alongside law enforcement partners and aviation authorities to hold operators accountable who willfully disregard laws designed to keep our community safe.”
“I credit the FAA Aviation Safety Inspectors for bringing this matter to my attention and thank the FBI for being excellent partners in addressing the referral. I also sincerely appreciate the U.S. Attorney’s Office for seeing the case to its conclusion,” said Regional Administrator Michael O’Hare of the FAA, Alaska Region.
The FBI Anchorage Field Office and FAA, Alaska Region investigated the case.
Assistant U.S. Attorney Tom Bradley and Mac Caille Petursson are prosecuting the case.
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Owner of Med Spa Charged with Covid-19 Relief Fraud, Using Funds for a Bentley and Luxury PurchasesRead the Press Release
MIAMI — Cassandra Yolanda Clarke, 45 of Miramar, Fla., had her initial appearance yesterday before a U.S. Magistrate Judge in Fort Lauderdale and was charged with fraudulently obtaining COVID-19 relief loans and grants under the Paycheck Protection Program (PPP).
According to allegations in the indictment, Clarke submitted fraudulent applications on behalf of Narotique Med Spa LLC and Narotique Beauty Bar Inc., seeking COVID-19 relief funds from the Small Business Administration (SBA) and PPP participating lenders. Clarke is alleged to have created and submitted fraudulent IRS tax forms with the applications. Clarke is charged with having received approximately $851,894 in COVID-19 relief funds from the fraudulent scheme. The indictment charges Clarke used the fraudulently obtained funds to lease a Bentley Bentayga and make luxury purchases at the Bal Harbour Shops.
The indictment charges Clarke with three counts of wire fraud and three counts of money laundering. If convicted, Clarke faces up to 10 years in prison for money laundering, and 20 years in prison for wire fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, made the announcement.
FBI Miami’s Palm Beach Resident Agency investigated the case. Assistant U.S. Attorney Jonathan Bailyn is prosecuting it.
An indictment is a merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On Sept. 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.
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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case no. 24-cr-60227.
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Overland Park Officers Recognized with Attorney General’s Award for Distinguished Service in Community PolicingRead the Press Release
KANSAS CITY, KAN. – Attorney General Merrick B. Garland today announced the recipients of the Seventh Annual Attorney General’s Award for Distinguished Service in Community Policing, including Officer Wesley Griffith and Officer Bill Koehn, of the Overland Park, Kansas, Police Department.
This prestigious award recognizes law enforcement officers who demonstrate exceptional dedication to strengthening trust, promoting community engagement, and enhancing public safety.
“Community policing is essential to building trust and ensuring public safety,” said Attorney General Garland. “These officers have gone above and beyond their duty to foster partnerships with the communities they serve. Their work is an inspiration to us all and a reminder of the profound impact law enforcement can have on individuals, neighborhoods, and society.”
Officers Koehn and Griffith have elevated community policing to new heights through their community education and awareness building of Crime Prevention Through Environmental Design, (or CTPTED). From giving presentations to hundreds of residents and businesses, to conducting physical security assessments and launching impactful programs, their work has both deeply engaged the community while at the same time strengthening crime prevention efforts. Their efforts stand as a model of how all facets of community policing can be seamlessly integrated for lasting impact.
“Whether they are patrolling neighborhoods, investigating criminal cases, or holding community events to build bridges between law enforcement and residents, police officers are invaluable to public safety and our justice system. The U.S. Attorney’s Office – District of Kansas congratulates Officer Wesley Griffith and Officer Bill Koehn for their exceptional work,” said U.S. Attorney Kate E. Brubacher.
The Attorney General’s Award recognizes individual state, local, and Tribal sworn officers, deputies, and troopers for exceptional efforts in community policing. The awarded individuals have demonstrated active engagement with the community in one of three areas: criminal investigations, field operations, or innovations in community policing.
The awardees were selected from a nationwide pool of nominees for their outstanding achievements in fostering safer, more inclusive communities.
The Department of Justice commends these officers for their service, leadership, and unwavering commitment to their communities. For more information about the awards, visit www.justice.gov.
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Orleans Parish Man Indicted for Bank RobberyRead the Press Release
NEW ORLEANS, LA – JUAN K. SIMPSON (“SIMPSON”), age 30, of New Orleans, was indicted for bank robbery, a violation of Title 18, United States Code, Section 2113(a), announced U.S. Attorney Duane A. Evans.
According to the indictment, on November 25, 2024, SIMPSON robbed a Capital One Bank located on South Claiborne Avenue, in New Orleans. If convicted, SIMPSON faces up to twenty (20) years imprisonment, a fine of up to $250,000.00, and up to three (3) years of supervised release following any term of imprisonment. SIMPSON also faces payment of a $100 mandatory special assessment fee.
United States Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Mary Katherine Kaufman of the General Crimes Unit.
Omaha Woman Sentenced to more than 10 Years’ Imprisonment for Methamphetamine ChargeRead the Press Release
United States Attorney Susan Lehr announced that Jessica Hernandez, age 36, of Omaha, Nebraska was sentenced on December 5, 2024, in federal court in Omaha after having pled guilty to conspiracy to possess with intent to distribute methamphetamine and distribution of meth. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Hernandez to 126 months’ imprisonment. There is no parole in the federal system. After Hernandez’s release from prison, she will begin a 5-year term of supervised release.
On May 19, 2022, Omaha Police Department officers executed a search warrant on a South Omaha residence. Jessica Hernandez and codefendant Jose Arevalo-Villalobos were encountered leaving the residence prior to the search and were allowed to leave. The search revealed one pound of meth hidden in a bedroom with used by Hernandez. An additional 4 pounds of meth were found in a storage room. The investigation revealed that Hernandez and Arevalo-Villalobos, her boyfriend, had been living at the residence for approximately two weeks and paying the owner to store meth there.
A firearm was found in a lockbox hidden in the basement that investigators determined belonged to Arevalo-Villalobos, who was sentenced to 151 months’ imprisonment on January 19, 2024.
This case was investigated by the Omaha Police Department and the Federal Bureau of Investigation.
North Providence Man Sentenced to Six Years in Federal Prison on Drug and Firearm ChargesRead the Press Release
PROVIDENCE – A North Providence man who sold more than seven thousand fentanyl-laced pills and a firearm while under surveillance by members of the Rhode Island FBI Safe Streets Task Force has been sentenced to six years in federal prison, announced United States Attorney Zachary A. Cunha.
Keurys Pena, 35, was sentenced on Tuesday by U.S. District Court Chief Judge John J. McConnell, Jr., to 72 months of incarceration to be followed by four years of federal supervised release. Pena pleaded guilty on August 1, 2024, to possession with the intent to distribute fentanyl and possession of a firearm by a person convicted of a crime.
According to information presented to the court, on eight occasions between June and October 2022, while under law enforcement surveillance, Pena sold and delivered 7,080 fentanyl-laced pills weighing a combined total of approximately 876 grams, or roughly two pounds. During a transaction on September 7, 2022, Pena also sold an individual a firearm in exchange for a cash payment. The drugs and the firearm were quickly seized by members of law enforcement following each transaction.
Pena was arrested at his North Providence residence on October 18, 2022, and was found to be in possession of 5.38 grams of cocaine, 11.89 grams of a powder mixture containing fentanyl, and 22.84 grams of a substance containing methamphetamine. On that same date, a court-authorized search warrant was executed at a stash house/rental property maintained by Pena in Pawtucket where law enforcement seized a powder substance containing 484.12 grams of fentanyl and a mixture containing 108.6 grams of methamphetamine.
Court records illustrate that Pena was previously convicted multiple times and sentenced on drug, conspiracy, forgery and breaking and entering charges. At the time of his arrest in this most recent matter, Pena was serving a term of Rhode Island state probation, having been convicted in Rhode Island Superior Court in 2015 on charges of assault and escape by an inmate. He was sentenced to 12 years – with 15 months to serve, 165 months suspended with probation.
This Project Safe Neighborhoods case was prosecuted in U.S. District Court by Assistant U.S. Attorney Stacey A. Erickson.
The matter was investigated by the Rhode Island FBI Safe Street Task Force and the Pawtucket Police Department.
The FBI Safe Streets Task Force consists of agents and law enforcement officers from the FBI, Rhode Island State Police, the Cranston, Woonsocket, Pawtucket, West Warwick, and Central Falls Police Departments, and the U.S. Marshals Service.
This case is part of Project Safe Neighborhoods, 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. In 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Nebraska Man Pleads Guilty in Multi-Million Dollar “Cryptojacking” CaseRead the Press Release
Earlier today, in federal court in Brooklyn, Charles O. Parks III, also known as “CP3O,” pleaded guilty to wire fraud for operating a large-scale illegal “cryptojacking” operation. As part of the scheme, Parks defrauded two well-known providers of cloud computing services out of more than $3.5 million worth of computing resources in order to mine cryptocurrency worth nearly $1 million. The proceeding was held before United States Magistrate Judge Cheryl L. Pollak. When sentenced, Parks faces up to 20 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the guilty plea.
“Through fraud and deceit, Parks acquired powerful computing resources worth millions of dollars to fuel his illegal cryptomining operation,” stated United States Attorney Peace. “Today’s guilty plea underscores our strong commitment to prosecuting criminal actors who enrich themselves through sophisticated cryptocurrency frauds and other complex cyber schemes.”
Mr. Peace also thanked the FBI’s New York Cyber Crimes Task Force for their assistance on this case.
“This guilty plea serves as a reminder to potential cybercriminals that experienced law enforcement officers are well-equipped to detect, investigate, and put an end to financial exploitation schemes carried out in the digital world,” stated NYPD Commissioner Tisch. “I commend our NYPD detective who worked this case, as well as our partners at the FBI and the office of the U.S. Attorney for the Eastern District of New York, for their skill and unwavering dedication to their work, as evidenced by today’s outcome.”
“Cryptojacking,” also referred to as malicious cryptomining, is the unauthorized use or hijacking of another party’s resources, such as electricity, hardware or computing power to mine cryptocurrency. According to court filings and facts presented at today’s plea hearing, from in or about January 2021 through August 2021, Parks created and used a variety of names, corporate affiliations and email addresses, including emails with domains from corporate entities he operated called “MultiMillionaire LLC” and “CP3O LLC,” to register numerous accounts with the cloud providers and to gain access to massive amounts of computing processing power and storage that he did not pay for. Parks used those fraudulently obtained resources to mine various cryptocurrencies including Ether, Litecoin and Monero. Parks tricked the providers into approving heightened privileges and benefits, including elevated levels of cloud computing services and deferred billing accommodations, and deflected inquiries from the providers regarding questionable data usage and mounting unpaid subscription balances.
Parks converted and laundered the cryptocurrency proceeds through cryptocurrency exchanges, a non-fungible token marketplace, an online payment provider and traditional bank accounts in order to disguise the audit trail and disassociate the funds from the fraud. Parks also structured various money movements to avoid transaction reporting requirements under federal law. After converting the ill-gotten cryptocurrency into dollars, Parks used the proceeds of the scheme to make extravagant purchases, including a Mercedes Benz luxury car, jewelry and first-class hotel and travel expenses.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Andrew Reich and Artie McConnell are in charge of the prosecution.
The Defendant:
CHARLES O. PARKS III (also known as “CP3O”)
Age: 45
Omaha, NebraskaE.D.N.Y. Docket No. 24-CR-105 (EK)
Montgomery Man Sentenced to 16 Years in Prison Following Federal Drug and Gun ConvictionsRead the Press Release
Montgomery, Ala. – Today, Acting United States Attorney Kevin Davidson announced the sentencing of a Montgomery, Alabama man following his convictions on federal drug and gun charges. On December 3, 2024, 38-year-old David Lee Johnson III, received a sentence of 192 months in prison. Following his prison sentence, Johnson will serve five years of supervised release. There is no parole in the federal system.
According to his plea agreement and other court records, on April 27, 2022, officers with the Montgomery Police Department observed Johnson walking near Zelda Road. When Johnson spotted the officers, he ran to a trash enclosure behind a local restaurant, then exited a short time later. Inside the enclosure, officers found a firearm and an assortment of drugs, including methamphetamine. Officers spotted Johnson attempting to leave the scene in a vehicle and made a traffic stop. Johnson admitted to possessing the gun and methamphetamine. Johnson has previous felony convictions and is prohibited from possessing firearms or ammunition. On September 4, 2024, Johnson pleaded guilty to possession of methamphetamine with the intent to distribute and being a felon in possession of a firearm. During the sentencing hearing, the judge noted Johnson’s lengthy and varied criminal history along with the specific harm methamphetamine causes the community.
The Montgomery Police Department and Drug Enforcement Administration investigated this case, which Assistant United States Attorney Justin L. Jones prosecuted.
Money Launderer Sentenced, Ordered to Repay $2.3 MillionRead the Press Release
ST. LOUIS – U.S. District Judge Rodney W. Sippel on Thursday sentenced a man who helped launder millions of dollars obtained in fraud schemes to three years in prison and ordered him to repay $2.3 million.
Richard Charles Appelbaum III, 40, of Maryland Heights, pleaded guilty in August to one count of conspiracy to commit money laundering. He admitted conspiring with at least six others to move millions of dollars obtained from fraud victims into cryptocurrency.
In 2022, Appelbaum was introduced to someone identified in his plea agreement as “E.S.,” who was described as a “big player” in cryptocurrency.
E.S. offered to hire Appelbaum as an "investment banker" at Coins2Trade, a cryptocurrency transaction processor. E.S. told Appelbaum he would receive a 3% commission for converting U.S. currency into cryptocurrency. Between August 2022 and October 2022, E.S. trained Appelbaum via WhatsApp messages and phone calls, typically between 10 p.m. and 3 a.m. E.S. told Appelbaum to create businesses, open numerous business and personal bank accounts and open accounts at various cryptocurrency exchanges under his own name. Appelbaum was told to provide the information on the accounts to E.S. E.S. also told Appelbaum to never tell bank personnel that he was dealing with cryptocurrency and use the debit cards tied to the accounts at least once per day to make the accounts appear legitimate.
Told he could make money by recruiting others, Appelbaum recruited another person to process cryptocurrency transactions.
Appelbaum and other co-conspirators formed numerous business entities, falsely claiming on corporate organization documents that the businesses would be involved in auto purchasing consulting, boating supplies, real estate management and life skills consulting when their real purpose was demonstrating apparent legitimacy to financial institutions when the business accounts received large wire deposits. Between February 2022 and April 2023, Appelbaum and the other co-conspirators opened at least 24 business bank accounts at various financial institutions.
The accounts were used to receive the proceeds of Business Email Compromise (BEC) wire fraud schemes, where criminal actors infiltrated the victims’ email accounts to divert payments. Between February 2022 and February 2023, at least 36 individuals and entities were defrauded in this way. In one example, on Dec. 12, 2022, a title company in Florida received a fraudulent email with instructions to wire $2.2 million in escrowed funds to one of Appelbaum’s accounts. Appelbaum later lied to the title company’s lawyer and in a deposition in a civil suit, falsely claiming that he was owed the money for consulting services, his plea agreement says.
Appelbaum and other co-conspirators then moved the criminal proceeds from the business accounts to personal bank accounts, and then to accounts at cryptocurrency trading platforms, knowing that it was designed in whole or in part to conceal the nature, location, source or control of the proceeds.
Appelbaum knew that at least $3.5 million was laundered that way. During the conspiracy, Appelbaum and his co-conspirators received at least 34 wire transfers totaling $8.3 million from victims of the BEC fraud scheme or an online romance fraud scheme, Appelbaum’s plea says.
The FBI investigated the case. Assistant U.S. Attorney Kyle Bateman is prosecuting the case.
Missouri Man Sentenced to 15 Years in Prison for Producing Child PornographyRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Wednesday sentenced a man to 15 years in prison for producing child pornography.
Steven Popple, now 39, of Park Hills, Missouri, met an underage girl in May of 2021, according to his plea agreement. He began a flirtatious relationship with her and exchanged text messages with sexual content. He began asking her for nude photos and videos and instructed her how to pose and what sexual acts to perform. At Popple’s request, the victim sent him about 300 photos and videos and the pair met and engaged in sex acts, his plea agreement says.
Popple pleaded guilty in U.S. District Court in St. Louis in June to one count of production of child pornography.
“If it hadn’t been for the victim’s mother, this crime wouldn’t have come to light. After discovering concerning images on her daughter’s phone, the mother contacted the FBI,” said Special Agent in Charge Ashley T. Johnson of the FBI St. Louis Division. "Contacting law enforcement immediately reduces the risk of a perpetrator disposing of critical evidence."
The FBI and the St. Francois County Sheriff’s Department investigated the case. Assistant U.S. Attorney Dianna Edwards prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division'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, please visit www.justice.gov/psc.
Minneapolis Man Indicted for Two Violent RobberiesRead the Press Release
MINNEAPOLIS – A Minneapolis man has been charged with four crimes related to two separate armed robberies, announced U.S. Attorney Andrew M. Luger.
According to court documents, on June 7, 2024, Korey Maurese Hale, 25, brandished a Mossberg 715T .22 caliber rifle while robbing a drug store. The next day, on June 8, 2024, Hale brandished the same firearm while robbing a bank.
For his conduct, Hale is charged with one count of Hobbs Act robbery, one count of armed bank robbery, and two counts of brandishing a firearm during a bank robbery. He made his initial appearance on December 3, 2024, in U.S. District Court before Magistrate Judge Dulce J. Foster.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, and the St. Paul Police Department.
Assistant U.S. Attorney Matthew D. Forbes is prosecuting the case.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
McKinsey & Company Africa to Pay over $122M in Connection with Bribery of South African Government OfficialsRead the Press Release
McKinsey and Company Africa (Pty) Ltd (McKinsey Africa), which operates in South Africa as a wholly owned and controlled subsidiary of international consulting firm McKinsey & Company Inc. (McKinsey), will pay over $122 million to resolve an investigation by the Justice Department into a scheme to pay bribes to government officials in South Africa between 2012 and 2016. The guilty plea of a former McKinsey senior partner who participated in the bribery scheme was also unsealed. The Justice Department’s resolution is coordinated with prosecutorial authorities in South Africa.
McKinsey Africa entered into a three-year deferred prosecution agreement (DPA) with the department in connection with a criminal information filed in the Southern District of New York charging the company with one count of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA). Vikas Sagar, a former senior partner of McKinsey who worked in McKinsey Africa’s South Africa office, previously pleaded guilty to one count of conspiracy to violate the FCPA.
According to court documents and admissions, McKinsey Africa, acting through a senior partner and for the benefit of McKinsey, agreed to pay bribes to then-officials at Transnet SOC Ltd. (Transnet), South Africa’s state-owned and state-controlled custodian of ports, rails, and pipelines, and at Eskom Holdings SOC Ltd. (Eskom), South Africa’s state-owned and state-controlled energy company. Between at least 2012 and 2016, McKinsey Africa obtained sensitive confidential and non-public information from Transnet and Eskom regarding the award of lucrative consulting contracts and submitted proposals for multimillion-dollar consulting engagements, while knowing that South African consulting firms with which McKinsey Africa had partnered would pay a portion of their fees as bribes to officials at Transnet and Eskom. As a result of the bribery scheme, McKinsey and McKinsey Africa earned profits of approximately $85,000,000.
“McKinsey Africa bribed South African officials in order to obtain lucrative consulting business that generated tens of millions of dollars in profits,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “As a consequence, McKinsey Africa has agreed to pay a criminal penalty of more than $122 million. The resolution announced today — the department’s third coordinated resolution with South African authorities in only two years — is evidence that our International Corporate Anti-Bribery (ICAB) initiative, which we announced in November 2023, is bearing fruit. Through the ICAB, the Criminal Division remains committed to strengthening its international partnerships, including in South Africa, to combat corruption.”
“McKinsey Africa participated in a yearslong scheme to bribe government officials in South Africa and unlawfully obtained a series of highly lucrative consulting engagements that netted McKinsey Africa and its parent entity McKinsey & Company approximately $85 million in profits,” said U.S. Attorney Damian Williams for the Southern District of New York. “The scheme was carried out by a senior partner at McKinsey and allowed McKinsey Africa to repeatedly get awarded consulting contracts through corruption and bribes at two different state-owned entities in South Africa. This office and our law enforcement partners will continue our fight against American companies that seek to gain an unfair business advantage by supporting corrupt political officials overseas, no matter the industry, no matter the country, and no matter how prominent or profitable those companies may be.”
“This settlement underscores our unwavering commitment to holding companies accountable that willfully engage in corrupt activities around the world,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “McKinsey Africa engaged in a serious and long-running bribery scheme to secure contracts by corrupting government officials. This misconduct is a blatant violation of law and a breach of public trust. No matter what country the crime occurs in, the FBI will always work closely with our international partners to root out corruption.”
“McKinsey Africa will pay over $122 million, a clear indication that corruption comes at a significant cost,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “The resolution of this case underscores that justice has no borders, and those who engage in bribery and conspire to commit crimes will be held accountable. The Postal Inspection Service is committed to ensuring that government resources and international partnerships serve the public good and are never exploited for personal or corporate gain.”
Pursuant to the DPA, McKinsey Africa has agreed to pay a criminal penalty of $122,850,000. The Justice Department has agreed to credit up to one-half of the criminal penalty against amounts McKinsey pays to authorities in South Africa in related proceedings. In addition, both McKinsey and McKinsey Africa have agreed to, among other things, continue cooperating with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of New York in any ongoing or future criminal investigation arising during the term of the DPA. McKinsey and McKinsey Africa have also agreed to enhance their compliance program where necessary and appropriate and to report to the government regarding remediation and implementation of their enhanced compliance program.
The Justice Department reached this resolution with McKinsey Africa based on a number of factors, including, among others, the nature and seriousness of the offense. McKinsey Africa received credit for its cooperation with the department’s investigation, which included (i) immediately and proactively cooperating from the inception of the department’s investigation; (ii) making numerous factual presentations to the department over the course of its investigation, derived from information obtained through the company’s internal investigation; (iii) collecting, reviewing, and producing voluminous records, including those located abroad, in response to requests from the department; (iv) promptly reporting the discovery of document-deletion efforts by the McKinsey partner involved in the conduct found during its internal investigation, taking additional investigative steps to uncover information and evidence regarding those efforts, and producing such information and evidence to the department; (v) reporting, in real time, newly discovered information and documents that allowed the department to preserve and obtain evidence as part of its independent investigation; (vi) tracing complex internal accounting money-flows and currency exchange-information in response to requests from the department; (vii) preserving, collecting, and producing to the department documents located abroad, and engaging a third-party forensics consultant to analyze key electronic devices and providing to the department the results of that analysis; (viii) collecting and producing to the department personal email and bank account information of the McKinsey partner involved in the conduct relevant to the department’s investigation; (ix) engaging with the department in response to a deconfliction request to preserve the integrity of the department’s investigation; and (x) making company officers and employees available for interviews.
McKinsey and McKinsey Africa also engaged in timely remedial measures, including: (i) putting the McKinsey partner involved in the criminal scheme on leave when it learned of the partner’s role in the scheme, subsequently separating that partner from McKinsey after discovering his deletion activity, and requiring that partner’s continued cooperation post-separation; (ii) conducting additional anti-corruption training for employees in South Africa and elsewhere in Africa, and ceasing work with all state-owned enterprises (SOEs) for a period of time while it conducted its internal investigation; (iii) enhancing due diligence processes for third-party partners, including instituting controls to ensure that due diligence is completed before work begins on an engagement and imposing a more rigorous risk-review for public sector clients; (iv) carrying out an enhanced review process for all sole-source work that requires advance-approval before the engagement can begin; and (v) voluntarily repaying, in 2018 and 2021, all revenues that McKinsey and McKinsey Africa received from potentially tainted contracts to the SOEs in South Africa from which they received contracts as a result of the criminal scheme.
In light of these considerations as well as McKinsey’s prior history, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 35% reduction off the fifth percentile of the otherwise applicable guidelines fine range.
FBI’s Los Angeles International Corruption squad and USPIS are investigating the case.
Trial Attorneys William E. Schurmann and Alexandra P. Swain of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Andrew K. Chan and Nicholas Chiuchiolo for the Southern District of New York are prosecuting the case.
The Justice Department’s Office of International Affairs and authorities in South Africa provided assistance in this matter.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
View the Deferred Prosecution Agreement.
View the Information.
McKinsey & Company Africa to Pay over $120 Million in Connection with Bribery of South African Government OfficialsRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York; Nicole M. Argentieri, Principal Deputy Assistant Attorney General for the Criminal Division of the U.S. Department of Justice (“DOJ”); Akil Davis, Assistant Director in Charge of the Federal Bureau of Investigation (“FBI”) Los Angeles Field Office; and Eric Shen, Inspector in Charge of the U.S. Postal Inspection Service (“USPIS”) Criminal Investigations Group, announced today that MCKINSEY AND COMPANY AFRICA (PTY) LTD (“MCKINSEY AFRICA”), a wholly-owned and controlled subsidiary of McKinsey & Company, Inc. (“McKinsey”), a multinational strategy and management consulting firm headquartered in the U.S., will pay over $120 million to resolve an investigation by the DOJ into a scheme to bribe government officials in South Africa in exchange for lucrative consulting contracts at multiple state-owned and state-controlled entities. MCKINSEY AFRICA entered into a deferred prosecution agreement (“DPA”) in connection with a criminal information filed today in the Southern District of New York charging the company with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act ("FCPA"). The case has been assigned to U.S. District Judge Colleen McMahon.
Also unsealed today is the guilty plea of VIKAS SAGAR, a former Senior Partner at McKinsey & Company, who pled guilty to participating in a conspiracy to violate the Foreign Corrupt Practices Act before U.S. District Judge Laura Taylor Swain on December 16, 2022.
U.S. Attorney Damian Williams said: “McKinsey Africa participated in a yearslong scheme to bribe government officials in South Africa and unlawfully obtained a series of highly lucrative consulting engagements that netted McKinsey Africa and its parent entity McKinsey & Company approximately $85 million in profits. The scheme was carried out by a senior partner at McKinsey and allowed McKinsey Africa to repeatedly get awarded consulting contracts through corruption and bribes at two different state-owned entities in South Africa. This Office and our law enforcement partners will continue our fight against companies that seek to gain an unfair business advantage by supporting corrupt political officials overseas, no matter the industry, no matter the country, and no matter how prominent or profitable those companies may be.”
Principal Deputy Assistant Attorney General Nicole M. Argentieri said: “McKinsey Africa bribed South African officials in order to obtain lucrative consulting business that generated tens of millions of dollars in profits. As a consequence, McKinsey Africa has agreed to pay a criminal penalty of more than $122 million. The resolution announced today — the department’s third coordinated resolution with South African authorities in only two years — is evidence that our International Corporate Anti-Bribery ("ICAB") initiative, which we announced in November 2023, is bearing fruit. Through the ICAB, the Criminal Division remains committed to strengthening its international partnerships, including in South Africa, to combat corruption.”
USPIS Inspector in Charge Eric Shen said: “McKinsey Africa will pay over $122 million, a clear indication that corruption comes at a significant cost. The resolution of this case underscores that justice has no borders, and those who engage in bribery and conspire to commit crimes will be held accountable. The Postal Inspection Service is committed to ensuring that government resources and international partnerships serve the public good and are never exploited for personal or corporate gain.”
FBI Assistant Director in Charge Akil Davis said: “McKinsey Africa’s corruption seemed to pay off for a time, yielding millions in government contracts. Those actions have now cost the company dearly. Individuals and companies who collude to thwart free market competition have a direct and negative impact on communities and the American consumer. This agreement demonstrates the commitment of the FBI and our partners to investigate anti-competitive behavior, and we will continue to work with foreign governments, including South Africa, to hold accountable those who try to cheat the system for their own benefit and profit.”
According to court documents and admissions:
Between at least 2012 and 2016, MCKINSEY AFRICA, acting through McKinsey Senior Partner SAGAR, agreed to pay bribes to then-officials at Transnet SOC Ltd ("Transnet"), South Africa’s state-owned and state-controlled custodian of ports, rails, and pipelines, and at Eskom Holdings Limited ("Eskom"), South Africa’s state-owned and state-controlled energy company. As part of the scheme, MCKINSEY AFRICA obtained sensitive confidential and non-public information from Transnet and Eskom regarding the award of lucrative consulting contracts and submitted proposals for multimillion-dollar consulting engagements, while knowing that South African consulting firms with which MCKINSEY AFRICA had partnered would pay a portion of their fees as bribes to officials at Transnet and Eskom. As a result of the bribery scheme, McKinsey and MCKINSEY AFRICA earned profits of approximately $85,000,000.
As part of the DPA, MCKINSEY AFRICA has agreed to pay a criminal penalty of $122,850,000. The Department has agreed to credit up to one-half of the criminal penalty against amounts McKinsey pays to authorities in South Africa in related proceedings. In addition, both McKinsey and MCKINSEY AFRICA have agreed, among other things, to continue cooperating with the U.S. Attorney’s Office for the Southern District of New York and the Criminal Division’s Fraud Section and in any ongoing or future criminal investigation arising during the term of the DPA. In addition, McKinsey and MCKINSEY AFRICA have agreed to enhance their compliance program where necessary and appropriate, and to report to the government regarding remediation and implementation of their enhanced compliance program.
The Department reached this resolution with MCKINSEY AFRICA based on a number of factors, including, among others, the nature and seriousness of the offense. MCKINSEY AFRICA received credit for its cooperation with the Department’s investigation, which included immediately and proactively cooperating from the inception of the Offices’ investigation; making numerous factual presentations to the Offices over the course of their investigation, derived from information obtained through the Company’s internal investigation; collecting, reviewing, and producing voluminous records, including those located abroad, in response to requests from the Offices; promptly reporting the discovery of document-deletion efforts by the McKinsey partner involved in the conduct found during its internal investigation, taking additional investigative steps to uncover information and evidence regarding those efforts, and producing such information and evidence to the Offices; reporting, in real time, newly discovered information and documents which allowed the Offices to preserve and obtain evidence as part of their independent investigation; tracing complex internal accounting money-flows and currency exchange-information in response to requests from the Offices; preserving, collecting, and producing to the Offices documents located abroad, and engaging a third-party forensics consultant to analyze key electronic devices and providing to the Offices the results of that analysis; collecting and producing to the Offices personal email and bank account information of the McKinsey partner involved in the conduct relevant to the Offices’ investigation; engaging with the Offices in response to a deconfliction request to preserve the integrity of the Offices’ investigation; and making Company officers and employees available for interviews.
McKinsey and MCKINSEY AFRICA also engaged in timely remedial measures, including: putting the McKinsey partner involved in the criminal scheme on leave when it learned of the partner’s role in the scheme, subsequently separating that partner from McKinsey after discovering his deletion activity, and requiring that partner’s continued cooperation post-separation; conducting additional anti-corruption training for employees in South Africa and elsewhere in Africa, and ceasing work with all SOEs for a period of time while it conducted its internal investigation; enhancing due diligence processes for third-party partners, including instituting controls to ensure that due diligence is completed before work begins on an engagement and imposing a more rigorous risk-review for public sector clients; carrying out an enhanced review process for all sole-source work that requires advance-approval before the engagement can begin; and voluntarily repaying, in 2018 and 2021, all revenues that McKinsey and MCKINSEY AFRICA received from potentially tainted contracts to the SOEs in South Africa from which it received contracts as a result of the criminal scheme.
In light of these considerations as well as McKinsey’s prior history, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 35% reduction off the fifth percentile of the otherwise applicable guidelines fine range.
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The FBI’s International Corruption Unit and the USPIS are investigating the case as part of the IRS Global Illicit Financial Team in Washington, D.C.
SAGAR, 56, of Johannesburg, South Africa, pled guilty to participating in a conspiracy to violate the Foreign Corrupt Practices Act.
Mr. Williams praised the outstanding work of the FBI and USPIS. Mr. Williams also thanked the Department of Justice’s Office of International Affairs and authorities in South Africa for their assistance in this matter.
The case is being prosecuted by Assistant U.S. Attorneys Andrew K. Chan and Nicholas Chiuchiolo of the Southern District of New York; and Trial Attorneys William E. Schurmann and Alexandra P. Swain of the Criminal Division’s Fraud Section.
Marion County Man Sentenced to Federal Prison for Distributing Methamphetamine and FentanylRead the Press Release
Ocala, Florida – United States District Judge Thomas P. Barber has sentenced Terrance Maurice Washington (42, Marion County) to 14 years in federal prison for possession of a controlled substance (methamphetamine and fentanyl) with intent to distribute it. Washington entered a guilty plea on June 26, 2024.
According to court documents, on multiple occasions between October 2023 and January 2024, Washington distributed methamphetamine and/or fentanyl to a confidential source who was working with law enforcement. The drugs provided by Washington during the transactions ranged from gram quantities to upwards of a pound or more of methamphetamine. Washington bragged that the type of fentanyl he distributed was “dropping people.” After law enforcement arrested Washington, a search of his residence revealed another two pounds of methamphetamine intended for distribution.
This case was investigated by the Drug Enforcement Administration and the Marion County Unified Drug Enforcement Strike Team (UDEST). It was prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
Man Pleads Guilty to Armed Kidnapping of a Rideshare DriverRead the Press Release
MIAMI – On Dec. 3, Miguel Alejandro Pastran Hernandez, 24, pled guilty to kidnapping a rideshare driver at gunpoint and forcing the victim to drive the defendant from Texas to South Florida.
On or about Aug. 16, at around 10:30 p.m., Victim 1 was working as a driver for a ride sharing application near Arlington, Texas, when Victim 1 picked up Pastran Hernandez. Victim 1 drove Pastran Hernandez to his destination, which was a gas station that appeared to be closed. After a short time, Victim 1 heard the click of a gun being chambered and saw Pastran Hernandez holding what appeared to be a firearm. Victim 1 offered to give Pastran Hernandez the victim’s possessions and leave the vehicle, but Pastran Hernandez told Victim 1 that he was going to tie the victim up and put the victim in the back of the vehicle.
Instead of tying up Victim 1, Pastran Hernandez ordered Victim 1 to drive to Florida. Pastran Hernandez used a mobile application on his cellphone to see where law enforcement was located along the drive and instructed Victim 1 to avoid those areas. Pastran Hernandez told Victim 1 that he had other guns in the car, inside his luggage. While driving from Texas to Florida, Pastran Hernandez discovered that Victim 1 had a blue handgun in the vehicle. The firearm was unloaded, with the ammunition stored separately in the vehicle. Pastran Hernandez loaded the ammunition into the firearm and kept it on his person for the duration of the kidnapping. During the journey, Pastran Hernandez brandished that firearm at Victim 1 so that Victim 1 would follow his commands.
On or about Aug. 18, Pastran Hernandez and Victim 1 arrived in Miami Beach, Fla., where Pastran Hernandez surveilled the residence of another potential victim (Victim 2). Pastran Hernandez told Victim 1 that Victim 2 was a social media influencer and that Pastran Hernandez intended to kidnap Victim 2 or someone in Victim 2’s family for a $3,000,000 ransom.
On or about Aug. 19, Pastran Hernandez made Victim 1 drive to a store in Hialeah, Fla., to buy supplies for the kidnapping of Victim 2. Pastran Hernandez held onto Victim 1’s car keys, while Victim 1 used the restroom. Around that time, police officers arrived at the store and Pastran Hernandez fled the area on foot.
Law enforcement located Pastran Hernandez at a park in Hollywood, Fla. a few hours later. On Pastran Hernandez’s person, inside a cross-body bag, was Victim 1’s blue handgun. The firearm was loaded and had a bullet in the chamber.
Inside Pastran Hernandez’s backpack, which was in Victim 1’s car, law enforcement later discovered multiple Airsoft or BB guns, knives, a black mask, hat, sunglasses, binoculars, walkie-talkies, zip-ties, and other items.
Pastran Hernandez is scheduled to be sentenced on Feb. 20, 2025, before Chief Judge Cecilia M. Altonaga. He faces up to life in prison, following his guilty plea to charges of kidnapping, carjacking, and possessing a firearm in furtherance of a crime of violence. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, announced the charges.
FBI Miami investigated the case. Assistant U.S. Attorney Elizabeth Hannah is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that brings 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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-20380.
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Magoffin County Man Sentenced for Methamphetamine and Fentanyl TraffickingRead the Press Release
PIKEVILLE, Ky. – A Salyersville, Ky., man, Daniel Jackson, 57, was sentenced on Thursday, to 97 months in prison, by Chief U.S. District Judge Danny Reeves, following his conviction for possession with the intent to distribute 50 grams or more of methamphetamine and possession with the intent to distribute fentanyl.
According to evidence presented at his trial, on February 7, 2024, law enforcement conducted a traffic stop of a vehicle being driven by Jackson. During a search of the vehicle, law enforcement located and seized over 70 grams of methamphetamine. Jackson then attempted to discard a bag of fentanyl, in the police car, after his arrest.
Under federal law, Jackson must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jim Scott, Special Agent in Charge, DEA, Louisville Field Division; and William “Bill” Meade, Magoffin County Sheriff, jointly announced the sentence.
The investigation was conducted by the DEA, the Magoffin County Sheriff’s Office, and Operation UNITE. Assistant U.S. Attorney Drew Trimble is prosecuting the case on behalf of the United States.
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Lock Haven Resident Charged with Conspiring with Physician for Kickback Payments at Local Nursing HomeRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Paul D. Polen, age 71, of Lock Haven, Pennsylvania was charged by criminal information with one count of conspiracy to engage in theft or bribery concerning programs receiving federal funds between 2002 and 2022.
According to United States Attorney Gerard M. Karam, the information alleges that Polen, while working at a nursing home in Lock Haven, PA, agreed with an unnamed physician to be paid kickback payments. The nursing home was a recipient of Medicare benefits in excess of $10,000 per year. Under Federal law, it is an offense to embezzle, steal, obtain by fraud, or misapply property worth at least $5,000 from an organization receiving Federal funds in excess of $10,000 in a year.
The physician reported to Polen, who ran the workers’ compensation program for the nursing home. Polen hired the physician for this role on the condition that the physician would have to pay half of his salary from the nursing home to Polen each month, through a company that Polen set up called Paul D. Polen, Inc. Polen made his own wife the president of this company in name only.
The physician agreed to this arrangement, which required, at most, a few hours of work per month from the physician. The physician’s responsibilities also included evaluating Polen’s own workers’ compensation claims, which resulted in Polen working a reduced schedule for the same compensation from the nursing home.
The physician then proceeded to pay Polen between approximately $1,700 and $2,500 per month for a period of about twenty years. In order to conceal these payments, Polen and the physician regularly exchanged payment at the physician’s home rather than at the workplace. In total, it is alleged that Polen and the physician conspired to embezzle, steal, obtain by fraud, and misapply approximately $528,450 from the nursing home.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.
The maximum penalty under federal law for conspiracy is five years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Lincoln Woman Sentenced to over 4 Years for Conspiracy to Distribute and Possession with Intent to Distribute FentanylRead the Press Release
United States Attorney Susan Lehr announced that Wren G. Chamberlain, age 22, of Lincoln, Nebraska was sentenced on December 5, 2024, in federal court in Lincoln for one count of conspiracy to distribute and possession with intent to distribute fentanyl. United States District Judge Susan M. Bazis sentenced Chamberlain to a total of 51 months’ imprisonment. There is no parole in the federal system. After Chamberlain’s release from prison, she will begin a 3-year term of supervised release.
On August 12, 2023, a Confidential Informant (“CI”) helped law enforcement arrange a controlled purchase of M30 pills from Aidan Glenn. Glenn informed the CI that he was going to meet with Michael Smith at a location in Lincoln to get more pills. Law enforcement arrested Glenn, Chamberlain, and Smith.
Chamberlain agreed to speak with law enforcement and consented to a search of her cellphone. She admitted that she and Glenn arrange M30 purchases from Smith together. Her phone showed extensive conversations with Glenn, Smith, Chase Hartung, and others coordinating purchases and sales of M30s dating back to at least July 1, 2023. Chamberlain and Glenn’s phones show that they worked together to arrange purchases and sales.
Chamberlain bonded out shortly after her arrest and began working with another individual to sell M30s and fill the void in the market left by Smith’s arrest. The two were arrested on November 28, 2023, with 13.8 grams of cocaine, 29.13 grams of heroin, 9.29 grams of psilocyn, and 190 M30 pills (the pills weighed approximately .1 grams each).
Michael Smith is currently set for a change of plea hearing on December 11, 2024, before U.S. Magistrate Judge Jacqueline M. DeLuca.
Chase Hartung is currently set for a court hearing on December 19, 2024, before U.S. Magistrate Judge Jacqueline M. DeLuca.
Aidan Glenn is currently set for sentencing on January 9, 2025, before U.S. District Judge Susan M. Bazis.
This case was investigated by the Lincoln Police Department.
Lebanese Man Sentenced for Participation in International Money Laundering ConspiracyRead the Press Release
BOSTON – A Lebanese man was sentenced yesterday for his for his participation in a money laundering conspiracy.
Andres Rached Farah, 55, a Lebanese citizen who resided in Colombia, was sentenced by U.S. District Court Judge Richard G. Stearns to 52 months in prison. In August 2024, Farah pleaded guilty to money laundering conspiracy and conducting substantive money laundering transactions. Farah was charged in a 50-count indictment along with 19 other individuals in March 2022. Farah was arrested in Colombia in April 2022 and extradited to the United States in September 2023.
Beginning in 2016 and continuing until 2022, law enforcement conducted an investigation into a money laundering organization based primarily in Barranquilla, Colombia. An undercover agent infiltrated the organization by portraying himself as an international money launderer able to pick up bulk cash throughout the world, launder the proceeds through his United States-based accounts and send the money to Colombia. Specifically, the money would be sent either through the Black Market Peso Exchange – a common method of trade-based money laundering used to repatriate the proceeds of drug trafficking to Colombia – or through business accounts that could layer the proceeds in other transactions to conceal the original illegal source.
Throughout the course of the investigation, members of the money laundering organization would allegedly contact the undercover and arrange meetings for the undercover and the undercover’s purported associates to collect bulk cash throughout the world. Members of the money laundering organization allegedly directed where the money was to be sent, and facilitators, such as Farah, would facilitate the payout of the laundered proceeds in Colombia for the benefit of the drug suppliers. Over the course of the conspiracy, Farah was responsible for the laundering of at least $591,000 in drug proceeds.
Farah is the ninth defendant to be sentenced in the case. Four other defendants have pleaded guilty and are awaiting sentencing. Two additional defendants have filed notice of their intent to plead guilty. The case is pending as to the remaining defendants.
United States Attorney Joshua R. Levy; Stephen Belleau, Acting Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Jonathan Wlodyka, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. The Justice Department’s Office of International Affairs and the Narcotic and Dangerous Drug Section’s Office of the Judicial Attaché at the U.S. Embassy in Bogota provided critical assistance in securing the arrest and extradition of Farah. Assistant U.S. Attorneys Jared C. Dolan and Alathea E. Porter of the Criminal Division are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Leading member of drug smuggling group headed to prisonRead the Press Release
LAREDO, Texas – A 66-year-old Mexican man has been sentenced for his role in smuggling fentanyl into the United States, announced U.S. Attorney Alamdar S. Hamdani.
Juan Hernandez Alcantar pleaded guilty Aug. 6.
U.S. District Judge Marina Garcia Marmolejo has now ordered him to serve 168 months in federal prison. Not a U.S. citizen, Alcantar is expected to face removal proceedings following his imprisonment. In handing down the sentence, Judge Marmolejo noted Alcantar’s role as a leader/organizer, how deadly and dangerous fentanyl is and the number of deaths that could result from such a large amount of drugs.
In July 2023, Alcantar recruited drug mules to transport fentanyl and cocaine. He had been residing at his daughter’s residence and was using her vehicle to conduct his drug operation. During the scope of the conspiracy, Alcantar arranged for the smuggling of 2,194 grams of fentanyl, 1,200 grams of heroin and 2,100 grams of cocaine.
Authorities learned Alcantar was going to be smuggled to San Antonio in a tractor trailer with other undocumented aliens in an effort to evade the Border Patrol checkpoint north of Laredo. They were able to stop the trailer and take him into custody.
Alcantar is an undocumented alien who has a history of illegally entering the United States and committing criminal offenses.
Homeland Security Investigations conducted the investigation with assistance from Border Patrol as part of the South Texas High Intensity Drug Trafficking Areas (HIDTA) Task Force. Special Assistant U.S. Attorney Terence A. Check Jr. prosecuted the case assistance of Assistant U.S. Attorney Andrew Hakala-Finch.
Leader of Southwest Virginia Methamphetamine Conspiracy to Serve 20 Years in Federal Prison Following His Release from Prison in GeorgiaRead the Press Release
ABINGDON, Va. – The leader of a 20-member conspiracy that distributed numerous kilograms of methamphetamine throughout southwest Virginia and eastern Tennessee was sentenced today in federal court.
Christopher “CJ” Johnson, 47, of Bristol, Tennessee, previously pled guilty to conspiracy to distribute methamphetamine. Today he was sentenced to 20 years in federal prison, which he will serve following his release from the Georgia Department of Corrections.
According to court documents, in 2020 Johnson and Noah Bryan Horn were arrested in Georgia with four kilograms of methamphetamine, two pistols, and heroin. As a result, Johnson received a 25-year prison sentence in the Georgia Department of Corrections. But, by mid-2022, Johnson had launched another methamphetamine conspiracy. From prison in Georgia, Johnson used a contraband cell phone to communicate with people outside of prison to coordinate his multi-state drug trafficking scheme. Co-conspirators would travel to Georgia to collect large amounts of methamphetamine from Johnson’s designated sources, send payments to Johnson via CashApp and other means, and then bring the drugs back to southwest Virginia and eastern Tennessee for further distribution. Johnson also coordinated deliveries of fentanyl and ecstasy during the conspiracy.
At one point, Johnson was responsible for a large percentage of the overall methamphetamine market in both the Bristol, Virginia and Bristol, Tennessee areas.
Others who have previously pleaded guilty as part of the conspiracy included individuals from Virginia and Tennessee: Noah Bryan Horn, Nicholas Alexander Courtney, Michael Paul Brown, Jeremy Wayne Maxfield, Kenneth Lee Trivette, Olivia Abigail Coleman, Kayla Cheyanne Winebarger, Sheenah Amber Rogers, Joey Dean Webb, Diamond Snow Booher, Amber Leigh Phipps, Morgan Paige Perry, Eric Dale Whisman, Kedrick Lee Dingus, Christopher Michael Sullivan, Woodrow America Ritchie, Ashley Lynn Young, Patricia Ann Smoot, and Tabitha Nichole Satterfield.
United States Attorney Christopher R. Kavanaugh, and Jarod Forget, Special Agent in Charge of the Drug Enforcement Administration’s Washington Division, made the announcement.
The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Virginia State Police, the Washington County Sheriff’s Office, the Smyth County Sheriff’s Office, the Bristol (Virginia) Police Department, and other law enforcement agencies in Georgia and Tennessee investigated the case, including Tennessee’s Bristol Police Department, Sullivan County Sheriff’s Office, and 2nd Judicial Drug Task Force as well as the Georgia State Patrol.
Assistant U.S. Attorneys Corey Hall and Whit Pierce are prosecuting the case.
Kings County Man Charged with Receiving and Possessing Child Sex Abuse Material on PhoneRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Quentin Nelson, 32, of Corcoran, charging him with receiving and possessing prepubescent child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 25, 2020, Nelson received and attempted to receive child pornography. Nelson also possessed numerous images and videos of prepubescent child sexual abuse materials on a phone and an SD card.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney Kristin F. Scott is prosecuting the case.
If convicted, Nelson faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Justice Department and Consumer Financial Protection Bureau Reinforce Federal Protections for Servicemembers in Letter to Financial Services ProvidersRead the Press Release
The Justice Department and Consumer Financial Protection Bureau (CFPB) issued a joint letter today reiterating financial services providers of their responsibility to recognize interest rate protections that exist for servicemembers, recent veterans and their spouses under the Servicemembers Civil Relief Act (SCRA).
Under the SCRA, servicemembers have additional rights and protections because of the unique financial challenges that often emerge as a result of their service. One provision of the SCRA limits the amount of interest that banks, credit cards and other financial services providers may charge on certain financial obligations that the servicemember incurred before military service to no more than 6% per year, including most fees.
“Servicemembers make great sacrifices to serve our nation and protect our democracy,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Financial services providers must ensure that servicemembers are afforded their rights and benefits under the law.”
“Many military families have been hit hard by high interest rates on credit cards, mortgages and auto loans, even though they are entitled to an interest rate cap,” said CFPB Director Rohit Chopra. “Financial firms shouldn’t be price gouging those who serve in uniform.”
Recently, the CFPB has published reports on the rising interest rates in both the credit card and mortgage markets. The CFPB’s 2022 analysis estimated that less than 10% of eligible auto loans and 6% of personal loans to activated members of the National Guard and Reserves were receiving interest rate reductions, resulting in nearly $10 million a year in estimated lost savings. With current interest rates on car loans and even mortgages well above 6% for many borrowers, more servicemembers would now benefit from a reduction than in prior years.
Today’s letter ensures that financial services providers are aware of the provision within the SCRA that protects servicemembers against violations of interest rate benefits. If servicemembers make a proper request, a creditor must forgive and not defer any interest greater than 6%. The letter also includes recommendations for financial services providers to further help servicemembers, such as automatically applying the interest rate cap to all eligible accounts held at that institution if a servicemember invokes protections for a single account.
The Justice Department’s Servicemembers and Veterans Initiative coordinates federal resources to build a comprehensive legal support and protection network focused on serving servicemembers, veterans and their families. Since 2011, the department has obtained over $481 million in monetary relief for over 147,000 servicemembers through its enforcement of the SCRA. For more information, visit www.justice.gov/servicemembers.
Servicemembers who are covered by this law are likely eligible for military legal assistance and can contact their local legal assistance office for help. See legalassistance.law.af.mil/ for a list of office locations. If servicemembers are not eligible for military legal assistance services, they may request that the Justice Department review their claim by submitting a complaint at civilrights.justice.gov/report/.
The CFPB provides educational resources to military families, monitors complaints and coordinates with federal partners on matters related to consumer protection for the military community. Additionally, the CFPB has authority to enforce the Military Lending Act, as well as the ability to take legal action to address unfair, deceptive or abusive acts or practices related to consumer financial products or services for all members of the public, including servicemembers, under the Consumer Financial Protection Act.
Consumers encountering problems with interest rates can submit a complaint with the CFPB online or by calling (855) 411-CFPB (2372). The CFPB encourages employees who believe their companies have violated federal consumer financial protection laws to send information about what they know to [email protected].
James Mailhiot, Jr. Pleads Guilty to Tax EvasionRead the Press Release
Burlington, Vermont – The United States Attorney’s Office announced that James Mailhiot, Jr., 56, of Rutland, Vermont, pleaded guilty yesterday in United States District Court in Rutland to a charge of federal income tax evasion. U.S. District Judge Mary Kay Lanthier released Mailhiot on conditions pending sentencing, which is scheduled for March 27, 2025.
On November 14, 2024, the United States Attorney filed a one-count information charging Mailhiot with evading a significant portion of the income taxes he owed to the United States for Tax Years 2019 through 2022. Yesterday, Mailhiot pleaded guilty to that information.
According to the information, Mailhiot owned and operated a roofing business that generated approximately $1.6 million in gross revenues between 2019 and 2022. Mailhiot used an out-of-state accountant to prepare his federal income tax returns. To enable the accountant to prepare each return, Mailhiot sent the accountant records of revenues earned and expenses incurred on the various roofing jobs he completed that year. In fact, the records Mailhiot gave to the accountant were very incomplete, resulting in a very substantial understatement of the taxable income he earned each year, and very substantial underpayments of the taxes he owed to the Internal Revenue Service. According to the information, Mailhiot’s underpayments for years 2019-2022 totaled $296,000.
Mailhiot faces up to five years of imprisonment and a fine of up to $100,000. The actual sentence, however, will be determined by the District Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors.
This case was investigated by the Internal Revenue Service, Criminal Investigation.
Mailhiot is represented by Mark Kaplan, Esq. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Indictment Charges New Haven Man with Cocaine Trafficking OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that a federal grand jury in Hartford has returned an indictment charging ROBERTO LOZADA, also known as Roberto Lozado and “Omi,” 51, of New Haven, with possession with intent to distribute cocaine.
The indictment was returned on November 14, 2024, and Lozada appeared today before U.S. Magistrate Judge Maria E. Garcia and entered a plea of not guilty to the charge. He has been detained since his arrest on October 1, 2024.
As alleged in court documents and statements made in court, on October 1, 2024, the Drug Enforcement Administration received information that Lozada would be delivering a half-kilogram of cocaine to an unknown person in the area of Forbes Avenue and Woodward Avenue in New Haven. Investigators initiated surveillance and Lozada was stopped when he arrived at the location. A search of a backpack he was carrying revealed approximately 553 grams of cocaine.
The charge of possession with intent to distribute cocaine carries a maximum term of imprisonment of 20 years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration New Haven Task Force, which includes members from the DEA, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Waterbury, East Haven, Branford, West Haven, Ansonia, Meriden, Naugatuck, and Shelton Police Departments.
The case is being prosecuted by Assistant U.S. Attorney Brendan J. Keefe.
Indiana, Pa., Man Sentenced for Fentanyl and Methamphetamine TraffickingRead the Press Release
PITTSBURGH, Pa. - A resident of Indiana, Pennsylvania, was sentenced to 46 months of incarceration, to be followed by three years of federal supervised release, related to his conviction for violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Jacob Robert Kelly, 26. Kelly earlier this year pleaded guilty to possession with intent to distribute fentanyl and methamphetamine.
In imposing the sentence, Judge Conti emphasized the serious nature of Kelly’s criminal conduct and the harm his conduct could have had on the community.
Assistant United States Attorney Nicole A. Stockey is prosecuting this case on behalf of the government.
United States Attorney Olshan commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Kelly.
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.
Illinois Man Sentenced to 2 Years for Fentanyl TraffickingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Dantrell T. Stevenson, 31, Matteson, Illinois, was sentenced on December 2, 2024, by Chief U.S. District Judge James D. Peterson to 2 years in federal prison for conspiring to distribute fentanyl. The prison term will be followed by 4 years of supervised release. Stevenson pleaded guilty to this charge on September 9, 2024.
The government’s investigation revealed a large-scale drug trafficking organization that was responsible for bringing over 4 kilograms of fentanyl pills into Madison from Arizona. Law enforcement began investigating the organization in January 2022, following the seizure of two mail packages that each contained a kilogram of fentanyl pills (almost 20,000 pills in total). Both packages were mailed by an individual in Arizona to addresses in Madison.
Between March and October 2022, undercover officers purchased fentanyl pills from members of the organization on twenty-three occasions in the Madison area. Stevenson was involved in ten of those drug sales. In October 2022, another mail package destined for members of the Madison drug organization was seized and contained 1.75 kilograms of fentanyl pills.
During Stevenson’s involvement in the case, he was on parole through the state of Illinois, following a firearms conviction.
At sentencing, Judge Peterson noted that while the quantities of fentanyl that Stevenson was selling were smaller than his co-defendants, he was an active dealer and his conduct was harmful to the community.
Five other defendants involved in this fentanyl trafficking operation were charged in a separate indictment and have already been sentenced. Dejon C. Glover was sentenced on May 16, 2024, to 4 ½ years in federal prison for attempting to possess fentanyl intended for distribution. Lloyd M. McKire-Bennett was sentenced on May 17, 2024, to more than 13 ½ years in federal prison for conspiring to distribute 400 grams or more of fentanyl and possessing firearms and ammunition as a felon. Deshawn P. Davis was sentenced on May 22, 2024, to 5 ½ years in federal prison for conspiring to distribute fentanyl. Yoshi R. Walker was sentenced on July 24, 2024, to 6 years in federal prison for attempting to distribute 40 grams or more of fentanyl. Christopher S. Wilson was sentenced on July 29, 2024, to 5 years in federal prison for conspiring to distribute 40 grams or more of fentanyl.
The charges against Stevenson and the other individuals were the result of an investigation conducted by the U.S. Postal Inspection Service, Drug Enforcement Administration, IRS Criminal Investigations, Wisconsin Department of Justice Division of Criminal Investigation, and Dane County Narcotics Task Force. The ATF Madison Crime Gun Task Force also assisted with the investigation. The task force consists of federal agents from ATF and Task Force Officers (TFOs) from local agencies including the Dane County and Clark County Sheriff’s Offices and the Fitchburg, Madison, Sun Prairie, and La Crosse Police Departments. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
Illegal Alien Sentenced in Multi-Million Dollar Wire and Tax Fraud SchemeRead the Press Release
Jacksonville, Florida – United States District Judge Wendy W. Berger has sentenced Pablo Isila Euceda-Hernandez (36), a Honduran national illegally present in United States, to 27 months in federal prison for conspiracy to commit wire fraud and conspiracy to commit tax fraud. The court also ordered Euceda-Hernandez to pay restitution to the IRS in the amount of $1,214,508. The court also entered a money judgment against Euceda-Hernandez in the amount of $336,029, representing the proceeds of the wire fraud.
According to court documents, Euceda-Hernandez established a shell company that purported to be involved in the construction industry. Euceda-Hernandez obtained a workers’ compensation insurance policy in the name of the shell company to cover a minimal payroll for a few purported employees. He then “rented” the workers’ compensation insurance to work crews who had obtained subcontracts with construction contractors on projects in various Florida counties as well as contractors in other states. He sent the contractors a certificate as “proof” that the work crews had workers’ compensation insurance, as required by Florida law. By sending the certificate, Euceda-Hernandez falsely represented that the work crews worked for the shell company. Over the course of the scheme, Euceda-Hernandez “rented” the certificates to dozens of work crews, defrauding the worker’s compensation carrier, typically allowing undocumented illegal workers to be employed unlawfully.
As part of the scheme, the contractors issued payroll checks for the workers’ wages to the shell companies and Euceda-Hernandez cashed these checks, then distributed the cash to the work crews after deducting their fee, which was typically about 6% of the payroll. During the scheme, Euceda-Hernandez cashed payroll checks totaling approximately $5 million. Neither the shell company nor the contractors reported to government authorities the wages that were paid to the workers, nor did they pay either the employees’ or the employer’s portion of payroll taxes – including Social Security, Medicare, and federal income tax. According to the IRS, the amount of payroll taxes due on wages collected by Euceda-Hernandez totaled $1,214,508.
The scheme also facilitated the avoidance of the higher cost of obtaining adequate workers’ compensation insurance for the numerous workers on the work crews to whom Euceda-Hernandez “rented” the workers’ compensation insurance. The policy that Euceda-Hernandez purchased and then “rented” out was for an estimated payroll of $169,400 and the insurance company issued a policy for a premium of approximately $11,352. Had a workers’ compensation insurance policy been purchased for the actual payroll totaling approximately $5 million, the policy premium would have totaled approximately $591,978.
“Under-the-table cash payroll schemes, especially those designed to pay illegal immigrants not authorized to work in the United States, jeopardizes the integrity of the construction industry and undermines the legal framework intended to protect workers and ensure fair business through legal and ethical standards,” said Tim Hemker, Homeland Security Investigations (HSI) Jacksonville assistant special agent in charge. “HSI, through our strong law enforcement partnerships, is committed to uncovering the schemes of criminals and ensuring that justice is served for those who seek to exploit the system.”
“This defendant cheated. He cheated their employees, the U.S. taxpayers, and most importantly the free-market principles which govern our society,” said Ron Loecker, Special Agent in Charge of IRS-Criminal Investigation’s Tampa Field Office. “By breaking the law, Euceda-Hernandez sought an unfair advantage to all their competitors who played by the rules and will now contemplate their actions from prison. We want to ensure a level playing field for the business owners doing things the right way. To those who think they can get away with this type of behavior, no matter what steps you take to cover your tracks, we will find out, and do everything we can to bring you to justice.”
This case was investigated by Homeland Security Investigations, the Internal Revenue Service – Criminal Investigation, and the Florida Department of Financial Services. It was prosecuted by Assistant United States Attorney John Cannizzaro.
Honduras Man Charged with Illegal Re-Entry into U.S.Read the Press Release
PITTSBURGH, Pa. – A Honduras resident has been indicted by a federal grand jury in Pittsburgh on a charge of illegal re-entry of a removed alien, United States Attorney Eric G. Olshan announced today.
The one-count Indictment named Saul Enrique Padilla-Mejia, 38, as the sole defendant.
According to the Indictment, on or about August 13, 2019, Padilla-Mejia was removed from the United States. On or about February 4, 2024, Padilla-Mejia was arrested by the Pennsylvania State Police for driving under the influence, driving without a license, reckless driving, careless driving, and failing to obey traffic control devices.
Padilla-Mejia was arrested on September 1, 2024, by the Moon Township Police Department related to the illegal re-entry charge, and was taken into custody by U.S. Immigration and Customs Enforcement on October 30, 2024.
Padilla-Mejia appeared in federal court on December 4, 2024, and was ordered detained pending trial.
The law provides for a maximum total sentence of up to two 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 Rebecca L. Silinski is prosecuting this case on behalf of the United States.
U.S. Immigration and Customs Enforcement and the Pennsylvania State Police conducted the investigation leading to the Indictment.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Home Health Care Company and Its Owners Pay More Than $360K to Settle False Claims AllegationsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and William Tong, Connecticut Attorney General, today announced that HOME CARE VNA LLC and its current and former owners, SHAKIRA LUBEGA and CONSTANT OGUTT, have entered into a civil settlement agreement with the federal and state governments in which they will pay $361,520 to settle allegations that they were paid for home health care services that violated Medicaid regulations relating to plans of care.
Home Care VNA is a home health agency with offices located at 330 Main Street in Hartford. Lubega is the current owner of Home Care VNA and Ogutt is a former, part owner. Lubega and Ogutt are married.
The Regulations of Connecticut State Agencies expressly require, as a condition of payment for home health care services, that each patient has a plan of care, the plan of care is signed by a licensed practitioner, the plan of care is signed within 21 days after the episode of care begins, and a new or modified plan of care is reviewed, revised, and signed every 60 days.
The United States and the State of Connecticut contend that Home Care VNA, Lubega, and Ogutt submitted or caused to be submitted claims for reimbursement to Connecticut Medicaid for home health care services for patients who had unsigned plans of care or had no plans of care at all.
To resolve the governments’ False Claims Act allegations, Home Care VNA, Lubega, and Ogutt have agreed to pay $361,520, which covers the time-period from August 1, 2018, through March 26, 2020.
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot and by Assistant Attorney General Joshua Jackson of the Connecticut Office of the Attorney General.
In 2022, Home Care VNA, Lubega, and Ogutt paid $630,000 to resolve Medicaid fraud allegations in Massachusetts.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Hartford Man Admits Trafficking Crystal MethRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that GODFREY SMITH, also known as “Mike” and “Mikey,” 41, of Hartford, pleaded guilty today in Bridgeport federal court to a methamphetamine trafficking charge.
According to court documents and statements made in court, in April 2024, the Drug Enforcement Administration’s Hartford Task Force and Middletown Police Department made a controlled purchase of approximately 53 grams of crystal methamphetamine from an individual in Middletown. During the transaction, investigators identified Smith as the source of the drugs. On August 22, 2024, investigators made a controlled purchase of approximately 240 grams of crystal methamphetamine from Smith in Hartford.
Smith was arrested on a federal criminal complaint on September 4, 2024. At the time of his arrest, law enforcement seized from Smith approximately 27 grams of crystal methamphetamine, 44 grams of cocaine, 32 grams of crack cocaine, $3,200 in cash, and a box of .45 caliber ammunition.
Smith pleaded guilty to possession with intent to distribute, and distribution of, five grams or more of methamphetamine, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny in Hartford on February 28.
Smith is released on a $100,000 bond pending sentencing.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, Middletown, New Britain, Rocky Hill, Wethersfield, and Windsor Locks Police Departments. The Bureau of Alcohol, Tobacco, Firearms and Explosives has assisted the investigation.
The case is being prosecuted by Assistant U.S. Attorney A. Reed Durham.
Guatemala Resident Indicted for Illegal Re-Entry into U.S.Read the Press Release
PITTSBURGH, Pa. – A resident of Guatemala has been indicted by a federal grand jury in Pittsburgh on a charge of illegal re-entry of a removed alien, United States Attorney Eric G. Olshan announced today.
The one-count Indictment named Josue Raul Ascon-Morales, 36, as the sole defendant.
According to the Indictment, on or about March 18, 2008, Ascon-Morales was removed from the United States. On or about September 1, 2024, Ascon-Morales was charged by the Moon Township Police Department for driving under the influence and driving without a license. He was taken into custody by U.S. Immigration and Customs Enforcement on October 22, 2024.
Ascon-Morales appeared in federal court on December 4, 2024, and was ordered detained pending trial.
The law provides for a maximum total sentence of up to two 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 Rebecca L. Silinski is prosecuting this case on behalf of the government.
U.S. Immigration and Customs Enforcement and the Moon Township Police Department conducted the investigation leading to the Indictment.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.