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21 November 2024
Convicted Felon Charged with Multiple Weapons Charges Following High Speed Chase After Fleeing ArrestRead the Press Release
NASHVILLE – Bryan Odell Hunter, 35, of Nashville, was indicted by a federal grand jury yesterday with possession of ammunition by a felon, possession of a firearm by a felon, and possession of a Machinegun Conversion Device (“MCD”), announced Acting United States Attorney for the Middle District of Tennessee Thomas J. Jaworski.
On the night of October 24, 2023, Hunter, a six-time convicted felon, shot a gun near two citizens in the parking lot of Nissan Stadium. When Metro Nashville police officers responded, he fled in a stolen car and led officers from the Metro Nashville Police Department, Rutherford County Sheriff’s Office and Tennessee Highway Patrol on a multi-county, high-speed pursuit, until he crashed near mile marker 89 on Interstate 24 West in Rutherford County. Hunter attempted to flee on foot but was arrested. In his car, police located a Star model Firestar caliber .45 pistol, an Anderson Manufacturing, model AM-15 AR-style rifle, three extended capacity magazines, 50 rounds of Winchester .45 caliber ammunition, 50 rounds of Federal 9mm caliber ammunition, 10 rounds of .45 caliber hollow point ammunition, one round of 9mm caliber hollow point ammunition, one rifle sight, and a MCD, which is commonly known as a Glock switch.
If convicted on the federal charges, Hunter faces a mandatory minimum sentence of 15 years in federal prison.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Metropolitan Nashville Police Department; Rutherford County Sheriff’s Office and the Tennessee Highway Patrol. Assistant U.S. Attorney Rachel Stephens is prosecuting the case.
An indictment is merely an allegation. The defendant is presumed innocent until proven guilty in a court of law.
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Colombian National Arrested and Charged with Operating $66 Million Ponzi Scheme Disguised as a Payday Loan CompanyRead the Press Release
MIAMI - Efrain Betancourt, Jr., 36, a Colombian citizen, was arrested on Nov. 14, upon entering the United States and charged in South Florida federal court with leading a $66 million Ponzi scheme disguised as a payday loan company, Sky Group USA, LLC (Sky Group).
Betancourt, Jr. was charged by indictment with conspiracy to commit mail and wire fraud, and wire fraud on Sept. 12. The indictment was unsealed in federal court on Nov. 18.
According to allegations in the investment fraud indictment, Betancourt, Jr. offered promissory notes to Sky Group investors with yearly returns ranging from 24 to 120 percent. Betancourt, Jr. and others told promissory note investors their funds would be used to disburse payday loans to Sky Group clients. Interest from payday loans clients would then purportedly be used to repay promissory note investors. However, millions of dollars from promissory note investors were used to pay previous promissory note investors as part of the Ponzi scheme. Betancourt, Jr. also used over $7.5 million of investor funds for personal use, including a luxury chateau wedding in France, expensive jewelry, a Miami condominium, and family vacations. Over 600 investors invested in Sky Group, many of whom were Venezuelan.
If convicted of all charges in the indictment, Betancourt, Jr. faces a maximum total penalty of 140 years’ imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Markenzy Lapointe, U.S. Attorney for the Southern District of Florida; Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office; and Russell C. Weigel, III, Commissioner, Florida Office of Financial Regulation (OFR), made the announcement.
The U.S. Securities and Exchange Commission (SEC) had a parallel proceeding against Betancourt, Jr. related to the same investment fraud scheme alleged in the indictment. The SEC’s proceeding was resolved in July 2022.
The FBI, OFR, and the FBI’s South Florida Fraud Task Force investigated this matter. SEC’s Miami Regional Office provided assistance. Assistant U.S. Attorney Roger Cruz is prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-20399.
Co-Owner of Westfield Transport, Inc. Sentenced for Charges Stemming from 2019 Crash That Killed Seven MotorcyclistsRead the Press Release
BOSTON – A former owner of the now-defunct Westfield Transport, Inc., was sentenced today on federal charges related to a June 2019 collision involving one of the company’s vehicles that caused the deaths of seven motorcyclists in New Hampshire.
Dunyadar Gasanov, a/k/a Damien Gasanov, 39, was sentenced by U.S. District Court Judge Mark G. Mastroianni to two months in prison to be followed by one year of supervised release, during which he is prohibited from driving commercially. The government recommended a sentence of one year in prison. In August 2024, the defendant pleaded guilty to three counts of making false statements to federal investigators. He was indicted in February 2021 along with co-defendant Dartanyan Gasanov.
“Today’s sentencing brings a measure of accountability for the defendant’s reckless and illegal actions. By falsifying safety records and lying to investigators, this defendant put profits over public safety, with potentially devastating consequences,” said Acting United States Attorney Joshua S. Levy. “Adhering to federal safety regulations is critical to protecting public safety and our office is committed to holding accountable anyone who flouts them in this manner. Our thoughts and prayers remain with the victims’ families and loved ones as they continue to endure the aftermath of this tragedy."
“The sentence announced today reinforces that there are real consequences for those who endanger the safety of the traveling public by flagrantly circumventing federal laws and regulations,” said Christopher A. Scharf, Special Agent-in-Charge, U.S. Department of Transportation Office of Inspector General, Northeastern Region. “We hold in our thoughts the loved ones affected by the tragedy that occurred in 2019, as we continue our work to support safety on our nation’s roads.”
According to court filings, the defendant owned now-defunct Westfield Transport, Inc. – a for-hire interstate motor carrier that transported vehicles primarily in the northeastern United States. On June 18, 2019, Dunyadar Gasanov hired a driver despite knowing that the driver had a history of operating a vehicle under the influence of alcohol. On June 21, 2019, on his first trip as an employee for Westfield Transport, the driver was involved in a crash that killed seven motorcyclists in New Hampshire.
A subsequent investigation revealed that, from May 3, 2019 to June 23, 2019, Dunyadar Gasanov and, allegedly, Dartanyan Gasanov falsified driving logs in order to evade federal regulations designed to ensure the safety of roadways and drivers. Dunyadar Gasanov instructed at least one Westfield Transport employee to falsify records, thereby exceeding the number of permissible driving hours, and then made false statements to federal inspectors regarding the manipulation of recording devices that track drivers’ on and off duty hours in order to evade regulations.
Additionally, Dunyadar Gasanov falsely stated to inspectors that he met the driver involved in the June 2019 fatal crash driver on the day he had hired him. In fact, Dunyadar Gasanov had known the driver for years prior and knew that the driver had been charged with operating a vehicle under the influence of alcohol years before.
Dartanyan Gasanov has pleaded not guilty and is awaiting trial.
Acting U.S. Attorney Levy and DOT OIG SAC Scharf made the announcement. Assistant U.S. Attorney Neil L. Desroches of the Springfield Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Chowan County Man Sentenced to 10 Years for Child PornographyRead the Press Release
RALEIGH, N.C. – Kevin Lassiter, of Tyner, was sentenced today to 120 months in prison for possession of child pornography after online CyberTips led local sheriff’s deputies to search his devices. On August 5, 2024, Lassiter, 40, pled guilty to the charge.
According to court documents and other information presented in court, on September 27, 2023, the Perquimans County Sheriff’s Office received 12 CyberTips from the National Center for Missing and Exploited Children (NCMEC). Electronic service providers submit CyberTips to NCMEC to report users who possess child sexual abuse material on their systems. A cloud-based storage provider for the Verizon network reported 12 CyberTips of a user uploading images depicting prepubescent minors engaged in sex acts between July 29 to August 25, 2023.
Investigators were able to link the tips, through an associate phone number, to Lassiter, and a residential billing address in Tyner. Investigators confirmed Lassiter’s address and found that he was a registered sex offender after state convictions in 2013 for 3rd degree sexual exploitation of a minor in Carteret County.
Later the same day, investigators obtained and executed a search warrant for Lassiter’s residence. During a search with Lassiter present, investigators found a Samsung Galaxy phone on the stairwell that rang when they dialed the number associated with the CyberTips.
Investigators seized a computer downstairs at a desk, which Lassiter admitted was his. The computer was connected to a USB hub with four cables plugged into it, but no devices connected to those cables. Deputies then found multiple hard drives under the desk. When they picked up a 6TB Western Digital MyBook hard drive, Lassiter called out that it was a router. After a deputy responded that it was a hard drive and would be seized, Lassiter became noticeably distraught and hung his head.
During a recorded interview at the sheriff’s office, Lassiter admitted the device he claimed was a router was a hard drive that contained child pornography. Lassiter explained that he would copy images from the hard drive to his phone.
A forensic review of the 6TB Western Digital external hard drive revealed approximately 10,000 files of child sexual abuse material. The files included infants through teenage minors, with an estimated 90% of files depicting minors 10 years old or younger.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Perquimans County Sherriff’s Office and the Federal Bureau of Investigation investigated the case, which Assistant U.S. Attorney Jake D. Pugh prosecuted.
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. 2:24-cr-0014-BO.
Charleston Woman Pleads Guilty to Federal Securities-Related CrimeRead the Press Release
CHARLESTON, W.Va. – Deanna L. Drumm, 60, of Charleston, pleaded guilty today to aiding and abetting the sale and offer of unregistered securities.
According to court documents and statements made in court, in or around 2019 or 2020, Drumm became vice president of operations for Bear Industries LLC, a West Virginia company solely owned and operated by her son, Theodore Miller. Bear Industries originally served as an umbrella entity for other related businesses including a real estate company, a real estate holding company, and a construction company. As vice president of operations, Drumm was responsible for most of the day-to-day operational tasks of the Bear Industries entities, with input and direction from her son, while he lived outside the United States from in or about June 2021 to on or about August 8, 2024.
Drumm admitted that between February 2022 and August 2024, she aided and abetted the sale and offering of securities in the form of investments in two real estate-related ventures. One venture offered “direct investments” in the purported development of a dry-storage lot and residential duplexes on Bigley Avenue in Charleston. As a result of that offer, Bear Industries received $95,000 from several individuals between July and October 2022. The other venture offered investments in “Bear Lute,” a pooled real estate investment vehicle launched by Drumm’s son in May 2022. That offer resulted in Bear Industries obtaining more than $335,000 from more than 170 individuals between May 2022 and September 2024.
Both the direct investments and the Bear Lute investments were securities as defined by federal law, offered through interstate commerce via the internet, and were required to be registered. Drumm admitted that no registration statement was in effect for either of these securities, and that neither was exempt from the registration requirement. Drumm further admitted that she aided and abetted the offering of these unregistered securities by processing payments by investors, assisting with the creation of the investment prospectuses, and maintaining investor lists.
Drumm also admitted that she was aware of numerous false and misleading representations made in relation to both securities. Theodore Miller never possessed legal title for any of the Bigley Avenue properties that were the sites of the proposed dry-storage lot and residential duplexes. Miller defaulted on monthly payments to acquire six of the Bigley Avenue lots in the spring of 2023, losing possession of them entirely. A seventh property listed among the sites for the real estate projects, 1017 Bigley Avenue, is not a valid address. The Bear Lute investors were falsely told by Miller that Bear Industries was a large and successful real estate company, that Bear Lute generated exceptionally high and guaranteed returns, that investors would receive a minimum return of 6 percent, that the investment was secured by income-producing real estate, and that investors could request to withdraw their funds and receive them within 60 days. These representations were false.
In September 2022, the West Virginia Securities Commission issued a cease-and-desist letter to Bear Industries ordering it to stop the unregistered sale and offering of securities in Bear Lute. In November 2022, the West Virginia Securities Commission issued a cease-and-desist order regarding the same. Drumm continued to help operate Bear Lute by processing investor payments, in violation of that order, after she received both the letter and the order.
On August 9, 2024, law enforcement officers arrested Drumm’s son for alleged conduct related to the direct investments and Bear Lute. Drumm admitted that she drove evidence material to her son’s prosecution including, but not limited to, his laptop computer and a backpack belonging to him, from West Virginia to her parents’ home in Michigan following her son’s arrest to conceal it from law enforcement. Drumm was accompanied by her son’s wife. Drumm hid the laptop in her parents’ basement and the backpack in an upstairs closet. After entering into an agreement with the United States, Drumm arranged for the laptop and backpack to be transported back to West Virginia and voluntarily surrendered those items to the United States. The backpack was found to contain two phones and a tablet.
Drumm is scheduled to be sentenced on March 13, 2025, and faces a maximum penalty of five years in prison, up to three years of supervised release, and a $250,000 fine. Drumm also owes as much as $434,501.42 in restitution.
A federal grand jury returned a 15-count indictment on September 4, 2024, charging Miller, 34, of South Charleston, with wire fraud, money laundering, and obstruction. The indictment alleges that Miller induced the direct investments for the real estate projects and the investments in Bear Lute through material misrepresentations, false promises, and omissions of relevant information. The indictment further alleges that Miller created a social media persona of a successful real estate investor to further these schemes, when in reality he had poor credit, thin month-to-month financial margins, was delinquent on property taxes and bills, and had defaulted on loans. The indictment also alleges that Miller persuaded or attempted to persuade a witness to “alter, destroy, mutilate, and conceal” the backpack and a cell phone. 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.
The U.S. Securities and Exchange Commission filed a parallel civil action against Miller, Bear Industries LLC, Bear Investments and Business Consulting LLC, and Drumm in U.S. District Court for the Southern District of West Virginia. The lawsuit alleges that Miller has engaged in the unregistered and fraudulent offer of securities related to his real estate-related investment programs since at least 2022, among other allegations, and seeks permanent injunctive relief, disgorgement of ill-gotten gains and prejudgment interest, and civil penalties.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the West Virginia Fusion Center, the West Virginia Securities Commission, and the U.S. Securities and Exchange Commission.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Holly Wilson 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. 2:24-cr-179.
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Casselberry Man Pleads Guilty to Attempting to Meet A 13-Year-Old Child to Engage in Sexual ActivityRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Juan Fernandez (37, Casselberry) has pleaded guilty to attempted enticement of a minor to engage in sexual activity. Fernandez faces a minimum penalty of 10 years, up to life, in federal prison. A sentencing date has not yet been set.
According to court documents, on February 1, 2024, an undercover agent with Homeland Security Investigations posed online as a 13-year-old girl. Fernandez contacted the undercover agent’s account, and after learning the child’s age, engaged in a sexually explicit conversation. Fernandez then arranged to meet the “child” at a predetermined location in Orange County to engage in sexual activity. When he arrived at the meeting location, he was arrested by law enforcement.
This case was investigated by Homeland Security Investigations and the Orlando Police Department. It is being prosecuted by Assistant United States Attorney Kaley Austin-Aronson.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Cartel-Linked Meth Trafficker Sentenced to 40 Years in Federal PrisonRead the Press Release
A methamphetamine trafficker with ties to the CJNG cartel was sentenced Wednesday to 40 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Adriana Melendez-Calvillo, a 43-year-old citizen and national of Mexico illegally present in the United States, was charged via criminal complaint in February 2023 and pleaded guilty in November 2023 to a criminal information charging conspiracy to possess with intent to distribute methamphetamine and money laundering. She was sentenced Wednesday by U.S. District Judge Brantley Starr.
According to court documents, in September 2022, agents intercepted a call between Ms. Melendez and a co-conspirator during which they discussed logistics for a drug transaction. Agents then followed Ms. Melendez’s vehicle to a fast food restaurant, where she met with coconspirators David Garcia and Omar Gilliam, who appeared to transfer something from Ms. Melendez’s back seat to the trunk of their vehicle. Agents then followed Mr. Gilliam’s vehicle to a gas station, where he removed a grey duffle bag from his trunk and placed it into a third vehicle. Police subsequently pulled over that vehicle for traffic violations; inside the duffel, they found plastic baggies containing 4,886 grams of methamphetamine.
In plea papers, Ms. Melendez admitted that she arranged for the transfer of that meth.
At Wednesday’s sentencing hearing, an agent testified that Ms. Melendez had ties to Jalisco New Generation Cartel (CJNG), a notorious transnational drug trafficking organization. Text messages introduced into evidence at sentencing suggest Ms. Melendez received shipments of meth, cocaine, and other drugs directly from sources of supply in Mexico, and prosecutors noted she electronically transferred $828,094 in proceeds to individuals in Mexico. Ms. Melendez also admitted to attempting to transfer bulk amounts of U.S. currency to Mexico, including $104,750 that was seized by law enforcement.
Evidence further revealed that Ms. Melendez was involved in the trafficking at least 1,000 pounds of cocaine, 41 kilograms of methamphetamine, and 7.8 kilograms of ice methamphetamine.
Mr. Garcia pleaded guilty in November 2023 to conspiracy to possess with intent to distribute methamphetamine and is slated to be sentenced in January. Mr. Gilliam was charged with conspiracy to possess with intent to distribute methamphetamine and awaits trial. Three other defendants in the case, Juan Pablo Guerra, Gerardo Campos Garcia, and Fatima Garcia, have entered guilty pleas; three more, Hilario Zamago, Ignacio Manzo-Cardenas, and Luis Manuel Abarca Torres, are also awaiting trial. All defendants are presumed innocent until proven guilty in a court of law.
The Drug Enforcement Administration’s Dallas Field Division conducted the investigation with the Richardson Police Department, the Hickory Creek Police Department, the Dallas Police Department, the Greenville Police Department, the Texas Department of Public Safety, the U. S. Postal Inspection Service, the Dallas County District Attorney’s Office, and the Internal Revenue Service’s Criminal Investigations Section. Assistant U.S. Attorney George Leal is prosecuting the case.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
California Man Sentenced to 70 Months for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Susan Lehr announced that Valentin Mendoza Jr., age 44, of San Bernadino, California, was sentenced on November 21, 2024, in federal court in Lincoln, Nebraska for one count of possession with intent to distribute more than 500 grams of a methamphetamine mixture. United States District Judge Susan M. Bazis sentenced Mendoza to 70 months’ imprisonment. There is no parole in the federal system. After Mendoza’s release from prison, he will begin a 4-year term of supervised release.
On February 3, 2023, a Seward County Sheriff’s Deputy stopped a vehicle traveling east bound on Interstate 80 in Seward County, Nebraska, for following too closely. The driver was identified as Mendoza. While preparing and completing the paperwork for the traffic stop, the deputy spoke to Mendoza about his travels. Mendoza said he was traveling from San Bernadino to Minnesota. Mendoza could not remember which city in Minnesota he was going to. Mendoza claimed to be going to a party, transporting DJ equipment for the party, which was supposed to be the next day. Mendoza said he left California the day before and drove through the night. Mendoza said a friend had rented the vehicle and the friend was driving separately to meet him in Minnesota.
The deputy suspected Mendoza was engaged in criminal activity. After issuing Mendoza the written warning for following too closely and a verbal warning for an unsafe lane change, the deputy asked Mendoza if he could ask Mendoza some more questions and Mendoza agreed. Mendoza said there were no drugs, weapons or large amounts of the currency in the vehicle and then he consented to a search of the vehicle.
A search of the vehicle was conducted, and concealed inside the door panels of the of the vehicle were 14 wrapped packages containing methamphetamine.
This case was investigated by the Drug Enforcement Agency.
Butler County man sentenced to 25 years in prison for sexually exploiting infant, childRead the Press Release
CINCINNATI – David John Frahm, 63, of Trenton, Ohio, was sentenced in federal court to 300 months in prison for sexually exploiting children. Frahm committed a hands-on offense against an infant victim and a five-year-old victim and then shared photographs of the sexual abuse via an encrypted instant message application.
Frahm used the app to gain access to chat rooms where people discussed child sexual abuse and shared photos and videos depicting child sexual abuse material. In March and April 2023, Frahm shared three images of the abuse he committed.
Agents arrested Frahm in April 2023. He pleaded guilty in May 2024 to two counts of sexual exploitation of children. As part of his sentence, the Court ordered Frahm to a lifetime of supervised release.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Angie Salazar, Special Agent in Charge for Homeland Security Investigations (HSI) Detroit Field Office; and the Lebanon Police Department announced the sentence imposed on Nov. 15 by Senior U.S. District Judge Michael R. Barrett. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
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Berwick Woman Sentenced, Ordered to Repay $118,251 for Defrauding Social Security AdministrationRead the Press Release
PORTLAND, Maine: A Berwick woman was sentenced today in U.S. District Court in Portland for Social Security fraud.
U.S. District Judge Nancy Torresen sentenced Suzanne Hercock, 47, to four years of probation and ordered her to pay $118,251 in restitution. Hercock pleaded guilty on May 24, 2024.
According to court records, from about December 2008 to February 2020, Hercock lied to the Social Security Administration (SSA) about the presence of her husband, her children’s father, in the household, to fraudulently collect Supplemental Security Income (SSI) payments on behalf of the children. In multiple benefit eligibility reviews, Hercock falsely represented to the SSA that she and her husband lived separately. She failed to disclose her husband’s presence and income despite knowing that she was required to and that it would affect her eligibility to receive benefits.
SSA’s Office of the Inspector General investigated the case.
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Authorities intercept liquid meth shipment sending the trafficker to prisonRead the Press Release
McALLEN, Texas – A 59-year-old Mexican citizen residing in Houston has been sentenced for his role in a conspiracy to possess with intent to distribute more than 500 grams of meth, announced U.S. Attorney Alamdar S. Hamdani.
Abiel Gudino-Garcia pleaded guilty Aug. 26.
Chief U.S. District Judge Randy Crane has now ordered Gudino to serve a total of 96 months in federal prison. At the hearing, the court learned that Gudino initially claimed he had purchased diesel, but when confronted with the overwhelming evidence, he realized that authorities knew about the drug deal.
“This operation demonstrates the unwavering commitment to protecting our communities from the scourge of meth trafficking,” said Hamdani. “By intercepting this shipment and apprehending those involved, we are taking significant steps toward dismantling dangerous drug networks and ensuring public safety.”
In April 2018, Gudino arranged a meeting with drug traffickers in Houston to obtain a shipment of 80 gallons of liquid meth. Gudino was unaware that authorities had intercepted and seized the shipment in Rio Grande Valley before his planned delivery. Gudino arrived at the meeting location with empty gasoline tanks ready to transport the illegal substance and brought $15,000 for the purchase.
An undercover member of law enforcement posing as a trafficker handed Gudino what he believed was the meth. After the exchange, authorities followed Gudino to his home and detained him as part of their ongoing investigation.
Previously released on bond, Gudino was taken into custody following the sentencing where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Laura Garcia and Cahal P. McColgan prosecuted the case.
Atmore Man Sentenced for Fraud and Illegal Possession of a MachinegunRead the Press Release
MOBILE, AL – An Atmore man was sentenced to 21 months in prison for fraud in connection with emergency benefits, wire fraud, bank fraud, and illegal possession of a machinegun.
According to court documents, Tyderian Deantwyne Sims, 25, committed a variety of frauds between 2021 and 2023. In March 2021, Sims fraudulently obtained federal pandemic unemployment compensation benefits by filing a certification with the Alabama Department of Labor falsely claiming that he had not worked or received wages due to COVID 19 restrictions. In May 2021, Sims obtained a fraudulent Paycheck Protection Program loan. To obtain the fully forgivable loan, Sims filed a Schedule C tax form falsely claiming that he operated a lawncare business. Finally, in July 2023, Sims made a series of fraudulent transactions involving counterfeited and forged checks, which had been generated using checks stolen from the U.S. mail.
In June 2024, police in Atmore arrested Sims on a federal arrest warrant relating to his fraud crimes. During the arrest, police found a .40 caliber Glock pistol in Sims’s car. The pistol had been illegally modified with a machinegun-conversion device, commonly known as a “Glock switch.” Sims admitted that he bought the illegal machinegun from someone via Instagram. Data extracted from Sims’s cell phone indicated that Sims offered to sell machinegun-conversion devices to other people.
In addition to the 21-month prison term, Chief United States District Judge Jeffrey U. Beaverstock ordered Sims to serve a three-year term of supervised release upon his release from prison, during which time he will receive mental health treatment and will be subject to credit restrictions. The court did not impose a fine, but Chief Judge Beaverstock ordered Sims to pay $32,229.59 in victim restitution and $400 in special assessments.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The United States Postal Investigation Service, the Alabama Department of Labor Internal Security Division, and the Atmore Police Department investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Ashland City Sex Offender Convicted on Possession of Child Pornography ChargesRead the Press Release
NASHVILLE – A federal jury yesterday convicted Scott Michael Nelson, 61, of Ashland City, Tennessee, of Possession of Child Pornography Depicting a Prepubescent Minor or a Minor who has not Attained the Age of 12 years, announced Acting United States Attorney for the Middle District of Tennessee Thomas J. Jaworski.
According to the evidence presented at trial, on October 16, 2021, Probation Officers with the Tennessee Department of Corrections searched Nelson’s cell phone as part of Operation Blackout whereby Probation conducted a home search of every registered sex offender on probation prior to Halloween. A video of child sexual abuse material was found on the Defendant’s cell phone during the search by Probation. Nelson admitted the cell phone was his. Probation contacted the Metro Nashville Police Department, who seized the cell phone and obtained a search warrant for the cell phone.
At the time authorities found the video on Nelson’s phone, he was a registered sex offender who was on probation in Davidson County after serving a 10-year sentence in Florida for 2009 convictions for multiple child exploitation crimes. After serving his sentence in Florida, the Defendant was ordered to serve 10 years’ probation, which was transferred to Tennessee when he moved to Ashland City.
Nelson will be sentenced on March 27, 2025. At sentencing, Nelson faces a mandatory minimum term of incarceration of 10 years and a maximum term of incarceration of 20 years in federal prison.
The case was investigated by Homeland Security Investigations and the Metropolitan Nashville Police Department.
Assistant U.S. Attorneys Monica R. Morrison and Katy Risinger prosecuted the case.
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Armed Carjacker Is Sentenced to Eight Years in PrisonRead the Press Release
CHARLOTTE, N.C. – An armed carjacker was sentenced to eight years in prison today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Johnvonta Shiquan-Alexander Dixon, 26, of Charlotte, will also be subject to two years of supervised release upon his release from prison.
Bennie Mims, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
“Dixon pointed a gun and threatened an innocent victim’s life just to steal a car. That’s more than a brazen crime – it’s a ruthless display of violence. The eight-year sentence reflects the seriousness of the offense and delivers a measure of justice to the victim,” said U.S. Attorney King.
“ATF’s top priority is protecting communities against those who pose the greatest threat,” said Special Agent in Charge Mims. “In this case, we had a calculated individual determined to break the law and endanger innocent lives. We are proud of to be part of a strong collaborative effort that brought this individual to justice.”
According to court documents and court proceedings, on September 12, 2022, at approximately 9:20 p.m., the victim, identified as J.W., was carjacked at gunpoint while he was in the parking lot of an AutoZone store in Charlotte. Court records show that a man later identified as Dixon approached the victim, pointed a firearm at him, and demanded the keys to his vehicle. According to the victim, the gunman said, “I will f***ing kill you if you don’t give me your keys.” The victim complied and the gunman drove away in the victim’s vehicle. Within five minutes of receiving the 911 call from the victim, a CMPD officer located the stolen vehicle abandoned near Old Pineville Road in Charlotte. The victim had reported that there were two firearms in the vehicle. When the vehicle was returned to the victim, the firearms and many other items were missing.
According to filed court documents, prior to the carjacking at the AutoZone, the victim had made two stops. First, he had stopped at the Stars Arcade II in Charlotte, followed by a stop at a QT gas station on Woodlawn Road. CMPD collected and analyzed video surveillance footage from multiple locations, including the arcade, street cameras, and the gas station. The video footage shows that Dixon was inside the arcade at the same time as the victim and followed the victim when he left the arcade. After leaving the arcade, the victim and Dixon got into their respective vehicles and video footage shows Dixon following the victim to the gas station. From the gas station, the victim went to the AutoZone where he was approached in the parking lot and carjacked by Dixon.
Court records show that CMPD officers identified the carjacker as Dixon and obtained state arrest warrants. On October 4, 2022, CMPD’s Violent Criminal Apprehension Team went to a townhome in Charlotte to arrest Dixon. Dixon attempted to get away from the police by climbing into the attic, and then crashing through the bedroom ceiling of a neighboring unit. He was arrested shortly thereafter.
During the investigation, law enforcement seized Dixon’s phone. A forensic analysis of text messages revealed that, on the night of the carjacking, Dixon had communicated with another individual about the victim’s whereabouts further indicating that Dixon had tracked the victim. Law enforcement also found photographs of one of the victim’s stolen firearms on Dixon’s cell phone.
On April 18, 2024, Dixon pleaded guilty to possession and brandishing of a firearm in furtherance of a crime of violence. Dixon remains in the custody of the U.S. Marshals Service pending placement by the Federal Bureau of Prisons.
In making today’s announcement, U.S. Attorney King thanked the ATF and CMPD for their investigation of the case.
Assistant U.S. Attorney David Kelly of the U.S. Attorney’s Office in Charlotte 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.
Armed Career Criminal Pleads Guilty to Illegally Possessing A FirearmRead the Press Release
Jacksonville, FL – United States Attorney Roger B. Handberg announces that Otis Shivers (50, Jacksonville) has pleaded guilty to possessing a firearm and ammunition as a convicted felon. Shivers faces a minimum sentence of 15 years, up to life, in federal prison. A sentencing date has not yet been set.
According to court documents, in October 2021, officers from the Jacksonville Sheriff’s Office encountered Shivers outside a motel in Jacksonville where he was acting in a strange manner. The officers approached Shivers to check on his situation. When Shivers saw the officers, he immediately raised his arms. The officers observed a revolver in his waist band, took Shivers into custody, and seized the loaded revolver. A criminal record check revealed that Shivers had five prior felony convictions, including four that involved the sale of cocaine or heroin. As such, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Frank Talbot.
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.
Alton resident admits to distributing 10 kilos of liquid methRead the Press Release
McALLEN, Texas – A 26-year-old man has pleaded guilty to distributing liquid methamphetamine, announced U.S. Attorney Alamdar S. Hamdani.
Authorities conducted an investigation revealing Jesus David Medrano Grimaldo intended to sell approximately 10 kilograms of what he knew to be an illegal controlled substance to another individual. Medrano made this initial sale in hopes of selling more illegal controlled substances.
Law enforcement observed the transaction and watched as Medrano placed a jug containing a liquid in the other individual’s vehicle. Authorities later acquired the jug and determined the liquid to contain methamphetamine.
The liquid methamphetamine weighed approximately 10 kilograms.
Chief U.S District Judge Randy Crane accepted the plea and set sentencing for Feb. 3, 2025. At that time, Medrano faces up to life in federal prison and a possible $10 million maximum fine.
Medrano will remain in custody pending his sentencing.
The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Cahal P. McColgan is prosecuting the case.
22-Year-Old Female who Purchased Firearms for Others Sentenced in Federal CourtRead the Press Release
A female who purchased multiple firearms for others was sentenced November 20, 2024, to five years of federal probation for lying to federally licensed firearms dealers while buying firearms.
Jasmin Alexandria Fox, age 22, from Cedar Rapids, Iowa, received the prison term after a June 17, 2024 guilty plea to one count of false statement during purchase of a firearm. From August 2023 through September 2023, Fox purchased multiple firearms, claiming she was buying them for herself, that were then provided to other individuals. The guns purchased by Fox were linked to two “shots-fired” incidents and one robbery in Cedar Rapids. One of the firearms purchased by Fox was recovered by Cedar Rapids Police on a felon during a struggle. Another firearm purchased by Fox was later recovered from a juvenile.
Fox was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Fox was sentenced to 5 years of probation.
The case was prosecuted by Assistant United States Attorney Nicole L. Nagin, and it was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cedar Rapids Police Department, and the Iowa Division of Narcotics Enforcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR- 00026.
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20 November 2024
Young Shreveport Man Found with Machine Gun Sentenced to Federal PrisonRead the Press Release
SHREVEPORT, La. – United States Attorney Brandon B. Brown announced that Pharaon L. Jackson, 21, of Shreveport, Louisiana, has been sentenced by United States District Judge Elizabeth E. Foote for illegal possession of a machine gun. Jackson was sentenced to 40 months in prison, followed by 3 years of supervised release for the offense.
On June 21, 2023, troopers with the Louisiana State Police stopped a vehicle for speeding in Ouachita Parish. Jackson was a passenger in the vehicle. As the trooper approached the vehicle, he observed objects being thrown from the window where Jackson was sitting in the vehicle. The trooper found and identified the thrown items as being a bag of marijuana and a Glock 17 9mm firearm with a conversion device installed. The conversion device, also known as a Glock switch, altered the firearm so that it was able to fire multiple rounds with one pull of the trigger, rendering it a machine gun. Jackson and other occupants of the vehicle were arrested for possessing an automatic weapon and later bonded out of jail.
Through their further investigation, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) found that Jackson posted a photo of himself on social media, just five days prior to the traffic stop, holding two handguns, one of which has a Glock switch and matches the firearm that was seized from him on June 21, 2023. In addition, in July 2023, officers with the Shreveport Police Department received complaints of 4-5 males riding around in a Dodge Charger wearing ski masks and brandishing assault rifles. Officers were able to locate the vehicle and went to the residence in Shreveport where it was parked. Upon entry to the residence, officers found four males present, including Jackson, and also found three loaded AR-15 style pistols located under a mattress in the same room where Jackson and two of the males were found. All males were taken to the Shreveport Police station for questioning. It was later determined from ballistic exams that two of the firearms that were found in the house had been used in a quadruple homicide which occurred on July 4, 2023, in Shreveport.
Jackson pleaded guilty to the federal charge of illegal possession of a machine gun on July 18, 2024.
“There is a zero tolerance for offenders in this district that possess firearms equipped with Glock switches,” stated U.S. Attorney Brandon B. Brown. “This individual found himself around modified firearms in two parishes. He is dangerous, a threat to public safety and has received a just sentence. Let this be a lesson and a deterrent for others considering installing conversion devices on Glock firearms. Offenders committing such crimes will be prosecuted and we will seek sentences of imprisonment. ”
The case was investigated by the ATF, Louisiana State Police and Shreveport Police Department and was prosecuted by Assistant United States Attorney William C. Gaskins.
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West Virginia Residents Admit to Methamphetamine ChargesRead the Press Release
ELKINS, WEST VIRGINIA – Two West Virginia men have admitted to methamphetamine trafficking in Grant and Randolph Counties.
James Jerome Curtis, 41, of Petersburg, West Virginia, and Burlin Junior Howell, 59, of Elkins, West Virginia, each pled guilty to distributing methamphetamine. According to court documents, Curtis was selling methamphetamine in Grant County. Howell sold methamphetamine in Randolph County.
Curtis and Howell each face up to 20 years in prison. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Stephen Warner is prosecuting the cases on behalf of the government.
The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated. The task force is comprised of members from the Drug Enforcement Administration, the West Virginia State Police, the Mineral County Sheriff’s Office, the Hampshire County Sheriff’s Office, the Hardy County Sheriff’s Office, the Grant County Sheriff’s Office, and the Keyser Police Department.
U.S. Magistrate Judge Michael John Aloi presided.
West Hartford Man Sentenced to 5 Years in Federal Prison for Narcotics Trafficking OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that JEIMY RODRIGUEZ, 39, of West Hartford, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 60 months of imprisonment, followed by four years of supervised release, for trafficking fentanyl and cocaine.
According to court documents and statements made in court, in July 2022, the Drug Enforcement Administration’s Hartford Task Force began investigating a large-scale drug trafficking organization that was distributing kilogram quantities of fentanyl and cocaine in Connecticut. The investigation included court-authorized wiretaps, physical and electronic surveillance, controlled purchases of narcotics, and other investigative techniques. During the early stages of the investigation, Rodriguez was the president of the Loose Cannonz motorcycle club. The investigation revealed that Rodriguez and his co-defendants, including one who succeeded him as president of the Loose Cannonz, were receiving shipments of fentanyl and cocaine for distribution in the Hartford area.
On March 13, 2023, investigators made a controlled purchase of approximately 80 grams of fentanyl from Rodriguez at his auto repair shop on Broad Street in Hartford. On April 7, 2023, investigators purchased approximately 86 grams of cocaine from Rodriguez in the vicinity of Zion and Hamilton Streets in Hartford. The cocaine appeared to be broken off of a kilogram brick of cocaine.
On June 7, 2023, Rodriguez was arrested at West Hartford residence. Investigators located and seized two firearms in Rodriguez’s home at the time of his arrest. On that date, a search of the Loose Cannonz club in Hartford revealed an additional quantity of fentanyl.
Rodriguez has been detained since his arrest. On June 27, 2024, he pleaded guilty to possession with intent to distribute 40 grams or more of fentanyl.
This investigation is being conducted by the DEA’s Hartford Task Force, the Federal Bureau of Investigation, and the U.S. Postal Inspection Service. The Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, and Windsor Locks Police Departments. The case is being prosecuted by Assistant U.S. Attorney Robert S. Dearington and A. Reed Durham.
The case is being prosecuted through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Walthill Woman Sentenced for Involuntary Manslaughter in Indian CountryRead the Press Release
United States Attorney Susan Lehr announced that Dawnika Walker, age 30, of Walthill, Nebraska, was sentenced on November 20, 2024, in federal court in Omaha, Nebraska, for involuntary manslaughter in Indian Country. United States District Court Judge Brian C. Buescher sentenced Walker to 80 months’ imprisonment. There is no parole in the federal system. After Walker’s release from prison, she will begin a 3-year term of supervised release. Judge Buescher also ordered Walker to pay approximately $23,000 in restitution to the deceased victim’s family.
In February 2024, Walker was driving a minivan on the Winnebago Indian Reservation in Nebraska when she struck and killed a 63-year-old male motorcyclist on US Highway 75. Through lab testing, law enforcement determined Walker had been intoxicated well above the legal limit in Nebraska. Walker struck the victim motorcyclist while attempting a left turn, even though she lacked the right of way. Walker has multiple prior convictions for driving while under the influence, a major factor cited by Judge Buescher when handing down Walker’s 80-month sentence.
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.
United States Attorney Dawn N. Ison and HUD Inspector General Rae Oliver Davis Host Safe Housing SummitsRead the Press Release
DETROIT – United States Attorney for the Eastern District of Michigan Dawn N. Ison and U.S. Department of Housing and Urban Development Inspector General Rae Oliver Davis hosted two summits yesterday focused on promoting the health, safety, and civil rights of tenants living in HUD-assisted housing. The program focused on combatting sexual misconduct and eliminating environmental hazards in HUD-assisted housing.
The summits, which took place at Anderson Enrichment Center in Saginaw and Kemeny Recreation Center in Detroit, were part of the U.S. Department of Justice’s and Inspector General’s complementary initiatives to promote safe housing related to eliminating environmental hazards such as lead-based paint and how to recognize and report sexual harassment and misconduct.
“Everyone should be able to live safely in their homes, free from exposure to environmental hazards, and free from being subjected to harassment from their landlord,” said U.S. Attorney Ison. “We convened these summits today to raise awareness that residents have protections under federal law and that the U.S. Attorney’s Office, together with our partners at HUD OIG, will continue to work every day to eradicate sexual harassment and environmental hazards in housing throughout the Eastern District of Michigan.”
“In partnership with U.S. Attorney Ison and her colleagues across the Nation, we remain dedicated to combatting sexual misconduct by housing providers and ensuring HUD-assisted tenants live in units free from lead and other environmental hazards,” said Inspector General Oliver Davis. “Opportunities like those we held today engaging community stakeholders in safe housing summits demonstrate HUD OIG’s commitment to holding accountable housing providers for putting the health and safety of HUD-assisted families at risk, and bringing to justice those who victimize vulnerable tenants.”
Participants included representatives from organizations that routinely work with vulnerable populations most likely to be impacted by environmental hazards, such as lead-based paint in their homes, or subjected to sexual harassment in housing by their landlords, property managers, or others with control over housing. The organizations represented included legal services offices, fair housing organizations, civil rights groups, shelters, and social service organizations.
If you or someone you know has information about environmental hazards and unsafe conditions in HUD-assisted housing or has been a victim of sexual harassment, sexual assault, or sexual exploitation – even if the events occurred years ago – report it to the HUD Office of Inspector General Hotline at 1-800-347-3735 or visit the website at www. https://hudoig.gov/hotline. You may also file a complaint with HUD’s Office of Fair Housing and Equal Opportunity at www.hud.gov/fairhousing/fileacomplaint.
Individuals who believe they have been victims of sexual harassment in housing, or discrimination may also contact the U.S. Attorney’s Office at 1-313-226-9151 or email us at [email protected].
U.S. Attorney Easley Announces “Illicit Finance Task Force” to Combat Transnational Money LaunderingRead the Press Release
RALEIGH, N.C. – U.S. Attorney Michael F. Easley, Jr., announced efforts to combat transnational money laundering, including the creation of the Eastern District of North Carolina’s Illicit Finance Task Force (IFTF). The IFTF is a groundbreaking multiagency task force constituted to disrupt, dismantle, or render ineffective organizations involved in laundering criminal proceeds from drug trafficking and other crimes. The task force targets third-party money launderers and money transmitting businesses utilizing cryptocurrency, money services, bulk cash, banking, and brokerages to run dirty money through the American financial system. The task force is led by the U.S. Attorney’s Office with partners from various federal, state, and local law enforcement agencies.
“Money talks,” said U.S. Attorney Michael F. Easley, Jr. “And we will follow every lead it gives us. Cartels and corrupt regimes around the world think they can dodge American jurisdiction while using our financial system to wash criminal proceeds. Our new Illicit Finance Task Force exists to take down the most prolific ‘money movers,’ seize criminal assets, and cripple the world’s most crooked enterprises. We will vigorously protect the integrity of our banking system and deal a hard blow to any network running dirty money through our state.”
Easley highlighted one of the first successful prosecutions led by his office. Wimel Isaac DaSilva, 29, of New York, NY, pled guilty for conspiring to operate an illegal money transmitting business and to making false statements and reports to financial institutions.
According to information presented in court, DaSilva owned and operated a Raleigh business that purported to provide consulting and software development services to its customers, but instead served as a shell company that transmitted proceeds of drug trafficking and other criminal activity to South American accounts.
From 2019 to 2022, DaSilva opened accounts with at least eight banks and virtual currency exchanges (VCEs). Using these accounts, DaSilva received more than $40 million in cryptocurrency. After converting cryptocurrency to U.S. currency, the funds were rapidly transmitted to individuals and shell companies located outside of the United States.
Under the Bank Secrecy Act, financial institutions and VCEs that provide money transmission services must establish anti-money laundering (AML) programs that include, among other things, conducting due diligence on their customers, monitoring transactions for illicit activity, and reporting suspicious activity to FinCEN.
DaSilva sought to obstruct the AML functions of banks and VCEs by routinely making materially false and misleading statements regarding the nature of his business and the purpose of specific financial transactions. He also provided fabricated contracts and invoices in an attempt to backstop false statements about the source of funds and relationships with counterparties.
“DaSilva’s web of lies and schemes to conceal the laundering of illicit proceeds has been laid bare and he is being held accountable,” said Special Agent in Charge Cardell T. Morant who leads Homeland Security Investigations Charlotte, covering North and South Carolina. “HSI is committed to protecting the integrity of the U.S. banking system from criminals and will continue to prioritize these investigations.”
“We continue to find and close the pathways in illicit financial crimes with the support of our partner agencies,” said Special Agent in Charge Donald “Trey” Eakins, Charlotte Field Office, IRS Criminal Investigation. “IRS Special Agents are skilled at investigating all types of tax and related financial crimes and today's plea is a testament to their hard work and commitment.”
DaSilva’s prosecution results from an investigation by the Eastern District of North Carolina’s Illicit Finance Task Force (IFTF). 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 North Carolina through strategic use of criminal and civil laws.
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 Homeland Security Investigations. Assistant U.S. Attorney Toby Lathan is 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.
U.P. Man Sentenced to 15 Years for Child ExploitationRead the Press Release
Man convinced 12-year-old child to send him sexually explicit photos and videos
MARQUETTE – U.S. Attorney for the Western District of Michigan Mark Totten today announced that Kelton Salowitz, 19, of Curtis, Michigan, was sentenced to 15 years in federal prison followed by 10 years of supervised release for sexually exploiting a 12-year-old child.
“We cannot undo the harm that Mr. Salowitz inflicted on children, but today’s sentence is a measure of justice for the victims and an important step to protect the community,” said U.S. Attorney Mark Totten. “This case is also a reminder of the dangers that lurk online. Without sufficient guardrails, smartphones can give criminals across the United States and around the world access to our children, even inside the safety of their homes. Educate your kids, monitor their online activity, and let them know they can also talk to you if they mess up.”
Salowitz pleaded guilty to repeatedly asking a 12-year-old girl, who was living in a different state, to send him sexually explicit photos and videos. He communicated with the child on his smartphone through the application Discord. One of the videos recovered from defendant’s phone was a recorded livestream in which the child performed sexual acts at the instruction of Salowitz. In addition, Salowitz requested, but did not receive, similar content from another 12-year-old, and investigators recovered a collection of child pornography on his phone which included videos of men sexually assaulting children.
Homeland Security Investigations (HSI) provides the following Top 10 Tips2Protect for parents to protect their children from online predators:
- Start an open, two-way conversation with your child.
- Password-protect or control access to your child’s app store and gaming downloads.
- Set time and area limits for use of devices and set device check-in times.
- Set all apps, games and devices to private.
- Turn off location data services on social media and nonessential apps.
- Talk about data permanency. Online data can last a lifetime.
- Create a contract with your child regarding online behavior.
- Know your child’s friend lists. Remove strangers.
- Warn your child that they should never leave a game to chat with someone they don’t know on a different platform.
- Do not delete messages, images or videos from predators and do not forward any sexually explicit images or videos. Save usernames, screenshots and images or videos as evidence for law enforcement to collect directly from the device.
Further information for parents about how to protect their children, what to share with them, and the signs of online sexual exploitation are available on the agency’s Know2Protect (K2P) website.
The Mackinac County Sheriff’s Office and the Department of Homeland Security, Homeland Security Investigations, investigated this matter.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor’s offices, the Internet Crimes Against Children Task Force (ICAC), and federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood educate local communities about the dangers of online child exploitation and teach children how to protect themselves. For more information about Project Safe Childhood, visit www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
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U.P Man Sentenced to 135 Months in Federal Prison for Child PornographyRead the Press Release
MARQUETTE – U.S. Attorney for the Western District of Michigan Mark Totten today announced that Brandon Earl Lavoy, 36, of Chatham, Michigan, was sentenced to 135 months in federal prison for possession of child pornography.
“The sexual exploitation of children is reprehensible,” said U.S. Attorney Mark Totten. “Mr. Lavoy is a sexual predator whose egregious plan to ‘get a minor raped’ was thankfully thwarted by FBI agents. My office will not waver in our commitment to working with law enforcement partners to ensure that sexual predators who target our children are brought to justice.”
Lavoy came to law enforcement’s attention after the FBI discovered end-to-end encrypted messages between Lavoy and another person. In those messages, Lavoy provided two minors’ identifying information and told the other person he was looking to get one of the minors “raped.” The FBI traced the messages back to Lavoy and executed a search warrant on his phone and computer, where investigators found Lavoy’s collection of child pornography.
FBI investigated the case, with assistance from the Michigan State Police.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor’s offices, the Internet Crimes Against Children Task Force (ICAC), and federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood educate local communities about the dangers of online child exploitation and teach children how to protect themselves. For more information about Project Safe Childhood, visit www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
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Two Pittsburgh Area Residents Indicted for Vandalizing Jewish BuildingRead the Press Release
PITTSBURGH, Pa. - Two residents of the Pittsburgh, Pennsylvania, area have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy and defacing and damaging a religious building, United States Attorney Eric G. Olshan announced today.
The two-count Indictment named Mohamad Hamad, 23, of Coraopolis, and Talya A. Lubit, 24, of Pittsburgh, as co-conspirators. The two defendants were previously charged and arrested on a criminal complaint (read the complaint news release here).
According to the Indictment, from in and around July 2024 through on or about July 29, 2024, Hamad and Lubit conspired with each other to commit an offense against the United States—specifically, a civil rights violation involving damage to religious real property. Hamad and Lubit are further charged with defacing the religious real property of Chabad of Squirrel Hill (Chabad), which occupies a synagogue building, because of the racial and ethnic characteristics of the Jewish individuals associated with Chabad, in violation of federal law.
The law provides for a maximum total sentence of up to two years in prison, a fine of up to $200,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Hamad and Lubit were both released on $50,000 unsecured bonds and are required, among other conditions, to remain under home detention, to abide by computer monitoring, to refrain from use of encrypted messaging applications, and to not possess, view, access, or otherwise use material that reflects extremist or terroristic views without the permission of the assigned probation officer. Extremist or terroristic material includes but is not limited to websites, videos, magazines, articles, books, writings, photographs, pictures, and graphics produced by or in support of any Foreign Terrorist Organization (FTO), as designated under 8 U.S.C. § 1189, including Hamas.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Pittsburgh Bureau of Police conducted the investigation leading to the Indictment.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Pennsylvania Men Indicted on Charges Related to Conspiracy to Produce Child Pornography, and Online Enticement, Distribution and Possession of Child PornographyRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kevin Eric Abbott, age 39, of Scranton, Pennsylvania, and Rashaad Khalid Che Taylor, age 28, of Milford, Pennsylvania, were indicted by a federal grand jury for multiple criminal charges related to child exploitation, including an overarching conspiracy to produce child pornography, online enticement, both distribution and possession of child pornography, and, with regard to Taylor, the commission of a felony sex offense by an individual required to register as a sex offender.
The Indictment in this case alleges that the two men met and conspired, over the course of at least a year and a half, to entice children to produce of child pornography at their behest. Both men engaged in the enticement and attempted enticement of children online. Abbott is alleged to have distributed child pornography on multiple occasions. Additionally, both men were in possession of images and video of pre-pubescent children engaged in sex acts when they were encountered by law enforcement. Taylor is also alleged to have committed these felony sex offenses while being a registered as a sex offender for his underlying 2016 felony sex offense convictions.
The case was investigated by the Department of Homeland Security. Assistant U.S. Attorney Luisa Honora Berti is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
The maximum penalty under federal law for these offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Two New Jersey Residents Charged with Sex Trafficking of MinorRead the Press Release
NEWARK, N.J. – Two New Jersey residents have been charged for child sex trafficking and related offenses, U.S. Attorney Philip R. Sellinger announced today.
Daquan McCallum, 30, of Elizabeth, New Jersey, and Destiny Tamarato, 26, of Brick, New Jersey, are charged by complaint with sex trafficking of a minor and conspiracy to engage in sex trafficking of a minor. McCallum made his initial appearance before U.S. Magistrate Judge on Stacey D. Adams on Nov. 19, 2024, and was detained. Tamarato made her initial appearance before U.S. Magistrate Judge André M. Espinosa on Nov. 15, 2024, and was detained.
According to documents filed in this case and statements made in court:
In April 2020, Tamarato was arrested at a motel in Elizabeth with two minor victims after law enforcement located an online advertisement for sexual services and communicated with Tamarato, who agreed to provide sexual services for an agreed-upon price. Following this arrest and after being advised that one of the victims was underage, Tamarato continued to advertise that victim’s sexual services online. Tamarato was again arrested for engaging in prostitution with the same victim in April 2021. Tamarato also introduced the victim to McCallum, who then arranged for the victim to engage in additional commercial sex work, despite knowing that the victim was a minor.
The charges of sex trafficking of a minor each carry a mandatory minimum of 10 years in prison, a maximum penalty of life imprisonment, and a fine of up to $250,000. The charge of conspiracy to engage in sex trafficking of a minor carries a maximum penalty of life imprisonment.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Nelson I. Delgado, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Lauren Kober of the General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
mccallumtamarato.complaint_.pdfTwo Indicted for COVID Fraud in West VirginiaRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two people have been indicted for fraudulently obtaining COVID-19 relief funding on behalf of a West Virginia resident, according to United States Attorney William Ihlenfeld.
Kimberly VanKline, 56, of Hyattsville, Maryland, and Rhonda Brown-Moore, 64, of Brooklyn, New York, were indicted yesterday for wire fraud and conspiracy to commit wire fraud related to the improper receipt of funds from the COVID Relief Act. According to the indictment, the defendants worked in concert to create and submit falsified documents to obtain CARES Act Paycheck Protection Program (PPP) loans for others, including a resident of the Northern District of West Virginia. VanKline and Brown-Moore were compensated for their illegal actions from the fraudulent proceeds.
“Our team continues to investigate COVID fraud and there will be more criminal charges, as well as civil enforcement actions, in the months ahead,” said United States Attorney Ihlenfeld. “We will seek prison sentences for those who stole from the taxpayers, as well as repayment of the money stolen, plus penalties and interest.”
VanKline and Brown-Moore face up to 20 years in federal prison for each of the three felony counts. If they are convicted, a federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Jennifer Conklin is prosecuting the case on behalf of the government and the matter was investigated by the Federal Bureau of Investigation.
The U.S. Attorney’s Office is committed to combatting pandemic fraud. Anyone aware of COVID fraud is encouraged to report it via email to [email protected], by telephone to 304-234-0100, or via regular mail to the U.S. Attorney, P.O. Box 591, Wheeling, WV 26003, Attn: COVID Fraud Unit.
An indictment is merely an allegation, and each defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Honduran Men Convicted for their Role in International Human Smuggling ConspiracyRead the Press Release
Two Honduran men were convicted on Monday by a federal jury for their roles in a scheme to illegally smuggle Honduran nationals into the United States.
According to court documents and evidence presented at trial, Hennessy Devon Cooper Zelaya, 30, and Rudy Jackson Hernandez, 37, conspired with at least six others to bring Honduran nationals from Honduras to the United States. In February 2022, the defendants attempted to illegally bring 23 Honduran migrants from Utila, Honduras, to Cocodrie, Louisiana, aboard the M/V Pop, a 65-foot Sportfishing vessel. Most of the migrants each paid several thousand dollars to the co-conspirators to be smuggled into the United States. At some point during the voyage, the M/V Pop developed engine trouble and lost power in the Gulf of Mexico. The co-conspirators chartered a boat to bring fuel to the disabled vessel so that it could complete its journey into the United States. Before the chartered boat reached the disabled vessel, the U.S. Coast Guard interdicted the vessel approximately 75 miles off the coast of Louisiana and towed it to shore.
For almost a year, Cooper Zelaya and Jackson Hernandez participated in the scheme to bring Honduran migrants from Honduras to the United States via two vessels: the Masita III and the M/V Pop. Once the migrants reached the United States, the co-conspirators placed some of them in factories and other businesses, knowing that the migrants lacked authorization to enter, remain, or work in the United States.
Cooper Zelaya and Jackson Hernandez were convicted of one count of conspiracy to unlawfully bring aliens to the United States for commercial advantage and private financial gain and two counts of attempting to bring aliens to the United States for commercial advantage and private financial gain. They face a maximum penalty of 10 years in prison on each count. A sentencing date has not been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The lead defendant in the case, Carl Allison, 47, previously pleaded guilty in December 2023 to conspiracy to unlawfully bring aliens to the United States for financial gain and conspiracy to distribute five kilograms or more of cocaine hydrochloride. Three additional co-conspirators, all Honduran nationals, pleaded guilty earlier last year for their roles in the scheme. Darrel Martinez, 41, and Josue Flores-Villeda, 36, pleaded guilty to the same charges as Allison. Lenord Cooper, 40, pleaded guilty to conspiracy to aid and assist aliens to enter the United States unlawfully and attempting to bring aliens to the U.S. for commercial advantage and private financial gain.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Duane A. Evans for the Eastern District of Louisiana; and Special Agent in Charge Eric DeLaune of the Homeland Security Investigations (HSI) New Orleans Field Office made the announcement.
The HSI Houma, Louisiana Field Office investigated the case, with assistance from the HSI Pittsburgh Field Office, HSI Atlanta Field Office, and Louisiana Bureau of Investigation. The U.S. Coast Guard Investigative Service, U.S. Customs and Border Protection Air and Marine Operations, Louisiana State Police, Pennsylvania State Police, North Huntington Township Police, and Terrebonne Parish Sheriff’s Office also provided valuable assistance. The Justice Department’s Office of Overseas Prosecutorial Development, Assistance, and Training in Honduras provided substantial assistance.
Deputy Chief Rami Badawy and Trial Attorney Kate Wagner of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Carter Guice of the General Crimes Unit for the Eastern District of Louisiana are prosecuting the case.
This case is the result of the coordinated efforts of Joint Task Force Alpha (JTFA). Attorney General Merrick B. Garland established JTFA in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to combat the rise in prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador and Honduras. The initiative was expanded to Colombia and Panama to combat human smuggling in the Darién in June 2024. JTFA comprises detailees from U.S. Attorneys’ Offices along the southwest border including the Southern District of California, Districts of Arizona and New Mexico and the Western and Southern Districts of Texas. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by HRSP and supported by the Office of Prosecutorial Development, Assistance and Training; Narcotic and Dangerous Drug Section; Money Laundering and Asset Recovery Section; Office of Enforcement Operations; Office of International Affairs; and Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, Drug Enforcement Administration and other partners. To date, JTFA’s work has resulted in over 325 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; more than 272 U.S. convictions; more than 210 significant jail sentences imposed; and substantial seizures and forfeiture of assets and contraband including more than a million dollars in cash, real property, vehicles, firearms and ammunition, and drugs; along with multiple indictments and precedent setting extraditions of foreign leadership targets.
This case is also supported by the Organized Crime and Drug Enforcement Task Forces (OCDETF) and the Extraterritorial Criminal Travel Strike Force (ECT) program. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. The ECT program is a partnership between the Justice Department’s Criminal Division and HSI, and focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence, and prosecutorial resources. ECT also coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Two Former Airforce Airmen Indicted for a Scheme to Obtain $300,000 in COVID-19 Relief FundsRead the Press Release
Spokane, Washington – United States Attorney Vanessa R. Waldref announced that on November 7, 2024, a federal grand jury for the Eastern District of Washington returned an indictment charging Taylor Jashaun Kendall, age 26, of Spokane, Washington, and Michael Tyriq Allen, age 26, of Gainesville, Georgia, with a dozen counts of fraud as part of a scheme to obtain COVID-19 relief funding.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One program, the Paycheck Protection Program (PPP) program, offered forgivable loans to eligible small businesses in order to retain or rehire employees who lost their jobs, or were in danger of doing so, due to the pandemic. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The PPP and EIDL programs have provided billions of dollars in aid, the vast majority of which has not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.
According to the indictment, between June 2020 and May 2021, Kendall and Allen fraudulently obtained at least $300,000 in CARES act funding through the EIDL and PPP programs. Both Kendall and Allen are former U.S. Airforce Airmen. Kendall was an Airman stationed at Fairchild Airforce Base during the timeframe alleged in the Indictment.
As alleged in the indictment, between June 18, 2020, and June 24, 2020, Kendall and Allen submitted three separate applications for Economic Injury Disaster Loans using false and fraudulent information. In each of the applications, Kendall and Allen claimed their business was engaged in agriculture, had 10 employees, and monthly revenue of $4,625.00. Two of the three applications were approved, and Kendall and Allen allegedly received $20,000 in EIDL funds.
The indictment alleges that in March 2021, Kendall and Allen submitted two separate applications for Payroll Protection Program loans using false and fraudulent information. Then in April 2021, Kendall and Allen, submitted a Second Draw PPP application. The indictment alleges all three PPP applications were approved and Kendall and Allan received more than $61,000 in PPP funds.
The indictment further alleges that Kendall and Allan also submitted false and fraudulent PPP and EIDL applications on behalf of other individuals using false information. Individuals who received these funds then sent a portion of the money back to Kendall and Allen. In total, Kendall and Allen submitted fraudulent applications resulting in the disbursement of at least $80,000 in EIDL advances and $269,900 in PPP loan funds.
Three other former Airmen have entered into criminal diversion agreements with the United States in relation to their participation in the scheme: Julius Dixon (2:23-cr-00086), Roderick Smith (2:24-cr-00109), and Richard Rosales (2:23-cr-00118).
“COVID-19 relief programs were designed to lift up our community during crisis. Due to the number of people and businesses that requested funding, some deserving small businesses did not receive critical funding to keep their doors open through the pandemic, which impacted their employees, their families, and our local economy.” said U.S. Attorney Waldref. “We created the COVID Fraud Strike Force to ensure that those who misused COVID-19 relief funding are held accountable and to protect the strength and safety of our vital small business community.”
The fraud charges against Kendall and Allen carry a maximum sentence of up to 30 years in federal prison.
This case was investigated by the Eastern District of Washington COVID-19 Fraud Strike Force, the Small Business Administration, and the Air Force Office of Special Investigations. It is being prosecuted by Assistant United States Attorney Jeremy J. Kelley.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
2:24-cr-00154-TOR
Two Florida Men Sentenced in Multimillion-Dollar Tax Refund SchemeRead the Press Release
Two Florida men were sentenced today for their involvement in the “Note Program,” a tax fraud scheme. Jasen Harvey, of Tampa, was sentenced to 48 months in prison and Christopher Johnson, of Orlando, was sentenced to 37 months in prison for conspiring to defraud the United States.
According to court documents and statements made in court, from 2015 to 2018, Johnson and Harvey conspired to promote a scheme in which Harvey and others prepared tax returns for clients that claimed that large, nonexistent income tax withholdings had been paid to the IRS on behalf of clients and sought large refunds based on those purported withholdings. The conspirators charged clients fees and required the clients to pay a share of the fraudulently obtained refunds to them.
Overall, the defendants claimed over $3 million in fraudulent refunds on their clients’ returns, of which the IRS paid about $1.5 million.
In addition to the terms of imprisonment, U.S. District Judge Roy B. Dalton Jr. for the Middle District of Florida ordered Johnson to serve three years of supervised release and to pay $864,117.42 in restitution to the United States. Judge Dalton Jr. ordered Harvey to serve three years of supervised release and pay $785,858.42 in restitution.
Co-defendant Arthur Grimes is scheduled to be sentenced on Jan. 13, 2025.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Melissa Siskind, Jeffrey McLellan and Caroline Pearson of the Tax Division and Assistant U.S. Attorney Diane Hu for the Middle District of Florida prosecuted the case.
Two Florida Men Sentenced in Multimillion-Dollar Tax Refund SchemeRead the Press Release
Orlando, FL – Two Florida men were sentenced today for their involvement in the “Note Program,” a tax fraud scheme. Jasen Harvey, of Tampa, was sentenced to 48 months in prison and Christopher Johnson, of Orlando, was sentenced to 37 months in prison for conspiring to defraud the United States.
According to court documents and statements made in court, from 2015 to 2018, Johnson and Harvey conspired to promote a scheme in which Harvey and others prepared tax returns for clients that claimed that large, nonexistent income tax withholdings had been paid to the IRS on behalf of clients and sought large refunds based on those purported withholdings. The conspirators charged clients fees and required the clients to pay a share of the fraudulently obtained refunds to them.
Overall, the defendants claimed over $3 million in fraudulent refunds on their clients’ returns, of which the IRS paid about $1.5 million.
In addition to the terms of imprisonment, U.S. District Judge Roy B. Dalton Jr. for the Middle District of Florida ordered Johnson to serve three years of supervised release and to pay $864,117.42 in restitution to the United States. Judge Dalton Jr. ordered Harvey to serve three years of supervised release and pay $785,858.42 in restitution.
Co-defendant Arthur Grimes is scheduled to be sentenced on Jan. 13, 2025.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Melissa Siskind, Jeffrey McLellan and Caroline Pearson of the Tax Division and Assistant U.S. Attorney Diane Hu for the Middle District of Florida prosecuted the case.
Three Sentenced for Half-Million Dollar Health Care Fraud ConspiracyRead the Press Release
ST. LOUIS –The former owner, office manager, and business manager of a St. Louis County, Missouri-based home health care company were sentenced Tuesday to prison time for health care fraud.
U.S. District Judge Sarah E. Pitlyk sentenced Doriann Morgan, 59, of St. Louis County, to two years in prison. Judge Pitlyk sentenced Thalisa Walton, 47, of Hazelwood, and Barbara Jackson, 59, of St. Louis, to a year and a day in prison. They have already paid $790,000 of the $910,000 they agreed to repay as part of a civil settlement. The final payment of $120,000 is due in March.
All three pleaded guilty in May to a felony charge of conspiracy to commit health care fraud. They admitted that from roughly January 2018 to August 2021, they conspired to submit $552,659 in fraudulent reimbursement claims to Missouri’s Medicaid program for personal care services that were never provided.
The three submitted fraudulent claims for personal care services purportedly provided by Jackson for a woman who did not live in Missouri and received no services, their plea agreements say. They also submitted claims for providing services for clients at times when their own social media posts showed them doing something else.
Jackson was business manager of A Mother’s Touch In-Home Care LLC, responsible for recruiting clients and assigning employees to provide care. Morgan owned the company and submitted Medicaid claims. Walton was office manager.
Morgan, Walton and Jackson are no longer affiliated in any way with A Mother’s Touch In-Home Care LLC, which continues to do business under new ownership.
The civil settlement resolved allegations that Morgan, Walton and Jackson violated the False Claims Act by billing Missouri Medicaid using false timesheets and payroll records for in home services that were never provided. The civil settlement resolves claims brought under the “qui tam” or whistleblower provisions of the False Claims Act by Michele Bickley, who will receive $90,090. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery.
“Fraudulent claims submitted to the Missouri Medicaid program diverts scarce resources that should be used to provide legitimate services to those in need, including children and the disabled,” said Special Agent in Charge Linda T. Hanley with the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG). “HHS-OIG will continue to partner with the U.S. Attorney’s Office and the Missouri Medicaid Fraud Control Unit to fight such Medicaid fraud schemes and protect the integrity of this safety net program.”
The U.S. Department of Health and Human Services Office of Inspector General and the Missouri Attorney General’s Medicaid Fraud Control Unit investigated the case. Assistant U.S. Attorneys Suzanne Moore and Derek Wiseman handled the case.
Tennessee Resident Arrested After Driving to Clifton Park for Sexual Abuse of MinorRead the Press Release
ALBANY, NEW YORK – Donald Jenkins, age 37, of Clarksville, Tennessee, was arrested yesterday and charged with traveling across state lines to the Capital Region with the intent to engage in illicit sexual conduct with a minor. United States Attorney Carla B. Freedman and Erin Keegan, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations, made the announcement.
According to a criminal complaint, in September 2024 Jenkins began communicating with an individual to discuss and plan his sexual abuse of an 11-year-old child residing in Clifton Park, New York. Jenkins ultimately devised a plan to rent a car in Tennessee and drive to Clifton Park in order to sexually abuse the child. On November 19, 2024, Jenkins was arrested after arriving in Clifton Park at a prearranged meeting location. He allegedly took a sexually transmitted disease (STD) test earlier in the day and brought numerous pairs of child’s underwear as a gift for the minor. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Jenkins had his initial appearance before U.S. Magistrate Judge Daniel J. Stewart today and was ordered detained pending a detention hearing scheduled for Monday, November 25. He faces a maximum term of 30 years in prison, a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and mandatory registration as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
HSI and the New York State Police are investigating the case. Assistant United States Attorney Benjamin S. Clark is prosecuting the case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Syracuse Man Sentenced to a Total of 133 Months for Possession of Controlled Substances with the Intent to Distribute and Violating his Supervised ReleaseRead the Press Release
SYRACUSE, NEW YORK – Jamal Harris, age 45, of Syracuse, was sentenced today to serve 87 months in federal prison for his possession of methamphetamine and fentanyl with intent to distribute. United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.
As part of his prior plea, Harris admitted that, on November 8, 2023, he possessed approximately 1,199 grams of a mixture and substance containing methamphetamine in his bedroom, and approximately 2 grams of fentanyl in his vehicle. He further admitted that, before he committed this offense, he had previously been convicted in federal court in the Northern District of New York of Conspiracy to Possess with Intent to Distribute and Distribution of heroin.
In addition to the 87-month sentence, Harris was sentenced to serve an additional 46 months in prison for violating the conditions of supervised release from his prior drug offense. Senior United States District Judge Glenn T. Suddaby also ordered Harris to serve a 6-year term of supervised release following his release from prison.
The United States Drug Enforcement Administration (DEA) investigated the case with assistance from the United States Probation Office. Assistant U.S. Attorney Jessica N. Carbone prosecuted the case.
South Florida Resident Arrested for Attempting to Bomb a U.S. Business Located in New York CityRead the Press Release
MIAMI - Harun Abdul-Malik Yener, 30, of Coral Springs, Fla., was arrested today based on a criminal complaint charging him with attempt to use an explosive device to damage or destroy a building used in interstate commerce.
Markenzy Lapointe, U.S. Attorney for the Southern District of Florida; Matthew G. Olsen, Assistant Attorney General for National Security; and Jeffrey Veltri, Special Agent in Charge of the FBI, Miami Field Office, made the announcement.
According to court documents, the FBI initiated an investigation into Yener in February after receiving a tip that he was storing bombmaking schematics in an unlocked storage unit. The FBI searched the unit and found bombmaking sketches, numerous watches with timers, electronic circuit boards, and other electronics that could be used for constructing explosive devices. The FBI also uncovered multiple internet searches from Yener’s Google account for aspects of bombmaking since as early as 2017.
In June, Yener told an FBI confidential source of his desire to join an anti-government militia and to construct an explosive device. After meeting an FBI undercover employee, whom Yener believed to be part of a militia, Yener indicated he wanted to target a U.S. business located in New York City the week before Thanksgiving. His stated motivation for bombing the business was to attain a “reboot” and/or “reset” of the United States government. Yener constructed a remote-trigger for the explosive device and conducted research on where to plant the bomb. Yener tasked FBI undercover employees with procuring the explosive element for the device, conducting surveillance of the business, and obtaining photos of the building to identify the precise location for detonating the explosive device. Yener planned on wearing a disguise when planting the explosive device outside the business and recorded a message to be delivered to the press about his reasons for the attack. Yener anticipated the impact of the explosion would be “like a small nuke went off” and that “[a]nything outside” the building “will be wiped out” and “anything inside there would be killed.”
Yener had his initial appearance this afternoon and stipulated to pretrial detention with the right to request a hearing at a later date.
The FBI investigated the case with assistance from the Coral Springs Police Department and the Joint Terrorism Task Force.
Assistant U.S. Attorneys Michael Thakur and Abbie D. Waxman of the Southern District of Florida and Trial Attorney Elisa Poteat of the National Security Division’s Counterterrorism Section are prosecuting the case.
A criminal complaint contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 24-mj-04432.
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Sioux City, Iowa, Man Pled Guilty to Possession of Child PornographyRead the Press Release
Joshua Dale Peterson age, 42, from Sioux City, Iowa, pled guilty November 20, 2024, to possession of child pornography.
In a plea agreement, Peterson admitted that from January 1, 2023, until October 18, 2023, he received, distributed, and possessed child pornography. A CyberTip from Snapchat showed that Peterson uploaded a file that contained child pornography. Law enforcement obtained a search warrant for Peterson’s phone and found over 50 photos and videos of child pornography. Law enforcement spoke to Peterson, and he admitted he would meet people on Snapchat and move conversations to Telegram. Peterson also admitted he sent child pornography to a user on Snapchat on at least five different occasions. The Snapchat user later identified themselves as a minor child and Snapchat terminated the conversation. Peterson further admitted he was in at least one group chat on Telegram that was sharing child pornography and he stayed in the group for a couple of weeks. The images and videos found on Peterson’s phone contained material that portrayed sadistic or masochistic conduct as well as prepubescent children and toddlers.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Peterson remains in custody of the United States Marshal pending sentencing. Peterson faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, and a term of supervised release following any imprisonment of 5 years to life.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the Sioux City Police Department and is being prosecuted by Assistant United States Attorney Kraig R. Hamit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-04036. Follow us on X @USAO_NDIA.
Schenectady County Man Sentenced to 30 Months for Possession of Child PornographyRead the Press Release
ALBANY, NEW YORK – Timothy (“Mitch”) Duell, age 48, of Schenectady County, New York, was sentenced today to serve 30 months’ imprisonment to be followed by 10 years of supervised release for possessing child pornography. United States Attorney Carla B. Freedman and Special Agent in Charge Matthew Scarpino of Homeland Security Investigations (HSI), Buffalo, New York Field Office made the announcement.
When Duell pleaded guilty he admitted that he possessed sexually explicit images of a child under the age of 12 and participated in online chats where he discussed his interest in engaging in sex acts with that child.
In addition to the imprisonment and supervised release terms, United States District Judge Mae A. D’Agostino also ordered Duell to pay the victim $3,000.00 in restitution and to forfeit the electronic device he used to commit the offense. Duell will also be required to register as a sex offender upon his release from imprisonment.
Homeland Security Investigations (HSI) and the New York State Police investigated this case, and Assistant United States Attorney Michael D. Gadarian prosecuted this case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Santa Maria Gang Member and Convicted Felon Sentenced to 15 Years in Prison for Narcotics Crimes and Illegally Possessing AmmoRead the Press Release
LOS ANGELES – A Santa Barbara County gang member and convicted violent felon was sentenced today to 180 months in federal prison for possessing methamphetamine and illegally possessing dozens of rounds of ammunition, including some found inside a “ghost gun.”
Rodolfo Uriarte, 41, of Santa Maria, was sentenced by United States District Judge Sherilyn Peace Garnett.
Uriarte pleaded guilty on February 28 to all five felony charges he faced: two counts of distribution of methamphetamine, one count of possession with intent to distribute methamphetamine, and two counts of being a felon and prohibited person in possession of ammunition. Uriarte has been in federal custody since November 2023.
“Thanks to the diligent efforts of our prosecutors and law enforcement partners, a violent felon was apprehended and has now received a lengthy prison term,” said United States Attorney Martin Estrada. “Working together, we can make our streets safer by removing repeated offenders from our communities.”
According to court documents, in October 2023, as part of an investigation into Uriarte’s drug and firearms trafficking activities, law enforcement conducted a controlled purchase of approximately 110 grams of methamphetamine from Uriarte, who is a member of the Santa Maria Northwest street gang. On November 6, 2023, law enforcement conducted a second controlled purchase of 105 grams of methamphetamine from Uriarte, as well as a “ghost gun” – a firearm lacking a serial number – loaded with 10 rounds of nine-millimeter ammunition.
Separately, in October 2023, Santa Maria Police arrested Uriarte after they made a traffic stop, a stop that revealed the gray Lexus sedan Uriarte was driving had been reported stolen. A search of the vehicle resulted in the seizure of a rifle case, three AR-15 magazines – two of which were loaded with .223-caliber ammunition containing approximately 53 rounds of ammunition in total. Law enforcement also seized 38 rounds of 9mm ammunition in a backpack in the back seat of the vehicle, four plastic baggies containing methamphetamine, and a knotted glove that contained methamphetamine. In total, Uriarte possessed approximately 86.3 grams of methamphetamine.
Uriarte is not legally allowed to possess ammunition because of his criminal history, which includes felony convictions in Santa Barbara County Superior Court for second-degree robbery in 2005, assault with a deadly weapon in 2010, and a domestic violence conviction in 2014. Uriarte also possessed the ammunition knowing that he was subject to a June 2022 restraining order out of Santa Barbara County Superior Court.
The FBI, the Santa Maria Police Department, and the San Luis Obispo County Sheriff’s Office investigated this matter.
Assistant United States Attorneys Thomas J. Magaña of the General Crimes Section and Stephanie L. Orrick of the Orange County Office prosecuted this case.
Riverton man found guilty of first-degree murder on the Wind River Indian ReservationRead the Press Release
Burdick Nelson Seminole Sr., 59, of Riverton, Wyoming, was convicted by a federal jury on Nov. 15 of first-degree murder, discharging a firearm during a crime of violence, and causing death with a firearm during a crime of violence. The trial lasted four days before Chief U.S. District Court Judge Scott W. Skavdahl in Casper.
According to court documents and evidence presented at trial, in the early morning of Aug. 8, 2023, Seminole drove to the victim’s residence, entered the residence without permission, confronted the victim and an argument ensued. The defendant left the residence to retrieve a pistol and re-entered the residence where he continued to argue with the victim, who was sitting in his wheelchair. Seminole pistol-whipped the victim, disarmed him, and shot him three times, killing him. In response, another resident shot at Seminole, hitting him in the back of the neck, causing him to flee. Seminole drove himself to the hospital and was diagnosed with a minor flesh wound. The victim was pronounced dead at the scene by EMS.
Sentencing has been set for Feb. 6, 2025. Seminole faces mandatory life imprisonment, up to a $250,000 fine, and a $100 special assessment. The Bureau of Indian Affairs Wind River Police Department and FBI investigated the case.
This case is part of Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence and make our neighborhoods safer. 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.
Case No. 24-CR-00017
Port Arthur man sentenced to federal prison in connection with stolen mailRead the Press Release
BEAUMONT, Texas – A Port Arthur man has been sentenced to federal prison in connection with a mail theft scheme in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Charles Vernon Roberts, 27, pleaded guilty to possession of 15 or more unauthorized devices and aggravated identity theft and was sentenced to a total of 30 months in federal prison by U.S. District Judge Marcia A. Crone on November 19, 2024.
According to information presented in court, local law enforcement received complaints of stolen mail from the Tobe Hahn and South End post offices in Beaumont. Surveillance video confirmed an individual removing items from those post office boxes. License plate recognition software led to an apartment in Port Arthur where Roberts was successfully identified. A search of Roberts’ apartment revealed a counterfeit postal arrow key, 35 checks/money orders, several debit/credit cards, and several pieces of opened and unopened mail not belonging to Roberts.
This case was investigated by the Port Arthur Police Department, Beaumont Police Department, and the U.S. Postal Inspection Service. This case was prosecuted by Assistant U.S. Attorney Rachel Grove.
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Owner of North Carolina Automotive Business Sentenced for Employment Tax CrimesRead the Press Release
A North Carolina man was sentenced today to one year and one day in prison for not paying more than $2 million in employment taxes.
According to court documents and statements made in court, George Taylor Jr., of Wilmington, North Carolina, owned and operated National Speed, a high-performance automotive services business. As the chairman and president of National Speed, Taylor was responsible for withholding Social Security, Medicare and income taxes from his employees’ wages and paying those taxes to the IRS. From 2014 through 2021, Taylor withheld employment taxes from his employees’ paychecks but did not pay those taxes over to the IRS, nor did he file the necessary employment tax returns. He executed the scheme by using an accounting software to calculate the taxes to be withheld from his employees’ paychecks, but after withholding the taxes, he simply kept the funds for himself and his business ventures.
In total, Taylor caused a tax loss to the IRS of $2,272,072.
In addition to the term of imprisonment, U.S. District Judge Richard Myers II for the Eastern District of North Carolina ordered Taylor to serve three years of supervised release and pay approximately $2,615,534 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Michael F. Easley Jr. for the Eastern District of North Carolina made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Brian Flanagan of the Tax Division and Assistant U.S. Attorney Ethan Ontjes for the Eastern District of North Carolina prosecuted the case.
Orlando Man Sentenced to 22 Years for Producing Child Sex Abuse Images with Infant VictimRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Leonardo Marino (22, Orlando) to 22 years in federal prison for producing child sex abuse images. The court also ordered Marino to forfeit his smart phone that was seized on the date of his arrest. Marino entered a guilty plea on April 2, 2024.
According to court documents, the Orange County Sheriff’s Office (OCSO) and Homeland Security Investigations (HSI) Orlando initiated an investigation after receiving a report from a witness stating that they had received messages from Marino on social media, which included videos of Marino sexually abusing an infant child at his home. A search warrant for Marino’s home and electronic devices was secured and executed. During the search, investigators identified the room and other items that had been captured in the videos depicting Marino’s sexual abuse of the child. Forensic examination comparing the items seized from the room to Marino’s DNA profile revealed a match. Further, after obtaining and searching Marino’s smart phone, OCSO and HSI were able to connect Marino to the social media account utilized to send the videos, as well as trying to block the witness he had messaged.
“This conviction sends a clear message to those who exploit and harm the most vulnerable in our community—you will be held accountable for your actions” said Homeland Security Investigations Orlando Assistant Special Agent in Charge David Pezzutti. “This 22-year sentence reflects the gravity of this horrific crime, and through the importance of our law enforcement partnerships, HSI remains steadfast in its commitment to protecting our communities.”
This case was investigated by the Orange County Sheriff’s Office, Homeland Security Investigations – Orlando, the Winter Park Police Department, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Michael Sartoian.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Orange County Sheriff’s Department Employee Pleads Guilty to Fraudulently Using Her Grandmother’s Bank Accounts and Credit CardsRead the Press Release
SANTA ANA, California – An employee of the Orange County Sheriff’s Department pleaded guilty today to two felony charges for forging checks and fraudulently using credit cards in her grandmother’s name.
Roxana C. Laub, 33, of Santa Ana, pleaded guilty to one count of bank fraud and one count of identity theft.
In her plea agreement, Laub – whose employment has included work as a uniformed correctional officer at the Orange County jail – admitted that from December 2015 to January 2017, she forged her 75-year-old grandmother’s signature on more than 20 checks from her grandmother’s bank account – making them payable to herself – without her grandmother’s knowledge or permission. Laub then deposited these forged checks totaling approximately $45,000 into her own bank account.
Laub also posed as her grandmother when calling her grandmother’s bank to request information related to her grandmother’s account. After later admitting she was the caller – instead of her grandmother, Laub put her grandmother on the phone, who informed the bank personnel that she was unaware of the checks payable to Laub. After Laub took the phone back and tried to change the subject, the bank personnel asked to speak to Laub’s grandmother again, but Laub then claimed that her grandmother was feeling ill and not available.
From March 2020 to September 2022, Laub also fraudulently used her grandmother’s credit card to charge thousands of dollars for personal expenditures, including meals at restaurants in Santa Ana and West Hollywood, bars in West Hollywood, and a night club in Las Vegas.
Laub then used another one of her grandmother’s bank accounts to make more than $14,000 in payments for bills Laub had run up on those cards, again without her grandmother’s knowledge or permission.
Agents uncovered text messages wherein Laub had admitted to a family member that “I know what I did is unforgiveable,” according to the plea agreement.
Laub, who is on administrative leave from the Orange County Sheriff’s Department, has agreed to pay back all the money she unlawfully took from her grandmother.
United States District Judge David O. Carter scheduled an April 9, 2025, sentencing hearing, at which time, Laub will face a statutory maximum sentence of 30 years in federal prison for the bank fraud count and up to 15 years in federal prison for the identity theft count.
The FBI and the Federal Deposit Insurance Corporation Office of the Inspector General investigated this matter. The Long Beach Police Department provided substantial assistance in the investigation.
Assistant United States Attorney Charles E. Pell of the Orange County Office is prosecuting the case.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available via the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 3 a.m. to 8 p.m. Pacific Time. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Oklahoma City woman sentenced for federal drug trafficking, money laundering, and financial crimes in Eastern District of TexasRead the Press Release
SHERMAN, Texas – An Oklahoma City, OK woman has been sentenced to 16 years in federal prison for various crimes related to an international drug trafficking conspiracy in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Debra Lynn Mercer-Erwin, 61, was convicted at trial of money laundering; wire fraud; conspiracy to manufacture and distribute cocaine; and conspiracy to manufacture and distribute cocaine knowing it would be imported into the United States. Mercer-Erwin was sentenced to 192 months in federal prison by U.S. District Judge Amos Mazzant on November 20, 2024.
“Mercer-Erwin is no different than her drug dealing clients,” said U.S. Attorney Damien M. Diggs. “She knowingly and intentionally helped them hide their identities, transport their drugs, and launder their money. A jury of her peers convicted her for this and the punishment that she received is just. The agents who investigated this case and the prosecutors who tried it are to be commended for their efforts.”
“The impact of this successful investigation on the aviation industry and international drug trafficking is immense. This defendant conspired with numerous transnational criminal organizations, facilitating money laundering, the trafficking of cocaine and other dangerous drugs throughout South, Central and North America using aircraft registered in her name to evade law enforcement,” said Mary Magness, Deputy Special Agent in Charge of HSI Dallas. “HSI remains committed to collaborating with federal, local and international law enforcement partners to dismantle these multi-faceted criminal networks that endanger the well-being of our citizens.”
“Our ability to trace the wire transfers and show how the illegally obtained money comingled with Mercer’s business funds are how we do business at IRS-CI. Even after the money mixed into her accounts, we could still track where it was sent and what it was used to buy,” said Lucy Tan, acting Special Agent in Charge of IRS Criminal Investigation’s Houston Field Office. “The illegal narcotics trade is about money and we’re elite criminal financial investigators.”
According to information presented in court, between 2010 and 2020, Mercer-Erwin conspired with others to enable the distribution of cocaine in the United States by purchasing and illegally registering aircraft under foreign corporations and other individuals for export to other countries. Non-US citizens are allowed to register an aircraft with the FAA if the aircraft is placed in a trust that is managed by a U.S. trustee. Mercer-Erwin was the owner of Wright Brothers Aircraft Title (WBAT) and Aircraft Guaranty Corporation (AGC). WBAT often served as an escrow agent for transactions involving AGC and was the designated party responsible for FAA filings related to AGC aircraft. AGC, a corporation at that time operating out of Onalaska, Texas, an east Texas town in the Eastern District of Texas, without an airport. AGC acted as trustee to over 1,000 aircrafts with foreign owners. This allowed the foreign nationals to receive an “N” tail number for their aircrafts. The “N” tail number is valuable because foreign countries are less likely to inspect a U.S.-registered aircraft for airworthiness or force down an American aircraft.
According to prosecutors, several of the illegally registered and exported aircraft were used by transnational criminal organizations in Colombia, Venezuela, Ecuador, Belize, Honduras, Guatemala, and Mexico to smuggle large quantities of cocaine destined for the United States. The illicit proceeds from the subsequent drug sales were then transported as bulk cash from the United States to Mexico and used to buy more aircraft and cocaine. Aircraft purchases were typically completed by foreign nationals working for transnational criminal organizations who came to the United States with drug proceeds and purchased aircraft valued in the hundreds of thousands of dollars.
Mercer-Erwin exploited her position as trustee to circumvent U.S. laws by disguising the true identity of the foreign owners, failing to conduct due diligence as to the identity of the foreign owners, providing false aircraft locations, and falsifying and forging documents. Trial testimony revealed the investigation was initiated after aircraft filing irregularities were discovered in tandem with numerous AGC aircraft found carrying substantial amounts of cocaine. The testimony further revealed additional aircraft in AGC’s trust were not seized but found by foreign officials destroyed or abandoned near clandestine landing strips in several South American countries. Some of these wrecked or abandoned aircraft still contained muti-ton kilos of cocaine onboard, and few, if any, of the seized or destroyed aircraft were in the location they were reported to be located. When authorities confronted Mercer-Erwin as the representative of AGC, she refused to comply and each time law enforcement would seize an AGC registered aircraft laden with drugs, Mercer-Erwin attempted to distance herself from the narcotic’s trafficking by transferring ownership of the aircraft using fictitious information to conceal the nature, location, source, ownership, and control of the aircraft.
Additionally, Mercer-Erwin and co-defendants participated in a series of bogus aircraft sales transactions in order to conceal the movement of illegally obtained funds. The co-defendants would provide buyers and investors with fabricated documents and supply false representations regarding the bogus sale of an unsellable aircraft. The aircraft was unsellable because, unbeknownst to the buyers, the true owners of the aircraft had no knowledge or intention of selling the aircraft. Other bogus sales presented to buyers consisted of aircraft that was owned by a commercial airline and previously decommissioned and inoperable. None of the aircraft presented to the buyers were for sale.
The defendants would convince the buyer to place a deposit into an escrow account with WBAT, the title company owned by Mercer-Erwin, pending the completion of the sale. Once the money was placed in WBAT’s escrow account, the buyers were responsible for the interest accrued, and an escrow fee would be charged. In a typical sale, the deposit would remain in the escrow account. However, Mercer-Erwin would transfer the money from the escrow account to bank accounts controlled by the co-conspirators.
Since the aircraft was not truly for sale, the purchase of the aircraft would inevitably fall through, and the deposit would have to be returned. The co-conspirators would repeat the process by luring another buyer for the purchase of another unsellable aircraft. Each transaction would pay for the previous one, and Mercer-Erwin would receive an escrow fee ranging from $25,000 to $150,000 for her participation in the scheme.
This is an Organized Crime Drug Enforcement Task Force (OCDETF) case and was investigated by Homeland Security Investigations (Dallas, Brownsville, Laredo, Guatemala, Colombia, Honduras, Mexico, and Transnational Criminal Investigative Units); Department of Commerce, Bureau of Industry and Security (Dallas and Houston offices); Department of Transportation Office of Inspector General (DOT-OIG); Office of Export Enforcement; Polk County Constable Precinct 1; Southeast Texas Export Investigations Group; Internal Revenue Service; Federal Aviation Administration (FAA); Estado Mayor De La Defensa Nacional Guatemala; Fuerza Aerea Guatemalteca; and Fuerza Aerea Colombiana. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was prosecuted by Assistant U.S. Attorneys Heather Rattan and Lesley Brooks.
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Oklahoma City Man Sentenced to Serve Eight Years in Federal Prison for Illegal Ammunition Possession Following Domestic Assault InvestigationRead the Press Release
OKLAHOMA CITY – ANTOINE LASHAWN SMITH, 43, of Oklahoma City, has been sentenced to serve 96 months in federal prison for illegal possession of ammunition after a previous felony conviction, announced U.S. Attorney Robert J. Troester.
On August 7, 2024, a federal Grand Jury charged Smith with being a felon in possession of ammunition. According to public record, on February 13, 2024, officers with the Oklahoma City Police Department responded to a Metro-area apartment on a report of a domestic assault. Officers spoke with the victim, who said she and Smith got into a verbal argument, and as she attempted to leave the apartment complex Smith confronted her in the parking lot and struck her in the head and face with a broom several times, causing visible injuries. Smith then ran back to his apartment, but was taken into custody early the next morning by law enforcement. Officers then executed a search warrant and seized a box of live ammunition inside the apartment.
On September 11, 2024, Smith pleaded guilty and admitted he possessed ammunition despite his criminal record.
At the sentencing hearing on November 20, 2024, U.S. District Judge David L. Russell sentenced Smith to serve 96 months in federal prison, followed by three years of supervised release. In announcing the sentence, the Court noted the continuing threat to society Smith poses as well as his history of violence, particularly violence against women.
Public record reflects that Smith has a lengthy criminal history, with charges in Oklahoma County District Court including:
- possession of cocaine base in case number CF-1998-3201;
- possession of marijuana with intent to distribute and possession of drug proceeds in case number CF-2014-2736;
- felon in possession of a firearm, possession of marijuana with intent to distribute, possession of a firearm with a defaced or mutilated serial number, possession of meth, possession of cocaine-base, and possession of drug paraphernalia in case number CF-2018-1403.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Oklahoma City Police Department. Assistant U.S. Attorney Mary E. Walters prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a Department of Justice program to reduce violent crime. In October 2017, the Department announced the reinvigoration of PSN and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement have learned since the program’s launch in 2001. This case is also part of “Operation 922,” the Western District of Oklahoma’s implementation of PSN, which prioritizes prosecution of federal crimes connected to domestic violence. For more information about PSN, please visit https://justice.gov/psn and https://justice.gov/usao-wdok.
Reference is made to public filings for additional information.
New York Man Involved in Multi-State Bank Fraud and Identity Fraud Scheme Sentenced to over One Year in Federal PrisonRead the Press Release
BOSTON – A New York City man was sentenced yesterday in federal court in Boston for stealing or attempting to steal hundreds of thousands of dollars from two separate businesses in Massachusetts and Connecticut using counterfeit licenses.
Archil Grdzelishvili, a/k/a “Archie Longson,” 45, was sentenced by U.S. District Judge Angel Kelley to 18 months in prison and ordered to pay $140,200 in restitution. In June 2024, Grdzelishvili pleaded guilty to nine counts of bank fraud.
At an unknown time, Grdzelishvili obtained a fraudulent Massachusetts driver’s license bearing his picture and the personal identifying information of an executive-level employee of a Massachusetts-based company. Between March 9, 2022 and March 16, 2022, Grdzelishvili used the fraudulent license more than eight times at various banks to conduct unauthorized transactions from the company’s bank accounts. In total, Grdzelishvili fraudulently obtained over $140,000 from the company’s bank accounts using the counterfeit license.
Additionally, at an unknown time, Grdzelishvili obtained a fraudulent Connecticut driver’s license with his picture and the personal identifying information of a restaurateur in the Connecticut area. Using this counterfeit license, Grdzelishvili attempted to withdraw $14,000 from the victim’s bank account in April 2022 before being taken into custody.
Acting United States Attorney Joshua S. Levy and Andrew Murphy, Special Agent in Charge of the United States Secret Service, Boston Field Office made the announcement today. Valuable assistance was provided by the Cambridge and Danbury (Conn.) Police Departments. Assistant U.S. Attorney Brian J. Sullivan of the Major Crimes Unit prosecuted the case.
New Orleans Men Sentenced for Federal Gun Control and Federal Controlled Substances Act ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – LIONEL HESTER (“HESTER”), age 25, and REGINALD JOHNSON (“JOHNSON”), age 42, both residents of New Orleans, were sentenced on November 7, 2024, by United States District Judge Ivan L.R. Lemelle for violating the Federal Gun Control Act and the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
According to court records, the police targeted the 3900 Block of Ulloa Street in New Orleans due to numerous reports of drug dealing and firearms violations. Police saw JOHNSON engage in a hand-to-hand drug transaction and stopped the suspected buyer to confirm the drug purchase from JOHNSON. Before the police could arrest JOHNSON for distributing drugs, JOHNSON got into an SUV driven by HESTER. JOHNSON then escaped from the back of the SUV, leaving a backpack containing a gun and paperwork with his name. HESTER was later arrested. A search of the SUV uncovered crack cocaine, tramadol, marijuana and a Glock Model 31, .357 caliber pistol, by the driver’s seat. Both JOHNSON and HESTER had several prior felony convictions and were not allowed to possess firearms.
Judge Lemelle sentenced HESTER to 176 months imprisonment, followed by 6 years of supervised release and the payment of $200 in mandatory special assessment fees. JOHNSON was sentenced to 151 months imprisonment, followed by 3 years supervised release, and the payment of $200 in mandatory special assessment fees.
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 New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney David Haller, who is Senior Litigation Counsel at the U.S. Attorney’s Office.
New Jersey man pleads guilty to nationwide conspiracy to violate the Clean Air Act by remotely disabling pollution control devices on diesel trucksRead the Press Release
Tacoma – A 44-year-old Columbia, New Jersey man pleaded guilty today to conspiracy to violate the Clean Air Act for his scheme to interfere with pollution control software on diesel trucks, announced U.S. Attorney Tessa M. Gorman. Jonathan Achtemeier admitted that between 2019 and 2022, he removed the pollution control software on hundreds of vehicles nationwide. U.S. District Judge Tiffany M. Cartwright scheduled sentencing for February 14, 2025.
According to records filed in the case, Achtemeier conspired with mechanics in garages and operators of truck fleets to disable the anti-pollution software installed on diesel trucks. Coconspirators who wanted to disable their trucks’ pollution control hardware system—a process commonly known as “deleting”—sought Achtemeier’s help to trick the truck’s software into believing the emissions control systems were still functional, a process known as “tuning.” Monitoring software on a deleted truck will detect that the pollution control hardware is not functioning and will prevent the truck from running. Achtemeier disabled the monitoring software on his client’s trucks by connecting to laptops he had provided to various coconspirators. Some of the coconspirators would pass the laptop on to others seeking to have the anti-pollution software disabled on their trucks. Once the laptop was hooked up to the truck’s onboard computer, Achtemeier could access it from his computer and tune the software designed to slow the truck if the pollution control device was missing or malfunctioning. Achtemeier could “tune” trucks remotely, which enabled him to maximize his environmental impact and personal profit.
Removing the pollution control equipment and disabling the software results in trucks polluting at 30 to 1,200 times the level of a truck with pollution control systems. Tampering with pollution control software is a violation of the Clean Air Act.
Achtemeier charged as much at $4,500 per truck for work that often took him two hours or less. Achtemeier advertised his services on social media nationwide, doing business as Voided Warranty Tuning (VWT) or Optimized Ag. Between 2019 and 2022 his company took in more than $4.3 million in gross profits.
The coconspirators in this case have service garages or truck fleets in various areas of Washington State. The trucks that were altered range from pick-ups such as a Dodge R3500 to Kenworth and Freightliner semi-trucks.
Conspiracy is punishable by up to five years in prison and a $250,000 fine.
The case was investigated by the Environmental Protection Agency Criminal Investigation Division (EPA-CID).
The case is being prosecuted by Assistant United States Attorneys Lauren Watts Staniar, Dane Westermeyer, and Seth Wilkinson, with Special Assistant United States Attorney Karla Perrin. Ms. Perrin is an attorney with the EPA.