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19 November 2024
Dell and Iron Bow Agree to Pay $4.3M to Resolve False Claims Act Allegations Relating to Submitting Non-Competitive Bids to the ArmyRead the Press Release
Dell Technologies Inc. and Dell Federal Systems L.P. (collectively Dell), located in Austin, Texas, have agreed to pay $2,300,000 to resolve allegations that they violated the False Claims Act by submitting and causing the submission of non-competitive bids to the Army and thereby overcharging the Army under the Army Desktop and Mobile Computing 3 (ADMC-3) contract. Iron Bow Technologies LLC (Iron Bow), located in Herndon, Virginia, also agreed to pay $2,051,000 for its role in the scheme.
The settlements resolve allegations that from May 2020 to April 2024, Dell operated a deal registration program, whereby it gave advantageous pricing to Iron Bow to sell certain Dell computer hardware products to the Army in response to solicitations under the AMDC-3 contract. The United States alleged that Dell also submitted its own direct bids to the Army on the same solicitations, knowing that its prices would be higher than Iron Bow’s, thereby creating a false appearance of competition. The United States further alleged that Dell’s practice of providing higher direct bids influenced the Army’s source selection process and enabled Iron Bow to overcharge the Army for certain Dell products.
“The United States relies on competition to get the best value and price for the American taxpayers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement demonstrates the department’s commitment to hold accountable those who overcharge the government through collusion or other unlawful conduct.”
“Fraud in the government contracting process costs taxpayers untold dollars each year,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “We will continue to work with our federal law enforcement partners to investigate and pursue those who commit government contracting fraud.”
The Dell settlement also resolves a lawsuit filed against Dell under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that a defendant has submitted false claims for government funds and receive a share of any recovery. The settlement in this case provides for the whistleblower, Brent Lillard, an executive of another IT reseller, to receive a $345,000 share of the recovery from Dell. The qui tam case is captioned United States ex rel. Lillard v. Dell Technologies Inc., No. 5:20-CV-1613-HNJ (NDAL).
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Northern District of Alabama, with assistance from the Justice Department’s Office of Inspector General, Army Criminal Investigation Division, National Aeronautics and Space Administration Office of Inspector General and General Services Administration Office of Inspector General.
Trial Attorney Samson Asiyanbi of the Justice Department’s Civil Division and Assistant U.S. Attorney Sarah Blutter for the Northern District of Alabama handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Dell Settlement
Iron Bow Settlement
Dallas Gang Member Arrested with Switch Detained Pending TrialRead the Press Release
A Dallas gang member arrested with a Glock equipped with a gold switch has been detained pending trial, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Johnny Bates, 19, was charged via criminal complaint with possession of a machinegun. He was arrested Nov. 7 and ordered detained pending trial after a hearing on Friday.
According to court documents, in December 2023, Mr. Bates was allegedly caught on video firing a pistol that appeared to be fully automatic. Police were unable to apprehend him, but recovered a switch-equipped Glock pistol along the path where he had fled.
In October 2024, Dallas Police Department detectives tracked Mr. Bates, a known “415 East Dallas Posse” gang member, to an apartment in Dallas’s Oak Cliff neighborhood. Officers attempted to place him under arrest on outstanding warrants from the December 2023 incident, but he resisted. They wrestled him to the ground until backup arrived.
In his backpack, officers found a 9mm Glock pistol equipped with a gold switch and an extended magazine allegedly belonging to Mr. Bates:
A query of the National Integrated Ballistic Information Network (NIBIN) linked the Glock was to an aggravated assault that occurred in Dallas on Sept. 12. (Officers have no reason to believe Mr. Bates was involved in that incident, as a suspect has already been identified.)
At Friday’s detention hearing, officers testified to Mr. Bates’s alleged pattern of possessing machinegun conversion devices, offering images from his Instagram of firearms with switches attached and plainly visible.
A criminal complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Bates is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 10 years in federal prison.
The Dallas Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation. Assistant U.S. Attorney Robert Withers is prosecuting the case.
This case is part of “Operation Texas Kill Switch,” a statewide initiative taking aim at machinegun conversion devices, also known as “switches,” which transform commercially available semi-automatic firearms into fully-automatic weapons capable of firing faster than military-grade machine guns. Spearheaded by U.S. Attorneys Leigha Simonton, Alamdar Hamdani, Damien Diggs and Jaime Esparza, Operation Texas Kill Switch relies on partnerships with state and local law enforcement as well as rewards offered by Crime Stoppers.Corrections Officer Charged Along with Inmates and Others in Conspiracy to Smuggle Contraband into the D.C. JailRead the Press Release
WASHINGTON – Corrections Officer Rashaad Roper, 45, of Gaithersburg, MD, is one of five people charged by indictment, unsealed today, in a conspiracy to provide a knife, drugs, and cell phones to inmates in the D.C. jail as they awaited trial for murder and assault with intent to kill while armed. The charges were announced by U.S. Attorney Matthew M. Graves, FBI Acting Special Agent in Charge David Geist of the Washington Field Office Criminal and Cyber Division, and Chief Investigator Kevin L. Hammond of the D.C. Department of Corrections Office of Investigative Services.
Also named in the indictment are: LaTara Brown, 31, of Capitol Heights, Maryland, and Kiya Holland, 33, of Oxon Hill, Maryland, who were arrested on November 19, 2024. Roper, Brown, Holland, and their co-defendants—Darius Robertson, 31, Marcel Vines, 28, and Stefon Freshley, 28—are each charged with providing or possessing contraband in a prison, as well as conspiring to do so.
According to the indictment, Holland and Brown packaged contraband, such as a knife, cell phones, and controlled substances, into Tupperware containers hidden concealed in saranwrap in the middle of prepared food. They would bring the Tupperware containers to the Central Detention Facility, also known as the D.C. Jail, where Officer Roper or another corrections officer identified in the indictment as Co-Conspirator 1, would take possession of the containers and smuggle them into the jail. Once inside, the corrections officer would deliver the contraband to Robertson, Vines, and/or Freshley, who were inmates inside the housing unit where the officers worked.
On two occasions, the Department of Corrections Office of Investigative Services (“OIS”) recovered contraband related to the conspiracy. On February 28, 2024, OIS intercepted a bag Holland dropped off at the jail and that Roper intended to pick up. The bag contained two Tupperware containers filled with: (1) one switchblade knife; (2) one Apple iPhone cellphone; (3) a white USB iPhone charger; (4) two pairs of eyeglasses; (5) a bundle marijuana wrapped in clear saranwrap; (6) suspected tobacco wrapped in clear saranwrap; (7) several sheets of white rolling papers; (8) a pair of gambling dice; (9) three white sheets of bonded paper that were damp and emitted a chemical odor; (10) two saran-wrapped packages of marijuana; and (11) five individually wrapped packages in clear saranwrap containing approximately 100 cigarettes.
Additionally, on July 25, 2024, OIS did a sweep of the housing unit where Robertson, Vines, and Freshley were held. Officers recovered, among other things, (1) 269 blue pills (including 120 from Vines’ cell), containing 5F-ADB—a synthetic cannabinoid and a Schedule I controlled substance; (2) 60 cigarettes soaked in an unknown liquid (including 40 in Vines’ cell); (3) 255 strips containing Buprenorphine (170 in Vines’ cell)—a Schedule III narcotic controlled substance; (4) 7 pieces of paper soaked in an unknown liquid substance; (5) three cellular phones; and (6) cigarettes.
The conspiracy charge carries a statutory maximum sentence of 5 years in prison, while providing or possessing contraband in a prison carries a statutory maximum of 20 years in prison. A U.S. District court judge will determine the appropriate sentence after considering the sentencing guidelines and other factors.
This case was investigated by the FBI’s Washington Field Office and the D.C. Department of Corrections Office of Investigative Services with the assistance of the Department of Justice Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Joshua Gold.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
roper_et_al_indictment.pdfConvicted Criminal Sentenced to Six Years in Prison After Repeatedly Illegally Reentering the United StatesRead the Press Release
A criminal who returned to the U.S. within five months of last being deported was sentenced to six years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Moises Olivos-Hrucha, a 31-year-old citizen of Mexico, was charged in this District with illegal reentry after removal in March 2021, convicted in May 2021, and sentenced in January 2022 to 27 months in federal prison. After serving his sentence, he was deported. Just five months later, in October 2023, he was found back in the state of Texas. He was again charged with illegal reentry after removal and pleaded guilty in May 2024.
He was sentenced on Tuesday, Nov. 19 by U.S. District Judge Ada Brown, who ordered him to serve 68 months for the 2024 conviction and four months on the revocation of supervised release for the 2022 conviction, to run consecutively for a total of 72 months in federal prison.
At Monday’s sentencing, prosecutors noted Mr. Olivos-Hrucha had engaged in criminal activity in the U.S. multiple times in between deportations. In 2013, he was convicted by the state of robbery and sentenced to five years’ imprisonment after punching the victim’s head, slamming her onto the ground, and dragging her across the ground.
Mr. Olivos-Hrucha will be subject to deportation again after serving his six-year sentence.
Immigration & Customs Enforcement (ICE) conducted the investigation. Assistant U.S. Attorney Madeleine Case prosecuted the most recent criminal case and revocation; former NDTX Assistant U.S. Attorney Travis Elder (now serving in Utah) prosecuted the original criminal case.
Colombian Man Extradited to the United States for Alleged Role in Extensive Money Laundering ConspiracyRead the Press Release
BOSTON – A Colombian man has been extradited to the United States from the Republic of Colombia to face charges related to his alleged role in a sophisticated money laundering organization that laundered over $2 million in drug trafficking proceeds.
Jose Edison Montealegre-Fernandez, 60, was arrested in Cali, Colombia on Nov. 10, 2021 and extradited to the United States on Nov. 15, 2024. He appeared in federal court in Boston today and was ordered detained pending trial. On Nov. 4, 2021, Montealegre-Fernandez was indicted by a federal grand jury in Boston on charges of money laundering conspiracy, laundering of monetary instruments and engaging in monetary transactions in criminally derived property.
According to the charging documents, in or about November 2017, law enforcement began an investigation into a sophisticated money laundering organization located primarily in Cali, Colombia. During an extensive three-year investigation, the organization allegedly laundered over $2 million in drug proceeds through intermediary banks in the United States, including banks in Massachusetts.
Montealegre-Fernandez allegedly participated in the transfer of substantial amounts of bulk cash in the United States through schemes that involved picking up large amounts of drug proceeds at locations around the world and then subsequently laundering those funds through accounts in the United States to various individuals and entities in order to repay drug suppliers in Colombia. According to court documents, the investigation led to the seizure of over six kilograms of suspected heroin, over 2.8 kilograms of a substance that field-tested positive for heroin, fentanyl, cocaine, a hydraulic drug press, a Glock 10mm semi-automatic handgun, an SKS assault rifle with a loaded Beta C-mag containing 100 rounds of 7.62 caliber ammunition and $250,000 in cash.
The charges of money laundering conspiracy and laundering of monetary instruments each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000, or twice the amount involved, whichever is greater. The crime of engaging in monetary transactions in criminally derived property provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000, or twice the amount involved. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. The Justice Department’s Office of International Affairs and the Narcotic and Dangerous Drug Section’s Office of the Judicial Attaché at the U.S. Embassy in Bogota provided critical assistance in securing the arrest and extradition of Montealegre-Fernandez. Assistant U.S. Attorneys Jared C. Dolan and Alathea E. Porter of the Criminal Division are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Chinle Man Sentenced to 22 Years for Child Sexual AbuseRead the Press Release
PHOENIX, Ariz. – Ty O’Brien Shorty, 33, of Chinle, was sentenced last week by United States District Judge John J. Tuchi to 22 years in prison, followed by lifetime supervised release. Shorty pleaded guilty to Abusive Sexual Contact of a Child on May 16, 2024.
On July 23, 2023, Shorty sexually abused a four-year-old child. The victim suffered severe injuries and was hospitalized as a result. The crime occurred on the Navajo Nation, of which Shorty is an enrolled member.
The Federal Bureau of Investigation and the Navajo Nation Division of Public Safety conducted the investigation in this case. Assistant U.S. Attorney Jillian Besancon, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-23-8093-PHX-JJT
RELEASE NUMBER: 2024-156_Shorty# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Charlotte County Woman Sentenced to Prison for Threatening A Federal JudgeRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Alice Marie Pence (68, Port Charlotte) to 10 months in federal prison for threatening a United States district judge in the Northern District of Texas. Pence entered a guilty plea on June 28, 2024, in the Middle District of Florida to the charge of influencing a federal official by threat.
According to court documents, Pence made an interstate telephone call from the Middle District of Florida to the chambers of a United States district judge in the Northern District of Texas. In the voicemail, Pence demanded the judge “make the right decision” about a pending case over which the judge was presiding.
This case was investigated by the United States Marshals Service. Prosecution was initiated by Assistant United States Attorney Matthew Weybrecht of the Northern District of Texas. The plea agreement and sentencing were handled by Assistant United States Attorney Mark Morgan of the Middle District of Florida.
Charleston Man Pleads Guilty to Violating the Federal Sex Offender Registration and Notification ActRead the Press Release
CHARLESTON, W.Va. – Casey Thomas Judd, 36, of Charleston, pleaded guilty today to for failure to provide information related to interstate travel as required by the Sex Offender Registration and Notification Act (SORNA).
According to court documents and statements made in court, on or about June 14, 2024, Judd relocated from Charleston to Springfield, Ohio. Judd failed to register or update his registration as required by SORNA after his relocation.
Judd is required to register as a sex offender and comply with SORNA because of his prior conviction for third-degree sexual assault in Kanawha County Circuit Court on August 21, 2015.
Judd is scheduled to be sentenced on February 19, 2025, and faces a maximum penalty of 10 years in prison, at least five years and up to a lifetime of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Marshals Service (USMS).
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Jonathan T. Storage is prosecuting the case.
SORNA is part of the Adam Walsh Child Protection and Safety Act of 2006 and provides a comprehensive set of minimum standards for sex offender registration and notification in the United States. SORNA seeks to strengthen the nationwide network of sex offender registration and notification programs, in part by requiring registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.
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-164.
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California Man Sentenced for Acting as an Illegal Agent of the People’s Republic of China Government and BriberyRead the Press Release
John Chen, 71, of the People’s Republic of China (PRC) and Los Angeles, was sentenced today to 20 months in prison for acting as unregistered agents of the PRC and bribing an IRS agent in connection with a plot to target U.S.-based practitioners of Falun Gong — a spiritual practice banned in the PRC.
According to court documents, from at least approximately January 2023 to May 2023, Chen and co-defendant Lin Feng, 44, a PRC citizen and resident of Los Angeles, California, worked inside the United States at the direction of the PRC government, including an identified PRC government official PRC Official-1, to further the PRC government’s campaign to repress and harass Falun Gong practitioners. The PRC government has designated the Falun Gong as one of the “Five Poisons,” or one of the top five threats to its rule. In China, Falun Gong adherents face a range of repressive and punitive measures from the PRC government, including imprisonment.
As part of the PRC's campaign against the Falun Gong, Chen and Feng engaged in a PRC government-directed scheme to manipulate the IRS’ Whistleblower Program in an effort to strip the tax-exempt status of an entity run and maintained by Falun Gong practitioners, the Shen Yun Performing Arts Center. After Chen filed a defective whistleblower complaint with the IRS (the Chen Whistleblower Complaint), Chen and Feng paid $5,000 in cash bribes and promised to pay substantially more to a purported IRS agent (Agent-1) who was, in fact, an undercover officer, in exchange for Agent-1’s assistance in advancing the complaint. Neither Chen nor Feng notified the Attorney General that they were acting as agents of the PRC in the United States.
In the course of the scheme, Chen, on a recorded call, explicitly noted that the purpose of paying these bribes, which were directed and funded by the PRC, was to carry out the PRC government’s aim of “toppl[ing] . . . the Falun Gong.” During a call intercepted pursuant to a judicially authorized wiretap, Chen and Feng discussed receiving “direction” on the bribery scheme from PRC Official-1, deleting instructions received from PRC Official-1 in order to evade detection, and “alert[ing]” and “sound[ing] the alarm” to PRC Official-1 if Chen and Feng’s meetings to bribe Agent-1 did not go as planned. Chen and Feng also discussed that PRC Official-1 was the PRC government official “in charge” of the bribery scheme targeting the Falun Gong.
As part of this scheme, Chen and Feng met with Agent-1 in Newburgh, New York, on May 14, 2023. During the meeting, Chen gave Agent-1 a $1,000 cash bribe as an initial, partial bribe payment. Chen further offered to pay Agent-1 a total of $50,000 for opening an audit on the Shen Yun Performing Arts Center, as well as 60% of any whistleblower award from the IRS if the Chen Whistleblower Complaint were successful. On May 18, 2023, Feng paid Agent-1 a $4,000 cash bribe at John F. Kennedy International Airport as an additional partial bribe payment in furtherance of the scheme.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Damian Williams for the Southern District of New York, and Executive Assistant Director Robert R. Wells of the FBI’s National Security Branch made the announcement.
In addition to the prison term, Chen was sentenced to three years of supervised release and ordered to forfeit $50,000. Feng was sentenced on Sept. 26, to a time-served sentence of 16 months in prison.
The FBI and Office of the Treasury Inspector General for Tax Administration investigated the case.
Assistant U.S. Attorneys Qais Ghafary, Michael D. Lockard, and Kathryn Wheelock for the Southern District of New York and Trial Attorney Christina Clark of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
California Man Sentenced for Acting as an Illegal Agent of the PRC Government and BriberyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JOHN CHEN was sentenced today to 20 months in prison for acting as an unregistered agent of the government of the People’s Republic of China (“PRC”) and bribing an Internal Revenue Service (“IRS”) agent in connection with a plot to target U.S.-based practitioners of Falun Gong — a spiritual practice banned in the PRC. CHEN pled guilty on July 24, 2024, before U.S. Magistrate Judge Andrew E. Krause and was sentenced today by U.S. District Judge Nelson S. Román.
U.S. Attorney Damian Williams said: “John Chen aligned himself with the PRC government and its goals to harass and intimidate the Falun Gong, a long-standing target of PRC repression. In doing so, Chen boldly attempted to bribe an individual he believed to be an IRS agent to corrupt the administration of the U.S. tax code and pervert the IRS whistleblower program. This Office will not tolerate efforts like this to repress free speech by targeting critics of the PRC in the United States. Today’s sentence is a reminder that the U.S. justice system will hold accountable those who attempt to engage in malicious transnational repression on American soil.”
According to the Indictment and other court documents:
From at least approximately January 2023 to May 2023, CHEN and his co-defendant, Lin Feng (“FENG”) worked inside the U.S. at the direction of the PRC Government, including an identified PRC Government official (“PRC Official-1”), to further the PRC Government’s campaign to repress and harass Falun Gong practitioners. The PRC Government has designated the Falun Gong as one of the “Five Poisons,” or one of the top five threats to its rule. In China, Falun Gong adherents face a range of repressive and punitive measures from the PRC Government, including imprisonment.
As part of the PRC Government’s campaign against the Falun Gong, CHEN and FENG engaged in a PRC Government-directed scheme to manipulate the IRS’s Whistleblower Program in an effort to strip the tax-exempt status of an entity run and maintained by Falun Gong practitioners, the Shen Yun Performing Arts Center. After CHEN filed a defective whistleblower complaint with the IRS (the “Chen Whistleblower Complaint”), CHEN and FENG paid $5,000 in cash bribes, and promised to pay substantially more, to a purported IRS agent who was, in fact, an undercover officer (“Agent-1”) in exchange for Agent-1’s assistance in advancing the complaint. Neither CHEN nor FENG notified the Attorney General that they were acting as agents of the PRC Government in the U.S.
In the course of the scheme, CHEN, on a recorded call, explicitly noted that the purpose of paying these bribes, which were directed and funded by the PRC Government, was to carry out the PRC Government’s aim of “toppl[ing] . . . the Falun Gong.” During a call intercepted pursuant to a judicially authorized wiretap, CHEN and FENG discussed receiving “direction” on the bribery scheme from PRC Official-1, deleting instructions received from PRC Official-1 in order to evade detection, and “alert[ing]” and “sound[ing] the alarm” to PRC Official-1 if CHEN and FENG’s meetings to bribe Agent-1 did not go as planned. CHEN and FENG also discussed that PRC Official-1 was the PRC Government official “in charge” of the bribery scheme targeting the Falun Gong.
As part of this scheme, CHEN and FENG met with Agent-1 in Newburgh, New York, on May 14, 2023. During the meeting, CHEN gave Agent-1 a $1,000 cash bribe as an initial, partial bribe payment. CHEN further offered to pay Agent-1 a total of $50,000 for opening an audit on the Shen Yun Performing Arts Center, as well as 60% of any whistleblower award from the IRS if the Chen Whistleblower Complaint were successful. On May 18, 2023, FENG paid Agent-1 a $4,000 cash bribe at John F. Kennedy International Airport as an additional partial bribe payment in furtherance of the scheme.
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In addition to the prison term, CHEN, 71, of Chino, California, was sentenced to three years of supervised release and ordered to forfeit $50,000.
FENG, 44, a PRC citizen and resident of Los Angeles, California, was sentenced by Judge Román on September 26, 2024, to a time-served sentence of 16 months in prison.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation’s New York and Los Angeles Field Offices and Counterintelligence Division and the Office of the U.S. Treasury Inspector General for Tax Administration. Mr. Williams also thanked the Department of Justice’s National Security Division, Counterintelligence and Export Control Section for their assistance.
The case is being handled by the Office’s White Plains Division and National Security and International Narcotics Unit. Assistant U.S. Attorneys Qais Ghafary, Michael D. Lockard, and Kathryn Wheelock are in charge of the case, with assistance from Trial Attorney Christina Clark of the Counterintelligence and Export Control Section.
CEO of Artificial Intelligence Startup Company Charged with Defrauding InvestorsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging JOANNA SMITH-GRIFFIN with securities fraud, wire fraud, and aggravated identity theft in connection with defrauding investors in AllHere Education, Inc., the startup artificial intelligence education technology company she founded, out of millions of dollars. SMITH-GRIFFIN was arrested earlier today in the Eastern District of North Carolina and will be presented this afternoon before a magistrate judge in that district. The case has been assigned to U.S. District Judge John G. Koeltl.
U.S. Attorney Damian Williams said: “As alleged, Joanna Smith-Griffin orchestrated a deliberate and calculated scheme to deceive investors in AllHere Education, Inc., inflating the company’s financials to secure millions of dollars under false pretenses. The law does not turn a blind eye to those who allegedly distort financial realities for personal gain.”
FBI Assistant Director in Charge James E. Dennehy said: “Joanna Smith-Griffin allegedly misrepresented the composition of her startup company to defraud investors of millions and masqueraded as a financial consultant to perpetuate the scheme once discrepancies were discovered. Her alleged actions impacted the potential for improved learning environments across major school districts by selfishly prioritizing personal expenses. The FBI will ensure that any individual exploiting the promise of educational opportunities for our city’s children will be taught a lesson.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:[1]
From at least in or about November 2020 through at least in or about June 2024, SMITH‑GRIFFIN engaged in a scheme to defraud investors in AllHere Education, Inc. (“AllHere”), an educational technology startup she founded at Harvard that sold artificial intelligence software designed to increase classroom attendance and engagement in K-12 school districts. Beginning as early as AllHere’s Series A financing round in November 2020 and continuing through the collapse of the company in June 2024, SMITH-GRIFFIN misrepresented AllHere’s revenue, customer base, and cash to her investors.
For example, in the spring of 2021, SMITH-GRIFFIN told potential AllHere investors that AllHere had generated approximately $3.7 million in revenue in 2020, had approximately $2.5 million in cash on hand, and had major school district customers like the New York City Department of Education ("NYC DOE") and Atlanta Public Schools. In fact, AllHere had generated approximately $11,000 in revenue in 2020, had approximately $494,000 in cash, and did not have contracts with many of the customers it represented, including the NYC DOE and Atlanta Public Schools.
SMITH-GRIFFIN’s misrepresentations continued through AllHere’s collapse, during which time she was able to obtain nearly $10 million from investors and sought an additional $35 million from a private equity investor who ultimately decided not to invest. She used some of the fraudulently obtained funds to put a down payment on her house in North Carolina and pay for her wedding. SMITH-GRIFFIN also embezzled corporate funds for her own benefit. When AllHere’s investors and outside accountant accidentally discovered the discrepancy between AllHere’s actual financials and what SMITH-GRIFFIN was telling investors, SMITH-GRIFFIN tried to cover up her crimes, going so far as to create a fake email account for AllHere’s outside financial consultant, which she used to send additional fraudulent financial documents to her largest investor.
AllHere is now in Chapter 7 bankruptcy, its employees have been laid off, and AllHere is under the control of a court-appointed bankruptcy trustee.
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SMITH-GRIFFIN, 33, of Raleigh, North Carolina, is charged with securities fraud, which carries a maximum sentence of 20 years in prison; wire fraud, which carries a maximum sentence of 20 years in prison; and aggravated identity theft, which carries a mandatory sentence of two years in prison.
Mr. Williams praised the outstanding work of the FBI.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Matthew R. Shahabian is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Buffalo man indicted on charges of selling fentanyl that resulted in two deathsRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned a superseding indictment charging Rashaun Crule, 30, of Buffalo, NY, with narcotics conspiracy and distribution of fentanyl resulting in the death, which carry a mandatory minimum penalty of 20 years in prison and a maximum of life.
Assistant U.S. Attorney Evan K. Glaberson, who is handling the case, stated that, according to the superseding indictment, in February 2023, Crule distributed fentanyl to two individuals identified as M.M. and B.Y. in Amherst, NY. The victims believed they were purchasing cocaine, when in reality Crule delivered a bag of pure fentanyl. Both M.M. and B.Y. ingested the fentanyl shortly after receiving it, overdosed immediately, and died as a result. The victims bodies were not discovered for several days. A search of Crule’s cell phone determined that he deleted all messages between himself and one of the victims. In addition, about five months after the deaths of the two victims, Crule joked in a text message with another individual about the strength of the fentanyl that he was selling, responding with laughing emojis to a message suggesting his fentanyl was strong enough to cause overdoses.
At the time, Crule was on probation for a 2022 felony drug conviction in Erie County.
The superseding indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank Tarentino, New York Field Division, and the Amherst Police Department, under the direction of Chief Scott Chamberlin.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Brothers Residing in New York and Bangladesh Charged with Running Digital Streaming Piracy SchemeRead the Press Release
On Nov. 15, a federal grand jury in the Eastern District of New York returned an indictment charging Noor Nabi Chowdhury, 56, of Cheektowaga, New York, and his brother, Mohammad Rahman, 36, of Dhaka, Bangladesh, with conspiracy to provide to the public an illicit digital transmission service; providing an illicit digital transmission service; conspiracy to commit wire fraud; and aggravated identity theft. The charges stem from their operation of 247TVStream, an online subscription-based service that permitted users to stream copyrighted content, such as live sports programming and television shows, without the permission of the relevant copyright owners.
According to court documents, Chowdhury and Rahman allegedly ran the illegal scheme for years and collected more than $7 million in subscriber fees from 247TVStream subscribers. The estimated harm to legitimate copyright owners caused by 247TVStream is more than $100 million. Chowdhury and Rahman also allegedly used a victim’s identification to facilitate the infrastructure for the scheme.
The indictment was unsealed earlier today, following Chowdhury’s arrest, and he appeared for his arraignment in the U.S. District Court for the Western District of New York this afternoon. An arrest warrant was issued for Rahman, who remains at large.
“According to the indictment, Chowdhury and Rahman ran an illicit digital streaming site that infringed upon more than a hundred million dollars of intellectual property owned by legitimate copyright owners,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Thanks to the work of our prosecutors, along with our domestic and international law enforcement partners, the illicit digital streaming site no longer exists, and Chowdhury is in custody. These actions demonstrate the Criminal Division’s commitment to protecting intellectual property rights by vigorously enforcing the laws against illicit digital transmission services.”
“As alleged, the defendants operated a bootleg online streaming service that distributed copyrighted television programs that they stole for their personal enrichment,” said U.S. Attorney Breon Peace for the Eastern District of New York. “My office and the Justice Department are committed to protecting the rights of intellectual property holders from digital pirates like these defendants.”
“Noor Nabi Chowdhury and Mohammad Rahman are accused of committing copyright infringement to the tune of over $100 million,” said Special Agent in Charge William S. Walker of the Homeland Security Investigations (HSI) New York Field Office. “As alleged and in furtherance of their criminal scheme, the defendants stole an unsuspecting victim’s identity to exploit major American businesses, in pursuit of illicit wealth. HSI New York proudly stands alongside our law enforcement and private sector partners, both domestic and abroad, to thwart criminal organizations who seek to financially capitalize on their wrongdoing.”
Also today, HSI executed a seizure order from the Eastern District of New York against website domain names used by Chowdhury and Rahman to operate 247TVStream. The seizure of these domains by the government will prevent the owners and third parties from using the sites to operate 247TVStream. Individuals, including subscribers, visiting those sites now will see a message indicating that the site has been seized by the federal government. In addition, in coordination with international law enforcement partners to enforce criminal copyright laws, Dutch and United Kingdom authorities have seized the servers hosting a portion of the 247TVStream infrastructure.
If convicted, Chowdhury and Rahman each face a maximum penalty of five years in prison on the conspiracy to provide the illicit digital transmission service charge; three years in prison on the providing the illicit digital transmission service charge; 20 years in prison for the conspiracy to commit wire fraud charge; and a mandatory penalty of two years in prison for aggravated identity theft, to run consecutive to the other sentences.
The HSI New York Field Office is investigating the case, with assistance from the HSI Buffalo Field Office and their Attaché Offices in Ottawa, The Hague, and London.
The Justice Department’s Office of International Affairs also assisted. The Justice Department appreciates the additional assistance provided by the Surrey and City of London Police of the United Kingdom, Royal Canadian Mounted Police, and Fiscale inlichtingen- en opsporingsdienst of the Netherlands.
Trial Attorneys Vasantha Rao and Jeff Pearlman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Rebecca Schuman for the Eastern District of New York are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Brevard County Man Sentenced to 10 Years’ Imprisonment for Cocaine OffenseRead the Press Release
Orlando, Florida – Senior U.S. District Judge Gregory A. Presnell has sentenced Jackie Jamal Hines (47, Melbourne) to 10 years in federal prison for possessing with intent to distribute multiple kilograms of cocaine. Hines pleaded guilty on May 30, 2024.
According to court documents, in December 2023, law enforcement officers attempted a traffic stop on a vehicle Hines was driving after he left his storage unit in Melbourne. Hines exited his vehicle and fled on foot from the officers. Once he was detained, officers found a bag containing more than 300 grams of cocaine and two digital scales on his person. A search warrant was then obtained for the storage unit, where agents located a safe with five pressed bricks containing about a kilogram each of cocaine.
This case was investigated by the Drug Enforcement Administration and the Melbourne Police Department. It was prosecuted by Assistant United States Attorney Megan Testerman.
Boynton Beach Man Pleads Guilty to Distributing Child Sexual Abuse Material over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Timothy Burch Morris (46, Boynton Beach) has pleaded guilty to distributing child sexual abuse material over the internet. Morris faces a minimum penalty of 5 years, up to 20 years, in federal prison and a potential lifetime term of supervised release. His sentencing hearing is scheduled for January 27, 2025.
According to court documents, on November 20, 2023, an undercover FBI agent (UC) in Jacksonville was working on a particular social media application (app) to identify individuals who were attempting to sexually exploit children. The UC joined an online public chat room on the app posing as an adult with access to a child. App user “timkw37138,” who was later identified as Morris, posted within this public group, “Hi all. 44 very well hung male in Florida. My PM is open.” Later that day, the UC and Morris began texting using the private messaging feature of the app. Morris typed, “I just love stroking to guys [sic] daughters,” and stated that his favorite age is “prob 13-15 give or take a couple years neither side.” When he was told that UC had access to an even younger child, Morris replied, “Ow wow / That could work.” When asked to verify that he was “legit,” Morris sent the UC an explicit photo of himself taken in a hotel room. Five minutes later, Morris sent the UC two videos that depicted minors being sexually abused. During another online conversation, Morris sent the UC another explicit photo of himself.
After further investigation, FBI agents arrested Morris near his residence in Boynton Beach. During a search incident to his arrest, agents seized Morris’s phone. A search of the device revealed several photos consistent with those Morris had sent to UC. During an interview with law enforcement, Morris admitted having the “timkw37138” user account on the app for more than five years and stated that he had recently deleted the app from his phone because he started having conversations that he should not be having.
This case was investigated by the Federal Bureau of Investigation in Jacksonville and West Palm Beach, with the assistance from the Boynton Beach Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 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 child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Beckley Man Pleads Guilty to Federal Gun CrimeRead the Press Release
BECKLEY, W.Va. – Ryan H. Guerrant, 33, of Beckley, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on November 26, 2023, law enforcement officers responded to reports of a shooting at a Beckley residence and found Guerrant in the residence with a Bersa model BP9CC 9mm next to him on a bed.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Guerrant knew he was prohibited from possessing a firearm because of his prior felony convictions for first-degree robbery, conspiracy to commit first-degree robbery, and escape in Raleigh County Circuit Court on January 15, 2010.
Guerrant is scheduled to be sentenced on March 14, 2025, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Beckley Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Brian D. Parsons is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:24-cr-93.
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Auburn Man Sentenced to 63 Months in Prison for Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Timothy Durel, 58, of Auburn, was sentenced today by U.S. District Judge Kimberly J. Mueller to five years and three months in prison to be followed by five years of supervised release for receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between 2012 and 2021, Durel uploaded and shared between email accounts hundreds of visual depictions of minors engaged in sexually explicit conduct. This included images of prepubescent children. When law enforcement searched Durel’s home in 2021, they seized electronic devices and found hundreds of additional images of child pornography.
This case was the product of an investigation by Homeland Security Investigations and the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Roger Yang prosecuted 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Auburn Man Pleads Guilty After Being Caught on Video Selling Crack CocaineRead the Press Release
PORTLAND, Maine: An Auburn man pleaded guilty today in U.S. District Court in Portland to distributing and possessing with intent to distribute controlled substances.
According to court records, in May and June 2024, agents from the U.S. Drug Enforcement Administration (DEA) directed a confidential source to conduct two controlled buys from Pierre Calhoun, 39, with both transactions captured on video and audio recordings. The DEA lab later tested the seized drugs and confirmed them to be approximately 24.7 grams of crack cocaine.
Calhoun faces up to 20 years imprisonment and a fine up to $1 million. Any sentence would be followed by no less than three years of supervised release. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The DEA investigated the case.
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19 Individuals Indicted and Arrested in Relation to Statewide Bank Fraud ConspiracyRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Qornelious Campbell (31), Kenneth Cole II (25), Kenisha Coffer (25), D’Andranika Crews (20), Ebony Fields (26), Victoria Ferrer (22), Aaliyah Gotay-Woods (23), Bre’asia Harris (26), Jaun Hillman (51), Keith Honors, Jr. (39), Kendrick Iles (20), Arkuria Lewis (22), Deven Little (28), Josie Lopez (29), Clarissa Morris (24), Tamiria Perry (27), Mark Quesnel (66), Tamaries Richardson (30), and Kalei Spicer (22), all residents of Polk County, with conspiracy to commit bank fraud and bank fraud. If convicted on all counts, each faces a maximum penalty of 30 years in federal prison. The indictment also notifies the individuals that the United States intends to forfeit any and all assets traceable to proceeds of the offenses.
According to court documents, in 2023, the Federal Bureau of Investigation and the Polk County Sheriff’s Office initiated an investigation into a violent street gang known as the “Trap Boys,” who were operating throughout the Middle District of Florida. This investigation and subsequent arrests were predicated upon several retaliatory shootings between the Trap Boys and other violent street gangs. During these arrests, several members of the gang were found to be in the possession of large quantities of checks, debit cards, financial statements, and identification cards in the names of third parties. Further investigation of these materials revealed that from at least July 2021, and continuing through November 2023, a group of individuals had engaged in a conspiracy to defraud banks, credit unions, individual persons, and various businesses throughout Florida, including Winter Haven, Auburndale, Riverview, Kissimmee, Lakeland, Tampa, and Miami.
As part of this conspiracy, the co-conspirators stole checks from individuals and businesses. Using check writing software, the co-conspirators then altered those checks and created fictitious checks, changing the banks, businesses, and the check amounts. Using automated systems and online databases, the co-conspirators then learned of the banking information of various businesses, including their transaction history, account balances, check numbers and other information. Members of the conspiracy then recruited accomplices who provided members of this conspiracy with their own bank account numbers, Social Security numbers, debit cards, and their own individual bank account log credentials and passwords. The co-conspirators then deposited the fraudulently created checks at dozens of banks and credit unions throughout the Middle District of Florida.
Over the course of this conspiracy, approximately 26 banks and more than 200 victims were defrauded, including insurance companies, law firms, construction companies, tile companies, auto shop businesses, public school districts, colleges, and state agencies.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Polk County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Diego F. Novaes.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justicegov/OCDETF.
1,295 Kilograms of Cocaine Seized by the United States Coast GuardRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Julio Contreras Bueno and Christian Garay Ochoa, both of Mexico, appeared before Magistrate G. Alan Teague for their initial appearance after being charged by Indictment with conspiracy to possess with intent to distribute cocaine while on board a vessel subject to jurisdiction of the United States.
According to court records, on September 5, 2024, during a routine patrol in international waters in the Eastern Pacific, a Royal Canadian Naval ship with a United States Coast Guard detachment onboard intercepted a go-fast vessel after it was sighted approximately 427 nautical miles southwest of Acapulco, Mexico. The vessel, which was dead in the water floating adrift with bales visible on the deck, displayed no indicia of nationality and had no flag flown. The Coast Guard detachment conducted a right of visit boarding on the vessel as it was suspected of illicit maritime activity. The vessel had a large hole in its bow and Julio Contreras Bueno, Christian Garay Ochoa, and Francisco Hernandez Penaloza were found onboard. A claim of Mexican nationality was made by the crew, but the Mexican government could neither confirm nor deny nationality of the vessel. The vessel was therefore determined to be one without nationality, thus subject to the jurisdiction of the United States. A search of the vessel revealed 35 bales consistent with contraband. Two presumptive tests were conducted on packages inside the bales, which proved positive for cocaine. The contraband was removed, and the vessel was sunk due to the damage to the hull. The initial appearance of Hernandez Penaloza will be scheduled before Magistrate Teague pending his removal from the Southern District of California. If convicted, they face a minimum of ten years and a maximum of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case is being investigated by the United States Coast Guard and Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Kyle Payne. This prosecution 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.
U.S. Attorney Smith reminds the public that a criminal Indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
18 November 2024
Woodford County Man Sentenced for Fentanyl TraffickingRead the Press Release
LEXINGTON, Ky. – A Versailles, Ky., man, Cameron Spencer, 34, was sentenced to 262 months in prison on Monday, by Chief U.S. District Judge Danny Reeves, for possession with intent to distribute 40 grams or more of fentanyl.
According to his plea agreement, on February 19, 2022, Spencer made a same-day reservation for an Air BnB rental property, with a check-out time of approximately 11 a.m. the next morning. During Spencer’s reservation, multiple people were observed, via recorded video footage, entering the property. At some point during the reservation, an alert of Spencer’s presence in the backyard was sent to the homeowners. Spencer was observed, via video footage, digging in the backyard of the rental property.
After Spencer checked out of the property, a bag of narcotics was found in the area where Spencer was observed digging. Additional items consistent with drug trafficking were also found, including a hydraulic press, a blender, and bags. Spencer was located near the rental property, and law enforcement found $2,295 in cash on his person and in his vehicle. Spencer admitted to possessing the 226.15 grams of fentanyl with intent to distribute it.
Under federal law, Spencer must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for eight years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jim Scott, Special Agent in Charge, DEA, Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, announced the sentencing.
The investigation was conducted by the DEA and Lexington Police Department. Assistant U.S. Attorneys Paco Villalobos and Brittany Baker are prosecuting the case on behalf of the United States.
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West New York Financial Advisor Sentenced to 41 Months in Prison for Role in Multimillion-Dollar Health Care Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – A West New York financial advisor was sentenced today to 41 months in prison for 11 counts of defrauding public health insurance plans out of more than $4 million and transacting in the criminal proceeds, U.S. Attorney Philip R. Sellinger announced.
Kaival Patel, 55, of West New York, New Jersey, was convicted on Dec. 7, 2023, of one count of conspiracy to commit wire fraud and health care fraud, four counts of health care fraud, one count of conspiracy to commit money laundering by transacting in criminal proceeds, and five counts of money laundering by transacting in criminal proceeds following an 11-day trial before U.S. District Judge Robert B. Kugler. U.S. District Judge Edward S. Kiel imposed the sentence today in Camden federal court.
“This defendant lined his own pockets by taking advantage of health insurance plans for New Jersey state and local government employees, defrauding them of millions of dollars by conspiring to obtain reimbursements for medically unnecessary compound prescription medications. Together with our law enforcement partners, we will continue to investigate and prosecute those who abuse and defraud the health care system.”
U.S. Attorney Philip R. Sellinger
According to documents filed in this case and the evidence at trial:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Compounded medications require a prescription from a physician.
Patel created and operated a company called ABC Healthy Living LLC to market compound prescription medications. Patel and his conspirators learned that certain state and local government employees had insurance that would reimburse up to thousands of dollars for a one-month supply of certain compound medications such as vitamins, scar creams, pain creams, libido creams, and acid reflux medications. Patel and a conspirator approached Patel’s family member, a medical doctor who owns and operates a clinic in Newark, New Jersey, and convinced him to authorize prescriptions for the compound medications for patients who had no medical need for the prescriptions. Patel received commissions for the compound medication prescriptions.
Patel and his conspirators paid a group of corrections officers to go to Patel’s family member’s medical practice for the purpose of receiving fraudulent prescriptions. Patel conspired with a compounding pharmacist to add unnecessary ingredients to the compound medications to further increase their cost and augment his illicit profits. Patel engaged in a series of financial transactions to receive proceeds from the health care fraud and wire fraud conspiracy.
To date, approximately 48 people have been convicted or pleaded guilty in the overarching conspiracy.
In addition to the prison term, Judge Kiel sentenced Patel to three years of supervised release and ordered him to pay restitution of $4.72 million.
U.S. Attorney Sellinger credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorneys Daniel A. Friedman of the Criminal Division and R. David Walk Jr., Deputy Chief of the Criminal Division.
Warren County Man Sentenced to 10 Years in Prison for Attempted Enticement of a MinorRead the Press Release
ALBANY, NEW YORK – Robert Cutter, age 44, of Lake George, New York, was sentenced today to 10 years in prison for attempting to entice and coerce a 12-year-old child into sexual activity.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
As part of his previously entered guilty plea, Cutter admitted that on June 27, 2023, he exchanged sexually explicit text messages with someone he believed was an adult offering the sexual services of a 12-year-old girl, in an attempt to entice the child into engaging in sexual acts with him. Cutter also admitted that on that same date, he traveled to a pre-determined location in Warren County, New York, with the intent to engage in sexual acts with the 12-year-old girl. Cutter was arrested by law enforcement shortly after arriving at the location.
United States District Judge Mae A. D’Agostino also imposed a 15-year term of post-imprisonment supervised release. Cutter will be required to register as a sex offender upon his release from prison.
The case was investigated by the FBI’s Albany Division Child Exploitation and Human Trafficking Task Force – comprised of FBI Special Agents, and state and local police investigators, including from the New York State Police, Rotterdam Police Department, Warren County Sheriff’s Office, and Saratoga County Sheriff’s Office. Assistant U.S. Attorney Allen J. Vickey 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.
Virginia Man Chatting with Purported Minor Female Online is Convicted and Sentenced to Federal PrisonRead the Press Release
MONROE, La. – United States Attorney Brandon B. Brown announced the sentencing of a man from Virginia for attempted production of child pornography. Ross Brandon, 40, was sentenced today by United States District Judge Terry A. Doughty to 180 months (15 years) in prison, followed by a lifetime of supervised release.
On June 12, 2023, an agent with the Federal Bureau of Investigation (“FBI”) working in an undercover capacity, was posing as a 13-year old female and began communicating with a user via the social platform, Whisper. The user identified himself as Mountain Man and was later identified by law enforcement agents as Ross Brandon. During their communications, the undercover agent identified themselves to Brandon as a 13-year old female named “Sara a.k.a. Princess,” living in Louisiana. Brandon identified himself and gave his age and where he resided at the time and told “Sara” that he lived in Virginia. Brandon sent non-sexually explicit photos of himself to “Sara” and law enforcement agents were able to establish his identity and location.
After some time of communicating through the Whisper app, Brandon and “Sara” exchanged telephone numbers and began text messaging on cell phones. While communicating with “Sara,” Brandon requested that she engage in self-masturbation and would engage in sexually explicit conversations with her. Brandon sent sexually explicit images of himself to “Sara” on two occasions in June and July of 2023. On two occasions in July of 2023, Brandon requested that “Sara” send sexually explicit images of herself to him.
Brandon was later arrested and admitted to law enforcement agents that he knew “Sara” was under the age of 18 and that he had requested child pornography images from her. He was charged in the Western District of Louisiana with attempted production of child pornography and pleaded guilty July 29, 2024.
The case was investigated by the FBI and prosecuted by Assistant United States Attorney William C. Gaskins.
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Vietnamese National and Member of Multinational Media Company Charged with Participating in A Scheme to Launder at Least $67 Million in Fraud ProceedsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Jonathan Mellone, the Special Agent in Charge of the Northeast Region of the U.S. Department of Labor’s Office of Inspector General (“DOL-OIG”); and Andrew Wroblewski, the Assistant Director of the U.S. Department of State’s Diplomatic Security Service (“DSS”) Domestic Operations, announced the unsealing of a Superseding Indictment charging LE VAN HUNG, a/k/a “Hung Van Le,” a/k/a “Van Hung Le,” with conspiring with the Chief Financial Officer of a multinational media company headquartered in New York City to engage in a transnational scheme to launder at least approximately $67 million of illegally obtained funds to benefit, among others, the media company. On Friday, HUNG was extradited from South Korea and was presented before U.S. Magistrate Judge Ona T. Wang. The case has been assigned to U.S. District Judge Marrero.
U.S. Attorney Damian Williams said: “As alleged, Le Van Hung, while located in a foreign country, conspired with the Chief Financial Officer of a global newspaper and media company, to benefit the media company and its affiliates by laundering tens of millions of dollars in fraudulently obtained unemployment insurance benefits and other crime proceeds. In furtherance of the scheme, Hung allegedly stole the personal identification of U.S. residents to open and maintain financial accounts in order to launder fraud proceeds. The charges against and extradition of Hung reflect this Office’s ongoing commitment to enforce the law against those who facilitate money laundering, even if located abroad, together with our foreign partners.”
DOL-OIG Special Agent in Charge Jonathan Mellone said: “An important part of the mission of the Office of Inspector General is to investigate allegations of fraud involving the Department of Labor's unemployment insurance program. We will continue to work with our law enforcement partners to safeguard benefits intended for unemployed American workers.”
DSS Domestic Operations Assistant Director Andrew Wroblewski said: “Protecting U.S. persons from international fraud schemes and safeguarding U.S. personal information and documentation, including passports, is critical to the Diplomatic Security Service’s mission. We are firmly committed to partnering with our U.S. and international law enforcement colleagues to stop criminals from conspiring to commit identity fraud and protecting greater U.S. interests.”
According to the allegations contained in the Superseding Indictment:[1]
From at least in or about 2020, through in or about May 2024, HUNG, while working in a foreign office of a multinational media company headquartered in New York, New York (the “Media Company”), conspired with others, including the Chief Financial Officer of the Media Company, to participate in a sprawling, transnational scheme to launder at least approximately $67 million of illegally obtained funds to bank accounts in the names of the Media Company and related entities. In furtherance of the money laundering conspiracy, HUNG recruited and managed various co-conspirators, including co-conspirators who worked with the Media Company’s “Make Money Online” team. HUNG also used, possessed, and transferred personal identification information and documents of U.S. residents in order to, among other things, open and maintain financial accounts that were used to launder fraud proceeds. In one particular instance, HUNG directed a co-conspirator to call a bank and falsely claim that the co-conspirator was the account holder of a certain account so that the bank would unlock the account and HUNG could move fraudulent proceeds out of the account.
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If you believe you are a victim of identity fraud perpetrated by HUNG, please contact [email protected], and find more information here: https://www.justice.gov/usao-sdny/united-states-v-le-van-hung.
HUNG, 29, of Vietnam, is charged with one count of conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison, one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison, one count of aggravated identity theft, which carries a mandatory sentence of two years in prison, and one count of identity theft conspiracy, which carries a maximum sentence of 15 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of DOL-OIG, DSS, and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York. Mr. Williams also thanked U.S. Customs and Border Protection. The Justice Department’s Office of International Affairs worked with the International Criminal Division of the Korean Ministry of Justice to secure the arrest and extradition of Hung.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles high-level criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Emily Deininger, Rebecca T. Dell, and Jane Kim are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Superseding Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
U.S. Attorney's Office and Second Judicial District Attorney’s Office Collaborate to Secure Sentencing in Albuquerque Drug and Gun CaseRead the Press Release
ALBUQUERQUE – A Mexican national was sentenced to 11 years in prison for federal drug and firearms offenses, following his arrest by New Mexico State Police agents in December 2022.
There is no parole in the federal system.
According to court documents, on December 6, 2022, a New Mexico State Police Agent patrolling in Albuquerque identified a stolen pickup truck parked at the Sun apartment complex. The vehicle had been reported stolen by the Los Lunas Police Department on November 16, 2022.
Agents followed the truck, deployed a tire deflation device, and arrested the driver, Mario Figueroa-Camarillo, 40, when he stopped.
During the arrest, officers seized a loaded 9mm magazine, two cell phones, and $1,786 in cash from Figueroa-Camarillo’s person. Figueroa-Camarillo was wearing a GPS ankle monitor as a condition of pretrial release in a case pending at that time in the Second Judicial District Court. A search of the truck revealed approximately 66 grams of methamphetamine, 18 fentanyl pills, a digital scale, a loaded Taurus 9mm pistol, and a GPS charging device.
After completing his term of imprisonment, Figueroa-Camarillo will be subject to deportation proceedings.
U.S. Attorney Alexander M.M. Uballez and Bernalillo County District Attorney Sam Bregman made the announcement today.
The U.S. Immigration and Customs Enforcement and New Mexico State Police investigated this case. Special Assistant U.S. Attorney Peter Haynes prosecuted the case as part of an agreement with the Second Judicial District Attorney’s Office.
Through the agreement, Assistant District Attorneys are designated Special Assistant United States Attorneys (SAUSAs) in the United States Attorney’s Office. The SAUSA from the Second Judicial District Attorney’s Office screens felony criminal complaints filed in Bernalillo County for federal criminal offenses, prioritizing federal charges against those who drive violence in the Albuquerque metropolitan area. Since 2020, the United States Attorney’s Office has reviewed almost 3,000 cases and has charged more than 300 criminal cases pursuant to this program.
The United States Attorney’s Office has similar agreements with the New Mexico Department of Justice and the First Judicial District Attorney’s Office and plans to expand the program throughout the state.
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U.S. Attorney Totten Announces Second Wave of Enforcement in Nationwide Telemedicine Fraud SchemesRead the Press Release
Operation “Happy Clickers” Results in Resolutions with Five More Doctors for Allegedly Authorizing Fraudulent Medicare Spending
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced criminal convictions and civil settlements against a second wave of doctors who participated in nationwide telemedicine fraud schemes by ordering medically unnecessary orthotic braces and genetic testing, allegedly wasting Medicare dollars to line their own pockets. These resolutions were achieved through Operation “Happy Clickers,” a joint initiative between the U.S. Attorney’s Office, the U.S. Department of Health & Human Services’ Office of the Inspector General (HHS-OIG), and the Federal Bureau of Investigation (FBI) (see prior enforcement announcement here). The enforcement actions announced today include civil settlements with five doctors and criminal convictions against two of them.
“Over the last five years, fraudsters have operated nationwide telemarketing schemes to defraud the Medicare Program of billions of dollars by preying on older adults to solicit orders for medically unnecessary braces and genetic testing,” said U.S. Attorney Mark Totten. “These schemes worked only because physicians checked their training and oaths at the door and click-signed medical orders without an appropriate medical review. My office will continue to work with our law enforcement partners to hold medical practitioners responsible for participating in these schemes.”
As part of this second wave, Theresa Kordish, D.O., of Kalamazoo, MI, and Utibe Effiong, M.D., formerly of Mt. Pleasant, MI, each pleaded guilty to one count of making a false statement relating to health care matters. Both doctors admitted using a telemedicine program to authorize medical orders for patients they never met or examined, approving most orders in mere seconds. In addition to their criminal convictions, each doctor also agreed to pay civil settlements for their conduct based on the scope of the fraudulent orders each signed and on ability-to-pay considerations. Dr. Kordish agreed to pay $50,000, and Dr. Effiong agreed to pay $150,000.
The United States also reached civil settlements with three other physicians. Derek Grossman, D.O., of Traverse City, MI, agreed to pay $295,192.93 to resolve allegations that he used a telemedicine program to order over 1,300 medically unnecessary orthotic braces. Pedro Toweh, M.D., of Battle Creek, MI, agreed to pay $85,822 to resolve allegations that he likewise ordered over 800 medically unnecessary braces. Aaron Willen, D.O., formerly of Kalamazoo, MI, agreed to pay $80,000 to resolve similar allegations regarding several hundred orthotics claims based on ability to pay.
Dr. Kordish is scheduled to be sentenced on February 10, 2025. Dr. Effiong is scheduled to be sentenced on February 18, 2025.
These actions follow nationwide takedowns of so-called “marketers” and owners of medical supply companies and genetic testing laboratories, who worked together to conduct large-scale schemes to defraud Medicare. Details of earlier takedowns were publicized on April 9, 2019, September 27, 2019, and September 30, 2020. The marketers placed phone calls to Medicare beneficiaries, often through overseas call centers, to obtain enough information that they could fill out fraudulent medical orders for orthotic braces and genetic testing. The marketers then paid doctors to approve these orders through telemedicine programs for patients they never met in violation of federal healthcare laws. The marketers then sold the signed orders to medical supply companies and laboratories in violation of federal anti-kickback laws.
Federal investigators initiated these investigations based on a detailed review of Medicare data relating to these expensive braces and genetic tests, which sometimes exceed $8,000 per test, Including the criminal pleas and civil settlements, prosecutors handling Operation “Happy Clickers” have resolved cases against a total of nine separate doctors and nurse practitioners who were responsible for ordering over $10.5 million in alleged loss to the Medicare Program.
Through both rounds of enforcement actions, the United States has recovered over $1,000,000 for the Medicare Program in civil settlements, in addition to restitution that has and is expected to be ordered in the criminal cases. Almost all of these civil settlements were reached based on the inability of the defendants to pay higher amounts.
“Physicians and other providers who authorize medically unnecessary equipment and services undermine our health care system and waste valuable taxpayer dollars,” said Mario M. Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General. “Our agency is committed to ensuring that those who engage in this conduct are identified and, in conjunction with our law enforcement partners, the resources of our judicial system are brought to bear.”
“The convictions of several physicians involved in a nationwide telemedicine fraud scheme underline the FBI’s commitment to holding those accountable who violate the trust of their profession,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “By preying on the elderly and defrauding Medicare, these individuals betrayed their oath to uphold the highest standards of care and ethics; in turn, they exploited a vulnerable population for personal gain. Members from the FBI in Michigan, in coordination with the U.S. Department of Health and Human Services, will continue to investigate bad actors who undermine the integrity of our healthcare system and the trust placed in them by their patients and communities.”
The resolutions obtained in this second-wave of enforcement actions in Operation “Happy Clickers” were the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Michigan and HHS-OIG and the FBI.
The criminal cases were prosecuted by Assistant United States Attorney Patrick J. Castle and former Assistant United States Attorney Raymond E. Beckering III. Assistant United States Attorneys Andrew J. Hull and Nicole L. Mazzocco prosecuted the civil cases.
The claims resolved by the civil settlements are allegations only and there has been no determination of liability.
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U.S. Attorney Jesse Laslovich announces almost $2 million in federal Justice Department grants to fight school violenceRead the Press Release
BILLINGS — U.S. Attorney Jesse Laslovich today announced grant funding of almost $2 million to help fight school violence for two Montana educational entities from the U.S. Department of Justice’s Office of Justice Programs.
The funding, totaling $1,999,992, is from the OJP’s Bureau of Justice Assistance’s Fiscal Year 24 STOP School Violence Program Competitive Solicitation. The project period is from Oct. 1, 2024 to Sept. 30, 2027.
The Western Montana Professional Learning Collaborative in Lolo was awarded $1 million, while Billings Public Schools in Billings was awarded $999,992.
“The work of the Justice Department is often reactionary, as we seek to hold accountable those who violate the rule of law. But it is refreshing when we can be proactive in our work, which is why I am pleased to announce these grants. I applaud the work of the Western Montana Professional Learning Collaborative and Billings Public Schools for their focus on mental health services and crime prevention. We are unwavering in our pursuit of those who commit school violence, and these grants show we are equally committed to preventing school violence from occurring in the first place,” U.S. Attorney Laslovich said.
The Western Montana Professional Learning Collaborative proposes the Expanding Montana Rural Student Mental Health Supports initiative, which aims to extend mental health resources to underserved rural, tribal and frontier schools in Western Montana. This project will provide comprehensive school mental health services, including trauma informed care, wellness training, curriculum and teletherapy to establish safe school environments and ensure equitable access to mental health services. The project builds on the success of Montana Cares, which currently serves more than 14,000 students and their families. Expanding care in Montana will extend those services in western regions, addressing significant inequities in school-based mental health resources, and serving an additional 13,000 students and their school community families.
Billings Public Schools (BPS) is the largest school district in Montana and serves more than 16,000 students. In the past four years, Billings has seen an increase in violent crimes, especially youth violent crimes and increased youth gang activity. Information from surveys, incident reports and Billings Police Department data demonstrate the need for support in BPS middle schools. The goal of BPS is to address the critical need for violence prevention, positive youth resiliency skill building and promotion of a positive school climate through the Culture of Care program. The Culture of Care program will use funding to hire two, full-time specialists to work directly with students in the six middle schools and a full-time program leader to coordinate training, support program implementation and promote stakeholder engagement. The program aims to reduce violence by addressing conflict before it occurs or escalates.
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Two Additional Men Charged in Proactive Law Enforcement ActionRead the Press Release
CONCORD –Two additional men were charged and arrested for attempting to sex traffic a child at a Manchester hotel. On Saturday morning, charging documents were unsealed alleging three initial men were arrested in the same proactive federal and local law enforcement action the evening before, U.S. Attorney Jane E. Young announces.
On November 14 and November 15, 2024, in a proactive law enforcement operation, agents posted and monitored an advertisement on a website commonly used to advertise commercial sex acts.The advertisement contained images of what appeared to be two minor females, and a contact phone number. Law enforcement agents used it to communicate with potential sex buyers. Each defendant responded to the advertisement. Once at the hotel, each defendant met with an undercover agent and attempted to sex traffic one of the two fictitious children.
The following defendants have been charged by criminal complaint with attempted sex trafficking of a minor of whom the final two are newly announced:
- Stacey Ray Lancaster, age 46, Hudson, New Hampshire. Lancaster was arrested on Thursday, November 14, 2024, and is in federal custody. He will appear in federal court today, Monday, November 18, 2024, at 1:00 pm.
- Arthur Picanco, age 42, Bradford, Massachusetts. Picanco was arrested on Thursday, November 14, 2024, and he is in federal custody. He will appear in federal court today, Monday, November 18, 2024, at 3:00 pm.
- Ozeias Luiz Guilherme, age 38, Haverhill, Massachusetts. Guilherme was arrested on Thursday, November 14, 2024, and he is in federal custody. Guilherme will appear in federal court on Monday, November 18, 2024, at 2:30 pm.
- Sharath Chandra Bollu, age 23, Chelmsford, Massachusetts. Bollu was arrested on Friday, November 15, 2024, and he is in federal custody. He will appear in federal court later today.
- Koteshwara Raju Jonnagodda, age 24, Chelmsford, Lowell, Massachusetts. Jonnagodda was arrested on Friday, November 15, 2024, and he is in federal custody. He will appear in federal court later today.
Homeland Security Investigations led the investigation. Valuable assistance was provided by the Manchester Police Department, the New Hampshire Attorney General’s Office, and the New Hampshire Internet Crimes Against Children Task Force. Assistant U.S. Attorneys Matthew Vicinanzo, Kasey Weiland, Anna Krasinski and Georgiana MacDonald are prosecuting the cases.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Community questions should be directed to the U.S. Attorney’s Public Voicemail Line at 603-230-2563.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Three New York Residents Sentenced for Fraud and Money Laundering Using Funds from Elderly Lottery Scam VictimsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Caron Pitter, age 48, Rohan Lyttle, age 49, and Charlene Marshall, age 44, were sentenced to prison and ordered to pay restitution for their roles in a Jamaican lottery scam targeting elderly U.S. victims. Rohan Lyttle received a sentence of 97 months, Caron Pitter received a sentence of 66 months, and Charlene Marshall received a sentence of 34 months in prison. Each defendant will serve a period of three years of supervised release following their release from prison. In addition, each defendant was ordered to pay a total of $245,147.98 in restitution to certain victims of the lottery scam.
The three defendants were found guilty of all charges against them following a two-week jury trial in November 2023. They were convicted of conspiracy to commit wire fraud and mail fraud and conspiracy to commit money laundering. In addition to the conspiracy charges against all defendants, Caron Pitter was convicted of several counts of mail fraud, and Rohan Lyttle was convicted of multiple counts of mail fraud, wire fraud, and interstate transportation of goods taken by fraud. A fourth defendant, Rohan Lytle, Jr., age 27, was charged with some of the same offenses, and he remains a fugitive.
According to United States Attorney Gerard M. Karam, the defendants, who are all lawful permanent residents of the United States originally from Jamaica, received funds from victims of a Jamaican lottery scam between 2017 and 2020. The evidence at trial showed that an individual based in Jamaica posing as a representative of Publisher’s Clearing House used “lead lists” containing the names and personal information of elderly Americans to contact potential victims. These individuals were contacted by phone and email and falsely told that they had won multimillion-dollar prizes through Publisher’s Clearing House but needed to prepay taxes and other fees in order to claim their supposed prizes. These elderly individuals were then directed to make payments in various ways, including by sending packages containing tens of thousands of U.S. dollars through the U.S. Postal Service, UPS, and Federal Express. In addition to cash packages sent by mail, the victims transmitted funds through bank-to-bank wire transfers, Zelle, MoneyGram, and Western Union. Victims were also defrauded in other ways. For instance, fraudsters gained access to victims’ credit cards and Amazon accounts and used those accounts to purchase goods, such as mobile phones and televisions. They also obtained debit cards for victims’ checking accounts and used those cards to make cash withdrawals at ATMs located in Jamaica.
Several victims testified at trial. They included a 79-year-old former resident of Mechanicsburg, Pennsylvania, a 71-year-old resident of Philadelphia, Pennsylvania, and a 91-year-old resident of Walterboro, South Carolina. Collectively, these victims lost over $1.1 million in connection with this fraud scheme.
All of these victims testified that they were contacted by a representative of Publisher’s Clearing House and directed to send money to claim their respective prizes. All of them sent money to the defendants charged in this case, as well as other locations. The victim from Mechanicsburg, PA and the victim from Philadelphia, PA collectively sent in excess of $200,000 in cash packages just to these defendants. In some cases, victims were also directed to receive funds from third parties that they didn’t know and send those funds to other individuals that they were led to believe were also Publisher’s Clearing House representatives.
Evidence at trial also showed that the defendants operated an auto body shop in Queens, New York known as RoCars Auto and an affiliated used car dealership based in Kingston, Jamaica known as Rolcam Company Limited. The defendants used the proceeds of the lottery scam to purchase and repair salvage vehicles from online vehicle auctions and ship those vehicles to Rolcam Company Limited for sale to customers in Jamaica.
The victim from Mechanicsburg, PA was also told that he had won a new Range Rover, in addition to his cash prize. He was directed to pay for and ship over $15,000 in parts from a Land Rover car dealership to RoCars Auto in Queens, New York, under the false pretense that his vehicle was in need of upgrades before it could be sent to him. The evidence at trial showed that the defendants used these parts to repair a 2019 Land Rover that they purchased from a salvage vehicle auction house. After repairing the vehicle, they shipped it from RoCars Auto to Rolcam Company Limited in Kingston, Jamaica, where it was sold to an unidentified buyer believed to be associated with the lottery scam.
The defendants used various means to disguise their receipt of victim funds, including distributing the money among each other so that the funds could be deposited in a variety of bank accounts and exchanged for cashier’s checks so that they would not appear in bank accounts at all. The defendants also regularly broke up larger amounts of cash into smaller amounts to make their deposits look smaller in size, which had the effect of evading banks’ reporting requirements for large cash transactions.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorneys Ravi Romel Sharma and David C. Williams prosecuted the case.
If you or someone you know has been a victim of a lottery scam, help is available at the National Elder Fraud Hotline at 1-833-FRAUD-11 (372-8311). The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. You may also contact the U.S. Postal Inspection Service at 1-800-372-8347 or online at www.uspis.gov/report.
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Texas Woman Sentenced to 10 Years of Imprisonment in Connection with Murder-for-Hire PlotRead the Press Release
Memphis, TN – Ashley Grayson, 35, of Dallas, Texas was sentenced to ten years in federal prison for her conviction related to a murder-for-hire conspiracy that, if successful, would have resulted in the death of a Southaven, Mississippi woman. Reagan Fondren, Acting United States Attorney for the Western District of Tennessee, announced the sentence today.
Ashley Grayson ran an internet-based business and gained notoriety from her online presence. In 2021, Grayson had a falling out with a woman from Southaven, Mississippi who operated an online business similar to Grayson’s. Grayson suspected the Southaven woman of creating fake online profiles that criticized Grayson and her business. The pair never met in person.
In August 2022, Grayson asked a Memphis woman, with whom she had worked in the past, to fly to Dallas to discuss a “business opportunity.” The Memphis woman and her husband went to Dallas in early September 2022 and met with Grayson and her husband. Grayson offered to pay the Memphis couple to kill three different people: the Southaven woman, Grayson’s former boyfriend, and a Texas woman who had recently made negative social media posts about Grayson. Each one of these killings had a value to Grayson of at least $20,000.
On September 10, 2022, the Memphis woman video-recorded a call to Grayson where Grayson confirmed that she wanted the Southaven woman killed as soon as possible and offered an extra $5,000 for the murder to be carried out in the next week.
Later, the Memphis couple sent Grayson a picture of police lights from an unrelated incident in Memphis under the guise that they had attempted to carry out Grayson’s murder-for-hire but were unsuccessful. They demanded $10,000 (half of the promised price) from Grayson for the attempt. The Memphis couple went to Dallas where they met with Grayson and her husband and received $10,000 from them for the “attempt".
In July 2023, a grand jury in the Western District of Tennessee returned a one-count indictment for Use of Interstate Facility in Commission of Murder-for-Hire in violation of 18 U.S.C. §1958 against both Ashley Grayson and her husband, Joshua Grayson. The case proceeded to trial in March 2024 where, after a week-long trial, a jury acquitted Joshua but found Ashley Grayson guilty as charged.
On October 31, 2024, United States District Court Judge Thomas L. Parker sentenced Ashley Grayson to 120 months, the maximum sentence of imprisonment available for a violation of 18 U.S.C. §1958, and three years of supervised release. There is no parole in the federal system.
Acting U.S. Attorney Fondren said, “This was a twenty-first century crime where online feuds and senseless rivalries bled into the real world. The defendant tried to hire someone to murder a woman over things that happened exclusively on the internet. Fortunately, no one was physically hurt in this case, but the victim and her family still felt a severe and emotional impact as the result of the defendant’s actions. The proactive response from the investigating agencies and our prosecutors prevented an even more serious crime from occurring.”
“This murder-for-hire plot underscores the strength of joint federal law enforcement efforts to ensure the safety of the citizens in our community,” said Special Agent in Charge Joe Carrico of the FBI Nashville Field Office, Memphis Resident Agency. “This sentence demonstrates the commitment of the FBI and our partners to investigate violent crimes and root out those who seek to prey on the public.”
This case was investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Acting U.S. Attorney Fondren thanked Assistant United States Attorneys Neal Oldham and Bryce Phillips who prosecuted this case on the government’s behalf, as well as the law enforcement partners who investigated this case.
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For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
Six now charged in human smuggling conspiracy resulting in deathRead the Press Release
LAREDO, Texas – Three more individuals are in custody for a human smuggling conspiracy that resulted in the July death of an undocumented individual, announced U.S. Attorney Alamdar S. Hamdani.
Mexican national David Alejandro Gomez Flores 28, and Laredo residents Dagoberto Mizzael Flores, 24, and Angel Misael Elias, 22, are expected to make their initial appearances before U.S. Magistrate Judge Christopher dos Santos at 9:30 a.m.
A federal grand jury returned the superseding indictment Oct. 29.
Previously charged and arrested were Guatemalan national Edy Ronaldo Lima Flores, 36, and Mexican nationals Cynthia Gabriela Muniz Carreon, 29, and Martha Angelica Limon Parra, 29.
The charges allege that on July 2, authorities learned of a group of undocumented aliens loading into a Ford-150 near a ranch in Laredo. They allegedly began pursuing the vehicle which suddenly came to a stop before all occupants fled into the brush. Law enforcement was able to apprehend one female, identified as an undocumented individual from Guatemala, according to the charges.
They also located the body of a deceased male in the brush, according to the criminal complaint originally filed in the case. Upon further investigation, authorities were allegedly able to identify him as an undocumented Guatemalan national who was part of the earlier bailout.
The charges further allege they recovered a cell phone in the victim’s possession which showed direct communications with both Lima Flores and Carreon in the hours leading up to his death. The victim had allegedly reported that a rancher had seen them, and that he was hiding the in brush.
Authorities also discovered ledgers and communications in Parra’s cell phone that linked back to the same human smuggling organization involved in the July 2 bailout event, according to the charges. The communications allegedly dated back to April 2024 and referenced other human smuggling events, one of which resulted in serious bodily injury to a separate individual.
All six are charged with conspiracy to smuggle an undocumented alien, placing life in jeopardy, causing serious bodily injury and resulting in death and two substantive counts. They face up to life in federal prison and the possibility of death as well as a possible $250,000 fine, upon conviction.
Homeland Security Investigations (including the Laredo Gang Activity and Trafficking Enforcement Unit), Border Patrol, Laredo Police Department (including the Texas Anti-Gang Unit), Texas Department of Public Safety, Encinal Police Department and Customs and Border Protection Air and Marine Operations conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
This case is also 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 the Human Rights and Special Prosecutions Section, 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 the Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, Drug Enforcement Adminstration 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 270 U.S. convictions, more than 210 significant jail sentences imposed and forfeitures of substantial assets.
Assistant U.S. Attorney and JTFA detailee Jennifer Day is prosecuting this case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Seven Defendants Sentenced to Prison for Their Roles in Nationwide “Felony Lane Gang” Fraud and Identity Theft SchemeRead the Press Release
MOBILE, AL – Seven defendants from Florida were sentenced for their roles in an organized fraud and identity theft scheme spanning multiple states. One of the leaders of the scheme was sentenced to 84 months in federal prison.
According to court documents, Dominique Lamar Campbell, 43, of Miami, Florida, was one of the leaders of a ring of individuals from south Florida who participated in a widespread fraud and identity theft scheme known as “Felony Lane Gang.” Campbell recruited various codefendants to participate in the scheme, providing them with counterfeited and forged checks, false identification documents, fake credit cards, and identity information stolen from the U.S. mail. Campbell’s team of fraudsters would then travel across the country conducting numerous fraudulent transactions at banks and credit unions. The scheme occurred from at least 2017 to 2023 and victimized dozens of people in more than 20 states.
Several fraudulent transactions occurred in the Southern District of Alabama. For example, on February 28, 2023, two of Campbell’s codefendants orchestrated a series of fraudulent check transactions at bank branches in the Mobile area, netting thousands of dollars in fraudulent proceeds. The next day, police in Kentucky arrested the codefendants during a traffic stop. Police seized bulk cash, fake identification documents, several forged checks, and stolen identity information during the traffic stop. Campbell’s fingerprints were on various items of evidence in the codefendants’ car.
Later, in June 2023, police again arrested Campbell’s codefendants after they had committed several additional fraudulent transactions at bank branches in Mobile and Mississippi. Police seized cell phones from the codefendants containing extensive text messages with Campbell coordinating the fraud scheme. In those messages, Campbell referenced fraudulent checks and identification documents that he sent via FedEx from Miami to his codefendants at various locations throughout the United States to be used in furtherance of the scheme.
In addition to the 84-month prison term, United States District Judge Kristi K. DuBose ordered Campbell to serve a five-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment, and will be subject to credit restrictions. The court did not impose a fine, but Judge DuBose ordered Campbell to pay $87,308.79 in victim restitution and $200 in special assessments, and forfeited $14,336.64 to the United States.
For their roles in the scheme, the court sentenced Campbell’s codefendants as follows: Terrill Quinte Alexander (101 months’ imprisonment); Francisco Emile Gabriel Barranco (61 months’ imprisonment); Allen Russell Brookins (94 months’ imprisonment); Francisco Yuediel Estevez (56 months’ imprisonment); Crystal Marie Mitchell (63 months’ imprisonment); and Kimberly Diane Sutter (30 months’ imprisonment). The court also ordered each of those defendants to serve supervised release terms and pay restitution and special assessments.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The United States Postal Inspection Service investigated the case. Several law enforcement agencies across the country substantially assisted the investigation, including the Alabama State Bureau of Investigation; the Andalusia Police Department (Alabama); the Mobile Police Department (Alabama); the Bradenton Police Department (Florida); the Plantation Police Department (Florida); the Sarasota County Sheriff’s Office (Florida); the Johnson County Sheriff’s Office (Kansas); the Lawrence Police Department (Kansas); the Kentucky State Police; the Biloxi Police Department (Mississippi); the Forrest County Sheriff’s Office (Mississippi); the Hattiesburg Police Department (Mississippi); the Jones County Sheriff’s Office (Mississippi); the Pearl Police Department (Mississippi); the Blue Ash Police Department (Ohio); the Montgomery Police Department (Ohio); the Apple Valley Police Department (Minnesota); and the Roanoke County Police Department (Virginia).
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Seven Defendants Charged in Health Care Fraud and Kickback Scheme Involving “Foot Baths”Read the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that the following individuals were indicted by a federal grand jury on charges of conspiracy to commit health care fraud and multiple counts of health care fraud:
- Frank Suess (a.k.a., Franz P. Suess), age 78, of Wellington, Florida;
- Luis Salgado, age 50, of Naperville, Illinois and Davenport, Florida;
- Melissa Driscoll, age 43, of East Stroudsburg, Pennsylvania;
- Victor Velazco, age 35, of Loxahatchee, Florida;
- Warren Pizik, age 68, of Davie, Florida;
- Dave Singh, age 37, of Pembroke Pines, Florida; and
- Diana Castro, age 53, of Brooklyn, New York.
Suess, Salgado, Driscoll, Velazco, and Pizik were also charged with conspiracy to violate the federal anti-kickback statute and with a number of individual violations of the same law. Finally, Suess, Driscoll, and Velazco were charged with conspiracy to obstruct a criminal investigation into health care offenses and falsification of records and information with the intent to obstruct a federal grand jury investigation, and with individual violations of the same laws.
According to United States Attorney Gerard M. Karam, the indictment alleges that between 2019 and 2020, all seven defendants conspired to commit health care fraud through an arrangement designed to bill individuals’ health insurances for medically unnecessary prescription drug combinations known as “foot baths.” Foot baths were purported to be an antibiotic and antifungal “foot soak” treatment that patients were supposed to mix together and dissolve in a warm water solution, using a plastic foot tub that was sometimes shipped to them. The combinations of prescription drugs contained in foot baths varied over time, but they generally included high-cost drugs that were not intended for or approved for use in a foot bath, including vancomycin capsules, tobramycin vials, calcipotriene cream, moxifloxacin eye drops, clindamycin phosphate solution, and ketoconazole cream. Vancomycin capsules, for example, were supposed to be prescribed to patients to treat particular conditions, such as MRSA and a type of diarrhea. Instead, foot bath recipients were told to break up the capsules on their own and dissolve the contents in the solution, which was not an approved method of taking the medication. Tobramycin vials were supposed to be used by licensed and trained healthcare professionals to administer injections to patients to treat certain bacterial infections. With foot baths, patients were instead inspected to empty the tobramycin vials into the solution, which was again not an approved method. The cost associated with such drugs was very high. For instance, the insurance for P.B., an individual who was allegedly prescribed foot baths without her consent, was billed $43,209.99 for a one-month supply of tobramycin vials and $12,476.54 for a one-month supply of vancomycin capsules. P.B.’s insurance ultimately paid approximately $4,271.04 for four total insurance claims.
Many of these allegedly fraudulent foot bath orders were routed through Sterling Pharmacy, a pharmacy located in Jermyn, Pennsylvania, in the Middle District of Pennsylvania. Melissa Driscoll purchased Sterling Pharmacy in March 2018 using funds that she obtained from Frank Suess, who, along with Victor Velazco, operated a group of companies located at the same address in Wellington, Florida. Sterling Pharmacy was one of a group of pharmacies used to carry out this alleged scheme. In addition, the defendants used unnamed pharmacies located in Texas and Florida as well.
Suess and Velazco allegedly used other people to become the owners of these pharmacies on paper in order to conceal their involvement in the business affairs of those pharmacies. Suess and Velazco then used those pharmacies to generate profits by steering high-cost prescription drug mail orders to those pharmacies. When the pharmacies were then investigated for those prescribing practices, Frank Suess, Victor Velazco, and Melissa Driscoll then used various tactics to conceal Suess and Velazco’s use of those the pharmacies to carry out fraud.
The indictment alleges that Melissa Driscoll made various misrepresentations over time to conceal how Sterling Pharmacy was doing business, including concealing the pharmacy’s mail order business from suppliers and falsely claiming that the pharmacy had a practice of verifying patient-prescriber relationships before filling prescription orders. The indictment also alleges that Suess, Velazco, and Driscoll engaged in a pattern of conduct to obstruct the government’s investigation into Sterling Pharmacy and to create false business records in order to hide the fraudulent scheme from the government. Specifically, Sterling Pharmacy, through Melissa Driscoll, withheld records that the pharmacy was ordered to provide in response to a federal grand jury subpoena. In addition, Suess, Velazco, and Driscoll created false, backdated documents that were produced to the government via an unnamed attorney who represented them during the relevant time period. These documents made it appear that Sterling Pharmacy had a legitimate agreement with a company known as MedX Marketing Solutions, which was, on paper, supposed to be compensated on an hourly basis for marketing Sterling Pharmacy’s offerings.
In reality, Sterling Pharmacy allegedly paid MedX kickbacks for the referral of signed foot-bath order forms for individual beneficiaries. These foot-bath orders were generated using templated forms that were provided to patient recruiters by Luis Salgado, the CEO of MedX. These patient recruiters included a diabetic shoe salesman working at a shopping mall in the area of Scranton, PA, as well as a group of individuals who set up “health fairs” in New York. As a result of health fairs and associated patient recruitment activity in New York, Sterling Pharmacy received hundreds of foot-bath prescription order forms approved by Diana Castro, a podiatrist based in Brooklyn. Castro attended multiple health fairs, where she authorized foot bath orders despite their lack of medical necessity. She was paid for these appearances in cash.
A large number of foot-bath orders were processed using the medical identification number of a physician with a name similar to that of Diana Castro. The use of this other medical provider’s National Provider Identifier (“NPI”), without the provider’s knowledge, was accomplished using a signature stamp containing Diana Castro’s name and the other physician’s NPI. This fraudulent activity led to hundreds of foot bath claims being billed and paid out under that provider’s NPI between about December 2019 and the middle of 2020. One health insurance fund paid approximately $685,000 just for these claims.
Warren Pizik and Dave Singh allegedly assisted Luis Salgado in the marketing of Sterling Pharmacy’s mail order business and in setting up out-of-state pharmacy licenses. Pizik and Singh also communicated with Salgado, Suess, and Velazco throughout the relevant time period via email and phone. This group regularly exchanged emails with one another, including ones in which patients complained about not wanting foot baths, not knowing Diana Castro or having ever seen a foot doctor, having their insurance “charged a lot of money,” being “freaked out” because there were no instructions regarding what to do with the medications, and being “scared of the box” of foot baths because it contained “such a huge amount of meds.” At times, Driscoll also communicated by email, writing to Velazco to report, “These insurance companies hate foot baths” after receiving “another” payment reversal from an insurance company.
It is alleged that Melissa Driscoll, through Sterling Pharmacy, paid MedX $312,192.28 in kickbacks and paid Warren Pizik another $22,000 in kickbacks for MedX referrals. Melissa Driscoll, through Sterling Pharmacy, allegedly paid Frank Suess and Victor Velazco’s companies more than $1 million in additional kickback payments.
The indictment contains forfeiture allegations seeking approximately $1.3 million as a money judgment from the defendants. The United States is also seeking forfeiture of the property used by Frank Suess and Victor Velazco to carry out the scheme, which was an office building in Wellington, Florida where their various businesses were located. Finally, the United States is seeking forfeiture of a residential property located in Naperville, Illinois that Luis Salgado purchased using proceeds of the scheme.
The case was investigated by the U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.
The maximum penalty under federal law for conspiracy to commit health care fraud and for individual violations of the health care fraud statute and the Anti-Kickback Statute is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine, for each offense. The maximum penalty under federal law for conspiracy to violate the Anti-Kickback Statute, for conspiracy to obstruct a health care investigation and falsify records in an investigation, and for obstructing a health care investigation is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine, again for each offense. The maximum penalty under federal law falsifying records in an investigation is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Scotia Man Pleads Guilty to Groping a Nursing Student at the Albany VA Medical CenterRead the Press Release
ALBANY, NEW YORK – Danning Lake, age 86, of Scotia, New York, pled guilty today to abusive sexual contact.
United States Attorney Carla B. Freedman; Thomas Gibbons, Chief of the Department of Veterans Affairs Police at Stratton VA Medical Center; and Special Agent in Charge Christopher F. Algieri of the Northeast Field Office for the United States Department of Veterans Affairs Office of Inspector General, made the announcement.
Lake admitted that on February 29, 2024, he grabbed the breast of a nursing student as she was giving him medical care. Lake then asked the student nurse, “did you like that?” and told her “they feel nice.” When the VA Police Officer spoke to Lake, he said that he would do the same thing again if he had the opportunity. Lake’s mental status was not altered by medication, age, or illness. He groped the nursing student for his own sexual gratification and without her consent.
When he is sentenced on March 20, 2025, Lake faces up to 2 years in prison, a fine of up to $250,000, and a term of supervised release of up to 1 year. 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. As a result of this conviction, Lake will also have to register as a sex offender.
The Department of Veterans Affairs Police Department and Office of Inspector General investigated the case, which Assistant U.S. Attorneys Jonathan S. Reiner and Tamara B. Thomson are prosecuting.
St. Croix Women Pleads Guilty to $372,000.00 Embezzlement SchemeRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Nicole Morales, 48, of Altadena, CA, and native of St. Croix, pleaded guilty before Magistrate Judge Emile A. Henderson III, to three counts of Wire Fraud. The sentencing in this matter is scheduled for March 19, 2025, where Morales faces a maximum sentence of up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
According to court records, on November 10, 2015, Morales began working as the Office Manager at Nichols, Newman, Logan, Grey, and Lockwood, P.C. in St. Croix, where her duties included processing payroll through Banco Popular. Beginning on December 31, 2015, Morales began fraudulently inflating her payroll using QuickBooks accounting software. Thereafter, Morales wired unauthorized funds from her employer’s Banco Popular account into three separate personal bank accounts owned by Morales. After transferring the funds, Morales would change the inflated amounts in QuickBooks to reflect her correct income and payroll figures. Morales would later generate reports in QuickBooks with the correct payroll figures which were approved by her employer. Morales continued this conduct until January 11, 2019. In total, Morales embezzled $372,496.34 from her employer.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Daniel H. Huston.
St. Croix Man Pleads Guilty After Threatening to Murder Federal AgentsRead the Press Release
St. Croix, VI - United States Attorney Delia L. Smith announced today that a Jamoi Weekes, 30, of St. Croix, pleaded guilty before Magistrate Judge Emile A. Henderson, III, to Influencing Federal Officials by Threats. Weekes’ sentencing is scheduled for March 19, 2025, where he faces a maximum sentence of 10 years of imprisonment. A federal judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
According to court documents, on August 31, 2024, Weekes attempted to board a flight at the Henry E. Rohlsen Airport in St. Croix. Weekes was referred to Customs and Border Protection for a secondary inspection before boarding his flight. Weekes then became extremely irate and combative and began threatening to murder and retaliate against the officers if he ever saw them again. Weekes was then determined to be unsuitable to board his flight and was ordered to leave the airport. While exiting the airport, Weekes encountered two Virgin Islands Port Authority officers who he also threatened to murder. Rather than leave the airport, Weekes then followed two Customs and Border Protection officers from the airport terminal to the parking lot and again threatened to murder the officers.
The case was investigated by the Federal Bureau of Investigation, Customs and Border Protection and Virgin Islands Port Authority and is being prosecuted by Assistant United States Attorney Daniel Huston.
Rutland Man Sentenced to 190 Months in Firearm and Drug Trafficking CaseRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on Friday, November 15, 2024, Lawrence Jackson, (a/k/a “Boo-Bee”), 53, of Rutland, Vermont, was sentenced by Chief United States District Judge Christina Reiss to a term of 190 months’ imprisonment to be followed by a 5-year term of supervised release. Jackson previously was convicted by a jury on April 17, 2024 of seven drug trafficking and firearm offenses after a seven-day trial.
According to court records and evidence admitted at trial, Jackson was the leader and organizer of a drug trafficking operation in the Rutland area that distributed over 3.5 kilograms of cocaine between December 2020 and November 2021. Jackson distributed large quantities of powder cocaine and cocaine base from four Rutland-area hotels and motels, as well as private residences. Jackson personally employed violence and intimidation to further his drug trafficking activities and directed others to do so. This violence included pistol-whippings and assaults as retribution for drug debts and personal affronts. Jackson armed himself and his coconspirators with firearms, including his favorite weapon, a Taurus “The Judge” revolver. Evidence admitted at sentencing established that, in addition to his drug and firearm offenses, Jackson sexually assaulted women and engaged in sex trafficking in and around Rutland.
United States Attorney Nikolas P. Kerest commended the collaborative investigative work of Homeland Security Investigations, the Rutland City Police Department, and the Vermont Drug Task Force. U.S. Attorney Kerest also thanked the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Vermont State Police for their investigative assistance.
The case was prosecuted by Assistant U.S. Attorneys Jonathan A. Ophardt and Nicole P. Cate. Jackson represented himself at trial and sentencing, and Robert Behrens, Esq. served as standby counsel.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Postal Employee Admits Stealing Rebates from MailRead the Press Release
ST. LOUIS – A former U.S. Postal Service mail carrier on Monday admitted stealing rebates from mail intended for residents of north-central Missouri.
Dawn Dowling, 59, pleaded guilty in U.S. District Court in St. Louis to one felony count of embezzlement of mail by a Postal Service employee. Dowling admitted that from July 2023 to August 2023, she took rebates issued by the home improvement store Menards from the mail. Dowling was a rural carrier associate assigned to routes in central Missouri including the areas of Moberly, Huntsville, Cairo, Higbee, Jacksonville and Excello.
In all, Dowling took a total of at least $1,131 in rebates from at least 20 customers. She then spent them or caused them to be spent in Menards stores in Missouri and Illinois.
Dowling is scheduled to be sentenced on March 4, 2025. The charge is punishable by up to five years in prison, a $250,000 fine, or both.
The U.S. Postal Service – Office of Inspector General investigated the case. Assistant U.S. Attorney Justin Ladendorf is prosecuting the case.
Phobos Ransomware Administrator Extradited from South Korea to Face Cybercrime ChargesRead the Press Release
The Justice Department unsealed criminal charges today against Evgenii Ptitsyn, 42, a Russian national, for allegedly administering the sale, distribution, and operation of Phobos ransomware. Ptitsyn made his initial appearance in the U.S. District Court for the District of Maryland on Nov. 4 after being extradited from South Korea. Phobos ransomware, through its affiliates, victimized more than 1,000 public and private entities in the United States and around the world, and extorted ransom payments worth more than $16 million dollars.
“The Justice Department is committed to leveraging the full range of our international partnerships to combat the threats posed by ransomware like Phobos,” said Deputy Attorney General Lisa Monaco. “Evgenii Ptitsyn allegedly extorted millions of dollars of ransom payments from thousands of victims and now faces justice in the United States thanks to the hard work and ingenuity of law enforcement agencies around the world — from the Republic of Korea to Japan to Europe and finally to Baltimore, Maryland. Together with our partners across the globe, we will continue to hold cybercriminals accountable and protect innocent victims.”
“The indictment alleges that Ptitsyn and his co-conspirators ran the Phobos ransomware group, whose members committed ransomware attacks against more than 1,000 public and private victims throughout the United States and the rest of the world,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Ptitsyn and his co-conspirators hacked not only large corporations but also schools, hospitals, nonprofits, and a federally recognized tribe, and they extorted more than $16 million in ransom payments. Ptitsyn’s indictment, arrest, and extradition reflect the Criminal Division’s commitment to leading the fight against the international scourge of ransomware. We are especially grateful to our domestic and foreign law enforcement partners, like South Korea, whose collaboration is essential to disrupting and deterring the most significant cybercriminal threats facing the United States.”
“It’s only a matter of time, cybercriminals will be caught and brought to justice,” said U.S. Attorney Erek L. Barron for the District of Maryland. “According to the indictment, Ptitsyn facilitated the worldwide use of a dangerous ransomware strain to target corporations and various organizations, including government agencies, healthcare facilities, educational institutions, and critical infrastructure. The U.S. Attorney’s Office for the District of Maryland is committed to bringing cybercriminals to justice and working with the private sector and the academic community to prevent and disrupt their activities.”
“The FBI is working tirelessly to ensure that ransomware actors, both developers and affiliates, face the consequences of their actions,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “We know it takes strong partnerships to disrupt cybercriminal networks, and the FBI must thank our partners for the important roles they play in carrying out this mission. The extradition announced today would not have been possible without their assistance.”
As alleged in the indictment, beginning in at least November 2020, Ptitsyn and others conspired to engage in an international computer hacking and extortion scheme that victimized public and private entities through the deployment of Phobos ransomware.
As part of the scheme, Ptitsyn and his co-conspirators allegedly developed and offered access to Phobos ransomware to other criminals or “affiliates” for the purposes of encrypting victims’ data and extorting ransom payments from victims. The administrators operated a darknet website to coordinate the sale and distribution of Phobos ransomware to co-conspirators and used online monikers to advertise their services on criminal forums and messaging platforms. At relevant times, Ptitsyn allegedly used the monikers “derxan” and “zimmermanx.”
Affiliates would then allegedly hack into the victims’ computer networks, often using stolen or otherwise unauthorized credentials; copy and steal files and programs on the victims’ networks; and encrypt the original versions of the stolen data on the networks by installing and executing Phobos ransomware. Affiliates then extorted the victims for ransom payments in exchange for the decryption keys to regain access to encrypted data by leaving ransom notes on compromised victims’ computers and by calling and emailing victims to initiate the ransom payment negotiations. Affiliates also threatened to expose victims’ stolen files to the public or to the victims’ clients, customers, or constituents if the ransoms were not paid.
After a successful Phobos ransomware attack, criminal affiliates paid fees to Phobos administrators like Ptitsyn for a decryption key to regain access to the encrypted files. Each deployment of Phobos ransomware was assigned a unique alphanumeric string in order to match it to the corresponding decryption key, and each affiliate was directed to pay the decryption key fee to a cryptocurrency wallet unique to that affiliate. From December 2021 to April 2024, the decryption key fees were then transferred from the unique affiliate cryptocurrency wallet to a wallet controlled by Ptitsyn.
Ptitsyn is charged in a 13-count indictment with wire fraud conspiracy, wire fraud, conspiracy to commit computer fraud and abuse, four counts of causing intentional damage to protected computers, and four counts of extortion in relation to hacking. If convicted, Ptitsyn faces a maximum penalty of 20 years in prison for each wire fraud count; 10 years in prison for each computer hacking count; and five years in prison for conspiracy to commit computer fraud and abuse. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Baltimore Field Office is investigating the case. The Justice Department’s Office of International Affairs worked with the International Criminal Affairs Division of the Korean Ministry of Justice to secure the arrest and extradition of Ptitsyn. The Justice Department extends its thanks to international judicial and law enforcement partners in South Korea, the United Kingdom, Japan, Spain, Belgium, Poland, Czech Republic, France, and Romania, as well as Europol and the U.S. Department of Defense Cyber Crime Center, for their cooperation and coordination with the Phobos ransomware investigation. The Justice Department’s National Security Division also provided valuable assistance.
Senior Counsel Aarash A. Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Aaron S.J. Zelinsky and Thomas M. Sullivan for the District of Maryland are prosecuting the case. CCIPS Trial Attorney Riane Harper and former Assistant U.S. Attorney Jeffrey J. Izant for the District of Maryland provided substantial assistance.
Additional details on protecting networks against Phobos ransomware are available at StopRansomware.gov, including Cybersecurity and Infrastructure Security Agency Advisory AA24-060A.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Phobos Ransomware Administrator Extradited from South Korea to Face Cybercrime ChargesRead the Press Release
Baltimore, Maryland – The Justice Department unsealed criminal charges today against Evgenii Ptitsyn, 42, a Russian national, for allegedly administering the sale, distribution, and operation of Phobos ransomware. Ptitsyn made his initial appearance in the U.S. District Court for the District of Maryland on November 4 after being extradited from South Korea. Phobos ransomware, through its affiliates, victimized more than 1,000 public and private entities in the United States and around the world, and extorted ransom payments worth more than $16 million dollars.
“It’s only a matter of time, cybercriminals will be caught and brought to justice,” said U.S. Attorney Erek L. Barron for the District of Maryland. “According to the indictment, Ptitsyn facilitated the worldwide use of a dangerous ransomware strain to target corporations and various organizations, including government agencies, healthcare facilities, educational institutions, and critical infrastructure. The Maryland U.S. Attorney’s Office is committed to bringing cybercriminals to justice and working with the private sector and the academic community to prevent and disrupt their activities.”
“The Justice Department is committed to leveraging the full range of our international partnerships to combat the threats posed by ransomware like Phobos,” said Deputy Attorney General Lisa Monaco. “Evgenii Ptitsyn allegedly extorted millions of dollars of ransom payments from thousands of victims and now faces justice in the United States thanks to the hard work and ingenuity of law enforcement agencies around the world — from the Republic of Korea to Japan to Europe and finally to Baltimore, Maryland. Together with our partners across the globe, we will continue to hold cybercriminals accountable and protect innocent victims.”
“The indictment alleges that Ptitsyn and his co-conspirators ran the Phobos ransomware group, whose members committed ransomware attacks against more than 1,000 public and private victims throughout the United States and the rest of the world,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Ptitsyn and his co-conspirators hacked not only large corporations but also schools, hospitals, nonprofits, and a federally recognized tribe, and they extorted more than $16 million in ransom payments. Ptitsyn’s indictment, arrest, and extradition reflect the Criminal Division’s commitment to leading the fight against the international scourge of ransomware. We are especially grateful to our domestic and foreign law enforcement partners, like South Korea, whose collaboration is essential to disrupting and deterring the most significant cybercriminal threats facing the United States.”
“The FBI is working tirelessly to ensure that ransomware actors, both developers and affiliates, face the consequences of their actions,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “We know it takes strong partnerships to disrupt cybercriminal networks, and the FBI must thank our partners for the important roles they play in carrying out this mission. The extradition announced today would not have been possible without their assistance.”
“Ransomware not only disrupts lives and businesses, but it also threatens the health, safety and security of innocent Americans and others worldwide,” said FBI Baltimore Special Agent in Charge William J. DelBagno. “I am grateful for the dedication and thorough work of our FBI Baltimore cybercrime squad who worked diligently to bring Ptitysn to justice. Our valuable local and international partnerships played a pivotal role in successfully arresting and extraditing him. We will continue to prioritize the partnerships necessary to stop ransomware actors and hold them accountable for their crimes.”
As alleged in the indictment, beginning in at least November 2020, Ptitsyn and others conspired to engage in an international computer hacking and extortion scheme that victimized public and private entities through the deployment of Phobos ransomware.
As part of the scheme, Ptitsyn and his co-conspirators allegedly developed and offered access to Phobos ransomware to other criminals or “affiliates” for the purposes of encrypting victims’ data and extorting ransom payments from victims. The administrators operated a darknet website to coordinate the sale and distribution of Phobos ransomware to co-conspirators and used online monikers to advertise their services on criminal forums and messaging platforms. At relevant times, Ptitsyn allegedly used the monikers “derxan” and “zimmermanx.”
Affiliates would then allegedly hack into the victims’ computer networks, often using stolen or otherwise unauthorized credentials; copy and steal files and programs on the victims’ networks; and encrypt the original versions of the stolen data on the networks by installing and executing Phobos ransomware. Affiliates then extorted the victims for ransom payments in exchange for the decryption keys to regain access to encrypted data by leaving ransom notes on compromised victims’ computers and by calling and emailing victims to initiate the ransom payment negotiations. Affiliates also threatened to expose victims’ stolen files to the public or to the victims’ clients, customers, or constituents if the ransoms were not paid.
After a successful Phobos ransomware attack, criminal affiliates paid fees to Phobos administrators like Ptitsyn for a decryption key to regain access to the encrypted files. Each deployment of Phobos ransomware was assigned a unique alphanumeric string in order to match it to the corresponding decryption key, and each affiliate was directed to pay the decryption key fee to a cryptocurrency wallet unique to that affiliate. From December 2021 to April 2024, the decryption key fees were then transferred from the unique affiliate cryptocurrency wallet to a wallet controlled by Ptitsyn.
Ptitsyn is charged in a 13-count indictment with wire fraud conspiracy, wire fraud, conspiracy to commit computer fraud and abuse, four counts of causing intentional damage to protected computers, and four counts of extortion in relation to hacking. If convicted, Ptitsyn faces a maximum penalty of 20 years in prison for each wire fraud count; 10 years in prison for each computer hacking count; and five years in prison for conspiracy to commit computer fraud and abuse. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Baltimore Field Office is investigating the case. The Justice Department’s Office of International Affairs worked with the International Criminal Affairs Division of the Korean Ministry of Justice to secure the arrest and extradition of Ptitsyn. The Justice Department extends its thanks to law enforcement partners in South Korea, the United Kingdom, Japan, Spain, Belgium, Poland, Czech Republic, France, and Romania, as well as Europol and the U.S. Department of Defense Cyber Crime Center, for their cooperation and coordination with the Phobos ransomware investigation. The Justice Department’s National Security Division also provided valuable assistance.
Senior Counsel Aarash A. Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Aaron S.J. Zelinsky and Thomas M. Sullivan for the District of Maryland are prosecuting the case. CCIPS Trial Attorney Riane Harper and former Assistant U.S. Attorney Jeffrey J. Izant for the District of Maryland provided substantial assistance.
Additional details on protecting networks against Phobos ransomware are available at StopRansomware.gov, including Cybersecurity and Infrastructure Security Agency Advisory AA24-060A.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Pakistani National Muhammad Asif Hafeez Pleads Guilty to Drug-Trafficking ChargesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that MUHAMMAD ASIF HAFEEZ, a/k/a “Sultan,” pled guilty in Manhattan federal court to conspiring to import heroin, methamphetamine, and hashish into the United States. HAFEEZ was provisionally arrested in London, United Kingdom, on August 25, 2017, and extradited to the U.S. on May 12, 2023. The defendant pled guilty today before U.S. Magistrate Judge Stewart D. Aaron and will be sentenced by U.S. District Judge Victor Marrero.
U.S. Attorney Damian Williams said: “For more than two decades, Muhammad Asif Hafeez played a leading role in a sophisticated international drug trafficking network that was responsible for manufacturing and distributing ton quantities of dangerous narcotics to the U.S. and throughout the world. Today’s plea ensures that one of the world’s most prolific drug traffickers will be held accountable for his crimes. I thank our partners at the DEA’s Special Operations Division for their incredible work and dedication to this case, which has taken years to investigate and prosecute, and thank the career prosecutors of this Office who remained dogged in their pursuit of the defendant and his co-conspirators.”
According to the allegations contained in indictments charging HAFEEZ and his co-defendants and other public statements and filings:
From at least in or about 2013 through the date of his provisional arrest in 2017, HAFEEZ conspired with his co-defendants, Baktash Akasha Abdalla, Ibrahim Akasha Abdalla, Gulam Hussein, and Vijaygiri Anandgiri Goswami to import heroin into the U.S. Baktash Akasha Abdalla was the leader of an organized crime family in Kenya (the “Akasha Organization”), which was responsible for the production and distribution of ton quantities of narcotics within Kenya and throughout Africa and maintained a network used to distribute narcotics for importation into the U.S. For years, HAFEEZ served as one of the primary suppliers of narcotics to the Akasha Organization, including to Bakash Akasha Abdalla’s father, who helmed the Akasha Organization before he was murdered in the Netherlands in 2000. During this investigation, in October 2014, Ibrahim Akasha Abdalla delivered a one-kilogram heroin sample, on behalf of HAFEEZ and the Akasha Organization, to confidential sources acting at the direction of the Drug Enforcement Administration (“DEA”) in Nairobi, and, in early November 2014, Ibrahim Akasha Abdalla delivered 98 additional kilograms of heroin to the confidential sources. These samples were just a small portion of the narcotics that HAFEEZ distributed with the Akasha Organization; indeed, during this investigation, Baktash Akasha Abdalla boasted in a recorded meeting that HAFEEZ had distributed “tons” of narcotics with his father and the Akasha Organization. Baktash Akasha, Ibrahim Akasha, and Goswami were provisionally arrested by Kenyan authorities in November 2014 and extradited to the U.S. in 2017.
Further, from at least in or about 1993 through the date of his provisional arrest in 2017, HAFEEZ also conspired to import hashish and methamphetamine into the U.S. In connection with this conspiracy, HAFEEZ and co-conspirators transported multi-ton shipments of hashish to Europe and North America. Between 2013 and 2016, HAFEEZ and certain co-conspirators also sought to establish a methamphetamine-production facility in Mozambique, which was intended to produce methamphetamine for sale in the U.S., Europe, and Australia. HAFEEZ and his co-conspirators abandoned their plan after law enforcement authorities seized approximately 18 tons of ephedrine from a factory in Solapur, India, including several tons of ephedrine that HAFEEZ and his co-conspirators planned to use as a precursor chemical to manufacture methamphetamine in Mozambique.
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HAFEEZ, 66, a Pakistani national residing in, among other places, London, pled guilty to conspiring to manufacture and distribute heroin for importation into the U.S. and conspiring to manufacture and distribute methamphetamine and hashish for importation into the U.S. Each of these offenses carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison.
The maximum and minimum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Baktash Akasha Abdallah, 47, and Ibrahim Akasha Abdallah, 36, previously pled guilty to conspiring to import and importing heroin and methamphetamine into the U.S., conspiring to use and carry machineguns and destructive devices in connection with their drug-trafficking crimes, and obstructing justice by paying bribes to Kenyan officials in an effort to avoid being extradited to the U.S. Baktash Akasha Abdallah was sentenced on August 16, 2018, to 25 years in prison, and Ibrahim Akasha Abdallah was sentenced on January 10, 2020, to 23 years in prison.
Mr. Williams praised the outstanding efforts of the Special Operations Division of the DEA, Bilateral Investigations Unit. Mr. Williams also thanked the United Kingdom authorities, the DEA Dubai Country Office, the DEA Nairobi Country Office, the DEA Pretoria Country Office, the DEA New Delhi Country Office, and the U.S. Department of Justice’s Office of International Affairs and London Attaché.
This prosecution is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Jane Chong and Michael D. Lockard are in charge of the prosecution.
Orlando Man Sentenced to More Than Six Years for Fentanyl and Firearm OffensesRead the Press Release
Orlando, Florida – Senior U.S. District Judge Roy B. Dalton, Jr. has sentenced Sebastian Gabriel Lugo-Lugo (20, Orlando) to six years and one day in federal prison for distributing fentanyl and possessing a firearm in furtherance of drug trafficking. Lugo-Lugo pled guilty on July 23, 2024.
According to court documents, an undercover agent purchased marijuana and counterfeit prescription pills containing fentanyl from Lugo-Lugo multiple times throughout 2023 and 2024. Some of the counterfeit pills were also found to contain several other additives including p-Flurofentanyl (a fentanyl analogue) and xylazine (a veterinary sedative). During many of those deals, Lugo-Lugo possessed a firearm. Additionally, during one deal, Lugo-Lugo sold the undercover agent a firearm in addition to the fake fentanyl pills.
This case was investigated by the Drug Enforcement Administration and the Seminole County Sherriff’s Office City County Investigative Bureau, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Megan Testerman.
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.
Ohio Woman Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Emariel Kanay Tyler, 20, of Akron, Ohio, pleaded guilty today to use of a communication facility to facilitate a drug trafficking offense.
According to court documents and statements made in court, on March 29, 2023, Tyler traveled from a Charleston apartment to a residence in Wyoming County with quantities of methamphetamine and fentanyl. Tyler admitted that she used her cell phone to arrange the sale of the fentanyl to someone at the residence, discussing the meeting location and the prices to be charged for the fentanyl. Tyler exchanged the fentanyl for payment at the meeting location, but further admitted that she returned to Charleston with both the money and the fentanyl.
Tyler is scheduled to be sentenced on February 26, 2025, and faces a maximum penalty of four years in prison, up to one year of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Charleston Police Department.
Senior United States District Judge John T. Copenhaver Jr. presided over the hearing. Assistant United States Attorney Lesley C. Shamblin 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-186.
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New Jersey Woman Sentenced to 30 Months of Imprisonment for Drug ConspiracyRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on November 18, 2024, Hassanah Delia, 38, of Burlington, New Jersey, was sentenced by Chief United States District Judge Christina Reiss to a term of 30 months’ imprisonment to be followed by a six-year term of supervised release. Delia previously pleaded guilty to conspiring to distribute cocaine base and fentanyl in the District of Vermont in July and August 2023.
According to court records, in late July and early August 2023, Hassanah Delia and her co-conspirators occupied the Morrisville, Vermont residence of an individual who suffers from a degenerative illness. Delia occupied the individual's home for approximately a week and a half. Delia and her co-conspirators worked together to sell cocaine base and fentanyl from the house. Inside of the residence, Delia and her co-conspirators also cooked cocaine into cocaine base, and packaged drugs including fentanyl for street-level distribution. Drug customers came to the residence and Delia and others distributed drugs to those customers in exchange for money.
United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of the Morristown Police Department, the Vermont State Police Drug Task Force, and the Federal Bureau of Investigation.
The case was prosecuted by Assistant U.S. Attorney Zachary Stendig. Delia was represented by Mark Kaplan, Esq.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
New Jersey Postmaster Indicted on Civil Rights Charge for Sexual Assault of Postal Service EmployeeRead the Press Release
A two-count indictment was unsealed today charging a U.S. Postal Service Postmaster with a federal civil rights violation for sexually assaulting a victim while acting under color of law and assaulting the victim, a federal employee, during the course of her official duties.
According to the indictment, on Nov. 26, 2022, in Teaneck, New Jersey, Gabriel Ekram Pagabe Ali, 47, sexually assaulted the victim, an employee of the U.S. Postal Service while on duty as a Postmaster at the U.S. Post Office in Teaneck.
Count One of the indictment charges Ali with depriving the victim of her right to bodily integrity when he sexually assaulted the victim. Count Two of the indictment charges Ali with forcibly assaulting the victim while she was engaged in official duties.
If convicted, Ali faces a maximum penalty of three years in prison for the civil rights count and eight years in prison for the assault count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Philip R. Sellinger for the District of New Jersey and Special Agent in Charge Matthew Modafferi of the U.S. Postal Service Office of Inspector General made the announcement.
The U.S. Postal Service Office of Inspector General is investigating the case.
Trial Attorneys Laura Gilson and Chloe Neely of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorneys Joseph Gribko and Javon Henry for the District of New Jersey are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New Jersey Postmaster Indicted for Sexual AssaultRead the Press Release
NEWARK, N.J. – U.S. Postal Service postmaster was arrested today on a federal civil rights violation for sexually assaulting a victim while acting under color of law and assaulting the victim, a federal employee, during the course of her official duties, U.S. Attorney Philip R. Sellinger and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division announced.
Gabriel Ekram Pagabe Ali, 47, is charged by indictment with sexually assaulting the victim, an employee of the U.S. Postal Service while on duty as a postmaster at the U.S. Post Office in Teaneck.
According to the indictment:
On Nov. 26, 2022, in Teaneck, New Jersey, Ali deprived the victim of her right to bodily integrity when he sexually assaulted her. Count Two of the indictment charges Ali with forcibly assaulting the victim while she was engaged in official duties.
If convicted, Ali faces a maximum penalty of three years in prison for the civil rights count and eight years in prison for the assault count.
The U.S. Postal Service Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, is investigating the case.
Assistant U.S. Attorneys Joseph Gribko and Javon Henry for the District of New Jersey and Trial Attorneys Laura Gilson and Chloe Neely of the Civil Rights Division’s Criminal Section are prosecuting the case.
The charges and allegations contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty in a court of law.
ali.indictment.pdf
Murfreesboro Man Sentenced to 32 Years for Multiple Armed Robberies in Middle TennesseeRead the Press Release
NASHVILLE – Frederick Eugene Carney, 34, of Murfreesboro, Tennessee, was sentenced on Friday to 32 years in federal prison for robbery, bank robbery, illegally possessing ammunition, and brandishing or discharging a firearm in furtherance of a crime of violence, announced Acting United States Attorney Thomas J. Jaworski for the Middle District of Tennessee.
The convictions in this case relate to the armed robberies of two Cash Express businesses in Ardmore, Tenn., and Greenbrier, Tenn., as well as armed robberies of the Regions Bank in Smyrna, Tenn., and the First Horizon Bank on Whites Creek Pike in Nashville. During the armed robbery at the First Horizons Bank, Carney fired one round that struck a door. This crime spree occurred between March 24 and May 2, 2022.
William John Ewing, III, 27, of Nashville, was found guilty of the bank robbery at the Regions Bank, as well as brandishing a firearm during a crime of violence. Ewing will be sentenced on January 23, 2025, and he could be sentenced from 7 years to life in federal prison. During the armed robbery at the Regions Bank in Smyrna, Carney and Ewing stole over $15,000 in currency.
“This sentence sends another strong message to those who commit violent crimes in our district that we will prosecute these cases to the fullest extent of the law,” said Acting United States Attorney Thomas J. Jaworski. “The community will be now safe from this defendant for decades. Our office is thankful for partnerships with multiple law enforcement agencies throughout middle Tennessee and northern Alabama that made this result possible.”
This case was investigated by the Federal Bureau of Investigation, Nashville Field Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Metropolitan Nashville Police Department; the Murfreesboro Police Department; the Ardmore Police Department; the Greenbrier Police Department; the Smyrna Police Department; and the Moulton, Alabama Police Department. Assistant U.S. Attorney Joseph P. Montminy prosecuted the case.
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Multi-Time Convicted Felon Indicted for Possessing A Firearm and AmmunitionRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Mickey Colangelo, Jr. (44, Fort Myers) with possession of a firearm and ammunition by a convicted felon. If convicted, Colangelo faces a penalty of 15 years, up to life, in federal prison. The indictment also notifies Colangelo that the United States intends to forfeit a firearm and ammunition which are alleged to be traceable to proceeds of the offense.
According to a criminal complaint filed on October 31, 2024, Colangelo was encountered by a Lee County Sheriff’s Office deputy in North Fort Myers on October 30, 2024, with a loaded pistol in his backpack. According to the indictment, Colangelo has been convicted of nine felony offenses, including six convictions for robbery related charges. As a result of his lengthy criminal record, which includes at least three previous convictions for violent felonies, Colangelo qualifies for enhanced sentencing under the Armed Career Criminal Act.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Lee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Mark Morgan.
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 out 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 first place, setting focused and strategic enforcement priorities, and measuring the results.
Mexican National Indicted for Illegal Re-entryRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that SANTIAGO PUENTE-GARCIA (“PUENTE-GARCIA”), age 25, a native of Mexico, was indicted on November 15, 2024 for illegal reentry by a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to the indictment, PUENTE-GARCIA was previously removed from the United States on February 4, 2022. He was later found in the Eastern District of Louisiana on October 29, 2024 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter the country.
If convicted, PUENTE-GARCIA faces a maximum term of imprisonment of two (2) years, a fine of up to $250,000, up to one year of supervised release, and a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that an indictment is merely a charge and the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement, Enforcement and Removal Operations in investigating this matter. Assistant United States Attorney Jon Maestri of the General Crimes Unit is in charge of the prosecution.