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25 November 2024
Lancaster Man Convicted of Money Laundering and Operating an Unlawful Money Transmission Business for Converting Cash to BitcoinRead the Press Release
BOSTON – A Lancaster, Mass. man was convicted on Nov. 22, 2024 following a five-day jury trial for his involvement in an unlicensed money transmission business that exchanged cash for Bitcoin for an individual who represented to be involved in unlawful trafficking in counterfeit goods.
Alan Joseph,36, was convicted of one count of operating an unlicensed money transmitting business and three counts of money laundering. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for Feb. 24, 2025. Joseph was charged by criminal complaint and arrested in February 2021 and later indicted by a federal grand jury in March 2021.
“Mr. Joseph’s conduct made him a critical cog in criminal enterprises, willingly converting illicit cash into cryptocurrency to help his customers conceal their tracks,” said United States Attorney Joshua S. Levy. “This conviction sends a clear message: those who exploit emerging technologies like cryptocurrency to facilitate illegal activity will be held accountable. Our office, alongside our federal and local partners, will continue to disrupt these schemes and ensure that the integrity of our financial systems is upheld.”
“This conviction proves that Mr. Joseph was more than willing to help criminals conceal their criminal cash flow in an attempt to cover up illegal activity,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The FBI and our partners thank the jury for its service and swift verdict.”
“Criminals rely on money laundering operations like the one run by Alan Joseph to obscure their proceeds, helping criminal enterprises evade detection, enhance profit margins and avoid tax liability. HSI’s El Dorado Task Force is committed to working with our partners to follow the money and dismantle money laundering enterprises that facilitate and enable the illicit financial economy,” said Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England.
“The guilty verdict of Alan Joseph demonstrates IRS Criminal Investigation’s commitment to the prosecution of all who choose to not only break the law themselves but also those who assist criminals in facilitating their criminal activities,” said Jonathan Wlodyka, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office. “Joseph’s actions allowed criminals to conceal their activity by converting bulk cash into bitcoin, allowing them to easily and covertly integrate their ill-gotten gains into the mainstream financial system. IRS Criminal Investigations continues to work closely with our law enforcement partner to rout out these bad actors that aid others in the furtherance of their crimes.”
“Alan Joseph received money through the U.S. Mail and subsequently laundered it into Bitcoin. This conviction sends a stark warning to anyone who thinks they can illegally use the U.S. Mail for their own gain. The U.S. Postal Inspection Service will continue to remain steadfast in our mission to protect the U.S. Mail and its customers from any illegal activity,” said Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service in New England.
Between August 2020 and February 2021, Joseph engaged in at least four financial transactions where he converted cash to Bitcoin in connection with what Joseph believed to be trafficking in counterfeit goods, which is illegal under federal law. Bitcoin is a form of virtual currency, or cryptocurrency, that has no physical form and is traded exclusively by electronic means.
Joseph sought to promote and conceal the nature of such illegal activity. For instance, on Oct. 28, 2020, Joseph converted about $25,000 in cash to Bitcoin for the undercover agent. During this meeting, the undercover agent represented to Joseph that the money Joseph was converting was from “rich housewives” who purchased “fake” items. Additionally, Joseph expressed an interest in purchasing counterfeit goods from the undercover agent.
Contrary to federal law and regulations, Joseph never registered his money transmission business with the Department of Treasury, nor did he ever request identification from the undercover agent during the meetings.
The charge of money laundering provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. The charge of operating an unlicensed money transmitting business provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Levy, FBI SAC Cohen, HSI SAC Krol, Acting IRS-CI SAC Wlodyka and USPIS Inc Larco Ward made the announcement. Assistant U.S. Attorneys John T. Mulcahy and Lindsey E. Weinstein of the Criminal Division prosecuted the case.
Kilo Drug Trafficker Sentenced to 20 YearsRead the Press Release
RALEIGH, N.C. – Christopher Gibson, 41, of Wilmington, was sentenced to 240 months in prison for trafficking more than 30 pounds of methamphetamine in the Wilmington area. He pled guilty on August 13, 2024, to a drug conspiracy involving more than 500 grams of methamphetamine and cocaine.
According to court documents and other information presented in court, on November 18, 2021, the San Diego Airport Police, the Drug Enforcement Administration (DEA) San Diego Field Division, and the San Diego County Integrated Narcotics Task Force received information that an individual was attempting to transport fentanyl from California to North Carolina. That information led agents to Gibson at the airline gate in California. Gibson was in possession of $10,635 and a United States Postal Service (USPS) receipt. Using these postal receipts, USPS agents located a package that Gibson had attempted to send to an address in Wilmington. A search of the package revealed two kilograms of cocaine.
On April 27, 2023, a Wilmington Police Department officer conducted a traffic stop on a vehicle driven by Gibson. As the officer approached Gibson's car, Gibson fled at a high speed, exceeding 80 miles per hour, and failing to stop at a stop sign. He eventually stopped the vehicle in a cul-de-sac. A K-9 officer responded to the scene and alerted law enforcement to the presence of narcotics in the vehicle. A search revealed cash and multiple cell phones. While fleeing, Gibson discarded a bag containing approximately 18 grams of cocaine, 195 bindles of fentanyl, and three grams of methamphetamine.
On October 10 and 20, 2023, law enforcement conducted two controlled purchases of 110 grams of methamphetamine each, from Gibson. On October 24, 2023, another controlled purchase of 193 grams from Gibson occurred.
On October 30, 2023, a Wilmington Police Department officer conducted another traffic stop on a vehicle driven by Gibson. During this stop, a K-9 officer alerted to the presence of narcotics. A search of the vehicle uncovered approximately a gram of fentanyl on the driver's side floorboard. Additionally, a search of Gibson’s person revealed eight baggies containing approximately 10 grams of fentanyl. He was also in possession of multiple cell phones and cash.
Throughout the investigation, law enforcement discovered that from 2020 to 2021, Gibson had multiple kilograms of cocaine shipped from both California and Arizona to Wilmington, where he operated several stash houses. In 2023, it was determined that he imported more than 30 pounds of methamphetamine to various locations in Wilmington for distribution.
Gibson has a previous federal conviction for conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine and more than 50 grams of cocaine, as well as dihydrocodeinone. He also has prior charges for using, carrying, and possessing a firearm during and in relation to a drug trafficking crime.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Bureau of Tobacco, Alcohol and Firearms, the Drug Enforcement Administration, the Wilmington Police Department, and the New Hanover County Sheriff’s Office investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:24-CR-00039.
Justice Department Secures Agreement with Trailer Manufacturer to Resolve Immigration-Related Discrimination Claims and Announces a New Resource for Lawful Permanent ResidentsRead the Press Release
The Justice Department announced today that it secured a settlement agreement with Great Dane LLC (Great Dane) resolving the department’s determination that Great Dane’s plant in Wayne, Nebraska, violated the Immigration and Nationality Act (INA).
The department determined that Great Dane discriminated against non-U.S. citizens by asking them for additional and unnecessary documents, or information from those unnecessary documents, to prove their permission to work. The department also announced the release of a new fact sheet to help lawful permanent residents learn about discrimination protections under the INA.
“It is unlawful for employers to add discriminatory barriers in the hiring process because of a worker’s citizenship or immigration status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to ensuring that workers enjoy the protections the law provides, including where barriers to employment are discriminatory.”
After opening an investigation based on a complaint from a lawful permanent resident, the department determined that Great Dane asked non-U.S. citizens, including the worker who submitted the complaint, to provide additional and unnecessary documents to prove their permission to work, because of their immigration status. For example, the department determined that even though the worker who filed the initial complaint provided sufficient information and documents to prove his permission to work — his state ID and unrestricted Social Security card — the company nevertheless wanted him to provide additional information from a Permanent Resident Card. The department determined that Great Dane failed to hire non-U.S. citizens who were unable to comply with the company’s unnecessary requests. Finally, the department also determined that Great Dane discriminated against non-U.S. citizens already working for the company by asking them for documents to prove their ongoing permission to work, even though it was unnecessary.
Lawful permanent residents (sometimes referred to as “green card holders”) can use different types of documentation to prove their permission to work. Lawful permanent residents do not have to show a Permanent Resident Card (or “green card”) or prove their immigration status when demonstrating their permission to work. As explained in the department’s new fact sheet, the INA protects lawful permanent residents from discrimination when an employer is verifying their permission to work. Employers cannot limit the valid documentation that a lawful permanent resident may show when verifying their ability to work. The fact sheet also explains how lawful permanent residents can get help if they are being discriminated against.
Under the terms of the settlement, the company will pay $218,000 in civil penalties to the United States and establish a backpay fund of $218,000 to compensate victims of the company’s discriminatory practices, including those whom it failed to hire or who lost work because they could not comply with the company’s discriminatory document demands. The agreement also requires Great Dane to train its personnel on the INA’s anti-discrimination requirements, revise its employment policies and be subject to departmental monitoring and reporting requirements. People who think they may qualify for back pay under the settlement should contact the Civil Rights Division at [email protected].
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the antidiscrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; or retaliation and intimidation.
IER’s website has more information on lawful permanent residents’ rights under the INA and how employers can avoid unlawful discrimination when verifying someone’s permission to work. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s free hotline at 1-800-255-7688 for workers or at 1-800-255-8155 for employers (1-800-237-2515, TTY for hearing impaired); sign up for a live webinar or watch an on-demand presentation; email [email protected]; or visit IER’s English and Spanish websites. Sign up for email updates from IER.
Jury Finds Windermere Attorney Guilty of Wire Fraud and Bank FraudRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Amaris Marie Delapena (50, Windermere) guilty of 15 counts of wire fraud and 22 counts of bank fraud. Delapena faces a maximum penalty of 30 years in federal prison for each count of bank fraud and up to 20 years’ imprisonment for each count of wire fraud. Her sentencing hearing is set for February 19, 2025.
According to evidence and testimony presented during the four-day trial, Delapena used illegal wire transfers and check deposits to embezzle funds during her employment as a paralegal for an Orlando law firm. Her fraud centered on re-routing checks from and to law firm clients and vendors into accounts Delapena controlled and transferring client payments from the law firm’s account to accounts Delapena controlled.
Between the time Delapena committed the offenses and her trial, she earned a law degree and became a licensed attorney in Florida.
This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Adam J. Nate.
Jury Finds Two Men Guilty of Double Murder on the Colville ReservationRead the Press Release
Spokane, Washington – United States Attorney Vanessa R. Waldref announced that a jury returned a verdict today in the trial of Zachary L. Holt, age 24, and Dezmonique D. Tenzsley (a/k/a “Privilege”), age 35. Holt and Tenzsley were found guilty on all seventeen counts presented at trial, including Felony Murder in Indian Country, Attempted Murder of a Federal Officer, Assault of a Federal Officer, Attempted Robbery in Indian Country, Robbery Affecting Commerce, as well as several firearm offenses. Holt also was convicted of First-Degree Murder in Indian Country and Murder Resulting from Discharging a Firearm During a Crime of Violence.
According to court documents and evidence presented at trial, Holt and Tenzsley went on a six-week crime spree that began in September 2022 in Northern Idaho and continued until the Defendants’ arrests in Eastern Washington on October 21, 2022. Over these six weeks, Defendants Holt and Tenzsley committed home invasions as well as a robbery in Northern Idaho, and then took their firearms and much of the stolen property into Eastern Washington, where they shot and killed Gale and Jeremy Neal at about 4:21 p.m. on October 20, 2022, in Keller, Washington. Gale and Jeremy Neal were shot twice inside their trailer during a failed robbery. Eyewitnesses described three armed men wearing masks, who arrived at the trailer in a red sedan. Surveillance video presented at trial showed the red sedan arrive at about 4:19 p.m. and depart two minutes and ten seconds later, at 4:21 p.m., just moments after the murder.
Approximately 30 minutes before the murders, Holt and Tenzsley were driving on a dirt road in the Keller area. Holt, who was speeding, swerved to miss a school bus, causing Holt’s vehicle to roll over into a ditch. Minutes later, Holt’s brother, Curry Pinkham, pulled up to give both Holt and Tenzsley a ride. Just before getting into Pinkham’s car, Holt and Tenzsley moved several firearms – including the murder weapon – and thousands rounds of ammunition out of the crashed car and into the red sedan – a 2007 Toyota Camry.
Testimony at trial established that Holt was upset about wrecking his car and demanded that Pinkham take them to a location where they could get more drugs and find someone to rob. Pinkham agreed to drive Holt to the home of a known drug dealer in the Keller area.
When Holt, Tenzsley, and Pinkham arrived at the residence of the known drug dealer, Holt and Tenzsley put on rubber gloves and masks. Holt, Tenzsley and Pinkham then grabbed firearms out of the red sedan. Rather than go to the main residence, where the purported drug dealer lived, Holt and Tenzsley walked to the back of the property, where Gale Neal’s trailer was located. As Holt and Tenzsley approached, Jeremy Neal came to the door of the trailer. Holt immediately began demanding Neal’s money and property. Moments later, Holt fired two shots, killing Jeremy Neal. Holt then turned to Gale Neal, who leaned back into the couch in fear, and fired two more shots, killing Gale. Throughout, Tenzsley was standing guard, armed with a shotgun and his face covered by a mask.
After the robbery and murder, and while law enforcement was responding to the scene, Tenzsley, Holt, and Pinkham drove towards Nespelem, Washington. As Pinkham was driving the getaway car, Holt fired several additional shots – this time at law enforcement, who was attempting stop the red Camry. During the chase, a Colville Tribal Police Sergeant, who was cross-deputized as a federal officer, was hit in the forearm. Several additional bullets hit the Sergeant’s patrol vehicle. After shooting the first officer, Holt opened fire at a second Colville Tribal Police Officer, who also had attempted to stop the red sedan. Evidence at trial established that Tenzsley reloaded firearm magazines as Holt continued to fire at law enforcement to evade apprehension after murdering the Neals.
When Holt, Tenzsley, and Pinkham later arrived in the Nespelem area, the three men tried to hide the getaway car under a tarp and fled on foot. They also hid their firearms and ammunition throughout the Nespelem area. When Holt and Tenzsley finally were apprehended the next day, Tenzsley gave a false name. Holt got into fist fight with a concerned citizen, who had called the police just prior to Holt’s arrest.
During the investigation into the murders of Jeremy and Gale Neal, Tribal and federal law enforcement identified a series of other crimes that Holt and Tenzsley committed as part of their six-week crime spree and conspiracy. On September 3, 2022, Holt and Tenzsley robbed and severely assaulted a man at gunpoint inside his trailer in Latah County, Idaho. The pair stole ammunition, gun parts, the victim’s car keys, and a safe containing the title to the victim’s camper trailer. As Holt and Tenzsley were fleeing the robbery scene, they exchanged fire with the robbery victim.
Additional evidence established that on October 12, 2022, Holt and Tenzsley, who again were both armed, invaded two homes and assaulted multiple victims on the Nez Perce Indian Reservation in Lapwai, Idaho. The evidence at trial showed that Holt and Tenzsley were again looking for someone to rob when they committed these assaults. During the second home invasion that evening, Holt and Tenzsley shot a dog in the face on the Nez Perce Reservation. Fortunately, the dog survived the gunshot.
In the days immediately after the Lapwai assaults, Holt and Tenzsley traveled to Keller, Washington – leading to the tragic deaths of Gale and Jeremy Neal, as well as the attempted murder of one federal officer and the assault of another. The firearm used in the shooting on the Nez Perce Reservation was the same gun Holt and Tenzsley used during the Neal murders, as well as the attempted murder and assault of the two federal officers.
United States District Judge Thomas O. Rice presided over the trial for Holt and Tenzsley, which began November 18, 2024. Sentencing in this matter is set for February 6, 2025, in Spokane, Washington.
“The victims in this case, Gale and Jeremy Neal, were senselessly and brutally murdered by two men on a violent crime spree. Nothing can ever replace what the Neals’ family and loved ones have lost. My office is deeply committed to promoting public safety on Native American Reservations and addressing the crisis of Missing and Murdered Indigenous People, and this verdict demonstrates that those who commit violence on Tribal lands will be held accountable,” stated U.S. Attorney Waldref. “I am grateful for the attorneys in my office, especially First Assistant United States Attorney Richard Barker and Assistant United States Attorney Michael Ellis who led this significant prosecution, as well as the investigators and agents who worked tirelessly for countless hours to bring justice for the victims in this case.”
“As much as any case I have prosecuted, this one demonstrates the incredible tragedy of the Missing and Murdered Indigenous People Crisis,” stated First Assistant United States Attorney Richard Barker, who led the prosecution team for this case. “Our hearts go out to the Neal Family, whose loved ones were taken away from them far too soon. Unfortunately, violence on our Native American Reservations occurs far too often and has resulted in generational trauma that continues to this day. While the United States absolutely will continue to prosecute these cases and take whatever steps to hold accountable those who perpetrate such terrible violence, we cannot fully address the trauma of so many through prosecution alone. The U.S. Attorney’s Office for the Eastern District of Washington is committed to working with Native American communities to organize listening sessions, outreach events, and doing more to ensure victims and their families are heard. We are so grateful for the many witnesses who came forward in this case to ensure those responsible for Gale and Jeremy Neals’ murders were held accountable. We also cannot understate the exceptional law enforcement response, especially by the officers who put their lives on the line to capture the Neals’ murderers.”
“At the heart of our prosecutions is the stories and lives of the victims of crime,” stated Assistant United States Attorney Michael Ellis. “I am very grateful that we were able to amplify the story of the Neal family and bring justice to those who caused such harm and devastation to the Colville Indian Reservation.”
“These murders were frightening and tragic events that impacted many people in our community. My prayers go out to the family and friends of the deceased, who I know still grieve today. There is now some comfort in knowing that those who committed these acts of violence have been convicted of serious federal felony offenses,” said the Chairman of the Confederated Tribes of the Colville Reservation, Jarred-Michael Erickson. “I want to thank all of the law enforcement officials and agencies who participated in this investigation and in the apprehension of these dangerous criminals, and especially the Colville Tribal Police, who nearly lost one of their own officers when he was shot during this encounter. I also want to thank U.S. Attorney Vanessa Waldref and the prosecutors in the United States Attorney's Office in the Eastern District of Washington for their diligent prosecution of this case. I want to thank the jurors who heard the evidence and returned the verdicts they believed fit the interest of justice. Finally, I want to thank our community on the Reservation, who supported each other and law enforcement as these events unfolded. As dark a chapter as this was for the Colville Reservation, it is heartening to see how many people from different communities and agencies stand together to help each other in a time of crisis.”
“Getting these two violent offenders off the streets makes the communities they terrorized safer.” said Gregory L. Austin, Acting Special Agent in Charge of the FBI’s Seattle field office. “Their crimes ranged from robbery to murder and included shooting at law enforcement in an effort to avoid arrest. Reducing violent crime on our state’s Reservations remains a priority for the FBI and our local, state, and federal partners.”
This case was investigated by the Colville Tribal Police Department, the FBI, the FBI’s Salish Safe Trails Task Force, Latah County Sherif’s Office, Nez Perce Tribal Police Department, Idaho State Patrol, Spokane Tribal Police Department, Kalispel Tribal Police Department, Grant County Sheriff’s Office, Okanogan Sheriff’s Office, Ephrata Police Department, Soap Lake Police Department, U.S. Border Patrol, the ATF, the United States Marshals Service, and the Washington State Patrol. The case was prosecuted by First Assistant United States Attorney Richard R. Barker and Assistant United States Attorney Michael J. Ellis. Echo D. Fatsis, a contract Law Clerk with the United States Attorney’s Office, provided critical support during the trial.
Independence Man Pleads Guilty to Armed Robberies, Illegal Firearm Following Police ChaseRead the Press Release
KANSAS CITY, Mo. – An Independence, Mo., man pleaded guilty in federal court today to committing two armed robberies and illegally possessing a firearm after fleeing from police officers in a pick-up truck.
Duke A. Yates, 36, pleaded guilty before U.S. District Judge Roseann A. Ketchmark to two counts of robbery and one count of possessing a firearm in furtherance of a crime of violence.
Yates robbed a Quik Trip and a Walgreen’s, both in Independence, at gunpoint within 10 minutes of each other at about 2:30 a.m. on Dec. 25, 2023. Yates stole a total of between $500 and $700 in cash and a dozen packs of cigarettes from the stores.
A police officer spotted Yates driving a white Ford F350 pickup truck with a missing headlight, matching the description of the vehicle used in the robberies, traveling eastbound on U.S. 40 Highway near Blue Ridge Cutoff. Yates fled at the presence of the officer, with the lights now blacked out on the vehicle. The officer turned on his lights and sirens and initiated a pursuit that reached speeds over 100 miles per hour.
During the pursuit, the truck failed to stop for posted stop signs and drove over medians. The truck slid onto 23rd Street facing eastbound in the westbound lanes, causing another motorist to drive onto the shoulder to avoid a collision. Yates drove into oncoming traffic and veered at a marked police vehicle that was attempting to deploy stop sticks.
Yates failed to negotiate a turn at 24911 E. Truman Road and went off-road, colliding with a power pole and breaking it at the base. Yates fled on foot and resisted arrest while being taken into custody.
Officers searched the stolen truck and found a Glock 9mm semi-automatic handgun on the driver’s side floorboard.
Under federal statutes, Yates is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brandon Gibson. It was investigated by the Independence, Mo., Police Department.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Independence Attorney Pleads Guilty to $857,000 Tax EvasionRead the Press Release
KANSAS CITY, Mo. – An Independence, Mo., attorney pleaded guilty in court today to evading payment of $857,000 in income taxes.
John C. Carnes, 69, pleaded guilty before U.S. District Judge Howard F. Sachs to one count of tax evasion.
By pleading guilty today, Carnes admitted that he willfully attempted to evade paying his personal income taxes for tax years 2012 through 2018. Carnes kept his income in his attorney trust accounts, then withdrew cash from his attorney trust accounts to pay for personal and business expenses. An attorney trust account is a bank account in which a lawyer has a fiduciary duty to hold property of clients or third persons, including prospective clients. It is for funds that are in a lawyer’s possession in connection with representation, separate from the lawyer’s own property.
Carnes had two trust fund accounts. He withdrew $444,527 in cash from one account from 2016 through 2019, and he withdrew $144,364 from the second account from 2013 through 2015. Carnes used the cash to gamble and pay personal expenses.
Carnes deposited $232,000 in fees received for services provided in the sale of the former Rockwood Golf Course property in November 2017 and the Missouri City Power Plant project, and other income, into his attorney trust accounts.
The total tax loss to the IRS for tax years 2012 through 2018, because of Carnes’s tax evasion, totaled $618,949. In addition, relevant conduct consists of unpaid federal income tax for the tax years 1990-1993, 1996-2003, and 2005, totaling $175,590. Relevant conduct also includes the state of Missouri unpaid income taxes, totaling $62,922. The total relevant conduct is $238,513, resulting in a total tax loss of $857,462.
From 2009 to 2020, the IRS continuously engaged in various forms of investigative and enforcement activity regarding Carnes’s outstanding tax liabilities.
Under federal statutes, Carnes is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes IV. It was investigated by IRS-Criminal Investigation.
Illinois Man Accused of St. Louis CarjackingRead the Press Release
ST. LOUIS – A man from Venice, Illinois appeared in U.S. District Court in St. Louis Monday to answer an indictment accusing him of a September carjacking in the Tower Grove East neighborhood of St. Louis.
Harry Moore, 20, was indicted November 20 in U.S. District Court in St. Louis on one felony count of carjacking and one felony count of possession and brandishing a firearm in furtherance of a violent crime. He pleaded not guilty Monday.
The indictment accuses Moore of stealing a 2022 Subaru Outback at gunpoint on Sept. 9, 2024. A motion seeking to have Moore held in jail until trial says he was in a stolen Cadillac CTS with two others at the time of the carjacking and ordered the victim to unlock his cellphone and provide the PIN number to his ATM card, which Moore used a short time later to withdraw cash at a gas station. The motion also says Moore was caught on camera later that morning along the western edge of Ballpark Village in downtown St. Louis, sitting on the window frame of the passenger door of the Subaru and firing shots at a man running away.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The carjacking charge is punishable by up to 15 years in prison, a $250,000 fine, or both prison and a fine. The brandishing charge is punishable by seven years to life in prison.
The St. Louis Metropolitan Police Department, the FBI and the St. Clair County (Illinois) Sheriff’s Department investigated the case. Assistant U.S. Attorney Matthew Martin is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Idaho Falls Man Convicted of Federal Drug Trafficking ChargesRead the Press Release
POCATELLO – A federal jury convicted Jason Lundholm, 36, of Idaho Falls, of conspiracy to distribute methamphetamine and possession of methamphetamine with intent to deliver after a four-day trial, U.S. Attorney Josh Hurwit announced today.
According to court records, on September 26, 2023, officers with the Idaho Falls Police Department conducted a traffic stop on a vehicle in Idaho Falls. Lundholm was seated in the back passenger seat. Officers searched the vehicle and found 227 grams of methamphetamine in a fast-food bag located at Lundholm’s feet. Evidence presented during the trial established that Lundholm conspired with his co-defendants, Jeremy Wheeler, 49, of Idaho Falls, and Breena Jolley, 44, of Pocatello, who were also in the vehicle, to distribute methamphetamine.
The jury found Lundholm guilty of both charges after two hours of deliberation on November 21, 2024. Lundholm is scheduled to be sentenced on February 13, 2025, before Senior U.S. District Judge B. Lynn Winmill. Lundholm faces a maximum penalty of twenty years in federal prison.
Wheeler and Jolley previously pleaded guilty to possession with intent to distribute methamphetamine and are both scheduled for sentencing on December 18, 2024 before Judge Winmill.
U.S. Attorney Hurwit commended the investigation by the Idaho Falls Police Department and the Bonneville County Sheriff’s Office, which led to the charges. Assistant U.S. Attorney Justin Paskett is prosecuting the case.
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Huntington Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Steven Patrick Crabtree, 35, of Huntington, was sentenced today to six years in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on March 4, 2024, law enforcement officers responded to reports of an individual shooting at others outside of a Buffington Street residence in Huntington. Officers encountered Crabtree, who matched the description of the shooting suspect. Officers recovered a loaded Smith & Wesson model SD9VE 9mm pistol from Crabtree, and later determined that the firearm had been stolen.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Crabtree knew he was prohibited from possessing a firearm because of his prior felony convictions for conspiracy to deliver not less than 10 grams nor more than 100 grams of heroin in Wayne County Circuit Court on May 30, 2018, and attempt to commit a felony in Cabell County Circuit Court on March 21, 2017.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:24-cr-86.
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Gonzales Man Guilty of Federal Drug and Gun OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that JULES GIBSON (“GIBSON”), age 39, formerly a resident of Gonzales, Louisiana, pled guilty on November 21, 2024, before United States District Judge Susie Morgan to Conspiracy to Possess with Intent to Distribute and, to Distribute Cocaine, in violation of Title 21, United States Code, 846; and Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1). GIBSON admitted that as a prior drug offender, he is subject to enhanced penalties for the conspiracy charge.
As to Conspiracy to Possess with Intent to Distribute, and to Distribute Cocaine, GIBSON faces a minimum term of imprisonment of 10 years up to a maximum of life imprisonment, a fine of up to $8,000,000 and, at least 8 years of supervised release. As to being a Felon in Possession of a Firearm, GIBSON faces up to 15 years imprisonment, up to a $250,000 fine and, up to three years of supervised release. Each offense also carries a mandatory special assessment fee of $100.00.
Sentencing in this matter is set for February 25, 2025.
Court documents court reflect that a co-defendant, who also pled guilty, was arrested by Jefferson Parish Sheriff’s Office (JPSO) deputies after they recovered several plastic bags containing cocaine and crack cocaine, a black digital scale, a Black Taurus Model PT 24/7 PRO handgun with a magazine containing 11 live rounds of .45 ammo and his cell phone, from his pick-up truck. Examination of the co-defendant’s cell phone by the JPSO and special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, uncovered text messages, photographs and other information documenting his drug trafficking activities. Additionally, the cell phone examination identified GIBSON and revealed his own drug related purchases and payments. GIBSON was later arrested by JPSO in possession of a Taurus Model PT140 PRO, .40 caliber pistol.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Mark A. Miller of the Narcotics Unit is assigned the prosecution.
Georgia Residents Charged with Conspiracy to Commit Money Laundering, Money Laundering, Wire Fraud, and Attempted ExtortionRead the Press Release
Wilmington, Del. – On November 14, 2024, a federal grand jury returned a Superseding Indictment charging nine Georgia residents with conspiracy to commit money laundering and related offenses, U.S. Attorney for the District of Delaware, David C. Weiss, announced today.
Defendant
Charges
Asaad Amir Hasuan, also known as “Dante Frederick,” age 43, of Brunswick, Georgia- One count of conspiracy to commit money laundering
- Eight counts of money laundering
- One count of wire fraud
- One count of attempted Hobbs Act extortion
- One count of conspiracy to commit money laundering
- Three counts of money laundering
- One count of conspiracy to commit money laundering
- One count of conspiracy to commit money laundering
- One count of conspiracy to commit money laundering
- Three counts of money laundering
- One count of conspiracy to commit money laundering
- Two counts of money laundering
- One count of conspiracy to commit money laundering
- One count of conspiracy to commit money laundering
- One count of conspiracy to commit money laundering
According to the Superseding Indictment, from about September 2021 through at least May 2024, while incarcerated in Georgia, Hasuan perpetrated fraud schemes against the family and friends of his fellow inmates. Hasuan induced his victims to transfer money and property for his own personal benefit and for the benefit of others by, among other things, falsely promising to provide legal assistance, physical protection, and investment opportunities. Hasuan ultimately defrauded his victims out of millions of dollars, including one Delaware resident who transferred money and property valued at more than $3.5 million. Hasuan then conspired with a network of money mules to launder the proceeds of his fraud schemes through various financial transactions, including the purchase of real property, mobile homes, and automobiles. The defendants also funneled the fraud proceeds through a car rental company doing business in the name of “One Way Auto.”
U.S. Attorney Weiss stated, “While incarcerated, Mr. Husuan orchestrated an illegal scheme that defrauded victims of millions of dollars. Working with our law enforcement partners, my office will continue to prioritize prosecuting individuals who choose to continue to disregard the rule of law. I commend the FBI for their work in investigating this case.”
The FBI’s Wilmington Resident Agency is investigating this case. Assistant U.S. Attorneys Meredith C. Ruggles and Claudia L. Pare are assigned to prosecute this case.
The U.S Attorney’s Office and the FBI are seeking to identify additional victims of Asaad Amir Hasuan a/k/a “Dante Fredrick.” If you, your family member, or anyone that you know had contact with Hasuan and would like to provide additional information, please contact the FBI at Baltimore Field Office at 410-265-8080.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
Georgia Man Sentenced to Federal Prison for Bank Fraud, Passport Fraud, and Aggravated Identity TheftRead the Press Release
Ocala, Florida – U.S. District Judge Thomas Barber has sentenced Gary Dale Thrasher (56, Georgia) to four years and nine months in federal prison for bank fraud, passport fraud, and aggravated identity theft. As part of his sentence, the court also entered an order of forfeiture for $25,200, the amount representing the proceeds of Thrasher’s fraud offenses. Thrasher entered a guilty on June 27, 2024.
According to court documents, between May and June 2023, Thrasher obtained and used, or attempted to use, fraudulent identification documents, including fraudulent United States passport cards, containing the personal information of others. Thrasher used the fake identification documents to make cash withdrawals from the accounts of the victims at multiple branches of four different federally insured financial institutions in the Middle District of Florida.
“Identity theft is not a victimless crime, and these fraud schemes undermine the trust in our financial systems and damage the lives of innocent people,” said Homeland Security Investigations (HSI) Orlando Assistant Special Agent in Charge David Pezzutti. “HSI, alongside our state and local partners in Florida, are committed to seeking these fraudsters out and holding them accountable for their actions.”
This case was investigated by Homeland Security Investigations, the Ocala Police Department, the Wildwood Police Department, the Leesburg Police Department, and the Charlotte County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
Fort Lauderdale Man Pleads Guilty to Conspiring to Defraud Medicare in the Provision of COVID-19 Test KitsRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Kevin Karl Wills, Jr. (48, Ft. Lauderdale) today pleaded guilty to conspiring to receive kickbacks in return for the referral of Medicare beneficiaries for the provision of COVID-19 tests and to purchase and sell Medicare beneficiary identification numbers. He faces a maximum penalty of 5 years in prison. A sentencing date has not yet been set.
According to the plea agreement, Wills and a co-conspirator owned and operated a company that engaged marketers who illegally obtained Medicare beneficiary identifying information. They entered into “consulting” agreements with medical service providers whereby they introduced the marketers to the providers, and the marketers agreed to supply the providers with lists of Medicare beneficiaries and their identifying information, including their Medicare beneficiary identication numbers. The providers then shipped COVID-19 tests to the identified beneficiaries and billed Medicare for the tests, then paid both the defendant’s company and the marketers a set dollar amount per beneficiary. However, the providers paid this amount only if a claim submitted on behalf of a beneficiary was reimbursed by Medicare. Such payments were illegal kickbacks under federal law.
The actions of Wills and his co-conspirators caused the submission of approximately 152,00 fraudulent claims to Medicare by several different medical service providers, which resulted in reimbursements from Medicare totaling approximately $14,405,700. Wills received a total of approximately $652,312 in kickbacks, which he agreed to forfeit to the government.
One of the providers who purchased Medicare beneficiary identifying information was SWL Services, a business in Jacksonville, Florida. The owners and operators of SWL Services, Courtney Shauta’ Lewis (31, Jacksonville) and Latania Renee Smith-Washington (50, Jacksonville), pleaded guilty to the conspiracy on March 14, 2024, and are scheduled for sentencing on December 2, 2024. One of the marketers that Wills introduced to SWL Services, Noel Gary Beres (64, Sunny Isles), pleaded guilty to the conspiracy on August 27, 2024, and is scheduled for sentencing on April 22, 2025.
This case was investigated by Health and Human Services–Office of Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier. The forfeiture is being handled by Assistant United States Attorney Jennifer Harrington.
Former Trading Firm Executive Sentenced to 23 Years for Defrauding Victims in Colorado and WorldwideRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces Bryant Edwin Sewall, 57, formerly of Little Elm, Texas, was sentenced to 23 years in prison after being found guilty by a federal jury in May of 2024 on 14 counts of wire fraud and one count of conspiracy to commit wire fraud. Michael Shawn Stewart, 61, of Scottsdale, Arizona, who was also found guilty on the same counts, will be sentenced at a later date.
Evidence presented at the three-week trial showed that Stewart and Sewall were owners and executives of companies operating on various Caribbean islands under the names Mediatrix Capital and Blue Isle Markets. As part of the scheme Stewart and Sewall provided false and fraudulent information about an algorithm-based foreign currency exchange (“ForEx”) trading program to potential investors and to salespeople they were using to solicit investors. For example, Stewart and Sewall falsely represented that Mediatrix had a history of successful ForEx trading going back to 2013 with no months of losses when, instead, Mediatrix did not exist until 2014 and its trading history included many months of net losses. Mediatrix promised its investors “100% Transparency,” “100% Liquidity” and “World Class Returns.”
Additional evidence at trial showed that after luring investors into the scheme Stewart and Sewall fraudulently induced them to stay by manipulating account statements to show only positive trades while intentionally hiding massive losses that substantially reduced those investors’ accounts. By the end of the scheme, Stewart and Sewall had promised investors over $179 million but had only $9.8 million in their accounts, a gap that they internally referred to as “the hole.” Even as they lost approximately $32 million in trades, Stewart and Sewall rewarded themselves with approximately $28 million in performance fees. They also used their brokerage, Blue Isle, to fraudulently convert investor money into over $45 million in markup fees. They spent the money on real estate, boats, cars, jewelry, and other luxuries. Sewall was ordered to pay approximately $93 million in restitution.
“This is a serious sentence for a serious crime,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “Justice was done for the many people who were victimized Sewall’s outrageous crimes.”
"Mr. Sewall and his co-defendants orchestrated an elaborate foreign currency investment fraud scheme that caused extensive financial harm to unsuspecting victims. He convinced investors by deceiving them with calculated lies about the profit potential and then created an illusion while he used their money for his own personal gain,” said FBI Denver Special Agent In Charge Mark Michalek. “The FBI will continue to investigate and seek justice for individuals who fall victim to financial criminals who cheat and lie.”
A third partner involved with Mediatrix and Blue Isle — Michael Young — previously pleaded guilty to making a false statement to the Securities and Exchange Commission and was sentenced to one year and one day in prison earlier this year.
United States District Court Judge William J. Martinez presided over the sentencing. The Federal Bureau of Investigation’s Denver Field Office conducted the investigation. Assistant United States Attorneys Anna Edgar, Bryan Fields, and former AUSA Pegeen Rhyne handled the prosecution.
Case number: 21-cr-00034-WJM
Former TPS District Chief Learning and Talent Officer Sentenced for Stealing More Than $593kRead the Press Release
TULSA, Okla. – Former District Chief Learning and Talent Officer sentenced today for Conspiracy to Commit Wire Fraud after defrauding Tulsa Public Schools and the Foundation for Tulsa Public Schools, announced U.S. Attorney Clint Johnson.
U.S. District Judge Sara E. Hill sentenced Devin Darel Fletcher, 40, to 30 months imprisonment, followed by three years of supervised release. Further, Judge Hill ordered Fletcher to pay his victims a total $593,492.32 in restitution.
“Fletcher’s embezzlement was methodical and a complete abuse of power from a person in a position of trust,” said U.S. Attorney Clint Johnson. “Simply put, there is no justification for his actions. This money could have funded several teachers' salaries, which would have directly benefited students.”
“The defendant betrayed the trust of the citizens of Tulsa and intentionally stole funds meant for the betterment of students,” said FBI Oklahoma City Special Agent in Charge Doug Goodwater. “The sentence imposed today holds him accountable for his actions and sends a message that abuse of power for personal gain is not acceptable to the American people.”
Fletcher began working for Tulsa Public Schools (TPS) in August 2016, until he resigned as the District’s Chief Learning and Talent Officer in June 2022. While employed, Fletcher was responsible for human resources and educational performance issues throughout TPS. Fletcher was entrusted with limited hiring and firing authority for specific personnel, including consultants, for whom he also had expenditure approval authority.
In October 2023, Fletcher pled guilty to devising a scheme to defraud TPS and the Foundation for Tulsa Public Schools. Fletcher, who holds a master’s degree in professional accounting, skillfully and deceitfully abused his authority. He created and altered fraudulent invoices, purchase orders, and supporting documentation. From August 2018 through March 2022, a co-conspirator received more than $448k in fraudulent payments for fake services. Even with a generous annual salary of $167k, Fletcher stole for himself an additional $137k during that time.
Fletcher was permitted to remain on bond and voluntarily surrender to the U.S. Bureau of Prisons at a later date.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney David D. Whipple prosecuted the case.
Former Cleveland City Council Member Charged with Bribery and FraudRead the Press Release
CLEVELAND – Basheer Jones, 40, of Cleveland, Ohio, has been charged in a two-count information with conspiring to commit wire fraud and honest services fraud for using his role as a public official for personal financial gain by seeking to defraud multiple community stakeholders out of more than $200,000. He previously served as an elected Cleveland city council member representing Ward 7.
According to court documents, from about December 2018 to June 2021, Jones allegedly misrepresented and concealed material facts to induce nonprofit organizations to enter into a variety of arrangements that would benefit Jones and his romantic partner co-conspirator. Under the guise of working on projects to benefit the city of Cleveland and revitalize Ward 7, Jones fraudulently sought and obtained funds from local nonprofits while he concealed his connection to his romantic partner, through whom he benefited from these arrangements.
Jones’s schemes were devised to deceive nonprofit entities into making payments toward projects they thought were for the community’s benefit. Instead, the money ultimately went into bank accounts controlled by Jones’s romantic partner. Jones would then direct her to divert those funds to herself, Jones, and to other associates who were involved.
The information alleges that Jones deceptively advised nonprofits to provide funding to move community projects forward or to hire a purported “consultant,” with the full knowledge that the funds would flow back to himself. For example, Jones recommended that a nonprofit hire a consultant for community outreach. Unbeknownst to the nonprofit, the “consultant” who quickly submitted a proposal and whose business was ultimately contracted, was Jones’s co-conspirator and romantic partner. She submitted the proposal and requested $5,000 per month at Jones’s prompting. The investigation discovered that she did not provide the nonprofit with substantial services in exchange for payments she received.
Jones later defrauded the same nonprofit out of an additional $50,000, again through his romantic partner’s consulting business. Jones claimed that he needed $50,000 to plan a community event, which included buying backpacks for schoolchildren, and falsely promised that the city would reimburse the organization. Instead, after the funds were paid, no event was held, and Jones directed his romantic partner to divide the money amongst herself, Jones, and others associated with the scheme.
Some of the projects Jones pushed included seeking community funding to rehabilitate certain distressed properties while concealing his financial interest in them. In one instance, Jones devised a bribery scheme under which he arranged for co-conspirators, including his romantic partner, to acquire a dilapidated property on Superior Road, and used his position as councilperson to pass ordinances allocating city funds to buy that property from them. Jones arranged for a co-conspirator to buy the property a minimal cost. After asking a nonprofit to purchase and rehabilitate the property, and promising city funding, Jones sponsored an emergency ordinance to fund the nonprofit’s purchase and renovation of the property. When Jones was unable to convince the nonprofit to proceed, he arranged to transfer the property to his romantic partner’s consulting business, with the understanding that she too would share the proceeds of the sale with him. After sponsoring another ordinance to reauthorize city funding for the same project, Jones sought to finalize the nonprofit’s purchase of the property from his partner’s entity for $80,000. Ultimately the scheme failed when the nonprofit decided not to proceed with the purchase.
Jones and his partner did succeed in obtaining funds for the sale of a different property to another nonprofit. He misled them to believe that he was helping them to acquire the property from the original owner. Instead, he was simultaneously arranging for his romantic partner to acquire the property from the original owner in the name of another business entity, and then immediately to resell it to the nonprofit. Jones and his partner arranged to purchase the property for only $1, promising to pay a $40,500 city demolition bill. But without paying that bill or disclosing it, Jones’s partner immediately re-sold the property to the nonprofit for $45,000.
These charges are merely allegations, and the defendant is presumed innocent and entitled to a fair trial. It will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to the case, including the defendant’s prior criminal record, if any, their role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and, in most cases, it will be less than the maximum.
This case was investigated by the FBI Cleveland Division, the U.S. Department of Housing and Urban Development Office of the Inspector General, and the IRS – Criminal Investigation.
The case is being prosecuted by Assistant U.S. Attorneys Erica Barnhill and Elliot Morrison for the Northern District of Ohio.
To report fraud, visit justice.gov/action-center/report-crime-or-submit-complaint.
Former Chief Investment Officer of Global Bond Investment Firm Charged with over $600 Million Investment Adviser FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging S. KENNETH LEECH II, the former Chief Investment Officer of Western Asset Management Company (“WAMCO”), with securities fraud, investment adviser fraud, commodity trading adviser fraud, commodities fraud, and making false statements. WAMCO is a global fixed-income investment adviser that manages hundreds of billions of dollars on behalf of its clients. Between 2021 and 2023, LEECH defrauded WAMCO’s clients by engaging in a criminal cherry-picking scheme to favor certain clients at the expense of others, assigning over $600 million of gains to favored clients and over $600 million of losses to disfavored clients. LEECH has been summoned to make his initial appearance in the Southern District of New York in connection with the charges by December 6, 2024. The case has been assigned to U.S. District Judge Gregory H. Woods.
U.S. Attorney Damian Williams said: “We allege today that S. Kenneth Leech II—the Chief Investment Officer of a significant manager of pension funds and other long-term investments—used his position to cherry pick trades and prop up his favored but failing accounts at the expense of others. These charges should be a reminder that this Office continues to police all corners of the financial markets and will swiftly hold those accountable who believe that they can cheat and abuse the trust of clients for their own purposes.”
FBI Assistant Director in Charge James E. Dennehy said: “Kenneth Leech, the former CIO of Western Asset Management Company, allegedly violated his fiduciary duty by crafting a preferential treatment scheme to allot more than $600 million in profits and losses to particular clients. Instead of allocating trades appropriately, Leech allegedly allowed favoritism to benefit preferred accounts for their benefit. The FBI will continue to investigate any individual who exploits their trusted position to favorably treat certain clients at the expense of others."
According to the allegations in the Indictment unsealed today in Manhattan federal court:[1]
Between 2021 and October 2023, LEECH committed fraud and abused the trust placed in him by clients of the investment-management company WAMCO. LEECH engaged in a criminal scheme commonly known as “cherry picking” to compensate for losses in his marquee investment strategy by assigning trades that performed well during their first day into client accounts associated with that investment strategy, and assigning trades that performed poorly over their first day into the accounts of other clients, who were not aware that LEECH was causing them losses to favor others. LEECH’s victims included institutional and retail investors who trusted LEECH to manage their savings and pension plans. Over the course of his criminal scheme, LEECH allocated trades with net first-day gains of at least approximately $600 million to his favored strategy and clients, and allocated trades with net first-day losses of at least approximately $600 million to clients to whom he owed an equal fiduciary duty.
LEECH was able to carry out this scheme because, as Chief Investment Officer of WAMCO, LEECH was responsible for making trades on behalf of different portfolios and assigning those trades to the portfolio for which he had traded—a process generally referred to as “allocation.” One set of portfolios for which LEECH traded followed what WAMCO called the “Macro Opportunities” strategy (“Macro Opps”). Another set of portfolios followed what WAMCO called the “Core” and “Core Plus” strategies (together, the “Core Strategies”). LEECH owed a fiduciary duty to any client who invested in portfolios that followed either of these strategies.
Despite that duty, and in violation of it, LEECH engaged in a fraudulent scheme to bolster Macro Opps, which necessarily came at the expense of the Core Strategies, by allocating trades based on their performance between the time he placed the trades and the time he made his allocations. He carried out this scheme by placing trades, waiting to see how those trades performed throughout the day, and then using the first-day performance of his trades to determine where to allocate them—assigning better-performing trades to Macro Opps and worse-performing trades to the Core Strategies. This was contrary to WAMCO’s compliance trainings, which emphasized that LEECH should allocate trades promptly, and against WAMCO’s policies, which prohibited allocating trades on the basis of first-day performance to make up for losses.
Neither LEECH nor WAMCO disclosed to investors that LEECH used first-day performance to decide how to allocate trades, or that LEECH was favoring Macro Opps in his allocations. To the contrary, WAMCO represented to investors that LEECH and others knew where they planned to allocate a trade before making the trade and finalized the allocation promptly after the trade was completed, and LEECH later testified before the U.S. Securities and Exchange Commission (“SEC”) that he knew where he planned to allocate a trade when he placed it. This testimony was false and the reality was far different. LEECH routinely waited hours after making his trades—often until late in the day—to make his allocations, allowing him to observe how his trades had performed before deciding where to allocate them. Between 2021 and October 2023, LEECH used that ability to see how the market moved to support Macro Opps by awarding it better performing trading and hiding worse performing trades in the Core Strategies.
By allocating trades based on first-day performance, LEECH bolstered the overall performance of Macro Opps at the expense of the larger Core Strategies. Each time LEECH assigned a trade with a first-day gain to Macro Opps, or assigned a trade with a first-day loss to the Core Strategies, LEECH improved or protected the daily performance of Macro Opps. When done consistently over time, those daily boosts added up to significantly enhance the performance of Macro Opps. From January 2021 through October 2023, the Treasury futures and options trades that LEECH allocated specifically to Macro Opps had net first day gains of over $600 million. By contrast, during this period, the Treasury futures and options trades that LEECH allocated specifically to the Core Strategies had net first day losses of over $600 million.
LEECH’s bias in favor of Macro Opps was more pronounced the larger the first-day gain or first-day loss. For example, between 2021 and October 2023, there were over 500 Treasury futures or options trades that LEECH chose to allocate specifically to either Macro Opps or the Core Strategies and that had first-day gains over $500,000. LEECH allocated over 90% of those winning trades to Macro Opps and fewer than 10% to the Core Strategies. Conversely, over that same time period, there were over 500 Treasury futures or options trades that LEECH chose to allocate specifically to either Macro Opps or the Core Strategies and that had first-day losses over $500,000. LEECH allocated less than 10% of those losing trades to Macro Opps, while allocating over 90% of them to the Core Strategies.
Similarly, between 2021 and October 2023, there were over 150 Treasury futures or options trades that LEECH chose to allocate specifically to either Macro Opps or the Core Strategies and that had first-day gains over $1,000,000. LEECH allocated over 90% of those winning trades to Macro Opps and less than 10% to the Core Strategies. Over that same time period, there were over 200 Treasury futures or options trades that LEECH chose to allocate specifically to either Macro Opps or the Core Strategies and that had first-day losses over $1,000,000. LEECH allocated less than 5% of those losing trades to Macro Opps, while allocating over 95% to the Core Strategies.
LEECH’s pattern of biased allocation was steady over the period relevant to this Indictment. In each of the 34 months between the beginning of 2021 and October 2023, the U.S. Treasury futures and options trades allocated specifically to Macro Opps had a net first-day gain. By contrast, over that same period, the U.S. Treasury futures and options trades that LEECH allocated specifically to the Core Strategies had net first-day losses in all months except two.
The bias in favor of Macro Opps was not caused by LEECH pursuing a unique trading strategy for Macro Opps. Notably, when LEECH did not exercise discretion to allocate trades between Macro Opps and the Core Strategies, the trades that went to Macro Opps were not characterized by disproportionate first-day gains.
For example, between 2021 and October 2023, LEECH had a standing instruction that trades he made through a certain broker (“Broker-1”) should, by default, be allocated to Macro Opps. As a result, LEECH generally did not exercise discretion to allocate trades through Broker-1 at the end of the day because his trading assistant automatically allocated them to Macro Opps. When Treasury futures and options trades were allocated to Macro Opps without LEECH first observing performance in the market, the bias in favor of Macro Opps disappeared. Over the relevant time period, approximately 55% of the trades LEECH placed through Broker-1 trades had first-day gains, while approximately 45% had first-day losses. These trades produced modest first-day losses, generating an average first-day loss of over $5,000. This is dramatically lower than the average first-day gain of approximately $225,000 that LEECH generated on those trades that he specifically allocated to Macro Opps when he had an opportunity to see market movements before making an allocation decision.
After October 2023, WAMCO removed LEECH from the Core Strategies, so he no longer had the authority to allocate trades to those strategies. As with the Broker-1 trades, when LEECH no longer had discretion to allocate trades to the Core Strategies, the trades LEECH allocated to Macro Opps stopped having a consistent, pronounced bias toward first-day gain.
In all, between 2021 and October 2023, the U.S. Treasury futures and options trades LEECH allocated specifically to Macro Opps had net first-day gains of over $600 million. By contrast, the U.S. Treasury futures and options trades LEECH allocated specifically to the Core Strategies had net first-day losses of over $600 million.
* * *
LEECH, 70, of Pasadena, California, is charged with one count of investment adviser fraud and one count of securities fraud, each of which carries a maximum sentence of 20 years in prison; one count of commodity trading adviser fraud and one count commodities fraud, each of which carries a maximum sentence of 10 years in prison; and one count of making false statements, which carries a maximum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding work of the FBI. Mr. Williams further thanked the SEC, which today filed a parallel civil action against LEECH.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Thomas S. Burnett and Peter J. Davis are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Florida Telecommunications and Information Technology Worker Sentenced for Conspiring to Act as Agent of Chinese GovernmentRead the Press Release
Tampa, FL – Ping Li, 59, of Wesley Chapel, Florida, was sentenced to 48 months in prison today for conspiring to act as an agent of the People’s Republic of China (PRC) without notification to the Attorney General. Li was further ordered to pay a fine of $250,000 and to serve three years of supervised release.
According to the plea agreement and other court filings, the PRC’s Ministry of State Security (MSS) is in charge of civilian intelligence collection for the PRC. The MSS often uses “cooperative contacts” located in countries outside of the PRC in furtherance of their intelligence goals, which include obtaining information concerning foreign corporate or industrial matters, foreign politicians or intelligence officers, and information concerning PRC political dissidents residing in those countries. These cooperative contacts assist the MSS in a variety of ways, including by conducting research on topics of interest to the PRC that can be used to further the MSS’s mission.
Li is a U.S. citizen who immigrated to the United States from the PRC. At various times, Li worked for a major U.S. telecommunications company and an international information technology company.
Li admitted that, from at least as early as 2012, he served as a cooperative contact working at the direction of officers of the MSS to obtain information of interest to the PRC government. Li obtained a wide variety information at the request of the MSS, including information concerning Chinese dissidents and pro-democracy advocates, members of the Falun Gong religious movement, and U.S.-based non-governmental organizations, and reported that information to the MSS. Li also provided the MSS with information obtained from his employer. Li used a variety of anonymous online accounts for the purpose of communicating with the MSS, and traveled to the PRC to meet with the MSS.
For example, in August 2012, an MSS officer requested that Li provide information about practitioners of Falun Gong and pro-democracy advocates in the United States. Falun Gong, also known as Falun Dafa, is a religious movement that originated in the PRC in the 1990s. Falun Gong is not one of the five religions formally recognized by the PRC government, and it has been banned since 1999. Its adherents both in China and abroad are of particular interest to the PRC government because of Falun Gong’s advocacy of ideas deemed subversive to the PRC government. Less than a week after receiving this request, Li sent the name and biographical information of an individual affiliated with Falun Gong residing in St. Petersburg, Florida.
In March 2015, an MSS officer requested information from Li about branch offices that Li’s employer, a major U.S. telecommunications company, had opened in the PRC. Li responded with the requested information three weeks later.
In March 2017, an MSS officer requested a training instruction plan from Li. In April 2017, Li responded indicating that he had uploaded materials to an online account that he shared with the MSS officer and asked the MSS officer to delete the materials after reading them.
In May 2021, an MSS officer requested information from Li concerning hacking events targeting U.S. companies, including a widely publicized hacking of a major U.S. company by the Chinese government. Within four days, Li responded with the requested information.
In March 2022, an MSS officer requested information from Li concerning Li’s new employer, an international information technology company, as well as materials relating to cybersecurity training. That same day, Li sent the requested information about his employer as well as materials relating to cybersecurity training.
In June 2022, an MSS officer requested information from Li concerning an individual who, according to the officer, had resided in the PRC but fled to the United States, and the officer provided Li with the name and suspected residential address in the United States of that individual. That same day, Li responded with information about the owners of that residential address.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Roger B. Handberg for the Middle District of Florida, and Executive Assistant Director Robert Wells of the FBI’s National Security Branch made the announcement.
The FBI investigated the case.
Assistant U.S. Attorneys Daniel J. Marcet, Karyna Valdes, and Jordan Howard for the Middle District of Florida and Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Florida Telecommunications and Information Technology Worker Sentenced for Conspiring to Act as Agent of Chinese GovernmentRead the Press Release
Ping Li, 59, of Wesley Chapel, Florida, was sentenced to 48 months in prison today for conspiring to act as an agent of the People’s Republic of China (PRC) without notification to the Attorney General. Li was further ordered to pay a fine of $250,000 and to serve three years of supervised release.
According to the plea agreement and other court filings, the PRC’s Ministry of State Security (MSS) is in charge of civilian intelligence collection for the PRC. The MSS often uses “cooperative contacts” located in countries outside of the PRC in furtherance of their intelligence goals, which include obtaining information concerning foreign corporate or industrial matters, foreign politicians or intelligence officers, and information concerning PRC political dissidents residing in those countries. These cooperative contacts assist the MSS in a variety of ways, including by conducting research on topics of interest to the PRC that can be used to further the MSS’s mission.
Li is a U.S. citizen who immigrated to the United States from the PRC. At various times, Li worked for a major U.S. telecommunications company and an international information technology company.
Li admitted that, from at least as early as 2012, he served as a cooperative contact working at the direction of officers of the MSS to obtain information of interest to the PRC government. Li obtained a wide variety information at the request of the MSS, including information concerning Chinese dissidents and pro-democracy advocates, members of the Falun Gong religious movement, and U.S.-based non-governmental organizations, and reported that information to the MSS. Li also provided the MSS with information obtained from his employer. Li used a variety of anonymous online accounts for the purpose of communicating with the MSS, and traveled to the PRC to meet with the MSS.
For example, in August 2012, an MSS officer requested that Li provide information about practitioners of Falun Gong and pro-democracy advocates in the United States. Falun Gong, also known as Falun Dafa, is a religious movement that originated in the PRC in the 1990s. Falun Gong is not one of the five religions formally recognized by the PRC government, and it has been banned since 1999. Its adherents both in China and abroad are of particular interest to the PRC government because of Falun Gong’s advocacy of ideas deemed subversive to the PRC government. Less than a week after receiving this request, Li sent the name and biographical information of an individual affiliated with Falun Gong residing in St. Petersburg, Florida.
In March 2015, an MSS officer requested information from Li about branch offices that Li’s employer, a major U.S. telecommunications company, had opened in the PRC. Li responded with the requested information three weeks later.
In March 2017, an MSS officer requested a training instruction plan from Li. In April 2017, Li responded indicating that he had uploaded materials to an online account that he shared with the MSS officer and asked the MSS officer to delete the materials after reading them.
In May 2021, an MSS officer requested information from Li concerning hacking events targeting U.S. companies, including a widely publicized hacking of a major U.S. company by the Chinese government. Within four days, Li responded with the requested information.
In March 2022, an MSS officer requested information from Li concerning Li’s new employer, an international information technology company, as well as materials relating to cybersecurity training. That same day, Li sent the requested information about his employer as well as materials relating to cybersecurity training.
In June 2022, an MSS officer requested information from Li concerning an individual who, according to the officer, had resided in the PRC but fled to the United States, and the officer provided Li with the name and suspected residential address in the United States of that individual. That same day, Li responded with information about the owners of that residential address.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Roger B. Handberg for the Middle District of Florida, and Executive Assistant Director Robert Wells of the FBI’s National Security Branch made the announcement.
The FBI investigated the case.
Assistant U.S. Attorneys Daniel J. Marcet, Karyna Valdes, and Jordan Howard for the Middle District of Florida and Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Florida Man Pleads Guilty to Multi-Million-Dollar Investment Fraud Schemes and Conspiracy to Launder MoneyRead the Press Release
SAN FRANCISCO – Thomas Aaron Signorelli pleaded guilty today in federal court to one count of bank fraud, two counts of wire fraud, one count of conspiracy to commit wire fraud, one count of theft of government property, one count of destruction of records, and one count of conspiracy to launder money.
Signorelli, 46, of West Palm Beach, Fla., was charged by information on Sept. 19, 2024. In pleading guilty to all seven counts in the information, Signorelli admitted that beginning in January 2021 to around December 2023, he falsely claimed he could assist individuals and entities in need of capital by raising funds, obtaining loans, and securing profitable investments through his company WS Capital, which was registered with the Securities and Exchange Commission. In fact, Signorelli did not raise capital, obtain loans, or secure profitable investments, and instead used the victims’ funds to pay his personal and living expenses, as well as to pay back other victims.
Signorelli engaged in one of the fraud schemes with his co-conspirator David Scott Cacchione. As part of that scheme, Signorelli and Cacchione convinced investors that their money would be used to purchase accounts receivables that did not exist. Rather than use the funds as promised, Signorelli typically shared a portion of the funds with Cacchione and used the remainder to pay personal and living expenses and repay other victims. Through his various schemes, Signorelli defrauded individuals and entities of more than $2,500,000. Signorelli further admitted that he conspired with an attorney in Florida to launder fraud proceeds through the attorney’s client trust account in order to disguise the source and nature of the fraud proceeds.
The plea agreement also describes that, in December 2021, Signorelli was introduced to an individual who claimed to be looking for someone to launder large sums of drug trafficking proceeds. Signorelli offered to use WS Capital accounts to launder the supposed drug trafficking proceeds and accepted approximately $150,000 in government funds from an undercover government agent. Instead of laundering those funds, Signorelli stole the money and used it to pay his personal expenses.
Signorelli further admitted that he caused applications for a Paycheck Protection Program loan and an Economic Injury Disaster Loan to be submitted to the Small Business Administration (SBA) on behalf of a Napa real estate venture that he had formed. Signorelli made false representations about the venture’s revenues, payroll, and employee count in order to obtain over $50,000 in disaster relief loans.
Finally, in August 2022, Signorelli learned that the FBI had obtained a warrant to search his mobile phone. As detailed in his plea agreement, prior to turning in his mobile phone, Signorelli deleted electronic communications on his device in order to obstruct the government’s investigation.
The announcement was made by United States Attorney Ismail J. Ramsey, FBI Special Agent in Charge Robert Tripp, IRS-CI Oakland Field Office Acting Special Agent in Charge Michael Mosley, and Small Business Administration (SBA) Office of Inspector General (OIG) Special Agent in Charge of the Western Region Weston King.
Signorelli remains free on a $200,000 appearance bond imposed on Sept. 20, 2024. His sentencing hearing is scheduled for Mar. 24, 2025 before the Honorable James Donato, U.S. District Court Judge. The maximum statutory penalty for each count is set forth below.
OFFENSE
STATUTE
MAXIMUM PENALTY
Bank Fraud18 U.S.C. § 134430 years’ imprisonment; $1,000,000 fine; 5 years’ supervised release; $100 special assessment; forfeiture and restitutionWire Fraud18 U.S.C. § 134320 years’ imprisonment; $250,000 or twice the gross gain or loss, whichever is greater; 3 years’ supervised release; $100 special assessment; forfeiture and restitutionConspiracy to Commit Wire Fraud18 U.S.C. § 134920 years’ imprisonment; $250,000 or twice the gross gain or loss, whichever is greater; 3 years’ supervised release; $100 special assessment; forfeiture and restitutionTheft of Government Property18 U.S.C. § 64110 years’ imprisonment; $250,000; 3 years’ supervised release; $100 special assessment; forfeiture and restitutionDestruction, Alteration, and Falsification of Records in Federal Investigations18 U.S.C. § 151920 years’ imprisonment; $250,000; 3 years’ supervised release; $100 special assessment; forfeiture and restitutionConspiracy to Launder Money18 U.S.C. § 1956(h)20 years’ imprisonment; $500,000 or twice the value of the property involved in the transaction, whichever is greater; 3 years’ supervised release; $100 special assessment; forfeiture and restitutionHowever, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Signorelli’s co-conspirator Cacchione pleaded guilty on Aug. 14, 2024, and was sentenced by Judge Donato on Nov. 4, 2024, to a 40-month term of imprisonment.
Assistant U.S. Attorney Garth Hire is prosecuting the case. The prosecution is the result of an investigation by the FBI, IRS-CI, and SBA OIG.
Florida Dentist Pleads Guilty to Sending Threats to Multiple Victims, Including an Election OfficialRead the Press Release
A Florida dentist pleaded guilty today to sending threats to three victims in 2019 and 2020 and to an election official in 2024.
According to court documents, from September 2019 to July 2020, Richard Glenn Kantwill, 61, of Tampa, sent over 100 threats to various public figures based on their political commentary via Facebook and Instagram messages, email, and text. As charged in the superseding information, those threats included a threat sent via email to an author, a threat sent via text to a religious persona, and a threat sent via Instagram to a television personality. Kantwill also sent at least seven additional threats to four public figures via Facebook from April 2022 to April 2024, including a threat to an election official in another state on Feb. 9.
“With this plea, the Justice Department is ensuring that Richard Kantwill faces accountability for targeting an election official and other public figures with over 100 heinous threats,” said Attorney General Merrick B. Garland. “In the three years since I created the Department’s Election Threats Task Force we have worked to aggressively combat the dangerous increase in violent threats against the public servants who administer our elections. Today’s action is yet another warning: the Justice Department will not stand for threats of violence that endanger people’s safety and endanger our democracy.”
“Today’s guilty plea is the next step in holding Richard Kantwill accountable for his almost year-long campaign of terror, sending more than 100 violent threats to over 40 victims including various public figures and an election official,” said FBI Director Christopher Wray. “Make no mistake, using electronic communications to threaten victims with violence is illegal and the FBI will continue to pursue those who seek to cause fear and terror by sending such violent threats.”
“Richard Kantwill sent more than 100 violent threats to multiple public figures, including an election official,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The Justice Department has zero tolerance for conduct that seeks to intimidate public servants from doing their jobs. I am proud of the work the Election Threats Task Force has done over the past three years to hold accountable those who threaten election workers with violence.”
Kantwill pleaded guilty to four counts of interstate transmission of a threat. He faces a maximum penalty of five years in prison for each count. A sentencing hearing will be scheduled at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case.
Trial Attorney Aaron L. Jennen of the Criminal Division’s Public Integrity Section (PIN) and Assistant U.S. Attorney Abigail K. King for the Middle District of Florida are prosecuting the case, with assistance from the U.S. Attorney’s Office for the District of Colorado.
This case is part of the Justice Department’s Election Threats Task Force. Created by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the Department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. Three years after its formation, the task force is continuing this work and supporting U.S. Attorneys’ Offices and FBI Field Offices nationwide as they join the task force in its critical work.
Under the leadership of the Attorney General and the Deputy Attorney General, the task force is led by PIN and includes several other entities within the Justice Department, including the Criminal Division’s Computer Crime and Intellectual Property Section, Civil Rights Division, National Security Division, and FBI, as well as key interagency partners, such as the Department of Homeland Security and U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
Federal Firearms License Holder Pleads Guilty to Trafficking of FirearmsRead the Press Release
SHREVEPORT, La. – United States Attorney Brandon B. Brown announced that a Shreveport man has pleaded guilty to a charge of trafficking in firearms. Dwayne Ronquillo, 52, appeared before United States Magistrate Judge Mark L. Hornsby and entered his guilty plea.
According to information presented in court, Ronquillo is a Federal Firearms License holder. In April 2024, Ronquillo maintained a booth at the flea market in Greenwood, Louisiana, where he displayed and sold firearms. On April 20, 2024, an individual went to the flea market where he met Ronquillo and discussed purchasing a firearm. The individual informed Ronquillo that he had previously taken a plea deal and had a felony on his record which had prevented him from buying a firearm at a pawn shop. Ronquillo then sold the individual a Ruger Security-9, 9x19mm pistol for $500 in cash. In addition, Ronquillo sold the individual approximately 150 rounds of 9mm ammunition.
After this firearm purchase, the individual continued to communicate with Ronquillo via text messaging to try and obtain an AR-style pistol. The individual texted Ronquillo on April 22, 2024, and advised him again that he had a felony on his record preventing him from purchasing firearms. On April 25, 2024, the individual met with Ronquillo in the parking lot of a Shreveport business and purchased a DPMS A-15, 7.62 multi caliber pistol for $1,000 in cash.
On May 29, 2024, following these two firearms purchases, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) executed a federal search warrant at Ronquillo’s residence and registered premises for his Federal Firearms License. In total, agents seized 75 firearms, various calibers of ammunition, and assorted magazines. Ronquillo admitted at the hearing today that he knew the use, carrying, and possession of firearms by a convicted felon was a felony and pleaded guilty to the charge of trafficking in firearms.
“This defendant shamelessly and recklessly put firearms and ammunition in the hands of people he knew to be prohibited, thwarting the efforts of law enforcement to keep firearms out of the possession of those who legally cannot possess them. For this conduct and in the spirit of public safety, we look forward to this individual receiving a just sentence of imprisonment in the custody of the Federal Bureau of Prisons.”
Ronquillo faces a sentence of not more than 15 years in prison, 3 years of supervised release, and a fine of up to $250,000. His sentencing has been set for April 10, 2025.
The case was investigated by the ATF and prosecuted by Assistant United States Attorney Seth D. Reeg.
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Farmington Accountant Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MARK LEGOWSKI, 60, of Farmington, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to eight months of imprisonment, followed by one year of supervised release, for filing false tax returns. Judge Dooley also ordered Legowski to pay a $10,000 fine.
According to court documents and statements made in court, from January 2015 through December 2017, Legowski was a self-employed accountant and tax return preparer doing business as Legowski & Company, Inc. (“LCI”) in Farmington. Legowski prepared income tax returns for approximately 400 to 500 individual clients and approximately 50 to 60 businesses. For the 2015 through 2017 tax years, in order to reduce his personal income tax liability, Legowski willfully underreported LCI’s gross receipts in LCI’s computer bookkeeping system by excluding some customer payment checks. He then filed false personal income tax returns that failed to report a total of more than $1.4 million in business income, which resulted in a loss to the IRS of $499,289.
In 2015, Legowski reported $0 in taxable income when the true figure was $415,697; in 2016, he reported $29,343 in taxable income when the true figure was $531,294; and in 2017, he reported $56,060 in taxable income when the true figure was $496,808.
Legowski has paid the IRS $499,289 in back taxes. He still must pay substantial tax penalties and interest.
On August 29, 2024, Legowski pleaded guilty to filing a false tax return.
Legowski, who is released on bond, is required to report to prison on January 8.
This investigation was conducted by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Hal Chen.
Essex County Man Sentenced to 70 Months in Prison for Defrauding Victims in Car Theft and Fraudulent Resale SchemeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 70 months in prison for defrauding victims by orchestrating a multistate car theft and fraud ring, U.S. Attorney Philip R. Sellinger announced.
Warren Guerrier, 47, of Newark, previously pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an indictment charging him with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
From November 2016 to June 2020, Guerrier and several conspirators acting at his direction orchestrated a scheme to steal and then fraudulently sell vehicles to unsuspecting buyers. Guerrier and his conspirators identified vehicles to steal, then photographed, tracked, and advertised them for sale on the internet. The buyer victims were provided with electronically programmed keys and falsified certificates of title for the stolen vehicles in exchange for a negotiated purchase price in cash. Buyer victims also were provided with fraudulent identity documents utilized by conspirators to obscure their true identities.
The scheme involved the theft of at least 40 stolen vehicles, approximately 30 of which were sold by Guerrier and his conspirators to buyer victims. As a result of the scheme, Guerrier and his conspirators collected approximately $285,000.
In addition to the prison term, Judge Martini sentenced Guerrier to three years of supervised release and ordered restitution of $291,637.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark and Special Agent in Charge Lyonel Myrthil in New Orleans, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Jessica R. Ecker of the Criminal Division in Newark.
Eleven Charged for Drug Trafficking in Southern IllinoisRead the Press Release
BENTON, Ill. – Following an investigation into the drug trafficking network in southern Illinois, eleven individuals are facing federal charges for distributing meth in Jackson, Massac, Perry, Saline and Williamson counties.
Nigelle J. Bird, 32, of Cape Girardeau, Missouri, was charged with one federal count of distribution of meth in Jackson County.
Nathan Behrens, 35, of Harrisburg, was charged with one federal count of distribution of meth in Williamson County.
Darvon D. Ellis, 36, of Harrisburg, is facing two counts of distribution of meth in Saline and Williamson counties.
Jeffrey T. Dancy, 41, of Sparta, was charged with two counts of distribution of meth in Perry County.
Blake Mann, 36, of Carrier Mills, was charged with two federal counts of distribution of meth in Saline County.
Desmond Nelson, 44, and Chanel Nelson, 47, of Carrier Mills, are each facing three federal counts of distribution of meth in Saline County.
Tony L. Goss Jr., 36, of Brookport, Kelsey M. Hesser, 27, of Smithland, Kentucky, and Autumn J. Lynn, 40 of Golconda, are facing one federal count of conspiracy to distribute meth in Massac County. Goss was charged with four additional counts of distribution of meth, Lynn was charged with two additional counts, and Hesser with one additional count.
Joe J. Taylor, 32, of Brookport, is facing two charges of distribution of meth in Massac County and one count of felon in possession of a firearm.
“The charged offenders are accused of distributing meth mainly across five rural counties in southern Illinois,” said U.S. Attorney Rachelle Aud Crowe. “DEA agents and our local law enforcement partners are dedicating resources to help ensure illegal drug distribution operations continue to be identified and disrupted.”
"Drug traffickers drive violence and infect our communities,” said Assistant Special Agent in Charge Joseph Dixon, head of Drug Enforcement Administration investigations in southern Illinois. “DEA is committed to removing these individuals from every aspect of society by working with our law enforcement partners to disrupt, dismantle and destroy the criminal organizations they belong to. Our commitment to the citizens of southern Illinois and the American public is steadfast, and doesn’t stop with just one win. We will continually strive to make our streets safe.”
An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
DEA led the investigation with assistance from the Carbondale Police Department, ATF, the U.S. Marshals Service and the Illinois State Police.
El Departamento de Justicia llega a un acuerdo con un fabricante de remolques para resolver acusaciones de discriminación relacionadas a inmigración y anuncia un nuevo recurso para residentes permanentes legalesRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Great Dane LLC (Great Dane) que resolvió la determinación del Departamento de que la planta de Great Dane en Wayne, Nebraska, vulneró la ley de Inmigración y Nacionalidad. El Departamento determinó que Great Dane discriminó a no ciudadanos de los EE. UU. al pedirles documentos adicionales e innecesarios, o información de esos documentos innecesarios, para demostrar su permiso para trabajar. El Departamento también anunció el lanzamiento de una nueva hoja informativa para ayudar a los residentes permanentes legales a conocer las protecciones contra la discriminación en virtud de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés).
«Es ilegal para los empleadores crear barreras discriminatorias durante el proceso de contratación debido al estatus de ciudadanía del trabajador», comentó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia se compromete a garantizar que los trabajadores disfruten de las protecciones que les proporciona la ley, incluyendo donde las barreras al empleo son discriminatorias».
Después de iniciar una investigación basada en una queja de un residente permanente legal, el Departamento determinó que Great Dane preguntó a no ciudadanos de los EE. UU., incluido el trabajador que presentó la queja, para proporcionar documentos adicionales e innecesarios para demostrar su permiso para trabajar, debido a su estatus migratorio. Por ejemplo, el Departamento determinó que, aunque el trabajador que presentó la queja inicial proporcionó suficiente información y documentos para demostrar su permiso para trabajar, su carné de identidad estatal y su tarjeta de Seguro Social sin restricciones, la empresa, sin embargo, quería que proporcionara información adicional de una tarjeta de residente permanente. El Departamento determinó que Great Dane no contrató a no ciudadanos de los EE. UU. que no pudieron cumplir con las solicitudes innecesarias de la empresa. Por último, el Departamento también determinó que Great Dane discriminó a no ciudadanos de los EE. UU. que ya trabajan para la empresa al pedirles documentos que demostrasen su permiso continuo para trabajar, aunque fuera innecesario.
Los residentes permanentes legales (a veces denominados «titulares de tarjetas verdes») pueden utilizar diferentes tipos de documentación para demostrar su permiso para trabajar. Los residentes permanentes legales no tienen que mostrar una tarjeta de residente permanente (o «tarjeta verde») ni probar su estatus migratorio al demostrar su permiso para trabajar. Como se explica en la nueva hoja informativa del Departamento, la INA protege a los residentes legales permanentes de la discriminación cuando un empleador verifica su permiso para trabajar. Los empleadores no pueden limitar la documentación válida que un residente permanente legal puede mostrar al verificar su permiso para trabajar. La hoja informativa también explica cómo los residentes permanentes legales pueden obtener ayuda si se les discrimina.
En virtud de los términos del acuerdo, la empresa pagará $218,000 en sanciones civiles a los Estados Unidos y establecerá un fondo de pagos retroactivos de $218,000 para compensar a las víctimas de las prácticas discriminatorias de la empresa, incluidas aquellas a las que no contrató o que perdieron trabajo porque no pudieron cumplir con las solicitudes documentales discriminatorias de la empresa. El acuerdo también requiere que Great Dane capacite a su personal en cuanto a los requisitos antidiscriminatorios de la INA, que revise sus políticas de empleo y que se someta a los requisitos de supervisión y declaración departamentales. Cualquier persona que crea que puede calificar para los pagos retroactivos en virtud del acuerdo debe enviar un correo electrónico a la IER a la siguiente dirección de correo electrónico: [email protected]
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés) de la División de Derechos Civiles, es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
El sitio web de IER tiene más información sobre los derechos de residentes permanentes legales en virtud de la INA y cómo los empleadores pueden evitar la discriminación ilegal al verificar el permiso para trabajar de alguien. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 o para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscribirse a un seminario en línea en línea en vivo o visualizar una presentación a la carta; enviar un correo electrónico a [email protected]; o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico desde la IER.
Doctor Sentenced to Five Years in Prison for Defrauding the NBA Players’ Health and Welfare Benefit PlanRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that WILLIAM WASHINGTON was sentenced today to five years in prison for his participation in a scheme to defraud the National Basketball Association (“NBA”) Players’ Health and Welfare Benefit Plan (the “Plan”). WASHINGTON was convicted on June 28, 2024, following a one-week jury trial and was sentenced today by U.S. District Judge Valerie E. Caproni.
U.S. Attorney Damian Williams said: “William Washington, a licensed medical doctor, had a solemn responsibility not to abuse his position of trust. Instead, Washington used his license and his clinics to generate fraudulent invoices for medical services he never performed. Over just one year, Washington pocketed nearly a half-million dollars for himself and his co-conspirators. Today’s sentence sends a clear message that those who engage in health care fraud schemes, particularly medical providers, will face stringent penalties.”
According to the Indictment and the evidence at trial:
From approximately in or about 2019 through July 2020, WASHINGTON, a licensed medical doctor who operated medical clinics located in the Seattle, Washington-area, participated in a scheme with retired NBA players to defraud the Plan. In furtherance of the scheme, WASHINGTON generated fraudulent invoices purporting to document nearly $500,000 worth of medical services that he never provided – such as $10,000 office visits and $25,000 shoulder injections – and repeatedly lied to the Plan by claiming that he had performed those services. WASHINGTON also swiped Plan-issued debit cards to collect money on these fake invoices. As a result of these debit card swipes, WASHINGTON received over $450,000 from the Plan, which he cashed out and distributed to his co-conspirators.
* * *
In addition to the prison sentence, WASHINGTON, 47, of Seattle, Washington, was sentenced to three years of supervised release and ordered to pay a $20,000 fine, forfeit $475,042, and pay restitution in the amount of $475,042.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Rushmi Bhaskaran, Qais Ghafary, and Rebecca Delfiner represented the Government at trial. Assistant U.S. Attorneys Ryan Finkel and Daniel G. Nessim participated in the investigation and prosecution of this case.
Detroit Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Joe Dante Townsend, 32, of Detroit, Michigan, pleaded guilty today to possession with intent to distribute cocaine.
According to court documents and statements made in court, on June 11, 2024, Townsend was a backseat passenger in a vehicle pulled over by law enforcement officers on the 1600 block of Ninth Avenue in Huntington. Officers searched the vehicle during the traffic stop and found a backpack in the backseat containing approximately 499 grams of cocaine. Townsend admitted that the backpack belonged to him, and that he had transported the cocaine by bus from Detroit to Huntington, where he intended to distribute the cocaine for money.
Townsend is scheduled to be sentenced on March 10, 2025, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Police Department and the Huntington Violent Crime and Drug Task Force.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Courtney L. Finney is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:24-cr-115.
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Dallas Residents Sentenced for Cocaine Distribution and Possession ConspiracyRead the Press Release
NEW ORLEANS, LOUISIANA –, HECTOR OMAR SEGURA-LARA (“SEGURA-LARA”) age 36, and JOSE ANTONIO ORTEGA-SILVA (“ORTEGA-SILVA”), age 33, both residents of Dallas, Texas, were sentenced by United States District Judge Susie E. Morgan on November 19, 2024, to 108 months imprisonment and 37 months imprisonment, respectively, after previously pleading guilty to conspiracy to distribute and, possess with intent to distribute, a quantity of cocaine, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(C), and 846, announced U.S. Attorney Duane A. Evans. ORTEGA-SILVA and SEGURA-LARA were also sentenced to 3 years of supervised release and ordered to pay a mandatory special assessment fee of $100.00.
According to court documents, on August 25, 2021, near milepost 56 on Interstate 12, Louisiana, State Troopers stopped a Chrysler 200 occupied by SEGURA-LARA and ORTEGA-SILVA. When the vehicle’s occupants provided contradictory answers to the troopers regarding their itinerary, the troopers conducted a consensual search of the vehicle. During the search, the troopers discovered four kilograms of cocaine in an additional car battery located under the hood.
Both SEGURA-LARA and ORTEGA-SILVA acknowledged that they were driving to Virginia to deliver drugs. ORTEGA-SILVA admitted that, at the request of another individual, he obtained the vehicle in Dallas and drove it to Houston where another individual loaded the vehicle with drugs. ORTEGA-SILVA and SEGURA-LARA were then instructed to drive to Virginia where the drugs would be offloaded and $152,000.00 in cash placed in the car’s battery. ORTEGA-SILVA and SEGURA-LARA were to then return to Texas with the proceeds.
For the conspiracy count charged, ORTEGA-SILVA and SEGURA-LARA each face up to twenty years imprisonment, a fine of up to $1,000,000.00, a mandatory minimum term of supervised release of three years, and a mandatory special assessment fee of $100.00.
This case was investigated by the Department of Homeland Security Investigations and the Louisiana State Police. The prosecution is being handled by Assistant United States Attorney André Jones of the Narcotics Unit.
Convicted Felon Found Guilty of Methamphetamine Possession and Multiple Firearm CrimesRead the Press Release
Memphis, TN – A Memphis man was recently convicted by a federal jury of possessing methamphetamine with intent to distribute along with multiple counts related to his illegal possession of firearms. Reagan Fondren, Acting United States Attorney for the Western District of Tennessee, announced the verdict today.
According to information presented in court, on July 13, 2022, detectives in the Multi-Agency Gang Unit executed a search warrant on an apartment in Memphis where Andre Blue, 37, was living. There, they discovered a loaded Glock Inc. .45 caliber pistol, a Sig Sauer Inc. 9mm caliber pistol, and a loaded Smith and Wesson .45 caliber pistol in the primary bedroom. Detectives also found 15 grams of pure methamphetamine in the primary bathroom toilet bowl. An American Tactical Imports Inc. multi-caliber pistol was found in the closet of a child’s bedroom on the top shelf next to a magazine loaded with at least 50 live rounds.
On February 23, 2023, detectives with the Shelby County Sheriff’s Office executed a search warrant on another residence occupied by Blue, where they found a Sig Sauer pistol under the primary bathroom sink along with various drug-sale paraphernalia.
Due to his prior felony convictions, Blue is prohibited by federal law from possessing firearms and ammunition. On November 20, 2024, after a three-day trial, a federal jury found Blue guilty of possession of a firearm as a convicted felon, possession of a firearm in furtherance of drug trafficking, and possession of methamphetamine with intent to distribute.
Blue faces a mandatory statutory minimum of five years in federal prison for possession of five grams or more of actual methamphetamine as well as a consecutive five-year mandatory minimum prison sentence related to his conviction for possession of a firearm in furtherance of drug trafficking. Sentencing is set on February 26, 2025 before United States District Judge Jon P. McCalla.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The investigation in this case was conducted by the PSN Gun Task Force, along with the Multi-Agency Gang Unit and the Shelby County Sheriff’s Office.
Acting United States Attorney Fondren thanked Assistant United States Attorneys Eileen Kuo and Regina Brittenum, who prosecuted this case, as well as the law enforcement partners who investigated the case.
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For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
Concord Man Pleads Guilty to Distributing Methamphetamine, Possession with Intent to Distribute Methamphetamine and Fentanyl, and Firearm ChargesRead the Press Release
CONCORD – A Concord, New Hampshire man pleaded guilty today in federal court in connection with drug distribution and the illegal possession of a firearm, U.S. Attorney Jane E. Young announces.
Wayne Smith, 49, pleaded guilty to distribution of methamphetamine, possession of methamphetamine and fentanyl with the intent to distribute, possession of a firearm in furtherance of drug trafficking, and possession of a firearm and ammunition by a prohibited person. U.S. District Court Judge Paul J. Barbadoro scheduled sentencing for March 10, 2025.
In August 2023, the New Hampshire State Police received information regarding methamphetamine sales in the Concord area. The ensuing investigation led to the defendant’s indictment on federal charges on May 8, 2024.
The New Hampshire State Police and the Concord Police Department led the investigation. Assistant United States Attorney Jeff Strelzin is prosecuting the case.
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Columbia Man Sentenced to Federal Prison for Gun Charge Following Accidental ShootingRead the Press Release
COLUMBIA, S.C. — Contaurus Dermont Smith, 46, of Columbia, was sentenced to more than five years in federal prison after pleading guilty to being a felon in possession of a firearm.
Evidence presented to the court showed that on June 30, 2023, Columbia Police Department (CPD) officers responded to a shooting on the 900 block of House Street. Upon arrival, officers found Smith laying in the street with a gunshot wound to his leg. CPD’s Real Time Crime Center surveillance camera in the area captured the incident and showed Smith accidentally shooting himself in the leg. The surveillance also showed another person go back to the spot of the accidental shooting, pick up an object, and move it inside the home at 940 House Street. Based on that footage and a statement from another witness, CPD officers secured a search warrant for that home. Inside, they found four different firearms, including one with a machinegun conversion device attached to it that would allow it to function as an automatic weapon. Smith accepted responsibility for possessing the firearm with which he shot himself as a convicted felon and the court held him responsible for possession of the machinegun found alongside that pistol. Smith is convicted felon and is unable to lawfully possess firearms or ammunition.
United States District Judge Cameron McGowan Currie sentenced Smith to 63 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. Based primarily on Smith’s lengthy record of violence convictions and a prior federal conviction for the same firearm possession charge, Judge Currie granted in part the Government’s motion for an upward variance and imposed a sentence above the guidelines for this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia Police Department. Special Assistant U.S. Attorney Matthew R. Sanford is prosecuting the case.
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- Colorado Man Sentenced to 20 Years in Prison for Sexually Exploiting Children over the Internet and Receipt of Child Pornography
Charlotte Woman Is Charged with Using Stolen Identities to Obtain Multiple College Student Loans for Family MembersRead the Press Release
CHARLOTTE, N.C. – A grand jury has charged Tammy Cox, 52, of Charlotte, with multiple federal charges for stealing the identities of her co-workers to obtain college student loans for family members, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Cox was in federal court this morning for her initial appearance.
Jason Krizmanich, Acting Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
According to allegations in the indictment, from August 2019 through at least July 2023, Cox engaged in a scheme to steal the identities of five co-workers, including their Social Security Numbers, which she used to fraudulently obtain college student loans for family members. The indictment alleges that Cox falsely claimed that her co-workers were cosigners on the loan applications and falsely represented that her co-workers had agreed to be equally responsible for the loans. The indictment further alleges that, during the scheme, Cox fraudulently applied for at least 13 college student loans seeking more than $250,000.
Cox is charged with one count of wire fraud affecting a financial institution and seven counts of financial institution fraud. Each count carries a maximum penalty of 30 years in prison and a $1,000,000 fine. Cox is also charged with five counts of disclosure of Social Security Numbers, which carry a maximum statutory penalty of five years in prison and a $250,000 fine for each charged offense.
The charges against Cox are allegations and the defendant is innocent until proven guilty beyond a reasonable doubt in a court of law.
The USPIS and CMPD investigated the case.
Special Assistant U.S. Attorney Eric Frick of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
CEO of Non-Profit that Provided Mentoring Services to Public School Students Pleads Guilty to Fraudulently Obtaining COVID BenefitsRead the Press Release
LOS ANGELES – A South Bay man who provided lifestyle and personal development coaching to students in public schools through a non-profit he founded pleaded guilty today to fraudulently applying for millions of dollars in COVID-19 jobless benefits, including by using stolen identities.
Reginald Foster Jr., 38, of the Westchester neighborhood of Los Angeles, pleaded guilty to one count of conspiracy to commit mail fraud and bank fraud, and one count of use of unauthorized access devices.
Foster admitted in court today that, from June 2020 to October 2020, he conspired with others to fraudulently obtain unemployment insurance benefits under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), a law Congress passed in March 2020 to help individuals and businesses deal with the economic impact of the COVID-19 pandemic.
Foster exploited the Pandemic Unemployment Assistance (PUA) provision of the CARES Act, which is designed to expand access to unemployment benefits to self-employed workers, independent contractors, and others who would not otherwise have been eligible because of the pandemic. The California Employment Development Department (EDD) administers the state’s unemployment insurance program, which included the PUA provision.
Foster admitted that he and his co-conspirators filed fraudulent applications for benefits in the names of people who had not authorized him to do so, using the identity-theft victims’ personal identifying information without their permission. Foster included false information on the applications to ensure that EDD would approve the applications and send the debit cards through which the benefits were dispersed to a mailing address he used. In total, Foster and his co-conspirators submitted 118 fraudulent applications as part of the scheme.
Foster used the debit cards to make transfers to his non-profit, Champs Up! LLC, which Foster has said provides guidance programs to middle school students in Los Angeles and Long Beach. Foster also used the cards to make multiple $1,000 withdrawals at ATMs. He then transferred the cards to co-conspirators, who used them to make further ATM withdrawals. Foster and his co-conspirators were able to withdraw almost $1.5 million of the benefits. EDD and Bank of America froze the remaining benefits as soon as the scheme was uncovered, preventing further losses of more than $4 million.
United States District Judge Mark C. Scarsi scheduled a March 24, 2025, sentencing hearing, at which time Foster will face a statutory maximum sentence of 30 years in federal prison for the conspiracy count and up to 10 years in federal prison for the unauthorized access devices count.
Foster remains free on $50,000 bond.
Co-defendants Shelece Counts, 31, of the Westlake neighborhood of Los Angeles; and Isaiah Herbert Lawrence, 31, of Houston, Texas, have pleaded not guilty to criminal charges in this case and are scheduled to go to trial on January 21, 2025.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The United States Department of Labor Office of Inspector General, the California Employment Development Department, and Homeland Security Investigations investigated this matter. Substantial assistance was provided by the Department of Homeland Security Office of Inspector General; the United States Secret Service; the FBI; U.S. Customs and Border Protection Special Response Team; and the Los Angeles Unified School District Office of Inspector General.
Assistant United States Attorney Ranee A. Katzenstein of the Criminal Appeals Section is prosecuting this case.
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. More information on the Justice Department’s response to the pandemic may be found here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it to the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF online complaint form.
Billings woman admits trafficking fentanyl, brandishing firearmRead the Press Release
BILLINGS — A Billings woman accused of dealing fentanyl in the community and to brandishing a firearm admitted to charges on Nov. 22, U.S. Attorney Jesse Laslovich said today.
The defendant, Renee Esperanza Arambula, 27, pleaded guilty to possession with intent to distribute fentanyl and to brandishing a firearm in furtherance of a drug trafficking crime. Arambula faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug charge and a mandatory minimum of seven years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the firearm crime.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Feb. 26, 2025. Arambula was released pending further proceedings.
The government alleged in court documents that in early 2023, the Drug Enforcement Administration began investigating Arambula for suspected drug trafficking. Agents determined that between May 2020 and January 2023, Arambula deposited more than $230,000 in cash into the bank and received thousands of dollars more through electronic payment but was making only a small fraction of the money through formal employment, with much of the money being proceeds from drug trafficking. The investigation further determined that Arambula was trafficking fentanyl and other drugs in the Billings community, with individuals admitting to purchasing fentanyl from her up to early 2023. During this time, Arambula also possessed and brandished a firearm in furtherance of her drug trafficking activities.
The U.S. Attorney’s Office is prosecuting the case. The Drug Enforcement Administration and Billings Police Department conducted the investigation.
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Billings meth dealer sentenced to seven years in prisonRead the Press Release
BILLINGS — A Billings man who admitted to trafficking methamphetamine in the community as part of a group that was supplied by Washington sources was sentenced today to seven years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Robert Allen Clark, 44, pleaded guilty in July to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that Clark was one of seven defendants involved in a multi-state drug trafficking organization that operated from a residence on Sugar Avenue in Billings. A group from Washington brought pounds of meth into Montana and used these defendants to distribute meth and fentanyl. In 2023, agents with the Drug Enforcement Administration investigated this organization, and sources reported that Clark sold multi-ounce quantities to other dealers. Law enforcement seized methamphetamine sold by Clark. The government also identified Clark as a mid-level dealer who received meth from a co-defendant and then distributed to lower-level dealers. Clark has been selling meth for nearly 20 years, has three prior drug convictions dating to 2005, and was on parole for assault on a peace officer.
The U.S. Attorney’s Office prosecuted the case. The Drug Enforcement Administration conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
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Beckley Man Pleads Guilty to Role in Drug Trafficking OrganizationRead the Press Release
BECKLEY, W.Va. – Deona’tre Capri Dowell, 30, of Beckley, pleaded guilty today to conspiracy to distribute fentanyl. Dowell admitted to a role in a drug trafficking organization (DTO) that distributed methamphetamine, fentanyl and cocaine base, also known as “crack,” in Beckley and elsewhere within the Southern District of West Virginia.
According to court documents and statements made in court, on May 25, 2024, Dowell received an ounce of fentanyl from a co-conspirator at his Beckley residence. Dowell admitted that he requested the fentanyl from the co-conspirator by phone earlier that day and discussed adding a cutting agent to the fentanyl to make more money when it was sold to pay back the co-conspirator. Dowell further admitted that he obtained additional quantities of fentanyl during May 2024 from his supplier on consignment, paying the supplier back with the proceeds from distributing it.
On May 30, 2024, law enforcement officers executed a search warrant at Dowell’s residence and found approximately 535 grams of methamphetamine, 1.2 kilograms of fentanyl, a Romarm Micro Draco 7.62mm firearm, and a Glock model 21 .45-caliber semiautomatic handgun. Dowell admitted to possessing the seized controlled substances and intending to distribute them.
Dowell is scheduled to be sentenced on April 11, 2025, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
Dowell is among 12 individuals indicted on charges alleging the defendants conspired to distribute methamphetamine, fentanyl, and crack within the Southern District of West Virginia from in or about June 2023 to in or about May 2024. Dowell is also among five defendants who have pleaded guilty. The charges against Bradley and the other defendants are pending. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Beckley/Raleigh County Drug and Violent Crime Unit, which consists of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department, and the Beckley Police Department.
United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Andrew D. Isabell is prosecuting the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:24-cr-90.
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Beckley Man Pleads Guilty to Fentanyl CrimeRead the Press Release
BECKLEY, W.Va. – Michael Reynard Penn, 43, of Beckley, pleaded guilty today to distribution of fentanyl.
According to court documents and statements made in court, on August 17, 2023, Penn sold approximately 27 grams of fentanyl to a confidential informant for $1,600 at his Beckley residence. Penn admitted to the transaction and further admitted to selling fentanyl to the confidential informant on three other occasions at his residence between August 23 and September 13, 2023.
On September 18, 2023, law enforcement officers executed a search warrant at Penn’s residence and found cocaine, marijuana, a Ruger .380-caliber pistol and $4,889. The cash included $470 in pre-recorded money Penn received from the confidential informant during the controlled drug buys.
Penn is scheduled to be sentenced on March 28, 2025, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Beckley/Raleigh County Drug and Violent Crime Unit, which consists of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department, and the Beckley Police Department.
United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Andrew D. Isabell is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:24-cr-94.
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Activists Sentenced in Red Powder Attack on U.S. Constitution at the U.S. Archives and Vandalizing Art at the National GalleryRead the Press Release
WASHINGTON – Donald Zepeda, 35, of Maryland, and Jackson Green, 27, of Utah, were sentenced in U.S. District Court to 24 months in prison and 18 months respectively in the February 14, 2024, attack on the U.S. Constitution housed at the National Archives in Washington D.C.
The sentencings, which occurred earlier this month, were announced today by U.S. Attorney Matthew M. Graves and FBI Acting Special Agent in Charge David Geist of the Washington Field Office Criminal and Cyber Division.
Zepeda pleaded guilty on August 15 to felony destruction of property for dumping a fine red powder over a display case containing the U.S. Constitution in the Rotunda of the Archives building. The cost of cleaning up after the stunt, which was intended to draw attention to climate change, exceeded $58,000. In addition, the offense closed the Rotunda for four days, preventing students, visitors, and D.C. residents from visiting. In addition to the prison term, U.S. District Court Judge Amy Berman Jackson ordered Zepeda to serve 24 months of supervised release, to pay restitution in the amount of $58,600, to complete community service, a portion of which must include cleaning up graffiti, and ordered him to stay out of the District of Columbia and all museums nationwide.
Green also pleaded guilty on August 13 to felony destruction of property for the red powder attack on the U.S. Constitution and, in addition, pleaded guilty to one count of injury to a National Gallery of Art exhibit for his November 14, 2023, defacement of a memorial to Black Civil War soldiers, Augustus Saint-Gaudens’s Shaw 54th Regiment Memorial (1900). Green had been charged in the assault on the Shaw Memorial only 13 days before Zepeda joined him in soiling the Archives. In addition to the prison term, Judge Berman Jackson ordered Green to serve 24 months of supervised release, to pay restitution in the amount of $58,600, to complete community service, a portion of which must include cleaning up graffiti, and ordered him to stay out of the District of Columbia and all museums nationwide. In addition to his role in the attack on the Constitution, Zepeda helped organize and filmed the attack on the Shaw memorial. Zepeda was also involved in the April 2023 attack on the display of Degas’ Little Dancer Aged Fourteen at the National Gallery of Art.
According to court papers, Zepeda and Green are members of Declare Emergency, a group of activists that purport to raise awareness regarding climate change by engaging in a variety of criminal offenses, primarily in Washington, D.C.
Green (left) and Zepeda posed for photographs on February 14, 2024, after dumping red powder on a display case housing the U.S. Constitution at the National Archives.
Zepeda and Green’s criminal actions predate the attacks on the U.S. Constitution. During the week of April 24, 2023, Zepeda and other members of Declare Emergency orchestrated an escalating series of offenses in Washington, D.C. that included blocking rush hour traffic on April 24, 2023, and April 26, 2023. Zepeda also helped plan and participated in the April 27, 2023, attack on the National Gallery of Art exhibition of Edgar Degas’ Little Dancer Aged Fourteen. Zepeda filmed as two group members smeared red and black paint on the case, base, and floor surrounding the exhibit. Zepeda purchased the paint used in the offense one week before the defacement. Zepeda has hosted trainings for individuals who were interested in participating in similar attacks.
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On November 14, 2023, Green defaced The Shaw 54th Regiment Memorial which commemorates the Civil War efforts of one of the first regiments of African Americans in our country’s history.
On November 14, 2023, Green, Zepeda, and other members of Declare Emergency, entered the National Gallery of Art (NGA), and approached Augustus Saint-Gauden’s The Shaw 54th Regiment Memorial, which commemorates the Civil War efforts of one of the first regiments of African Americans in our country’s history. Green then hand-painted “Honor Them” in red paint on the wall next to the mural, below the inscribed names of the Regiment. Zepeda and other members of Declare Emergency filmed Green’s actions. NGA reported that it cost $706 to repair the damage.
On February 6, 2024, Green self-surrendered and made his initial appearance before the Honorable G. Michael Harvey. As a condition of Green’s release, Judge Harvey ordered Green to stay-away from Washington, D.C. and also to stay away from all museums and public monuments. While under oath, Green stated that he understood these conditions and agreed to them.
Despite his express acknowledgment of his release conditions, on February 14, 2024, Green, accompanied by Zepeda, entered the National Archives at 700 Pennsylvania Avenue NW. Green and Zepeda stood in front of the display of the U.S. Constitution and emptied bags containing red powder on themselves and the case. The offense was captured by several video cameras. Green and Zepeda were still covered in powder when law enforcement arrested them.
Zepeda (left) and Green were photographed covered in red powder after their attack on the U.S. Constitution at the National Archives in Washington D.C.
The National Archives was closed from February 14, 2024, to February 17, 2024, to allow for repairs which cost approximately $58,646.25.
On February 16, 2024, Green appeared in Court, still covered in red powder from his attack on the Constitution. Green was detained until a hearing on February 21, 2024, after which he was released to the custody of a farm in Virginia. On August 15, 2024, Green pleaded guilty, without a plea agreement, to both counts of the indictment against him. Despite that, he immediately violated his conditions of release, wandering around Washington, D.C., including around the monuments which he was barred from visiting. At a hearing held on August 30, 2024, Green indicated to the Court that he would not abide by his release conditions and was remanded into custody.
The case is being investigated by the FBI’s Washington Field Office, specifically the FBI’s Art Crime Team, with assistance from the National Archives, the National Gallery of Art Police, and U.S. Park Police. The case is being prosecuted by Assistant U.S. Attorney Cameron A. Tepfer of the U.S. Attorney’s Office for the District of Columbia.
Jackson Green (left) and Donald Zepeda.
22 November 2024
Woman Who Laundered Cartel Cash, Trafficked Kilos of Narcotics from 18-Wheelers Pleads GuiltyRead the Press Release
RALEIGH, N.C. – Oralia Rodriguez Flores, age 40, pled guilty to three federal charges related to her role in trafficking narcotics and money laundering for the Jalisco New Generation Cartel (CJNG). Flores, who lived in Clayton, pled guilty to one count of conspiracy to distribute methamphetamine and cocaine, one count of distribution of methamphetamine, and one count of conspiracy to commit money laundering. When sentenced, Flores faces up to life imprisonment.
“The CJNG cartel is one of Mexico’s most violent drug trafficking organizations,” said U.S. Attorney Michael F. Easley, Jr. “Their brutal reign is bankrolled by American drug proceeds flowing back to cartel leaders. Our strategy is to systematically degrade the entire criminal network by taking down the traffickers running narcotics to the Carolinas and cutting off the cashflow back to Mexico. Our new Illicit Finance Task Force dismantles the financial infrastructure enabling illegal cashflows to disrupt the cartels’ financial incentives.”
“Oralia Rodriguez Flores endangered countless individuals by trafficking in large quantities of deadly methamphetamine and cocaine,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “She knowingly and intentionally helped members from the violent CJNG cartel distribute their drugs and launder their money.”
According to information presented in court, Drug Enforcement Administration (DEA) agents determined that Flores, acting at the direction of a Mexican source of supply, was distributing kilogram quantities of narcotics to and from South Carolina customers. Agents used a variety of investigative techniques to conduct a controlled purchase of methamphetamine. The investigation revealed that Flores was selling kilograms of cocaine for $22,000 per kilogram.
On another occasion, Flores was observed picking up cocaine for a customer. She traveled from her home in Clayton to a Blythewood, South Carolina hotel. Flores then told the customer she had 18 kilograms of cocaine and sent video evidence.
During a later interview with agents, Flores admitted being involved with drug trafficking for approximately three years. She explained that she met drivers of 18-wheeler trucks on five or six occasions to pick up cocaine from Mexico. Each shipment contained approximately 10 kilograms of cocaine. She then distributed the drugs to customers in South Carolina. Flores also said that her source of supply in Mexico sent the methamphetamine she distributed from Mexico to California, and then it was mailed to South Carolina.
Flores also laundered drug proceeds to Mexico. She admitted that she provided over $1 million in cash to commercial truck drivers and that she delivered drug proceeds to runners for an Asian money laundering network that were then sent to the source of supply in Mexico. Flores also used money service businesses to wire money to Mexico.
Flores prosecution results from an investigation by the Eastern District of North Carolina’s Illicit Finance Task Force (IFTF) and from an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. Created in 2024 in partnership with the Treasury Executive Office of Asset Forfeiture (TEOAF), the IFTF is an interagency anti-money laundering task force comprised of prosecutors and agents. The IFTF is dedicated to combatting money laundering activities affecting the Eastern District of North Carolina through strategic use of criminal and civil laws. 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.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina, made the announcement after Chief United States District Judge Richard E. Myers II accepted the plea. The investigation is being conducted by IRS-Criminal Investigation and the DEA.
Assistant U.S. Attorney’s Toby Lathan and Charles Loeser are prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:24-CR-252-M.
Winnebago Woman Sentenced for Child AbuseRead the Press Release
United States Attorney Susan Lehr announced that Lauren Sherman, age 32, of Winnebago, Nebraska, was sentenced on November 22, 2024, in federal court in Omaha, Nebraska, committing child abuse in Indian Country. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Sherman to 15 months’ imprisonment. There is no parole in the federal system. After Sherman’s release from prison, she will begin a 1-year term of supervised release.
In March 2023, Sherman committed an intentional assault upon a minor child. The minor child had bruising, which was observed at the school. Later investigation revealed Sherman physically assaulted the child, which was the source of the bruising.
This case was prosecuted in federal court because the offense was a felony and occurred on the Winnebago Indian Reservation in Nebraska.
This case was investigated by the Federal Bureau of Investigation.
Waterbury Cocaine Trafficker Sentenced to 15 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that CHRISTOPHER JUSINO-RODRIGUEZ, 32, of Waterbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 180 months of imprisonment, followed by five years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, an investigation led by the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force and the Waterbury Police Department determined that Jusino-Rodriguez headed a drug trafficking organization that coordinated the shipment of parcels containing kilogram-quantities of cocaine from Puerto Rico to Connecticut. Chaddiel Ferrer was the primary “runner” for the organization. The cocaine parcels were mailed to various drop sites in the Waterbury area, and Ferrer regularly picked them up and delivered them to Jusino-Rodriguez.
On October 20, 2022, investigators conducted court-authorized searches of three locations in Waterbury and seized approximately six kilograms of cocaine; nine firearms, including an AM-15 rifle; high-capacity magazines and numerous rounds of ammunition; and $132,365 in cash.
A total of approximately 18 kilograms of cocaine were seized during the investigation.
Jusino-Rodriguez has been detained since his arrest on December 14, 2022. On April 30, 2024, he pleaded guilty to conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine.
Jusino-Rodriguez’s criminal history includes a state conviction in 2014 for first-degree burglary with a deadly weapon.
Ferrer, also of Waterbury, pleaded guilty and, on November 27, 2023, was sentenced to 60 months of imprisonment.
This matter was investigated by the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force (“NBCTTF”) and the Waterbury Police Department, with the assistance of the Connecticut State Police Violent Crimes Task Force. The NBCTTF includes members from the U.S. Postal Inspection Service, the U.S. Postal Service – Office of the Inspector General, the Connecticut Army National Guard, and the Hartford, New Britain, Meriden, and Town of Groton Police Departments.
The case was prosecuted by Assistant U.S. Attorneys Konstantin Lantsman and Natasha M. Freismuth.
Virginia Man Pleads Guilty to Drug TraffickingRead the Press Release
NEWNAN, Ga. – Oscar Waters has pleaded guilty to trafficking multi-kilogram quantities of fentanyl, cocaine, heroin, and other illegal narcotics through Georgia. His co-defendant, Keisha Jackson-Murchison pleaded guilty to the concealment of a felony.
“Fentanyl and heroin pose extraordinary dangers to public safety and have destroyed countless lives,” said U.S. Attorney Ryan K. Buchanan. “Individuals who seek to profit from distributing these deadly drugs in and through our communities will be brought to justice through the collaborative work of our federal, state, and local law enforcement partners.”
“Stopping traffickers who attempt to bring their poison into our communities is one of the most impactful missions we undertake,” said Steven N. Schrank, Special Agent in Charge of HSI Atlanta, which covers Georgia and Alabama. “HSI will continue to work with our partners to identify, apprehend, and prosecute individuals involved with these deadly, illicit drugs.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: On September 18, 2023, a police officer in Grantville, Georgia stopped a vehicle for speeding on Interstate 85. Keisha Jackson-Murchison, a convicted felon, was identified as the driver. Oscar Dominick Waters, a convicted drug dealer, was a passenger in the vehicle.
During an initial search of the vehicle, the officer found several bags of marijuana. As officers attempted to detain Waters for the marijuana, Jackson-Murchison retrieved a backpack and large duffel bag from the car and ran barefoot across three lanes of traffic before disappearing into a wooded area. Numerous vehicles swerved to avoid hitting Jackson-Murchison.
Coweta County, Georgia Sheriff’s officers and a K-9 unit located Jackson-Murchison in the woods and found the bags she removed from her car. In addition to the marijuana, officers discovered nearly three kilograms of fentanyl and fentanyl analogue, more than 2.5 kilograms of powder cocaine, more than a quarter-kilogram of crack cocaine, and approximately five ounces of heroin. Further investigation revealed that Waters hired Jackson-Murchison to drive him to Alabama, where Waters intended to distribute the drugs.
Sentencing for Oscar Dominick Waters, 39, of Roanoke, Virginia, is scheduled for February 25, 2025, at 10:30 a.m. before Chief U.S. District Judge Timothy C. Batten, Sr.
Sentencing for Keisha Jackson-Murchison, 36, of Springfield, Massachusetts, is also scheduled for February 25, 2025, at 10:00 a.m. before Judge Batten.
This case is being investigated by Homeland Security Investigations with assistance from the Grantville Police Department, Coweta County Sheriff’s Office, and U.S. Customs and Border Protection.
Assistant U.S. Attorneys Theodore S. Hertzberg and Noah R. Schechtman are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The Office of the U.S. Attorney for the Northern District of Georgia recommends that parents and children learn about the dangers of drugs at the following websites: www.justthinktwice.gov; www.operationprevention.com; and www.dea.gov/onepill.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney's Office and HSI Collaborate to Charge Albuquerque Student Doctor in Child Exploitation CaseRead the Press Release
ALBUQUERQUE – A student doctor from Albuquerque was charged by indictment with production and possession of child pornography following his arrest as part of a multi-agency investigation into child exploitation.
Kevin Weiss, 28, appeared before a federal judge today and will remain in custody pending trial, which has not been scheduled.
According to the indictment, between approximately June 2020 to February 9, 2024, Weiss allegedly used a minor under 18 years of age to produce child pornography of the minor. The indictment further alleges that from December 30, 2023, to March 25, 2024, Weiss knowingly possessed child pornography involving prepubescent minors.
If convicted, Weiss faces a minimum of 15 years and up to 30 years in prison followed by a minimum of five years and up to a lifetime term of supervised release.
U.S. Attorney Alexander M.M. Uballez and Jason T. Stevens, Acting Special Agent in Charge of Homeland Security Investigations (HSI) El Paso, made the announcement today.
Homeland Security Investigations investigated this case with assistance from the Albuquerque Police Department and New Mexico State Police. Assistant United States Attorneys Jaymie L. Roybal and Meg Tomlinson are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
An indictment 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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U.S. Attorney's Office and FBI Charge Former Emergency Dispatcher with Making Terroristic ThreatsRead the Press Release
ALBUQUERQUE – A former emergency dispatcher for the Mesilla Valley Regional Dispatch Authority (MVRDA), faces charges for making multiple terroristic threats against county facilities and employees via Facebook posts.
Jason Rivera, 53, of Las Cruces, appeared before a federal judge and will remain in custody pending a detention hearing, which has been set for Tuesday, November 26, 2024.
According to court records, Rivera's posts on April 11 and April 25, 2024, included alarming claims of explosives at MVRDA and direct threats to specific employees. One post stated there was a bomb at the MVRDA, prompting a lockdown and bomb sweep by the Dona Ana County Sheriff’s Office. Rivera also registered a website titled "killdonaanacounty.org" and tagged county officials in his threatening messages.
The investigation revealed Rivera used a public Facebook account to make these threats, with an IP address linked to his residence. After being taken into custody on April 25, Rivera acknowledged his account and the threatening posts during an interview with law enforcement.
Rivera worked at MVRDA for eight years until September 2020, during which he exhibited troubling behavior, including harassment of former colleagues and erratic incidents leading to disciplinary actions. Following his resignation, Rivera intensified his threats towards former coworkers and their families.
If convicted of the current charges, Rivera faces up to 10 years in prison.
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 Las Cruces Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Dona Ana County Sheriff’s Office. Assistant United States Attorney Ry Ellison is prosecuting the case.
A 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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U.S. Attorney's Office Secures Guilty Verdict in Robbery CaseRead the Press Release
ALBUQUERQUE – Following a three-day trial and less than two hours of deliberation, a federal jury returned a guilty verdict against a previously convicted felon from Albuquerque on three counts of robbery for a series of incidents at Ross clothing stores in Albuquerque.
According to court documents and evidence presented at trial, Jason Pete Roper, 45, robbed three separate Ross locations between August 14 and September 8, 2022. In each incident, Roper approached the checkout counters with small items before brandishing a silver and black handgun and demanding money from multiple registers. The total amount stolen across the three robberies was approximately $1,800.
At the time of these offenses, Roper was on federal probation for a previous armed bank robbery conviction.
Following the verdict, the Court ordered that Roper remain in custody pending sentencing, which has not been scheduled. At sentencing, Roper faces up to 20 years in prison.
There is no parole in the federal system.
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 FBI Albuquerque Field Office and Albuquerque Police Department investigated this case. Assistant U.S. Attorneys Jon Stanford and Samuel Hurtado are prosecuting the case.
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U.S. Attorney's Office Secures Guilty Plea in Zuni Pueblo Armed Standoff CaseRead the Press Release
ALBUQUERQUE – A Zuni man pleaded guilty to federal charges stemming from an armed standoff with law enforcement on tribal lands.
According to court documents, on July 7, 2024, Eric Bowannie, 26, an enrolled member of the Zuni Pueblo, assaulted two federal officers by firing multiple rounds of ammunition at them while they were performing their official duties within the boundaries of the Zuni Pueblo. In his plea agreement, Bowannie admitted to intending to cause bodily harm to the officers.
Bowannie will remain detained pending sentencing, which has not yet been scheduled. At sentencing, Bowannie faces up to 10 years imprisonment. Upon his release from prison, Bowannie will be subject to up to three years of supervised release.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant United States Attorneys Ry Ellison and Kirk Williams are prosecuting the case.
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Two Defendants Sentenced for Fraudulent Check Scheme Targeting Pittsburgh-Area BusinessesRead the Press Release
PITTSBURGH, Pa. – Rodney Blake, 39, of Baltimore, Maryland, and Robert Morrisey, 32, of Pittsburgh, Pennsylvania, were sentenced in federal court on November 20, 2024, on their convictions for conspiracy to commit bank fraud and multiple counts of possessing forged securities, United States Attorney Eric G. Olshan announced today.
United States District Judge Marilyn J. Horan sentenced Blake to 146 months of imprisonment, to be followed by five years of supervised release, and Morrisey to 85 months of imprisonment, to be followed by three years of supervised release. Both defendants also were ordered to pay restitution in the amount of $329,632.96. Blake and Morrisey were convicted of the crimes following a four-day trial in late July 2024 (read the verdict news release here).
Evidence at trial established that Blake and Morrisey orchestrated a fraudulent check scheme in which they and their conspirators stole mail to obtain valid business checks, which were then used to create large numbers of forged checks drawing on the businesses’ bank accounts. The fraudulent checks were made payable to individuals—many of whom were homeless or struggling with addiction—who had been recruited by Blake and Morrisey to cash the checks in exchange for a small share of the proceeds. At sentencing, the government introduced evidence concerning fraudulent checks with a combined value of $329,632.96, drawn on the bank accounts of approximately 25 Pittsburgh-area businesses and organizations. To carry out the scheme, Blake and Morrisey worked with co-conspirators Steven Baldwin and Tariiq Simmons, both of Baltimore, who each pleaded guilty before trial and was sentenced to 46 months of imprisonment, to be followed by five years of supervised release.
Prior to imposing the sentences on Blake and Morrisey, Judge Horan emphasized that the defendants preyed on vulnerable members of the community to cash checks in furtherance of the conspiracy and noted the harm done to area small businesses.
Assistant United States Attorneys Jeffrey R. Bengel and William B. Guappone prosecuted this case on behalf of the government.
United States Attorney Olshan commended the United States Postal Inspection Service, Homeland Security Investigations, United States Secret Service, and Richland Township Police Department for the investigation leading to the successful prosecution of Blake, Morrisey, Baldwin, and Simmons.