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18 November 2024
Mead Man Sentenced to Nearly 4 Years in Federal Prison for Stealing over $750,000 from COVID Relief ProgramsRead the Press Release
Spokane, Washington - United States Attorney Vanessa R. Waldref announced that United States District Judge Thomas O. Rice sentenced Antonio Feliciano Crawford, age 55, of Mead, Washington, to 45 months in federal prison on charges of bank fraud. Judge Rice also imposed 5 years of supervised release, restitution of $203,347.08, and forfeiture of $173,329.00 in cash seized during a search of Crawford’s home, and $13,642.00 in cash Crawford provided in lieu of forfeiture of his vehicle.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One program, the Paycheck Protection Program (PPP) program, offered forgivable loans to eligible small businesses in order to retain or rehire employees who lost their jobs, or were in danger of doing so, due to the pandemic. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The PPP and EIDL programs have provided billions of dollars in aid, the vast majority of which has not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.
According to court documents and information presented at the sentencing hearing, Crawford filed false and fraudulent PPP and EIDL applications during 2020 and 2021 on behalf of four companies purportedly owned and operated by Crawford: Tann LLC, Crawford Entertainment, A&M Personal Training LLC, and a sole proprietorship doing business as “Antonio Crawford.” Crawford submitted false and fraudulent information and documentation, including fraudulent and fictitious purported tax returns for the companies, in order to obtain for himself at least $186,971 in PPP and EIDL funding for which he was not eligible.
Crawford also facilitated the submission of false and fraudulent PPP and EIDL applications for numerous other individuals as well. During a search of Crawford’s home, law enforcement seized a laptop that contained falsified tax documentation and applications for other persons. Investigation of those fraudulent documents identified an additional twenty-four PPP and EIDL payments, totaling $565,808.33. Investigators also identified over $20,000 in payments those individuals made to Crawford following receipt of the funds. In total, Crawford caused a loss of over $750,000 to the PPP and EIDL programs.
“Fighting fraud strengthens our communities by protecting our small and local businesses and hard-working people who play by the rules. Mr. Crawford took advantage of programs designed to help businesses struggling during a global pandemic and used the funds to enrich himself and others,” said U.S. Attorney Waldref. “My office has built strong relationships with our law enforcement partners through our COVID Fraud Strike Force to vigorously prosecute those who abuse and misuse pandemic relief funding.”
“When our nation and many employers were at their most desperate, Mr. Crawford defrauded those programs providing a lifeline to struggling businesses,” said Acting Special Agent in Charge Matthew Murphy, who oversees HSI operations in the Pacific Northwest. “HSI will always work with our partners to prevent these types of schemes, safeguard our communities, and ensure relief funds never end up in the hands of criminals.”
In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office (USAO) began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the USAO, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations (HSI), U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Department of Homeland Security (DHS) OIG, Internal Revenue Service, Department of Energy OIG, Department of Labor (DOL), and others.
This case was investigated by the HSI Spokane Field Office, TIGTA, SBA OIG, DOL, and the Department of Homeland Security OIG. The case is being prosecuted by Assistant United States Attorneys Dan Fruchter, Jeremy J. Kelley, and Devin C. Curda.
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McCurtain County Resident Pleads Guilty to Drug DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Herman Will Sanders, Jr., age 40, of Broken Bow, Oklahoma, entered a guilty plea to Distribution of Methamphetamine.
The Indictment alleged that on June 5, 2023, Sanders knowingly and intentionally distributed methamphetamine, a Schedule II controlled substance, in the Eastern District of Oklahoma.
The charge arose from an investigation by the Drug Enforcement Administration.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Sanders will remain in the custody of the United States Marshals Service pending sentencing.
Assistant U.S. Attorney Richard J. Lorenz represented the United States.
Massachusetts Man Pleads Guilty to Obstructing Federal Hate Crime InvestigationRead the Press Release
BOSTON – A Massachusetts man, who was extradited from Stockholm, Sweden, pleaded guilty today to obstructing an investigation of fires set at Jewish institutions in Arlington, Needham and Chelsea, Mass., in May 2019.
Alexander Giannakakis, 37, formerly of Quincy, Mass., pleaded guilty to concealing records in a federal investigation; tampering with documents and objects; and tampering with an official proceeding. U.S. District Court Judge Patti B. Saris scheduled sentencing for March 11, 2025. In February 2022, Giannakakis was indicted by a federal grand jury. In February 2024 he was extradited to the United States from Sweden.
“This defendant obstructed justice about hate crimes directed at Jewish people living in greater Boston. These attempted arsons at Jewish houses of worship and senior living facilities sent ripples of fear throughout the region. We must be vigilant in holding accountable every single person who engages in or facilitates acts of hate like this. Alexander Giannakakis chose to destroy evidence and conceal these hate crimes and for deciding to stand on the side of acts of vile Antisemitism, he now stands convicted and awaiting sentencing,” said Acting United States Attorney Joshua S. Levy. “It is incumbent on every person in the District of Massachusetts to call out acts of racism and bigotry, and to report hate crimes.”
“Today’s conviction shows that there will be serious ramifications for anyone who seeks to obstruct an FBI investigation into an act of domestic terrorism,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “Fire is a dangerous and indiscriminate weapon – one that we believe Alexander Giannakakis’ brother used to express his hatred for Jewish people four times. By lying to our investigators and trying to obstruct our investigation into his brother, Mr. Giannakakis only made matters worse. If people think there’s no downside to deceiving FBI agents, critical lines of investigation will be compromised, and our justice system stalled. Our Joint Terrorism Task Force can’t afford to be deterred in this way.”
In and around February 2020, Giannakakis’ younger brother became the prime suspect in an investigation into four fires set at Jewish-related institutions in the Boston area: the first during the evening of May 11, 2019 at a Chabad Center in Arlington; the second at the same location during the evening of May 16, 2019; the third at a Chabad Center in Needham; and the fourth during the evening of May 26, 2019, at a Jewish-affiliated business in Chelsea. However, at the time Giannakakis’ brother was identified as a suspect, he was hospitalized in a coma. He remained in a coma until his death later that year.
Shortly after his brother was identified as a suspect, Giannakakis left the United States for Sweden, where he was living at the time, with his brother’s electronic devices and documents. According to court documents, when Giannakakis returned to the U.S. in March 2020, he was questioned by investigators and made false and misleading statements. He later concealed and destroyed physical evidence being sought by investigators that implicated his brother in the arsons. Within hours of concealing and destroying that evidence, Giannakakis fled the United States for Sweden. Giannakakis remained in Sweden until his arrest by Swedish authorities in February 2022.
The charges of concealing records in a federal investigation, tampering with documents and objects, and tampering with an official proceeding each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Chief Juliann Flaherty of the Arlington Police Department; Chief John Schlittler of the Needham Police Department; and Chief Keith E. Houghton of the Chelsea Police Department made the announcement today. Substantial assistance was provided by Swedish authorities. Additional assistance was provided by the Quincy Massachusetts Police Department; the Massachusetts State Police; and the Massachusetts State Fire Marshal. The Justice Department’s Office of International Affairs provided substantial assistance to secure the arrest and extradition from Sweden of Giannakakis. The case is being prosecuted by Assistant U.S. Attorneys Jason A. Casey and John McNeil of the Office’s National Security Unit.
Mary Mahoney’s Old French House and Manager Sentenced for Conspiracy and Misbranding of SeafoodRead the Press Release
Gulfport, MS – A Mississippi corporation operating as Mary Mahoney’s Old French House restaurant in Biloxi, Mississippi, and its co-owner and manager, Anthony Charles Cvitanovich, were sentenced today on charges arising from their participation in a long-standing conspiracy to misbrand seafood by substituting inexpensive imported fish for the local premium species they advertised and declared on their menus.
The court accepted the terms of a plea agreement Mary Mahoney’s reached with the government and sentenced the company to five years of probation and ordered it to pay a total penalty of $1,499,000, which included $149,000 as a criminal fine and $1,350,000 in forfeiture for some of the proceeds it had obtained from its fraudulent sales of seafood to its customers. The Court also imposed special conditions of supervision, to include that Mary Mahoney’s maintain for no less than five years, records describing the species, sources, and the cost of the seafood it acquires for sale to its customers, and that it make these records available to any federal, state, or local governmental authority that regulates or monitors the service and distribution of food for human consumption and to any such agency that regulates the harvesting, storage, labeling, or sale of seafood. The Court also ordered as a condition of supervision that Mary Mahoney’s shall answer truthfully any inquiry from any governmental agency and from any customer as to the species, source, and cost of any seafood it prepares, serves, sells or advertises for sale.
On May 30, 2024, Mary Mahoney’s pled guilty to a felony charging the corporation with conspiracy to misbrand seafood and wire fraud in connection with a scheme that began as early as 2002 and continued through November of 2019. Mahoney’s, founded in 1962, admitted that between December 2013 and November 2019, the company and its co-conspirators at a Biloxi seafood wholesaler fraudulently sold as local premium species approximately 58,750 pounds (over 29 tons) of fish that was actually frozen and imported from Africa, India, and South America.
Mahoney’s co-owner/manager, Anthony Charles Cvitanovich, 55, was sentenced to three years of probation and 4 months of home detention. He was also ordered to pay a $10,000 fine. On May 30, 2024, Mr. Cvitanovich pled guilty to a felony Information charging him with misbranding of seafood during 2018 and 2019.
“Misbranding foreign seafood as premium, locally caught fish hurts the Gulf Coast seafood industry and defrauds customers that paid to taste the real thing,” said U.S. Attorney Todd Gee. “This investigation and today’s sentence will hopefully send a message that the Department of Justice is serious about holding businesses accountable that mislabel food sources.”
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Environment and Natural Resources Division Assistant Attorney General Todd Kim made the announcement.
The Food and Drug Administration - Office of Criminal Investigations initiated the case.
Assistant U.S. Attorney Andrea C. Jones and Senior Trial Attorney Jeremy F. Korzenik of the Justice Department's Environment and Natural Resources Division are prosecuting the case.
In related charges, the Biloxi seafood wholesaler Quality Poultry and Seafood and two of its managers are scheduled for sentencing on Monday, December 11, 2024.
Man with Lengthy Criminal Record Sentenced to over Five Years in Prison for March 2023 Armed RobberyRead the Press Release
BOSTON – A Cambridge man as sentenced on Nov. 14, 2024 in federal court in Boston for the March 20, 2023, armed robbery of the JP Wireless store in Jamaica Plain, Mass.
Royal Benjamin, 64, was sentenced by U.S. District Court Judge Indira Talwani to 70 months in prison, to be followed by three years of supervised release. In August 2024, Benjamin pleaded guilty to one count of Hobbs Act robbery. In September 2023, Benjamin was charged by criminal complaint.
On March 20, 2023, Benjamin robbed an individual in the Downtown Crossing subway station of a bag containing two pairs of Puma sneakers. Benjamin then traveled to JP Wireless in Jamaica Plain and offered to sell the sneakers to a store employee. When the store employee stated he did not want to buy the sneakers, Benjamin removed a handgun from his waistband and rushed behind the counter pointing the handgun at the store employee. Once behind the counter, Benjamin took $594.00 in cash that was sitting on top of the register. Benjamin then removed the drawer, dropping it and its contents on the ground. Benjamin’s fingerprints were later located on the cash register drawer. Benjamin then fled the store, threatening to shoot the store employee. During a search of Benjamin’s bedroom at a house in Cambridge, a loaded handgun was recovered.
According to court records, Benjamin has a lengthy criminal record dating back to 1978, when he was 18years-old. His criminal record includes the following convictions and sentences: a 1978 conviction in Alabama for Strong Armed Robbery, for which he was sentenced to 10 years (Benjamin escaped from prison); a 1985 conviction in the Roxbury District Court for Assault Dangerous Weapon, for which he received a sentence of “Filed;” a 1985 conviction in Suffolk Superior Court for Armed Robbery, for which he was sentenced to four to six years; a 1984 conviction in Suffolk Superior Court for Manslaughter and Armed Robbery, for which he received a sentence of 18 to 20 years; 1994 convictions in the Suffolk Superior Court for Robbery and Possession of a Class B controlled Substance, for which he received a sentence of four to six years; a 2001 conviction in Suffolk Superior Court for Armed Robbery, for which he was sentenced to seven to nine years; a 2010 conviction in Suffolk Superior Court for Robbery, for which he was sentenced to 10 to 12 years; and a 2024 conviction in the Boston Municipal Court for Larceny from a Person, for which he received a sentence of 90 days.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Massachusetts Bay Transit Authority Police Department; the Suffolk County District Attorney’s Office; and the Boston and Cambridge Police Departments. Assistant U.S. Attorneys Meghan C. Cleary and David G. Tobin of the Major Crimes Unit prosecuted the case.
Man Sentenced to More Than Eleven Years in Prison for Participating in Two Robberies in RockfordRead the Press Release
ROCKFORD — A Rockford man has been sentenced to more than eleven years in federal prison for participating in two robberies in Rockford.
THOMAS L. HAWKINS, 38, pleaded guilty earlier this year to robbing a Red Roof Inn and a Mobil gas station, both of which were located in Rockford.
Hawkins admitted in a plea agreement that on Sept. 26, 2020, he was armed with a dangerous weapon that resembled a firearm and pointed it at an employee of the Red Roof Inn while a co-conspirator forced the employee to a rear counter. Hawkins and the co-conspirator stole approximately $1,600 before fleeing the Red Roof Inn.
Hawkins and a co-conspirator robbed the Mobil gas station on Oct. 20, 2020. Hawkins was armed with a firearm and pointed it at an employee while the co-conspirator pushed the employee to a rear area of the store. Hawkins and the co-conspirator stole approximately $1,100 before fleeing the gas station.
U.S. District Judge Iain D. Johnston on Friday sentenced Hawkins to eleven years and three months in federal prison.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Christopher Amon, Special Agent-in-Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, Chicago Field Office. The Rockford Police Department assisted in the investigation. The government was represented by Assistant U.S. Attorney Jonathan S. Kim.
Man Pleads Guilty to Fraudulently Obtaining over $1 Million in COVID-19 Relief and Unemployment CompensationRead the Press Release
MIAMI – On Nov. 15, Conrad Brandon Bernard, 24, pled guilty in Fort Lauderdale, Fla., to committing bank fraud and identity theft during a scheme to fraudulently obtain over $1 million in Covid-19 relief loans and unemployment compensation payments.
During the COVID-19 outbreak, the Economic Injury Disaster Loan (EIDL) program was utilized to provide loan assistance to small businesses and other eligible entities in need. The U.S. Department of Labor's unemployment insurance programs were created to provide unemployment benefits to eligible workers who become unemployed through no fault of their own and meet certain other eligibility requirements.
Beginning as early as in or around May 2020 and continuing through on or about December 2022, Bernard carried out a scheme to defraud the EIDL and unemployment insurance programs. Bernard fraudulently applied for fourteen EIDLs using the name and personal identifying information (PII) of other individuals without their knowledge or consent. Once the U.S. Small Business Association (SBA) approved the fraudulent loan applications, the SBA transferred the EIDL funds to various bank accounts at Bernard’s direction. Bernard opened and operated these accounts with the name and PII of other individuals without those individuals’ knowledge or consent. Bernard then transferred those funds from the bank accounts to other accounts under his control including various accounts he created using the name and PII of other individuals without their knowledge or consent.
Bernard also transferred or withdrew fraudulently obtained unemployment benefit funds from bank accounts he opened and operated using the name and PII of other individuals without their knowledge or consent. These unemployment benefits were paid from several states, including West Virginia and Arizona. The unemployment benefit funds were fraudulently obtained because the name and PII of other individuals were used to apply for the unemployment benefits without those individuals’ knowledge or consent. In all, Bernard fraudulently obtained $1,083,340 in EIDL funds and unemployment benefits.
During the investigation, law enforcement also discovered that Bernard possessed numerous false identifications including counterfeit passport cards, false Florida driver’s licenses and identification cards, the means to create false identification, and the PII of several thousand individuals including their names, dates of birth, and Social Security numbers.
Bernard is scheduled to be sentenced on February 5, , 2025, before U.S. District Judge William P. Dimitrouleas in Fort Lauderdale. He faces up to 30 years in prison for the bank fraud convictions, to be followed by a mandatory consecutive term of 2 years in prison for the aggravated identity theft conviction. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, U.S. Attorney Roger B. Handberg for the Middle District of Florida, Acting Special Agent in Charge Michael Conklin of the U.S. Department of State’s Diplomatic Security Service (DSS) Miami Field Office, and Sheriff Gregory Tony of the Broward Sheriff’s Office (BSO) made the announcement.
The DSS Miami Field Office and BSO investigated the case.
Assistant U.S. Attorney Deric Zacca from the Southern District of Florida and Assistant U.S. Attorney Suzanne Nebesky from the Middle District of Florida are prosecuting the case. Assistant U.S. Attorney Mitchell Hyman is handling asset forfeiture.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On Sept. 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-60168.
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Man Gets 17 Year Prison Term for Fatally Shooting a Man in Southeast DCRead the Press Release
WASHINGTON – Kyree Anthony Hairston, 25, of Washington, D.C., was sentenced to 204 months in prison, for voluntary manslaughter while armed with a firearm, for the February 2024 shooting death of David Coe, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
Hairston pleaded guilty on August 9, 2024, to one count of voluntary manslaughter while armed with a firearm. Superior Court Judge Anthony Epstein sentenced Hairston, on November 15, 2024, to the top of the guideline period of incarceration, 17 years in prison, to be followed by five years of supervised release.
According to the government’s evidence, at approximately 2:45 p.m., on February 3, 2024, Hairston and the victim, Mr. David Coe, were in the parking lot area of the Arbor View Apartment Complex, located in the 1200 block of Southern Avenue in Southeast, Washington, DC. The two engaged in a conversation, part of which was captured on the audio portion of video surveillance footage that also captured the shooting. On the surveillance, the defendant can be heard stating, “on my grandmother, you got 30 seconds. On my grandmother” and “you trippin like sh*t.” The surveillance shows Hairston pull the hood of his sweatshirt over his head, which covered part of his face. Hairston then removed a black handgun from his jacket pocket and pointed it at Mr. Coe. Mr. Coe lunged forward to try and disarm Hairston, but Hairston shot him in the chest before he could do so. The victim fell to the ground and as he laid there, Hairston shot Mr. Coe again. Mr. Coe was shot four times and died twenty minutes later.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also commended the work of Assistant U.S. Attorney Marybeth Manfreda of the U.S. Attorney’s Office for the District of Columbia.
Louisville Man Sentenced to over 29 Years in Federal Prison for Drug Trafficking Conspiracy and Firearms OffenseRead the Press Release
Louisville, KY – A Louisville man was sentenced last week to a total of 29 years and 6 months in federal prison for numerous felony offenses, including conspiracy to possess with the intent to distribute controlled substances, possession with the intent to distribute fentanyl, heroin, and cocaine, and possession of a firearm in furtherance of a drug trafficking crime.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Chief Paul Humphreys of the Louisville Metro Police Department made the announcement.
According to court documents, on November 14, 2024, Jerlen Horton, 30, was sentenced to 28 years in prison, followed by 5 years supervised release, for conspiracy to possess with the intent to distribute over one kilogram of fentanyl, over 250 grams of heroin, and a mixture of cocaine base, commonly referred to as “crack cocaine,” possession with the intent to distribute fentanyl, heroin, and cocaine, and possession of a firearm in furtherance of drug trafficking. Horton was sentenced to an additional 1 year and 6 months in prison, to run consecutively with the 28-year sentence for a total of 29 years and 6 months, for violation of his supervised release.
Horton and his co-defendant, Chicoby Summers, were convicted following a seven-day jury trial in July of this year. Summers is scheduled for sentencing on December 10, 2024, in the United States District Court for the Western District of Kentucky.
There is no parole in the federal system.
The ATF and LMPD investigated the case, with assistance from the FBI, DEA, United States Postal Inspection Service, Kentucky State Police, Franklin County Sheriff’s Office, Long Beach California Police Department, Verdigris Oklahoma Police Department, and the St. Louis Metropolitan Police Department.
Assistant U.S. Attorneys Frank Dahl and Josh Porter are prosecuting the case, with assistance from paralegal Adela Alic.
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.
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Lisa L. Lambert Appointed as U.S. Trustee for the Northern and Eastern Districts of TexasRead the Press Release
Lisa L. Lambert has been appointed by Attorney General Merrick B. Garland as the U.S. Trustee for the Northern and Eastern Districts of Texas (Region 6) effective today. Lambert replaces Kevin M. Epstein, who filled the Region 6 role in an interim capacity and who continues to serve as the U.S. Trustee for the Southern and Western Districts of Texas (Region 7).
Lambert joined the U.S. Trustee Program (USTP) in 1998 as a trial attorney in the field office in Tyler, Texas. She has since served the USTP in a variety of capacities. After three years in three of the USTP’s New York offices, Lambert returned to Texas in 2009 as a trial attorney in the Dallas field office, and she has served as the Assistant U.S. Trustee in charge of that office since 2012. In addition to her extensive service to the USTP, Lambert has held several leadership positions in the Federal Bar Association’s bankruptcy section, and she coached oral advocacy and briefing skills to Texas Tech University law students competing in the Duberstein Bankruptcy Moot Court Competition for more than a decade.
Lambert received a bachelor’s degree in English from the University of North Carolina at Chapel Hill and a law degree from Texas Tech University School of Law. After law school, she clerked for Chief Bankruptcy Judge Houston Abel for the Eastern District of Texas and worked at a boutique law firm focused on bankruptcy.
The Executive Office for U.S. Trustees made the announcement.
The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders – debtors, creditors and the public. The USTP consists of 21 regions with 89 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust.
Lenox Man Sentenced for Child Exploitation ChargesRead the Press Release
BOSTON – A Lenox man was sentenced today in federal court in Springfield for attempting to transfer obscene material to a minor after he sent obscene images and videos to an undercover investigator.
Paul J. Bruzzi, 37, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 14 months in prison and three years of supervised release. In July 2024, Bruzzi pleaded guilty to one count of attempt to transfer obscene material to a minor in federal court.
Starting in September 2022, Bruzzi used social media applications to engage in conversations with an individual he believed to be a 14-year-old girl, but who was actually an undercover federal investigator. During these conversations, Bruzzi attempted to pressure the girl into sending him photos and sent her nine photographs and videos of himself displaying his genitalia.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Salisbury, Mass. Police Department and the Winchester, Mass. Police Department. Assistant U.S. Attorney Neil L. Desroches, Chief of the Springfield Branch Office is prosecuting the case.
Jury Finds Orlando Felon Guilty of Possessing AmmunitionRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found David Lewis Andrew Bryan (36, Orlando) guilty of two counts of possessing ammunition as a convicted felon. Bryan faces a maximum penalty of 15 years in federal prison. His sentencing hearing is scheduled for February 12, 2025.
According to the evidence and testimony presented during the two-day trial, Bryan is a five-time convicted felon who, on two occasions, unlawfully possessed ammunition loaded in operable antique firearms. On July 2, 2023, Orlando Police Department (OPD) officers conducted a traffic stop on Bryan and discovered he was carrying a loaded and operable antique firearm concealed in his waistband. On October 26, 2023, OPD officers executed a search warrant at Bryan’s residence and located two loaded and operable antique firearms. Bryan admitted to owning and possessing both the firearms and the ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Orlando Police Department. It is being prosecuted by Assistant United States Attorney Adam J. Nate.
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.
Jury Convicts Two Miami Residents for Involvement in Multi-Defendant PPP SchemeRead the Press Release
MIAMI – On Nov. 8, a federal jury convicted Lazaro Verdecia Hernandez, 37, and Yadier Rodriguez Arteaga, 41, both of Miami, of conspiracy to commit wire fraud, conspiracy to commit money laundering, and money laundering, in connection with a scheme to obtain fraudulent loans under the Paycheck Protection Program (PPP). Verdecia was also convicted of wire fraud.
Verdecia and co-conspirator Heidi Cid submitted over 63 fraudulent PPP loan applications. In the loan paperwork, they made the applicants appear eligible for pandemic relief by falsifying the number of the companies’ employees and included forged documents. As a result of the fraudulent submissions, lenders disbursed over 14.5 million dollars to bank accounts controlled by the individuals, who then withdraw the money and gave Verdecia, Cid, and Hernandez their cut. Co-conspirator Cid previously pled guilty for her involvement in the scheme and is pending sentencing.
Verdecia and Arteaga are scheduled to be sentenced on Feb. 3, 2025, before U.S. Senior District Judge Robert N. Scola. Verdecia and Arteaga face up to 20 years in prison on the conspiracy and fraud counts and ten years on the money laundering counts. Verdecia faces up to 20 years in prison on the substantive wire fraud count of conviction. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Rafael Barros for the U. S. Secret Service (USSS), Special Agent in Charge Edwin S. Bonano for the Federal Housing Finance Agency, Office of Inspector General (FHFA OIG), and Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA OIG), Eastern Region, made the announcement.
USSS Miami and FHFA OIG investigated the case with the assistance of SBA OIG. Assistant U.S. Attorneys Thomas Haggerty and Eli Rubin are prosecuting the case. Assistant U.S. Attorney Sarah Klco is handling asset forfeiture.
The following cases were previously charged in relation to the fraud scheme:
U.S. v. Roberto Lopez, Kenia Carrillo, Lester Hedman Safont, Oreste Ruiz Linares, Honolio Navarro Caballero, Barbara Alvarez, Javier Pico, Alfredo Contrera, and Erisbel Gonzalez Gomez, Case No. 22-cr-20368;
U.S. v. Nancy Bahos Serna, Case No. 23-cr-20310 (This case is being prosecuted by AUSA Daniel Bernstein.);
U.S. v. Jorge Trueba Lopez, Case No. 21-cr-20382;
U.S. v. Nancy Saavedra Torres, Case No. 21-cr-20225;
U.S. v. Giraldo Caraballo, Case No. 21-cr-20264;
U.S. v. Felix Martinez and Yailin Perez, Case No. 21-cr-20276;
U.S. v. Yoliesse Sarmiento Carrion, Case No. 22-cr-20530;
U.S. v. Osiel Rodriguez Furgel, Case No. 21-cr-20251; and
U.S. v. Leonardo Gonzalez Lopez, Case No. 23-cr-20113.
Each of the aforementioned defendants pled guilty, except for Javier Pico and Erisbel Gonzalez Gomez who are fugitives.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (EIDLs) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s online application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On Sep. 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-20421.
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International Tax Advisor Pleads Guilty to Tax Fraud in Concert with U.S.-Based CPAsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that FRANK BUTSELAAR pled guilty on Thursday, November 14, 2024, to one count of aiding or assisting in the filing of a false or fraudulent tax return. BUTSELAAR pled guilty before U.S. District Judge Cathy Seibel, to whom his case is assigned.
U.S. Attorney Damian Williams said: “Today’s guilty plea, which comes after a rigorous investigation, demonstrates that this Office will stop at nothing to ensure that tax professionals who decide to cheat and lie are held to account for their misconduct.”
As alleged by the Government, and based on the testimony and exhibits received at trial, filings in Court, and statements made in Court:
BUTSELAAR advised the creation of offshore structures for multiple ultra-high-net worth individuals who earned money all over the world and did so while a shareholder in the Amsterdam Office of a major U.S.-based international law firm.
Those clients included world-famous DJs, including Tijs Verwest, p/k/a “DJ Tiesto,” and Nick van de Wall, p/k/a “DJ Afrojack” (the “DJ Clients”). Other celebrity clients included fashion models Patricia van der Vliet and Daria Strokous (the “Fashion Model Clients,” and collectively with the DJ Clients, the “Clients”).
BUTSELAAR worked with partners at a U.S.-based management firm to file U.S. tax returns for the Clients (“Management Firm-1”).
When the Clients were becoming or had become U.S. tax residents, the defendant, and his co-conspirators—partners at Management Firm-1—sought to conceal the Clients’ offshore income through the use of nominee owners of their offshore structures. As part of the scheme, these nominees were installed to make it appear as though the Clients’ earnings now belonged to someone else, generally a family member who lived outside the U.S.
Despite these paper changes in ownership, BUTSELAAR and his co-conspirators at Management Firm-1 never told the Clients anything of substance had changed. The Clients—with the knowledge of BUTSELAAR and his co-conspirators at Management Firm-1—continued to operate their offshore entities as their own and believed they had access to and could direct the money they were accumulating offshore.
Between 2012 and 2017, when Verwest was a U.S. Resident taxpayer, BUTSELAAR and Management Firm-1 omitted from Verwest’s taxes substantial sums held offshore. Similarly, in 2013, when van de Wall was a U.S. Resident taxpayer, BUTSELAAR and Management Firm-1 omitted from van de Wall’s taxes substantial sums held offshore. The amount of unreported income for these two taxpayers exceeded $70 million. During his allocution, BUTSELAAR admitted that partners at Management Firm-1 knowingly omitted overseas income, which should have been reported, from van de Wall’s 2013 U.S. resident return.
While the scheme was operating, BUTSELAAR was repeatedly warned that the income being collected offshore for his Clients was reportable. In fact, six different professionals—CPAs and tax lawyers in the U.S.—told BUTSELAAR that the offshore income being accumulated outside the U.S. for the Clients was reportable in the U.S. In the face of these repeated warnings, BUTSELAAR lied and concealed information from these professionals. Instead, BUTSELAAR worked with his co-conspirators, partners at Management Firm-1, to conceal otherwise reportable income from U.S. authorities.
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BUTSELAAR, 66, of Naarden, Netherlands, pled guilty to one count of aiding or assisting in the filing a fraudulent tax return for the 2013 Tax Year for taxpayer Nick van de Wall, p/k/a “Afrojack,” which carries a maximum sentence of three years in prison.
The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing will be determined by a judge. BUTSELAAR is scheduled to be sentenced by Judge Seibel on February 13, 2025.
Mr. Williams praised the outstanding investigative work of the Internal Revenue Service-Criminal Investigation (“IRS-CI”) and the Joint Chiefs of Global Tax Enforcement. Mr. Williams also thanked the Justice Department’s Office of International Affairs and Italy’s Ministero della Giustizia, Arma dei Carabinieri, Guardia di Finanza, and Interpol-Rome for their assistance.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Benjamin Klein, Shiva H. Logarajah, and David A. Markewitz are in charge of the prosecution.
Inmate Receives 15 Years in Methamphetamine Distribution Conspiracy Inside Stillwater PrisonRead the Press Release
ST. PAUL, Minn. – An inmate has been sentenced to 180 months in prison followed by 10 years of supervised release for conspiring with a corrections officer to distribute methamphetamine inside the Stillwater prison, announced United States Attorney Andrew M. Luger.
According to court documents, Axel Rene Kramer, 37, an inmate who is currently serving a 288-month sentence for second-degree murder, conspired with Faith Rose Gratz, 26, a former Minnesota Correctional Facility (MCF) – Stillwater corrections officer, to distribute methamphetamine within MCF – Stillwater, which is Minnesota’s largest high-security prison facility. As part of the conspiracy, Kramer obtained wholesale quantities of prepackaged methamphetamine from sources of supply outside the prison. Kramer and another co-conspirator inmate worked with drug sources of supply to arrange meet-up times and locations where Gratz would pick up the drug packages. Gratz used her position as a guard to smuggle the drugs into the prison and to provide the drugs to Kramer. She then transferred the drugs to Gratz in the course of performing her prison guard duties. She participated in the illegal scheme approximately six times. Gratz also smuggled into the prison multiple cell phones that she provided to Kramer. Kramer used the cell phones to communicate with people inside and outside the prison and to facilitate his drug distribution network from within the prison.
According to court documents, Kramer and Gratz exchanged hundreds of text messages with each other. The messages included communications about the drug distribution conspiracy as well as discussions about their romantic relationship. Gratz also warned Kramer about upcoming searches of inmates’ cells.
On January 5, 2024, Kramer pleaded guilty to one count of conspiracy to distribute methamphetamine. He was sentenced on November 12, 2024, by Judge Eric C. Tostrud in U.S. District Court. On November 15, 2024, Judge Tostrud sentenced Gratz to 27 months in prison followed by two years of supervised release.
This case is the result of an investigation conducted by the Bayport Police Department, Minnesota Department of Corrections, and the FBI.
Assistant U.S. Attorneys Harry M. Jacobs and Matthew D. Evans prosecuted the case.
Indictment Charges New Haven Man with Firearm OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and James Ferguson, Special Agent in Charge, ATF Boston Field Division, today announced that a federal grand jury in Bridgeport has returned an indictment charging ADRIAN BELLE, 30, of New Haven, with the unlawful possession of ammunition by a felon.
The indictment was returned on September 5, 2024. Belle appeared today before U.S. Magistrate Judge S. Dave Vatti in Hartford and entered a plea of not guilty to the charge. Belle is currently serving a sentence on Florida state charges arising out of an unrelated incident.
The indictment alleges that on August 26, 2023, in New Haven, Belle possessed a black Polymer 80 firearm (“ghost gun”) containing ammunition that was manufactured in Serbia.
The indictment further alleges that Belle’s criminal history includes a federal conviction for unlawful possession of a firearm by a felon, and state convictions for robbery in the first degree and assault on personnel. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted of the charge, Belle faces a maximum term of imprisonment of 15 years. Belle, who was on federal supervised release at the time of the alleged offense, faces additional penalties if he is found to have violated the conditions of his supervised release.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. A charge is only an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Nathan Guevremont through Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice 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 www.justice.gov/psn.
Grand jury indicts 6 defendants in straw purchasing conspiracy involving firearms bought online with stolen credit card informationRead the Press Release
COLUMBUS, Ohio – A federal grand jury indicted six individuals with conspiring to commit an offense against the United States by making false statements on federal firearms forms. The individuals allegedly conspired to use stolen credit card information to place orders online for straw purchase firearms.
Those charged include:
NameAlso Known AsAgeCity of ResidenceKeith Davenport IIIKeefy21ColumbusEllyson Jeffries 23ReynoldsburgJavohn GarciaJG23ReynoldsburgD’andre Beasley 31ColumbusJohna McCoy 27AtlantaVincent IrvinV33ColumbusThe indictment was returned on Oct. 30 and all six defendants have been arrested since that time. The case was unsealed on Nov. 15.
According to the 14-count indictment, members of the conspiracy allegedly placed orders with online firearms retailers, and then had the guns transferred to firearms retailers for in-person pick-up in Reynoldsburg, Columbus, New Albany, Pataskala and Pickerington, as well as in Atlanta and Smyrna, Georgia. Coconspirators allegedly used stolen credit card information to place the orders and lied on the federal firearms forms saying they were purchasing the firearms for themselves. It is alleged that defendants then sold or intended to sell many of the firearms that were acquired illegally.
Each of the six defendants is charged in the conspiracy that allegedly occurred from approximately May until September 2022 and involved the illegal purchase of at least 50 firearms.
Davenport is also charged with aggravated identity theft.
Conspiring to make false statements during the purchase of a firearm is punishable by up to five years in prison. Making false statements during the purchase of a firearm is a federal crime punishable by up to 10 years in prison. Aggravated identity theft carries a mandatory two years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Columbus Police Chief Elaine Bryant announced the charges. Assistant United States Attorneys S. Courter Shimeall and Damoun Delaviz are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Grenadian Man Sentenced on Drug Trafficking ConvictionRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Rodney Dennis de Roche, 39, of Grenada, was sentenced by District Judge Wilma A. Lewis to 37 months imprisonment, followed by two years of supervised release and a $100 special assessment, after he pleaded guilty to Conspiracy to Possess a Cocaine with Intent to Distribute While on Board a Vessel Subject to the Jurisdiction of the United States.
According to court records, on November 14, 2023, during their patrol in international waters in the Eastern Caribbean Sea, approximately 116 nautical miles West of Fort de France, Martinique, the United States Coast Guard Cutter Diligence intercepted the motor vessel Jackie Boy in a known drug trafficking area, bearing no indicia of nationality. The Jackie Boy was non-compliant with commands from the Coast Guard to stop and the occupants of the vessel, including de Roche, Adel Munro, Arim Boniface, alias Arkim Boniface, Dave Compton, Kevin Francis and Darryl Pope, began jettisoning numerous packages tied to sandbags overboard. Coast Guard officers later retrieved approximately 32 kilograms of cocaine from the ocean and six occupants, including de Roche, were taken into custody.
The master of the vessel claimed Grenadian nationality for the vessel and Grenadian officials confirmed its nationality and granted a waiver of jurisdiction thereby subjecting this matter to the jurisdiction of the United States. All six defendants pleaded guilty to the cocaine trafficking conspiracy. On August 28, 2024, Reinoza was sentenced to 46 months imprisonment, and are awaiting sentencing.
This case was investigated by the United States Coast Guard and Drug Enforcement Administration and prosecuted by Assistant United States Attorney Daniel H. Huston. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Fresno Man Sentenced to 8 Years in Prison for Possessing a Live Hand Grenade, Ammunition, and MethamphetamineRead the Press Release
FRESNO, Calif. — Eric Feldmann, 39, of Fresno, was sentenced today to eight years and one month for possessing methamphetamine and for being a felon in possession of ammunition and an MKII hand grenade, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 24, 2023, Feldmann knowingly possessed an MKII hand grenade with a M204A2 Fuze in his car. The grenade was seized by police and destroyed. Feldmann also possessed between 50 and 200 grams of methamphetamine in plastic bags. On Jan. 9, 2024, law enforcement officers seized several rounds of ammunition from Feldmann’s storage locker. Feldmann had been previously convicted a felony and is prohibited from possessing a firearm or ammunition.
This case was the product of an investigation by the Fentanyl Overdose Resolution Team (FORT), the Fresno Police Department, Fresno County Sheriff’s Office, and the Drug Enforcement Administration. Assistant U.S. Attorneys Cody S. Chapple and Justin J. Gilio prosecuted the case.
Fraud Perpetrated on a Pandemic Housing Assistance Program Results in Guilty PleaRead the Press Release
WASHINGTON, DC – Geary Simon, 71, of Washington, D.C., entered a guilty plea today to one count of wire fraud in connection with a presidentially declared disaster or emergency and to one count of possession of a firearm by a prohibited person. The guilty plea was entered before U.S. District Judge Dabney L. Friedrich.
According to court filings, Simon obtained $38,560 from a D.C. government program called Stronger Together by Assisting You D.C. (STAY DC). The STAY DC program was intended to provide financial assistance to tenants living in the District who needed support during the COVID-19 pandemic to cover their housing and utility expenses due to a loss of income. In April 2021, the city allocated $352 million in federal relief funds for the program. Applicants applied for funds from the STAY DC program via an online portal operated by the D.C. Department of Human Services (DC-DHS).
Court filings show that Simon applied to the STAY DC program on June 22, 2021. In his application, SIMON stated that he was a tenant who rented a property in Washington, D.C., located at 2433 H Street, NW; that his landlord was “Robert Sutton”; that Simon owed “Robert Sutton” the sum of $72,000 in past due rent for the months of April 2020 through July 2021; that the telephone number for “Robert Sutton” was (***) ***-6933; and that “Robert Sutton” could be contacted at the email address *******@gmail.com. All of these statements were materially false and misleading. Simon was not a “tenant” at that address; “Robert Sutton” was not Simon’s landlord; Simon did not owe “Robert Sutton” the sum of $72,000 in unpaid rent; and the phone number and email address that Simon provided for “Robert Sutton” were actually for a phone number and email account that Simon created and controlled. Unaware of the fraud, DC-DHS granted Simon’s application for funding and issued Simon a check in the amount of $38,560 that DC-DHS would not otherwise have approved.
After receiving those funds from DC-DHS, court documents explain, Simon used those taxpayer-backed relief funds for personal purposes, such as to pay the private school tuition of Simon’s children and to satisfy Simon’s court-ordered child support obligations.
On March 14, 2024, law enforcement executed a search warrant at Simon’s personal residence and recovered two firearms. Simon has at least two prior felony convictions, including a conviction for carrying a pistol without a license. By virtue of those prior felonies, Simon was prohibited from possessing any firearms under federal law.
A sentencing hearing is scheduled for April 11, 2025. Simon faces a statutory maximum of 30 years in prison on the wire fraud charge and a statutory maximum of 15 years in prison on the firearms possession charge.
This case is being investigated by the FBI Washington Field Office. It is being prosecuted by Assistant United States Attorney John W. Borchert.
Four New Orleans Residents Indicted on Federal Kidnapping ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that HECTOR MONDRAGON-FLORES a/k/a Fumele, age 32, EDWIN SALGADO-NUNEZ, age 29, ABEL GARCIA, age 48, and JANNETTE RAMIREZ, age 33, were indicted on November 15, 2024, for kidnapping, and conspiracy to commit kidnapping, in violation of Title 18, United States Code, Sections 1201(a)(1) and (c). Additionally, HECTOR MONDRAGON-FLORES a/k/a Fumele is charged with assault on a federal officer with a deadly weapon, in violation of Title 18, United States Code, Sections 111(a)(1) and (b), and being an alien in possession of a firearm, in violation of Title 18, Untied States Code, Sections 922(g)(5) and 924(a)(8).
The kidnapping, and conspiracy to commit kidnapping, offenses each carry up to life in prison, up to a $250,00 fine, and up to five years of supervised release. The charge of assault on a federal officer with a deadly weapon carries up to 20 years in prison, up to a $250,000 fine, and up to three years of supervised release. The charge of being an alien in possession of a firearm carries up to 15 years in prison, up to a $250,000 fine, and up to three years of supervised release. Each of the four counts also carries a $100 mandatory special assessment fee.
According to court documents, beginning on or about October 1, 2024 through October 2, 2024, the defendants conspired to, and did, kidnap a victim and hold him for ransom. The defendants variously held the victim at gunpoint, bound his legs together and his arms together behind his back, and threatened to kill the victim if his father did not pay a $7,000 ransom. After receiving a $3,000 ransom payment from the victim’s father, the defendants also attempted to extract an additional ransom payment from the victim’s girlfriend. Ultimately, the defendants took the victim to an ATM where he withdrew $400 in cash in exchange for his release.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation, Homeland Security Investigations, and the New Orleans Police Department. Assistant United States Attorneys David Berman and Sarah Dawkins of the Violent Crime Unit are in charge of the prosecution.
Former Virginia Inmate Sentenced to More Than a Decade in Prison for Drug Distribution and Money Laundering ConspiraciesRead the Press Release
BOSTON – A former inmate at the Buckingham Correctional Center in Dillwyn, Va. (Buckingham) was sentenced today in connection with leading conspiracies to distribute controlled substances and launder the proceeds in Massachusetts and inside the Virginia prison.
Michael Mao, a/k/a “Whitebodian,” a/k/a “Spook,” a/k/a “Leno,” 38, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 121 months in prison to be followed by four years of supervised release. In August 2024, Mao pleaded guilty to money laundering conspiracy and conspiracy to distribute and to possess with intent to distribute MDMA and Buprenorphine.
Mao was serving prison sentences in Virginia for several state convictions for violent offenses, including attempted murder. From approximately December 2019 through May 2021, Mao conspired with co-conspirators Sathtra Em and Sarath Yut, to source MDMA and Buprenorphine from Massachusetts and mail the drugs to Virginia, where they were smuggled into Buckingham for him to sell to other inmates. The drug conspiracy involved several schemes for illegally introducing the drugs into Buckingham, including bribing a corrupt prison guard, Kenneth Owen. Mao and his co-conspirators also conspired to launder the drug proceeds to conceal their drug distribution activity.
Sarath Yut pleaded guilty to drug trafficking and money laundering conspiracies and was sentenced in October 2023 to 15 years in prison. Sathtra Em pleaded guilty to drug trafficking and money laundering conspiracies and was sentenced in August 2024 to 21 months in prison. Kenneth Owen pleaded guilty to drug trafficking and money laundering conspiracies in September 2024. He is scheduled to be sentenced on Dec. 10, 2024.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Special assistance was provided by the Drug Enforcement Administration, the Internal Revenue Service’s Criminal Investigations and the Virginia Department of Corrections. Assistant U.S. Attorney Fred M. Wyshak, III of the Organized Crime & Gang Unit and Assistant U.S. Attorney Alexandra Amhrein of the Asset Forfeiture Unit prosecuted 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.
Former Pentwater-Area Business Owner Sentenced to Prison in Timber Fraud SchemeRead the Press Release
Trent Witteveen Operated Titan Timber as a Ponzi-like Scheme from June 2018 to January 2021
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Trent William Witteveen, 40, of Montague, Michigan, was sentenced by U.S. District Court Judge Robert J. Jonker to 41 months in prison for orchestrating a multi-year wire fraud scheme. The court additionally ordered Witteveen to pay $844,282 in financial restitution to his victims. Witteveen, formerly of Pentwater, Michigan, operated a timber harvesting business under the names “Titan Timber” and “Titans Timber LLC.”
“Witteveen stole from innocent investors by operating his sham timber business as a Ponzi scheme, solely to line his own pockets,” said U.S. Attorney Mark Totten. “Financial fraud is a serious problem and the schemes are endless. Today’s sentence sends a message that my office will vigorously prosecute fraudsters whose lies and misrepresentations cause devastating financial harm to honest and hard-working individuals.”
According to court documents, between June 2018 and January 2021, Witteveen operated a Ponzi-like scheme involving his timber business that defrauded investors and others. Witteveen routinely represented to investors that he secured timber harvesting rights from landowners and promised the investors a significant return if they provided the investment capital necessary to pay the landowner for such rights. In reality, on most occasions, no current contracts for timber harvesting existed because, unknown to the investors, Witteveen had already harvested timber from the landowner’s property at an earlier time.
On other occasions, to obtain more investment capital from the investors, Witteveen misrepresented the true value of timber on a landowner’s property by purposely inflating the value to an amount higher than what he knew a sawmill would pay for the lumber after harvesting the timber. Witteveen also obtained cashier’s checks or money orders payable to the landowners and showed those checks to the investors to make his contract with the landowner appear genuine. In reality, no such contract existed, and Witteveen simply deposited those funds back into his own bank account.
After Witteveen obtained money from an investor, he used that investor’s money to repay all or some of what he owed to prior investors, or to repay the same investor with his or her money to give the appearance that he was actually paying the promised returns. This allowed Witteveen to perpetuate his scheme by causing investors to believe that they were likely to realize the promised returns and to continue to invest with him. During the period alleged in the indictment, Witteveen obtained over $2,000,000.00 from investors and used most of that money to pay his own personal expenses and fund his lifestyle.
“Today’s sentencing of Trent Witteveen, a former Timber business owner, highlights the serious consequences of committing financial crimes,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “Mr. Witteveen exploited the trust of his investors for personal gain, creating harm to others and the integrity of our financial systems. Members from FBI Michigan remain committed to protecting Michigan residents by investigating and arresting those who engage in fraudulent schemes. I would like to thank the U.S. Attorney's Office of the Western District of Michigan for their partnership in ensuring Mr. Witteveen is held accountable for his criminal acts."
The FBI’s Grand Rapids Office investigated the case and received assistance during the investigation from the Michigan State Police. Assistant U.S. Attorney Ron Stella prosecuted the case.
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Former Owner of Collapsed Nursing Home Empire Admits $38 Million Tax Fraud SchemeRead the Press Release
NEWARK, N.J. – A New York man today admitted his role in a $38 million employment tax fraud scheme involving nursing homes he owned across the country, U.S. Attorney Philip R. Sellinger announced.
Joseph Schwartz, 64, of Suffern, New York, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to two counts of an indictment charging him with willfully failing to pay over employment taxes withheld from employees of his company, and willfully failing to file an annual financial report (Form 5500) with the Department of Labor for the employee 401K Benefit Plan Schwartz sponsored.
“Schwartz ran a vast, multistate nursing home empire, but cheated taxpayers out of more than $38 million so he could line his own pockets. Having admitted his crime, he will now be held accountable. My office will continue to work with our law enforcement partners to prosecute those who willfully participate in tax fraud schemes."
U.S. Attorney Philip R. Sellinger
According to documents filed in this case and statements made in court:
Schwartz, an insurance broker and operator of Skyline Management Group LLC (Skyline), with headquarters in New Jersey, willfully failed to pay employment taxes relating to numerous health care and rehabilitation facilities that Skyline operated in 11 states.
According to the indictment, Schwartz was required to collect, truthfully account for, and pay over to the IRS trust fund taxes withheld from the pay of employees of Skyline and related companies. From October 2017 through May 2018, Schwartz caused taxes to be withheld from employees’ pay but failed to then pay over more than $38 million in employment taxes to the IRS. As an administrator of the Skyline 401K plan, Schwartz further had an obligation to file an annual Form 5500 financial report with the Secretary of Labor for calendar year 2018, but knowingly and willfully failed to file the report.
The employment tax fraud count is punishable by a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The failure to file a Form 5500 related to the retirement plan count carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for April 10, 2025.
U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and investigators with the Department of Labor-Employee Benefits Security Administration, under the direction of Regional Director Thomas Licetti in the New York Regional Office; and special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Kendall Randolph and Daniel H. Rosenblum of the Criminal Division in Newark and Trial Attorney Shawn Noud of the Justice Department’s Tax Division.
schwartz.indictment.pdfFormer CEO of 500.Com (now Bit Mining Ltd.) Indicted for Role in Bribing Japanese Officials and Bit Mining Ltd. Resolves Foreign Bribery InvestigationRead the Press Release
NEWARK, N.J. – An indictment was unsealed today charging the former CEO of 500.com (now BIT Mining Ltd.), Zhengming Pan, a Chinese national, with violations of the Foreign Corrupt Practices Act (FCPA). BIT Mining Ltd. has agreed to resolve investigations by the Justice Department and the Securities and Exchange Commission (SEC) into related FCPA violations arising from the company’s participation in a corrupt scheme to pay bribes to Japanese government officials.
BIT Mining entered into a three-year deferred prosecution agreement (DPA) in connection with a criminal information filed in the District of New Jersey charging BIT Mining with one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA and one count of violating the books and records provisions of the FCPA.
A federal grand jury in the District of New Jersey returned an indictment against Pan on June 18. Pan is charged with one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA, one count of violating the anti-bribery provisions of the FCPA, and two counts of violating the books and records provisions of the FCPA.
“Paying bribes to foreign government officials is a serious crime. The top leadership of BIT Mining, then known as 500.com, directed consultants to pay bribes to Japanese government officials to win a bid to open a large resort in Japan. The illegal scheme started at the top, with the company’s CEO allegedly fully involved in directing the illicit payments and the subsequent efforts to conceal them. The company has admitted its crimes and agreed to pay a $10 million penalty, and its then-CEO has been charged for his role in the scheme. This agreement and indictment hold both the corporation as an entity and its top leadership accountable.”
U.S. Attorney Philip R. Sellinger
“BIT Mining, under the alleged direction of then-CEO Zhengming Pan, agreed to pay nearly $2 million in bribes to Japanese government officials to win a contract to open a lucrative resort and casino in Japan,” Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, said. “Pan has been indicted for his alleged role in directing company consultants to pay the bribes and to conceal the illicit payments through sham consulting contracts. Today’s resolution and the charges against Pan demonstrate the department’s continued commitment to holding both corporate and individual wrongdoers accountable for their crimes.”
“Today’s indictment against the former CEO of BIT Mining for bribing Japanese officials highlights the FBI’s commitment to holding individuals accountable for illegal conduct,” Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division said. “This type of criminal activity undermines the integrity of business practices. The FBI will relentlessly pursue those involved in illegal schemes creating unfair advantages and ensure they face the full consequences of the law.”
According to court documents, between 2017 and 2019, BIT Mining, then known as 500.com, admitted that its -CEO Pan, employees, and agents, agreed to pay approximately $1.9 million in bribes and payments to intermediaries, knowing the money would be used to make bribe payments to Japanese government officials. The purpose of the bribes was to try to help 500.com win a bid to open an integrated resort (a large resort that includes hotels, casinos, retail, dining, convention facilities, and entertainment venues) in Japan. On behalf of 500.com, Pan allegedly engaged third-party consultants to assist 500.com in paying and concealing these bribes. 500.com, through these consultants, paid bribes in the form of cash, travel, entertainment, and gifts. Pan and others allegedly covered up the payment of these bribes by, among other things, entering into sham contracts with the consultants and falsely recording the payments as legitimate expenses, including as management advisory fees. Ultimately, despite carrying out this bribery scheme, 500.com did not win an integrated resort bid in Japan.
Pursuant to the DPA, BIT Mining agreed, based on the application of the U.S. Sentencing Guidelines, that the appropriate criminal penalty is $54 million. However, due to BIT Mining’s financial condition and demonstrated inability to pay the penalty calculated under the U.S. Sentencing Guidelines, BIT Mining and the Justice Department agreed, consistent with the department’s inability to pay guidance, that BIT Mining will pay a total criminal penalty of $10 million. The Justice Department has agreed to credit up to $4 million against the civil penalty BIT Mining has agreed to pay to the SEC to resolve a parallel investigation.
BIT Mining has also agreed to continue to cooperate with the Fraud Section and the U.S. Attorney’s Office for the District of New Jersey in any ongoing or future criminal investigations. In addition, BIT Mining has agreed to continue to enhance its compliance programs and provide reports to the Justice Department regarding remediation and the implementation of compliance measures for the three-year term of the DPA.
The Justice Department reached this resolution with BIT Mining based on a number of factors, including, among others, the nature and seriousness of the offense. BIT Mining received credit for its cooperation with the department’s investigation, which included (i) voluntarily producing relevant documents, financial data, and other information, including from foreign countries, while navigating some foreign data privacy and related criminal laws, accompanied by translations of a limited number of documents; and (ii) providing the government with facts learned during its internal investigation. The cooperation was, however, reactive and limited in degree and impact.
BIT Mining engaged in certain timely remedial measures, which included, among other things, (i) increasing governance and oversight of compliance risks and audit findings by the Board of Directors, (ii) promoting compliance and ethics through company-wide communications, (iii) incorporating compliance criteria in performance evaluations for senior management, (iv) conducting annual risk assessments, (v) creating an anti-corruption policy and engaging in company-wide training and communications to promote it, and (vi) transitioning its business model to an industry that presents a lower corruption risk and reducing its presence in high risk regions. In light of these considerations, BIT Mining’s criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 10% reduction off the bottom of the applicable guidelines fine range.
The FBI’s International Corruption Unit is investigating the case.
Assistant U.S. Attorney Jennifer Kozar for the District of New Jersey and Trial Attorneys Jil Simon and Ligia Markman of the Criminal Division’s Fraud Section are prosecuting the cases.
The Justice Department’s Office of International Affairs and authorities in Japan provided assistance in this matter.
The Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former CEO Indicted for Role in Bribing Japanese Officials and BIT Mining Ltd. Resolves Foreign Bribery InvestigationRead the Press Release
An indictment was unsealed today charging the former CEO of 500.com (now BIT Mining Ltd.), Zhengming Pan, a Chinese national, with violations of the Foreign Corrupt Practices Act (FCPA). BIT Mining Ltd. has agreed to resolve investigations by the Justice Department and the Securities and Exchange Commission (SEC) into related FCPA violations arising from the company’s participation in a corrupt scheme to pay bribes to Japanese government officials.
BIT Mining entered into a three-year deferred prosecution agreement (DPA) in connection with a criminal information filed in the District of New Jersey charging BIT Mining with one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA and one count of violating the books and records provisions of the FCPA.
A federal grand jury in the District of New Jersey returned an indictment against Pan on June 18. Pan is charged with one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA, one count of violating the anti-bribery provisions of the FCPA, and two counts of violating the books and records provisions of the FCPA.
“BIT Mining, under the alleged direction of then-CEO Zhengming Pan, agreed to pay nearly $2 million in bribes to Japanese government officials to win a contract to open a lucrative resort and casino in Japan,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Pan has been indicted for his alleged role in directing company consultants to pay the bribes and to conceal the illicit payments through sham consulting contracts. Today’s resolution and the charges against Pan demonstrate the department’s continued commitment to holding both corporate and individual wrongdoers accountable for their crimes.”
“Paying bribes to foreign government officials is a serious crime. The top leadership of BIT Mining, then known as 500.com, directed consultants to pay bribes to Japanese government officials to win a bid to open a large resort in Japan,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “The illegal scheme started at the top, with the company’s CEO allegedly fully involved in directing the illicit payments and the subsequent efforts to conceal them. The company has admitted its crimes and agreed to pay a $10 million penalty, and its then-CEO has been charged for his role in the scheme. This agreement and indictment hold both the corporation as an entity and its top leadership accountable.”
“Today’s indictment against the former CEO of BIT Mining for bribing Japanese officials highlights the FBI’s commitment to holding individuals accountable for illegal conduct,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “This type of criminal activity undermines the integrity of business practices. The FBI will relentlessly pursue those involved in illegal schemes creating unfair advantages and ensure they face the full consequences of the law.”
According to court documents, between 2017 and 2019, BIT Mining, then known as 500.com, admitted that its then-CEO Pan, employees, and agents, agreed to pay approximately $1.9 million in bribes and payments to intermediaries, knowing the money would be used to make bribe payments to Japanese government officials. The purpose of the bribes was to try to help 500.com win a bid to open an integrated resort (a large resort that includes hotels, casinos, retail, dining, convention facilities, and entertainment venues) in Japan. On behalf of 500.com, Pan allegedly engaged third-party consultants to assist 500.com in paying and concealing these bribes. 500.com, through these consultants, paid bribes in the form of cash, travel, entertainment, and gifts. Pan and others allegedly covered up the payment of these bribes by, among other things, entering into sham contracts with the consultants and falsely recording the payments as legitimate expenses, including as management advisory fees. Ultimately, despite carrying out this bribery scheme, 500.com did not win an integrated resort bid in Japan.
Pursuant to the DPA, BIT Mining agreed, based on the application of the U.S. Sentencing Guidelines, that the appropriate criminal penalty is $54 million. However, due to BIT Mining’s financial condition and demonstrated inability to pay the penalty calculated under the U.S. Sentencing Guidelines, BIT Mining and the Justice Department agreed, consistent with the department’s inability to pay guidance, that BIT Mining will pay a total criminal penalty of $10 million. The Justice Department has agreed to credit up to $4 million against the civil penalty BIT Mining has agreed to pay to the SEC to resolve a parallel investigation.
BIT Mining has also agreed to continue to cooperate with the Fraud Section and the U.S. Attorney’s Office for the District of New Jersey in any ongoing or future criminal investigations. In addition, BIT Mining has agreed to continue to enhance its compliance programs and provide reports to the Justice Department regarding remediation and the implementation of compliance measures for the three-year term of the DPA.
The Justice Department reached this resolution with BIT Mining based on a number of factors, including, among others, the nature and seriousness of the offense. BIT Mining received credit for its cooperation with the department’s investigation, which included (i) voluntarily producing relevant documents, financial data, and other information, including from foreign countries, while navigating some foreign data privacy and related criminal laws, accompanied by translations of a limited number of documents; and (ii) providing the government with facts learned during its internal investigation. The cooperation was, however, reactive and limited in degree and impact.
BIT Mining engaged in certain timely remedial measures, which included, among other things, (i) increasing governance and oversight of compliance risks and audit findings by the Board of Directors, (ii) promoting compliance and ethics through company-wide communications, (iii) incorporating compliance criteria in performance evaluations for senior management, (iv) conducting annual risk assessments, (v) creating an anti-corruption policy and engaging in company-wide training and communications to promote it, and (vi) transitioning its business model to an industry that presents a lower corruption risk and reducing its presence in high risk regions. In light of these considerations, BIT Mining’s criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 10% reduction off the bottom of the applicable guidelines fine range.
The FBI’s International Corruption Unit is investigating the case.
Trial Attorneys Jil Simon and Ligia Markman of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jennifer Kozar for the District of New Jersey are prosecuting the cases.
The Justice Department’s Office of International Affairs and authorities in Japan provided assistance in this matter.
The Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
View the deferred prosecution agreement here.
View the indictment here.
View the information here.
Former Banker Pleads Guilty to Bank FraudRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces that Igor Shushpanov (39, Tampa) today pleaded guilty to a criminal information charging him with one count of bank fraud. Shushpanov faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, from as early as February 2017, until in an around July 30, 2022, Shushpanov opened checking accounts at multiple credit unions that were members of the Federal Home Loan Bank system. Shushpanov then obtained credit cards or personal lines of credit from the credit unions. Upon receipt of the credit cards or personal lines of credit, Shushpanov made purchases or cash advances up to the credit limit. Shushpanov would then purportedly pay off the entire balance by sending worthless checks from accounts under his custody and control.
Between the time that the financial institutions credited Shushpanov’s credit account balances and the worthless checks were returned for insufficient funds, he would again max-out his credit cards and personal lines of credit resulting in higher negative credit account balances. Shushpanov continued perpetrating this scheme by repeatedly depositing worthless checks and making subsequent credit card or personal line of credit purchases, then filed a bankruptcy petition to avoid paying the credit unions he defrauded.
As part of the plea agreement, Shushpanov has agreed to forfeit $303,093.26, the proceeds of the charged criminal conduct.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the Federal Bureau of Investigation. The Office of the United States Trustee for the Middle District of Florida, Tampa Division, also provided substantial investigative assistance. It is being prosecuted by Special Assistant United States Attorney Chris Poor.
Felon heads to prison for violent carjacking attackRead the Press Release
HOUSTON – A 28-year-old Houston resident has been sentenced for carjacking during which one victim was repeatedly struck with a pistol, announced U.S. Attorney Alamdar S. Hamdani.
Dominique Luis-Donte Quinones-Amos pleaded guilty Feb. 12.
U.S. District Judge Andrew S. Hanen has now ordered Quinones-Amos to serve 108 months in federal prison to be immediately followed by three years of supervised release.
At the hearing, the court heard additional evidence that detailed his arrests in the Los Angeles vicinity for burglary and grand theft auto. In handing down the sentence, the court noted his previous convictions which included one for felony assault of a family member impeding breathing or circulation in which the victim lost consciousness.
“Quinones-Amos engaged in a series of offenses that put the people of this district in danger in a variety of ways – a carjacking, brandishing a gun, using fully-automatic conversion devices and even financial crimes,” said Hamdani. “This office will not allow such dangers to go unanswered, and today’s sentence will keep the community safe for several years to come from this one-man wrecking crew.”
As a convicted felon, Quinones-Amos was prohibiting from possessing a firearm or ammunition per federal law. However, law enforcement had discovered social media postings in which he appeared to be selling two firearms with extended magazines and firing a firearm with a machine gun conversion device (MCD) which makes a semi-automatic handgun operate as a fully automatic handgun.
Upon his arrest, authorities found him again in possession of another firearm.
During the investigation, law enforcement was able to tie Quinones-Amos to the violent carjacking that occurred Oct. 4, 2021.
On that date, two men were returning to an apartment complex located on Dunlap Street in a 2013 Dodge Avenger. Once they exited the vehicle into the parking lot, Quinones-Amos approached the two men, striking one in the face. That victim subsequently fled.
Quinones-Amos then pointed a firearm at the driver and struck him in his face with the gun multiple times. Quinones-Amos entered and drove off in the victim’s vehicle while he laid motionless on the ground.
Law enforcement later recovered the vehicle and were able to link it to Quinones-Amos through DNA testing.
In addition, the investigation further revealed Quinones-Amos was selling fraudulent credit cards and money orders in the names of other people.
Quinones-Amos will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Houston Police Department and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Adam Laurence Goldman prosecuted the case.
Federal Grand Jury Indicts Bullitt County Man for Federal Firearms OffensesRead the Press Release
Louisville, KY – A federal grand jury in Louisville returned an indictment on November 5, 2024, charging a Bullitt County man with possession of a firearm by a convicted felon and possession of an unregistered firearm.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Sheriff Walt Sholar of the Bullitt County Sheriff’s Office made the announcement.
According to the indictment, Jason Argenbright, 45, of Lebanon Junction, was charged with possession of a firearm by a convicted felon and possession of an unregistered firearm. On August 20, 2024, Argenbright possessed a DPMS Arms, model A-15, .223 caliber rifle. The rifle was equipped with silencer not registered to him in the National Firearms Registration and Transfer Record. Argenbright was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses.
On January 28, 2011, in Bullitt Circuit Court, Argenbright was convicted of manufacturing methamphetamine.
On March 2, 2011, in Bullitt Circuit Court, Argenbright was convicted of possession of a controlled substance, first degree, first offense and unlawful possession of a methamphetamine precursor.
On November 29, 2007, in Bullitt Circuit Court, Argenbright was convicted of possession of a controlled substance, first degree, first offense – drug unspecified.
The defendant made his initial court appearance on November 13, 2024, before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. The Court ordered the defendant detained pending trial. If convicted, he faces a maximum sentence of 25 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.There is no parole in the federal system.
This case is being investigated by the ATF and Bullitt County Sheriff’s Office.
Assistant U.S. Attorney Frank Dahl 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.
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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Drug Trafficker with Gun Sentenced to 20 Years After Leading State Troopers on High-Speed ChaseRead the Press Release
RALEIGH, N.C. – Shoun Lamelle Wright Jr., 28, a resident of Sumter, South Carolina, was sentenced to 240 months in prison for drug trafficking and firearms offenses after he led law enforcement on a high-speed chase. These charges included possession with intent to distribute methamphetamine, cocaine, and fentanyl, as well as possession of a firearm by a felon. On August 4, 2024, he pled guilty to the charges.
“This armed drug runner tried to flee from state troopers at 135 miles per hour before ditching his dope out the driver’s side door,” said U.S. Attorney Michael F. Easley, Jr. “Running from law enforcement never works, and puts innocent motorists at risk. Many thanks to the NC Highway Patrol and Jacksonville Police for taking this dangerous felon off the streets.”
“This case not only highlights the risks that our members incur during the performance of their duties, but also the perilousness that hard-working North Carolinians can face as a result of such actions as they travel on our state’s highways,” said Colonel Freddy Johnson Jr., Commander of the North Carolina State Highway Patrol. “Our mission is to ensure the safety of our state’s motorists and inhabitants, and we greatly value the partnership of the Department of Justice in their pursuit to place accountability of criminals at the forefront to help us accomplish this mission. The decisiveness of this sentencing is undoubtedly a victory for the people of North Carolina.”
“Mr. Wright's complete and utter disregard for the safety of others is disturbing. Not only was he involved in activities that harmed our community, but he also deliberately put resident's lives at risk with his actions. I am thankful no one in the community was physically harmed by his actions. I commend the members from the Jacksonville Police Department, N.C. State Highway Patrol, the Federal Bureau of Investigation, and the U.S. Attorney's Office for their service to our community and for their excellent collaboration in bringing this case to a successful resolution,” said Jacksonville Police Chief Jarad Phelps.
According to court documents and other information presented in court, the N.C. State Highway Patrol (NCSHP) conducted a traffic stop on a vehicle driven by Wright on July 21, 2021. Wright initially pulled over and then fled as the trooper approached his vehicle, driving up to 135 miles per hour. Law enforcement made a successful stop when the vehicle entered Jacksonville. Once stopped, Wright dropped a bag containing 26 grams of crack out of the driver’s door, and a search of the vehicle resulted in the seizure of marijuana.
On July 29, 2021, officers with the Jacksonville Police Department (JPD) responded to a call from a security guard at the Platinum Gentlemen’s Club who saw an armed individual bagging narcotics in the establishment’s parking lot. The security guard stated that the individual, later identified as Wright, had pointed a pistol at him as he approached the vehicle. Later that day, a JPD officer identified the vehicle driven by Wright parked at a residence known to law enforcement due to previous narcotics and violent crime investigations. After Wright left the residence, the JPD officer initiated a traffic stop on his vehicle. Officers returned to the residence and conducted a search where they seized a loaded 9mm pistol with an obliterated serial number, a 27-round magazine, a second 9mm pistol, and a loaded .380 caliber pistol. They also seized nearly 2,000 grams of marijuana, more than 55 grams of crack, more than eight grams of cocaine, and over $7,000 in cash. Wright claimed ownership of the drugs and guns found at the residence. As a previously convicted felon, Wright cannot legally possess a firearm or ammunition.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The NCSHP, the JPD, and the FBI investigated the case.
Assistant U.S. Attorneys Ashley Foxx and Leonard Champaign prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:21-CR-00100-BO.
Delco Man Sentenced to More Than 11 Years in Prison for Armed Robbery of Metro by T-Mobile Store in 2022Read the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jason Donte Hayes, 26, of Clifton Heights, Pennsylvania, was sentenced today by United States District Court Judge Paul S. Diamond to 135 months in prison and five years of supervised release for the armed robbery of a Delaware County cellular phone store. At the time of the crime, Hayes was on state probation for burglary and a previous robbery.
In August 2022, Hayes was charged by indictment with one count of robbery interfering with interstate commerce (Hobbs Act robbery) and one count of using and carrying a firearm during and in relation to a crime of violence, pleading guilty to those charges in May of this year.
On the afternoon of June 9, 2022, Hayes entered a Metro by T-Mobile store in Clifton Heights, Pa. He initially posed as a customer, asking the store employee about the price of a wireless headset. Shortly thereafter, Hayes pointed a gun at the employee and stated that he “wanted the stuff.” In response, the employee placed the headset into the defendant’s open backpack. “No, the money,” Hayes replied. The employee opened the cash register and put $452 into the defendant’s backpack.
Hayes, removing a roll of duct tape from the backpack, ordered the employee to a rear office. He tied the employee to a chair and left the office, then walked out of the store with the headset and cash. The employee was eventually able to free himself and call 911.
As part of their investigation, Clifton Heights police obtained numerous video surveillance clips from residences and businesses in the area. They determined that the robber left the store on foot and walked to a Clifton Heights home, which proved to be the defendant’s residence.
Details of the robbery and the surveillance footage were disseminated within the Clifton Heights Police Department. Two weeks after the robbery, police officers spotted Hayes in front of his residence and took him into custody. At the time of his arrest, the defendant was wearing the stolen wireless headset and carrying a loaded .45 caliber pistol and ammunition in his backpack.
“Terrorizing an employee who’s just trying to earn a living so that you can steal money and merchandise is outrageous,” said U.S. Attorney Romero. “My office, the FBI, and our partners are working every day to hold armed repeat offenders like Mr. Hayes accountable, with the public’s safety our number one priority.”
“Armed robberies threaten the safety and security of our communities, undermining the hard work the FBI and its partners put in every day to protect the public," said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “Today's sentencing sends a clear message: the FBI is steadfast in its commitment to removing violent offenders from our streets and ensuring they face justice."
The case was investigated by the Clifton Heights Police Department and FBI Philadelphia’s Newtown Square Resident Agency and is being prosecuted by Special Assistant United States Attorney Sandra M. Urban.
Chicago-Area Rap Artist and Celebrity Barber Pleads Guilty to Role in Nationwide Fraud ConspiracyRead the Press Release
BOSTON – A Chicago man has pleaded guilty in federal court in Springfield, Mass. to his role in a nationwide wire fraud conspiracy that victimized businesses and individuals across the United States.
Terrence Bender, a/k/a “Blends,” a/k/a “Dopeblends,” 32, pleaded guilty on Nov. 14, 2024 to one count of conspiracy to commit wire fraud. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Feb. 27, 2025. Bender was indicted by a federal grand jury in December 2020 along with five co-defendants, including rap promoter Antonio Strong, rap artists Herbert Wright and Joseph Williams, their associate Demario Sorrells and one other co-defendant.
According to court documents, beginning in at least March 2017 through November 2018, Bender, Strong, Williams, Sorrells, Wright and, allegedly, one other co-defendant conspired to defraud numerous businesses and individuals throughout the United States by using unauthorized and stolen payment card account information of real individuals – including the actual cardholders' names, addresses, security codes and account expiration dates. Generally, because the payment card information was authentic, the defrauded businesses and individuals successfully processed the fraudulent transactions and provided the goods and services to Bender and his co-conspirators. The actual cardholders discovered these transactions on their accounts and disputed the charges with their card companies who then charged back the transactions to the businesses and individuals, who consequently suffered losses in the amounts of the unauthorized transactions.
Strong was a music promoter and Bender was a rap artist and celebrity barber in the area around Chicago. Bender and his co-conspirators used illicit account information to obtain, among other things, a private jet chart flight, a New York City villa rental, designer puppies from a pet boutique and car insurance in Bender’s own name. In total, Bender was responsible for $103,000 in victim losses.
On July 28, 2023, Wright pleaded guilty to one count of conspiracy to commit wire fraud and one count of making a false statement to a federal official, and on Jan. 11, 2024, was sentenced to three years’ probation and was ordered to pay restitution and forfeiture of $139,968and a $5,500 fine. On Feb. 2, 2024, Sorrells pleaded guilty to one count of conspiracy to commit wire fraud and, on Aug. 29, 2024, was sentenced to three years’ probation and ordered to pay restitution and forfeiture of $106,481. On March 8, 2024, Williams pleaded guilty to one count of conspiracy to commit wire fraud and, on Aug. 13, 2024, was sentenced to three years’ probation and ordered to pay restitution and forfeiture of $155,392. On May 22, 2024, Strong pleaded guilty to one count of conspiracy to commit wire fraud and four counts of wire fraud and, on Oct. 29, 2024, was sentenced to three years in prison and ordered to pay restitution and forfeiture of $2,159,874.
The charge of wire fraud conspiracy provides for a sentence of up to 20 years in prison, up to five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Andrew Murphy, Special Agent in Charge of the United States Secret Service, Boston Field Office made the announcement. Assistant U.S. Attorney Steven H. Breslow of the Springfield Branch Office and Trial Attorneys Andrew Tyler and Kyle Crawford of the Justice Department’s Criminal Division’s Fraud Section are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Chicago Man Sentenced to 20 Years in Federal Prison for Robbing Three Banks at GunpointRead the Press Release
CHICAGO — A Chicago man has been sentenced to 20 years in federal prison for robbing three banks at gunpoint.
In 2020 and 2021, CHRISTOPHER PORTER, 53, robbed a bank in Evergreen Park, Ill., and two banks in Chicago. In all of the robberies, Porter pointed a gun at tellers and customers. In the third robbery, Porter put a customer in a headlock, pointed a gun at his head, and pinned him against a wall.
A federal jury in 2022 convicted Porter of all three robberies, as well as a firearm charge. U.S. District Judge Sharon Johnson Coleman imposed the sentence on Thursday during a hearing in federal court in Chicago.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Cook County Sheriff’s Office.
“Defendant terrorized innocent bank tellers and customers,” Assistant U.S. Attorneys Thomas P. Peabody and Paige A. Nutini argued to the Court at sentencing. “His short spree of bank robberies was serious, violent, criminal conduct.”
Buffalo man sentenced for his role in narcotics conspiracy which resulted in a triple homicideRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that James Reed a/k/a Fatts, 42, of Buffalo, NY, who was convicted of narcotics conspiracy, conspiracy to obstruct justice, use of fire to commit a felony, and accessory after the fact, was sentenced to serve 166 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorneys Michael J. Adler, Maeve E. Huggins, and Joseph M. Tripi, who handled the case, stated that beginning in 2014, Reed, and others, began receiving and selling marijuana, heroin, and cocaine. Reed, and his co-conspirators utilized 973 Fillmore Avenue to store, package, and sell the illegal narcotics. In furtherance of the narcotics conspiracy, on September 15, 2019, Reed accompanied co-defendant Jariel Cobb to purchase a kilogram of cocaine from Miguel Anthony Valentin-Colon and Dhamyl Roman-Audiffred, who served as Cobb’s sources of supply. Valentin-Colon, along with his wife. Nicole Marie Merced-Plaud, their minor son, and Roman-Audiffred, arrived in their vehicle, a white minivan, at a residence on Roebling Avenue, as directed by Cobb. Roman-Audiffred exited the van and entered the residence’s kitchen, at which time co-defendant Deandre Wilson hit her in the head with a blunt object and she fell to the floor. Wilson then went outside and shot and killed both Valentin-Colon and Merced Plaud, in the presence of their minor son, who was seated in a child’s car seat. Wilson then drove the minivan and parked it on Scajaquada Street near Kilhoffer Street in Buffalo.
A short time later, Reed and Cobb moved the body of Dhamyl Roman-Audiffred from the kitchen into the residence’s basement, where they dismembered her body. Cobb placed the body parts into multiple trash bags and placed them into the trunk of his vehicle, and then Cobb and Reed drove to a residence on Box Avenue, removed the trash bags, and placed them into a burning fire in a fire pit area in the backyard.
The following day, during the early morning hours of September 16, 2019, Cobb and Wilson retrieved the minivan from Scajaquada Street, with the bodies of Miguel Valentin-Colon and Nicole Marie Merced-Plaud still inside, as well as their minor son. They drove the minivan into the yard of a residence on Tonawanda Street and doused the vehicle and the bodies with gasoline, lighting the vehicle and bodies on fire. They took the minor child and left him on a stranger’s porch on Potomac Avenue in Buffalo.
James Cobb and Deandre Wilson were previously convicted. Cobb was sentenced to serve 20 years in prison, while Wilson was sentenced to serve three life sentences.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia; the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia; the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia; the Erie County Central Police Services Forensic Laboratory, under the direction of Commissioner James Jancewicz. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney Michael Keane.
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Bronx Man Sentenced to 13 Years for Participating in International Fraud and Money Laundering SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that BASHIRU GANIYU was sentenced today by U.S. District Judge Lewis A. Kaplan to 13 years in prison for his role in a criminal enterprise that defrauded individuals and businesses across the U.S. of millions of dollars. In April 2024, GANIYU was convicted following a jury trial of conspiracy to commit mail fraud and wire fraud, conspiracy to commit money laundering, conspiracy to receive stolen money, and receipt of stolen money.
U.S. Attorney Damian Williams said: “The defendant participated in a criminal enterprise that preyed on elderly people and other unsuspecting victims, deceiving them into sending millions of dollars in romance scams and other schemes. The defendant’s conduct devastated victims around the country, including many who were looking for companionship. Today’s sentence holds the defendant accountable for his conduct.”
As reflected in the Indictment, court filings, and the evidence presented at trial:
From in or about 2020 through in or about 2022, a criminal enterprise (the “Enterprise”) based in Ghana committed a series of romance scams and business email compromises against individuals located across the U.S., including in the Southern District of New York. The Enterprise conducted the romance scams by using electronic messages sent via email, text messaging, or online dating websites that deluded victims, many of whom were vulnerable older men and women who lived alone, into believing the victim was in a romantic relationship with a fake identity assumed by members of the Enterprise. Once members of the Enterprise had gained the trust of the victims using the fake identity, they used false pretenses to cause the victims to wire money to bank accounts the victims believed were controlled by their romantic interests, when in fact the bank accounts were controlled by members of the Enterprise like GANIYU. The Enterprise also used business email compromises to trick individuals and businesses to send funds that the victims believed were being sent to legitimate business counterparties but were actually sent to accounts controlled by members of the Enterprise.
GANIYU received money sent by more than 40 victims of the Enterprise under false pretenses into 10 bank accounts held in the name of his purported business located in the Bronx, New York. After receiving nearly $12 million in stolen funds, GANIYU laundered these criminal proceeds to other members of the Enterprise or abroad at the direction of his co-conspirators.
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In addition to the prison term, GANIYU, 39, of the Bronx, New York, was sentenced to three years of supervised release and ordered to forfeit $11,744,115.07 and pay restitution in the amount of $7,675,785.32.
Mr. Williams praised the outstanding investigative work of the FBI.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Danielle Kudla and Matthew Weinberg are in charge of the prosecution, with assistance from Paralegal Specialist Lucy Gavin.
Brevard County Man Sentenced to More Than 8 Years in Federal Prison for Distributing FentanylRead the Press Release
Orlando, Florida – U.S. District Judge Julie S. Sneed has sentenced Jaylun Ramon Brown (30, Melbourne) to eight years and four months in federal prison for distributing fentanyl. Brown pled guilty on August 14, 2024.
According to court documents, a confidential source was used to conduct controlled purchases of fentanyl from Brown in 2024, first through a middleman, then directly from Brown. The controlled purchases revealed that Brown could distribute ounce and multiple ounce quantities of fentanyl at a time. A search warrant was also executed at Brown’s residence, resulting in the recovery of additional fentanyl. Much of the fentanyl distributed by Brown was adulterated with xylazine, also known to as “tranq,” “tranq dope,” and “zombie drug,” which was created as an animal tranquilizer for veterinary procedures and is not suitable or authorized for use in humans due to causing respiratory depression and low blood pressure.
This case was investigated by the Drug Enforcement Administration, the Palm Bay Police Department, and the Melbourne Police Department. It was prosecuted by Assistant United States Attorney Megan Testerman.
Boston Man Sentenced to Prison for Fraudulently Obtaining Nearly $50,000 in COVID-Relief FundsRead the Press Release
BOSTON – A Boston man was sentenced on Nov. 15, 2024 for fraud and false statements charges in connection with a scheme to fraudulently obtain pandemic-related relief funds from the Paycheck Protection Program (PPP) made available under the Coronavirus Aid, Relief, and Economic Security Act.
Antawn Davis, 40, was sentenced by U.S. District Court Judge Julia E. Kobick to five months in prison and two years of supervised release. Davis was also ordered to pay $49,999 in restitution and forfeiture. In June 2024, Davis pleaded guilty to one count of wire fraud and one count of making false statements. Davis was arrested in February 2024 along with over 40 alleged Heath Street Gang members/associates, who were charged with racketeering conspiracy; drug trafficking; firearms charges; and financial frauds, including COVID-related fraud.
In April and May 2021, Davis submitted fraudulent PPP loan applications on behalf of his purported business. The applications contained multiple false statements, including the purported business’ total gross income in 2020 and the purpose of the loan. Davis also submitted false tax records in support of his loan applications. Based on the fraudulent applications, Davis received approximately $49,999 in PPP loans, which he then spent on non-business-related expenses, including transactions at a casino and at Saks Fifth Avenue.
Acting United States Attorney Joshua S. Levy; Boston Police Commissioner Michael Cox; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General; and Harry T. Chavis Jr, Special Agent in Charge of the Internal Revenue Service Criminal Investigations made the announcement today. Assistant U.S. Attorneys Sarah Hoefle and Lucy Sun of the Organized Crime & Gang Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Borrego Springs Man Sentenced to 120 Months in Prison for Possessing Child Sex Abuse MaterialRead the Press Release
NEWS RELEASE SUMMARY
SAN DIEGO – Robert Clonts, a registered sex offender from Borrego Springs, was sentenced in federal court today to 10 years in prison for possessing approximately 147 images of child sex abuse material.
According to court documents, the National Center for Missing and Exploited Children (NCMEC) received information from an online service provider about a customer who uploaded approximately 147 images of child sex abuse material on May 25, 2023. NCMEC provided this information to the Federal Bureau of Investigation, which identified Clonts as the customer who uploaded the child sex abuse material.
Following his arrest in December 2023, Clonts admitted to obtaining and viewing child pornography on a cellular device and other media devices. Clonts also verified his email address and phone number matched the information on the suspect account that uploaded the 147 images containing sexually explicit depictions of prepubescent minors.
Clonts pleaded guilty on August 13, 2024, admitting he possessed images of minors engaged in sexually explicit conduct. According to publicly filed documents in this case, Clonts was previously convicted in 1990 of lewd and lascivious acts with a child under the age of 14, which resulted in his registration as a sex offender.
“This defendant’s actions are a grave violation of both the law and human decency,” said U.S. Attorney Tara McGrath. “Those who put children in jeopardy will face the full force of justice.”
“This sentence should send a clear message that individuals who think they can get away with sexually exploiting children will be vehemently sought by law enforcement and ultimately brought to justice,” said FBI San Diego Special Agent in Charge Stacey Moy. “The FBI and it’s law enforcement partners take great pride in locking up criminals who commit these types of crimes and will remain dedicated to ensuring the safety of all Americans, especially children.”
This case is being prosecuted by Assistant U.S. Attorney Andrew Sherwood.
DEFENDANTS Case Number 24CR0048-H
Robert Colia Clonts Age: 67 Borrego Springs, CA
SUMMARY OF CHARGES
Possession of Images of Minors Engaged in Sexually Explicit Conduct – Title 18, U.S.C., Section 2452(a)(4)(B)
Maximum penalty: Twenty years in prison, and a mandatory minimum prison term of 10 years; $250,000 fine; Supervised release for life; Registration as a sex offender under the Sex Offender Registration and Notification Act
INVESTIGATING AGENCY
Federal Bureau of Investigation
Anchorage man guilty of August 2024 bank robberyRead the Press Release
ANCHORAGE, Alaska – A federal jury convicted an Anchorage man late Friday for robbing a credit union in August 2024.
According to court documents and evidence presented at trial, on Aug. 12, 2024, Joseph Sledge, 30, arrived at a credit union in Anchorage around 11:35 a.m. and stated that he needed to make a withdrawal to a nearby security guard. Sledge entered the credit union wearing a baseball cap, grey COVID-19 facemask with a local Native corporation’s logo on it, flannel shirt, jeans and a plastic Pirate Bay necklace.
Sledge walked into the lobby and looked around before a teller signaled Sledge over to his station. Sledge approached and tossed a note on the counter that stated, “Give me $50,000 and all your cash.” The teller read the note multiple times and observed Sledge silently staring at him before he sent a message to his co-workers stating, “Code Red,” which meant there was a robbery in progress.
The teller placed $2,500 on the counter and Sledge left with the money and note.
When investigators identified the logo on Sledge’s mask, they distributed still shots from the robbery to the Native corporation and one employee recognized the defendant from an interaction earlier that day. Roughly 30 minutes before the robbery, Sledge went to the Native corporation’s office to pick up a shareholders check. When a staff member told him the check was not ready, he grabbed a COVID-19 mask with the company’s logo on it that were available for members and left.
Sledge then went to a different floor in the same building and entered a property management office where he asked a staff member if they were happy with their security. Sledge then asked the staff member for $20 and snacks, but the employee said no and asked Sledge to leave.
Sledge then exited the office and sat down at a coffee shop on the first floor of the building and fell asleep. At roughly 11:34 a.m., a building security guard asked Sledge to leave. The guard followed the defendant off the premise and observed him walking in the direction of the credit union. Sledge entered the credit union roughly one minute later.
On Aug. 16, 2024, law enforcement located and arrested Sledge at a location along the Seward Highway. At the time of his arrest, Sledge was wearing the same necklace, flannel shirt and jeans as worn during the robbery.
Sledge was convicted of one count of credit union robbery.
“There’s no such thing as free money in the United States of America,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Mr. Sledge used intimidation to steal from a local credit union and will now face the consequences of his actions. Thank you to the FBI and Anchorage Police Department for contributing to this successful prosecution. Our office will continue to work with law enforcement to hold criminals accountable and fight for justice.”
"Today’s conviction demonstrates the FBI’s commitment to aggressively pursue criminals who terrorize and steal from our community,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “Utilizing FBI Anchorage’s Safe Streets Task Force, the FBI will continue to work closely with our law enforcement partners to pursue and apprehend criminals like Joseph Sledge so they are held accountable for their crimes.”
The FBI Anchorage Field Office and Anchorage Police Department investigated the case.
Assistant U.S. Attorneys Amy Miller and Alana Weber are prosecuting the case.
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Albion Man Sentenced for Guns-for-Drugs Straw Purchase SchemeRead the Press Release
BANGOR, Maine: An Albion man was sentenced in U.S. District Court in Bangor today for knowingly making false statements to a Federal Firearms Licensee (FFL) while purchasing firearms.
U.S. District Judge John A. Woodcock, Jr. sentenced Jason Palmer, 43, to 12 months and one day in prison followed by three years of supervised release. Palmer pleaded guilty on October 24, 2023.
According to court records, between June and August 2022, Palmer obtained five pistols in five separate transactions with an FFL located in Fairfield. In each of those transactions, Palmer completed the required Form 4473 and misrepresented that he was the actual buyer of the firearm when he was in fact purchasing it for another individual. He also falsely indicated on the form that he was not an unlawful user of any controlled substances. In an interview with law enforcement, Palmer admitted that he had been offered heroin/fentanyl in exchange for purchasing the firearms.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Waterville Police Department investigated the case.
STRAW PURCHASING: A straw purchase is an illegal firearm purchase where the actual buyer of the gun, being unable to pass the required federal background check or desiring to not have his or her name associated with the transaction, uses a proxy buyer who can pass the required background check to purchase the firearm for him/her.
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80 Year Prison Term for Man Convicted in Double Homicide in Southeast WashingtonRead the Press Release
WASHINGTON – Beysean Jones, 29, of Washington, D.C., was sentenced today to 80 years in prison for the July 2022 deadly shooting of Ronald Brown, 19, and Tijuan Wilson, 41, in Southeast Washington, D.C. The announcement was made by U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
A Superior Court jury found Jones guilty of two counts of first-degree murder while armed, one count of assault with intent to kill, three counts of possession of a firearm during a crime of violence, and two counts of possession of a firearm by a person previously convicted of a crime on June 26, 2024, before the Honorable Michael O’Keefe.
According to the evidence presented during trial, on July 22, 2022, Beysean Jones and Ronald Brown argued at the SC Discount Tobacco and Grocery store on South Capitol St. SW. Shortly thereafter, shots fired from Brown’s vehicle struck Jones’ vehicle and Jones returned fire in the 4000 block of Livingston Rd. SE. A civilian witness who associated with Jones in the drug trade testified about texts he received from Jones about the shooting on the 22nd and Jones’ actions in preparing to retaliate against Brown, including putting a $30,000 bounty on the person who shot him.
Just five days later, surveillance video captured a vehicle follow Ronald Brown’s vehicle into a residential parking lot surrounded by apartments in the 4300 block of 4th St. SE. That vehicle backed into a parking space several spaces down from Brown’s vehicle and at least two shooters opened fire with both .40 caliber and rifle rounds, firing over 60 rounds in the direction of Brown. This barrage of fire killed Tijuan Wilson and badly injured his partner of over 18 years, though luckily their children, who were outside at the time, were unharmed. Others in the parking lot returned fire. Multiple vehicles and residential buildings were damaged by gunfire.
Casings left behind on July 27th near the suspect vehicle were ballistically linked to the casings Jones fired at Brown on July 22nd.
The convictions would not have been possible without the assistance of the extraordinary efforts of Metropolitan Police Department Homicide Squad, led by Detective Konstantinos “Gus” Giannakoulias, and the excellent work of personnel from the U.S. Attorney’s Office including, Lead Paralegal Specialist Meridith McGarrity, Paralegal Specialist LaShone Samuels, Supervisory Paralegal Specialist Tasha Harris, Victim/Witness Program Specialist Latrice Washington-Williams, Investigative Analyst Zach McMenamin, Supervisory IT Specialist Leif Hickling, Litigation Technology Specialist Sigourney Jackson, Witness Security Specialist Marlon Hernandez, Witness Security Specialist Robert Cephas, Supervisory Victim Witness Service Coordinator Katina Adams, Victim Witness Service Coordinator Shanika McCullough, Homicide Interns Tasha Dambacher and Karen Padilla, and former Homicide Intern Xander de los Reyes.
It was prosecuted by Assistant U.S. Attorneys Andrea Antonelli and Zach Horton of the U.S. Attorney’s Office for the District of Columbia.
17 November 2024
Taunton Man Sentenced to Two Years in Prison for Illegally Possessing FirearmRead the Press Release
BOSTON – A Taunton man was sentenced on Nov. 15, 2024 for being a felon in possession of a firearm.
Jermaine Rodrigues, 34, was sentenced by U.S. District Court Judge Angel Kelley to two years in prison, followed by three years of supervised release. In June 2024, Rodrigues pleaded guilty to one count of being a felon in possession of a firearm. In July 2023, Rodrigues was indicted by a federal grand jury.
In June 2022, Rodrigues possessed two Anderson Manufacturing AM-15, .300 blackout firearms – one of which was equipped with a laser sight and optics affixed to the top rail. In addition, Rodrigues possessed almost 100 rounds of .300 blackout ammunition.
Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement. Valuable assistance was provided by the Taunton and Fall River Police Departments. Assistant United States Attorneys Luke A Goldworm and Meghan C. Cleary of the Major Crimes Unit are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
16 November 2024
Three Men Charged in Proactive Law Enforcement ActionRead the Press Release
CONCORD – Charging documents were unsealed earlier today alleging three defendants attempted to sex traffic a child at a Manchester hotel, U.S. Attorney Jane E. Young announces. These three defendants were arrested as a result of a proactive federal and local law enforcement action.
To date the following defendants have been charged by criminal complaint with attempted sex trafficking of a minor:
- Stacey Ray Lancaster, age 46, Hudson, New Hampshire. Lancaster is in federal custody and will appear in federal court on Monday, November 18, 2024 at 1:00pm.
- Arthur Picanco, age 42, Bradford, Massachusetts. Picanco is in federal custody and will appear in federal court on Monday, November 18, 2024 at 3:00pm.
- Ozeias Luiz Guilherme, age 38, Haverhill, Massachusetts. Guilherme is in federal custody and will appear in federal court on Monday, November 18, 2024 at 2:30pm.
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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15 November 2024
Woman Charged with Embezzling more than $100,000 in Funds Used to Support Children in Foster Care from the Spokane Tribe of IndiansRead the Press Release
Spokane, Washington – On November 7, 2024, a federal grand jury for the Eastern District of Washington returned an indictment charging Tawhnee Willow Colvin, of Davenport, Washington, with more than two dozen counts for allegedly embezzling more than $100,000 from the Spokane Tribe of Indians.
Between September 2019 and October 2023, Colvin was employed as Assistant Director of the Spokane Tribe of Indians’ Department of Health and Human Services and Division of Child and Family Services (DCFS).
As part of her position as Assistant Director of DCFS, Colvin had access to the Spokane Tribe of Indians bank account that held per capita funds for children who were in foster care. This DCFS bank account was maintained to ensure that guardians would receive these funds for the children in their care. According to the indictment, caregivers received funds by a check from the DCFS bank account or in cash. When caregivers accepted a cash payment, they signed a receipt to document the disbursement. Documentation of checks and cash receipts were to be maintained by the Spokane Tribe of Indians Department of Health and Human Services.
As alleged in the indictment, between October 2019 and November 2023, Colvin made more than 50 fraudulent money transfers, totaling $50,880, from the DCFS bank account to her own personal bank account. The indictment further alleges that between September 2019 and April 2021, on at least 17 different days, Colvin made cash withdrawals totaling $49,950 for which DCFS has no documentation or receipts supporting that any of these funds were provided to caregivers.
“Individuals in positions of trust have an obligation to protect the funds they oversee. This is all the more important for resources dedicated to vulnerable members of our community, such as children in foster care,” said United States Attorney Vanessa R. Waldref. “My office takes fraud seriously, and will continue to work with our federal, tribal, state, and local law enforcement to expose and prosecute public corruption, self-dealing, and fraud.”
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by United States Attorney Vanessa Waldref and Assistant United States Attorney Dan Fruchter.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
2:24-cr-00148-TOR
Winter Park Man Sentenced to More Than Five Years in Federal Prison for Receiving Child Sex Abuse ImagesRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Kevin Thompson (35, Winter Park) to five years and six months in federal prison for receipt of child sex abuse material. Thompson entered a guilty plea on July 22, 2024.
According to court documents, an undercover FBI agent discovered an Internet Protocol (IP) address that was sharing files containing child sex abuse material. The investigation traced the IP address back to Thompson and his Winter Park residence. During the execution of a search warrant at Thompson’s residence, the FBI located dozens of files depicting the sexual abuse of children on Thompson’s smartphone device. During an interview with FBI agents, Thompson admitted to utilizing his smartphone to download and view child sex abuse material while at his residence. Thompson further told agents that he had been viewing child sex abuse material for approximately 14 years.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Michael Sartoian.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Washington State Resident Sentenced to 14 Years in Prison for Role in Fentanyl Trafficking ConspiracyRead the Press Release
JOHNSTOWN, Pa. – A resident of SeaTac, Washington, was sentenced in federal court to 168 months in prison, to be followed by five years of supervised release, on his conviction of conspiracy to distribute and possession with intent to distribute fentanyl, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Sahal Sahal, 38, on November 14, 2024.
According to information presented to the Court, from in and around October 2022 to in and around June 2023, in the Western District of Pennsylvania, Sahal conspired with others to distribute and possess with intent to distribute 400 grams or more of fentanyl. Sahal was intercepted on a federal wiretap obtaining quantities of fentanyl that he distributed to others.
Assistant United States Attorney Arnold P. Bernard Jr. prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation’s Laurel Highlands Resident Agency and Homeland Security Investigations for the investigation that led to the successful prosecution of Sahal. Additional agencies participating in this investigation include the Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, and other local law enforcement agencies.
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.
Virginia hospital system agrees to $2.37M False Claims settlementRead the Press Release
ALEXANDRIA, Va. – Inova Health System Foundation, Inova Health Care Services, Inc., and Inova Physician Partners, LLC, (collectively, Inova), located in Falls Church, agreed to pay $2,378,731.06 to settle claims that it submitted claims to Medicaid that contained falsified information.
Inova voluntarily submitted written disclosures to the U.S. Attorney’s Office and the Virginia Attorney General’s Office. Specifically, the disclosure stated that, between Jan. 1, 2020, and Aug. 31, 2020, Inova had submitted claims to Medicaid for reimbursement, including resubmitted claims for reimbursement, for sterilization and hysterectomy procedures that contained documentation that had been improperly modified by or at the request of one or more Inova employees. These modifications resulted in the claim containing falsified information. Following an internal investigation, Inova took remedial actions and agreed that $1,585,820.71 received from Medicaid was improper.
This settlement resolves federal and state civil claims under the federal False Claims Act, Virginia Code §§ 32.1-312,32.1-313, and 8.01-216 et seq., and common law remedies.
Inova received full credit under the Justice Department’s guidelines for taking disclosure, cooperation, and remediation into account in False Claims Act cases.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia, the Department of Health and Human Services, Office of Inspector General, and the Office of the Attorney General for the Commonwealth of Virginia, Medicaid Fraud Control Unit.
The matter was handled by Assistant U.S. Attorney John E. Beerbower and Kimberly M. Bolton, Assistant Attorney General, Virginia Medicaid Fraud Control Unit.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
The civil claims settled are allegations only; there has been no determination of civil liability.
United States Reaches Settlement Agreement to Make Daycare Program Accessible for Children with DisabilitiesRead the Press Release
ATLANTA – The United States Attorney’s Office for the Northern District of Georgia has entered into a settlement agreement with Smarter Kids Child Care (“Smarter Kids”) located in Smyrna, Georgia, to resolve allegations that Smarter Kids violated the Americans with Disabilities Act (“ADA”) by denying a child an opportunity to participate in its daycare program on the basis of his autism.
“Access to childcare is essential for all parents, including those parents raising children with disabilities” said U.S. Attorney Ryan K. Buchanan. “Children with disabilities deserve equal opportunities to participate in daycare programs, and my office looks forward to working with Smarter Kids to ensure it meets this critical obligation.”
Title III of the ADA prohibits discrimination on the basis of disability in the full and equal enjoyment of the goods, services, facilities, and privileges of any place of public accommodation. Smarter Kids is a private entity that operates childcare facilities that are places of “public accommodation” within the meaning of Title III of the ADA.
Based on the agreement, Smarter Kids will adopt a non-discrimination policy to ensure ADA compliance. Smarter Kids will also provide mandatory training for all employees who consider requests for reasonable accommodations or make enrollment decisions. Additionally, Smarter Kids will pay $7,000 in compensation to the complainant and $1,000 to the United States as a civil penalty.
The case is being handled by Assistant U.S. Attorney Rahul Garabadu and Senior Civil Investigator Tamara Jones.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Settlement Agreement:
smarter_kids_settlement_agreement_executed.pdfU.S. Attorney Damien M. Diggs announces Operation Purple Ribbon targeting domestic violence offenders in the Eastern District of TexasRead the Press Release
PLANO, Texas – Bringing an end to domestic violence is a top priority for the U.S. Department of Justice. Domestic violence is a pervasive problem in Texas, where, in 2023, 205 Texans were killed by their intimate partners across 64 counties. The Eastern District of Texas is proud to announce the unveiling of Operation Purple Ribbon—an initiative specifically targeting domestic violence abusers for federal prosecution, announced U.S. Attorney Damien M. Diggs.
Domestic violence is a pattern of abusive behavior in any relationship that is used by one partner to gain or maintain power and control over another intimate partner. It can happen to anyone regardless of race, age, sexual orientation, religion, sex, or gender identity. Domestic violence affects people of all socioeconomic backgrounds and education levels. Domestic violence occurs in both opposite-sex and same-sex relationships and can happen to intimate partners who are married, living together, dating, or share a child.
In an effort to prevent more domestic violence related homicides from occurring in the Eastern District of Texas, the strategy behind Operation Purple Ribbon is clear—to bring together and unite federal, state, and local resources for the sole purpose of holding domestic abusers accountable. The initiative prioritizes prosecutions of federal firearms offenses (and other criminal offenses) that arise in domestic violence settings. Operation Purple Ribbon is intended to be a force multiplier to the work already being by our state and local law enforcement partners, who do the heavy lifting in seeking to hold domestic abusers accountable.
Most federal domestic violence crimes fall into two categories:
Offenses under the Gun Control Act, which prevents prohibited persons—including convicted felons, individuals previously convicted of misdemeanor crimes of domestic violence, and individuals subject to certain protective orders—from possessing firearms, or from lying to firearms dealers about their status; and
Crimes under the Violence Against Women Act, which prohibits interstate stalking, cyberstalking, and using interstate commerce to commit domestic violence or violate protective orders.
Although Operation Purple Ribbon was formally announced last week, the Eastern District of Texas has been doing impactful work in this space for over a year and has prosecuted more than 20 domestic abusers who unlawfully possessed firearms. One of those cases was John Richard Burch, Jr., an individual with a history of domestic violence, sentenced to 235 months in federal prison for drug trafficking and firearms violations. Another case was Jorge Luis Castelan, Jr., sentenced to 57 months in federal prison for a firearms violation arising from a domestic disturbance.
“In the Eastern District of Texas, we must remain vigilant in our efforts to hold domestic abusers accountable, particularly when that abuser is in possession of a firearm, as it is our goal to promote peace and safety in the home,” said U.S. Attorney Damien Diggs. “We have no higher priority than keeping our communities and families safe. Every child deserves to grow up in a safe environment and without fear from those within their homes.”
Two KC Area Brothers Indicted for Possessing Machine GunsRead the Press Release
KANSAS CITY, Mo. – Two Kansas City, Mo., area men have been indicted by a federal grand jury, in separate cases, for illegally possessing machine gun conversion devices.
Demetrius Harris, also known as “Meech,” 24, of Kansas City, Mo., and his brother, Darius R. Harris, also known as “D” and “D2,” 22, of Raytown, Mo., were charged in two separate indictments returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, Nov. 6. Those indictments were unsealed and made public following the arrests and initial court appearances of the defendants.
The initial court appearances were held today for Demetrius Harris and on Thursday, Nov. 14, for Darius Harris.
Demetrius Harris was charged with one count of illegally possessing and transferring machine guns – an Anderson Manufacturing AM-15 multi-caliber rifle with an AR-type machine gun conversion device and two AR-type machine gun conversion devices – on Jan. 24, 2024.
Darius Harris was charged with two counts of illegally possessing and transferring a Glock-type machine gun conversion device on two separate occasions, on Oct. 30, 2023, and on Nov. 9, 2023.
Machine gun conversion devices, also known as “switches” or “auto searsa,” are used to convert semi-automatic weapons into machine guns that fire multiple shots automatically through a single pull of the trigger, enabling more rapid and often less accurate gunfire. Whether or not they are attached to a firearm, these devices constitute machine guns under federal law. It is therefore illegal to possess, sell, or use machine gun conversion devices.
These cases are being prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. They were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.