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Wednesday 2 October 2024
Campaign Treasurer for Candidate for Brooklyn Borough President Charged with Scheme to Defraud New York City's Campaign Finance BoardRead the Press Release
Earlier today, in federal court in Brooklyn, Erlene King was charged with wire fraud in connection with her attempt to steal funds from New York City’s Campaign Finance Board (CFB).
Breon Peace, United States Attorney for the Eastern District of New York and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the charge.
Mr. Peace expressed his appreciation to the New York City CFB for its cooperation and assistance during the investigation.
CFB Overview
The CFB oversees and administers a publicly funded campaign finance system in connection with municipal elections in New York City. This includes a “matching funds program” that provides eligible candidates with public funds based on the number and amount of certain donor contributions. According to the CFB, the program “empowers New Yorkers in every neighborhood to make their voices heard in city elections” and “by encouraging candidates to raise small-dollar contributions from average New Yorkers, the program increases engagement between voters and those who seek to represent them.”
Candidates running for the Office of the Brooklyn Borough President in the 2021 election cycle were eligible to participate in the CFB’s matching funds program if they met certain criteria. Among other things, to be eligible to receive public funds, candidates were required to meet a two-part fundraising threshold. Specifically, a candidate had to collect a minimum number of donations and raise a minimum amount of money from New York City residents before the CFB paid any matching funds.
For candidates who ran for the Office of the Brooklyn Borough President during the 2021 election cycle, candidates received up to $8 in matching funds for each $1 of eligible contributions, up to $175 per contributor. In other words, if a candidate received an eligible contribution of $175, a candidate for the Office of the Brooklyn Borough President could collect up to $1,400 in matching funds. In total, the matching funds program provided up to $1,457,777 in public matching funds to a candidate for the Office of the Brooklyn Borough President. Because campaigns for Brooklyn Borough President during the 2021 election cycle needed to raise at least $50,000 in eligible contributions to receive any matching funds, any candidate who was eligible to receive matching funds necessarily received at least $400,000 in matching funds from the CFB.
The Scheme
As alleged in court documents, King served as the campaign treasurer for a candidate who ran in a primary for the Office of the Brooklyn Borough President during the 2021 election cycle (Candidate #1). King obtained fraudulent donations for the purpose of inducing the CFB to provide matching funds to the campaign. A number of those contributions, which were obtained at King’s direction, were fraudulent nominee contributions made in the names of individuals who either did not personally fund the contributions or were later reimbursed for their contributions (i.e., straw donors). For example, King used CashApp to send money to intermediaries and instructed them to distribute the money to fund contributions from straw donors to Candidate #1. Other fraudulent contributions were made in the names of individuals whose identities were stolen and who had not personally contributed to Candidate #1. The CFB ultimately determined that the campaign submitted fictitious records and did not pay any public matching funds to the campaign.
The charges in the information are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to 20 years in prison.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Philip Pilmar and Eric Silverberg are in charge of the prosecution.
The Defendant:
ERLENE KING
Age: 71
Brooklyn, NYE.D.N.Y. Docket No. 24-CR-374 (CBA)
Bộ Tư Pháp và Cơ Quan Tư Pháp Tiểu Bang Colorado Cải Thiện Khả Năng Tiếp Cận Ngôn Ngữ tại Tòa Án Cho Những Cá Nhân Có Trình Độ Tiếng Anh Hạn ChếRead the Press Release
Bộ Tư Pháp hôm nay thông báo rằng Cơ Quan Tư Pháp Colorado đã thực hiện các bước quan trọng để đảm bảo quyền tiếp cận ngôn ngữ có ý nghĩa cho những người có trình độ tiếng Anh hạn chế (Limited English Proficiency, hoặc LEP) khi tương tác với hệ thống tòa án tiểu bang.
Vào tháng 7 năm 2023, Ban Dân Quyền của Bộ đã liên hệ với Cơ Quan Tư Pháp Tiểu Bang Colorado sau khi nhận được khiếu nại rằng tòa án không cung cấp các dịch vụ ngôn ngữ cần thiết cho những cá nhân có trình độ tiếng Anh hạn chế (LEP) theo yêu cầu của Tiêu Đề VI của Đạo Luật Dân Quyền Năm 1964 (Tiêu Đề VI). Tiêu Đề VI nghiêm cấm hành vi phân biệt đối xử dựa trên chủng tộc, màu da và nguồn gốc quốc gia của người nhận hỗ trợ tài chính liên bang.
Để trả lời yêu cầu của Bộ, Cơ Quan Tư Pháp Tiểu Bang Colorado đã xác định các bước chủ động được thực hiện để giải quyết những lo ngại nêu trong khiếu nại và làm việc với Ban để thực hiện nhiều cải tiến khác cho chương trình tiếp cận ngôn ngữ của mình.
“Trợ Lý Tổng Chưởng Lý Kristen Clarke thuộc Ban Dân Quyền của Bộ Tư Pháp cho biết: “Việc cung cấp dịch vụ phiên dịch chính xác và kịp thời trong và ngoài phòng xử án là tối quan trọng để đảm bảo tất cả người dùng tòa án đều được tiếp cận công lý một cách bình đẳng”. “Những hành động mà Cơ Quan Tư Pháp Tiểu Bang Colorado thực hiện là hình mẫu và thể hiện cam kết thực sự trong việc xây dựng một chương trình tiếp cận ngôn ngữ mạnh mẽ.”
Trong năm kể từ khi DOJ (Bộ Tư Pháp) bắt đầu làm việc với Cơ Quan Tư Pháp Tiểu Bang Colorado, tòa án đã tuyển dụng một điều phối viên tiếp cận ngôn ngữ mới; sửa đổi Chính Sách Tài Chính của Văn Phòng Tiếp Cận Ngôn Ngữ; bắt đầu tạo hệ thống lập lịch trình mới cho phiên dịch viên; mua thiết bị mới để sử dụng cho việc phiên dịch tại tòa án bao gồm tai nghe và iPad; đào tạo nhân viên tòa án và phiên dịch viên; và thực hiện các cải tiến quan trọng khác.
Bộ sẽ tiếp tục theo dõi việc thực hiện những thay đổi này và hoan nghênh phản hồi từ công chúng. Khiếu nại về các hành vi phân biệt đối xử có thể được báo cáo thông qua trang mạng của Ban Dân Quyền tại civilrights.justice.gov
Quý vị có thể tìm hiểu thêm thông tin về Ban Dân Quyền trên trang mạng của bộ phận này tại www.justice.gov/crt. Thông tin về trình độ tiếng Anh hạn chế và Tiêu Đề VI có tại trang mạng www.lep.gov,và thông tin cụ thể về tòa án có thể được tìm thấy tại trang mạng www.lep.gov/state-courts.
Burlington, Vermont Man Sentenced to 60 Months in Gun and Assault CaseRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on September 30, 2024, Hasan Williams, 27, recently of Burlington, Vermont was sentenced by United States District Judge William K. Sessions III to a term of 60 months’ imprisonment to be followed by a three-year term of supervised release. Williams previously pleaded guilty to possessing a loaded handgun after having been convicted of a felony, specifically assault and robbery in 2016.
According to court records, Burlington Police Department responded to a late-night call shortly after midnight between August 27-28, 2023 in downtown Burlington regarding a possible assault and possession of a firearm. When police arrived, they located Williams walking away from the call location and on the grounds of the Chittenden County Superior Court. Police approached Williams who denied being involved in the alleged assault. The police asked Williams if he had a gun on him and he replied that he did not. Williams was wearing a shoulder bag that the police stated they wanted to remove without looking inside, knowing that another recent call involved someone with a similar shoulder bag containing a gun. Williams refused to comply, turned his back on the officer and began reaching for the shoulder bag. Williams instigated an altercation with the officer, punching him in the head before four additional officers and a civilian helped restrain Williams. After the altercation, the zipper on Williams’s shoulder bag had opened, making plainly visible a handgun inside. Police obtained a search warrant for the shoulder bag which contained a loaded handgun.
United States Attorney Nikolas P. Kerest stated: “I want to thank the officers and agents of the Burlington Police Department and the ATF for their vigilance and care investigating and apprehending the defendant in this case, which is another example of members of law enforcement putting themselves at risk while protecting this community.”
“Firearms in the hands of violent felons are a major driver of additional violent crime in our communities,” said ATF Boston Field Division Special Agent in Charge James M. Ferguson. “The sentence handed down today delivers a clear message: violent offenders will be held accountable. ATF remains steadfast in its commitment to safeguarding our neighborhoods, with the reduction of gun violence as a top priority.”
“Getting violent criminals off the street is a key responsibility for law enforcement,” said Burlington Police Chief Jon Murad. “I’m grateful for our federal partners and the fair but effective sentences they win. The community is safer when such offenders are incarcerated not only because the offenders can’t hurt more people from prison, but also because these types of offenders tend to be ‘violence drivers,’ who make others around them more prone to violence, as well. Thanks to the great work by our officers and by the prosecutors in the U.S. Attorney’s Office, that’s what happened here.”
The case was prosecuted by Assistant U.S. Attorney Colin Owyang. Williams was represented by Timothy B. Fair, Esq. and Assistant Federal Public Defender Steven L. Barth.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Buckhannon Man Indicted on Child Pornography ChargesRead the Press Release
WHEELING, WEST VIRGINIA – David Walter McCauley has been indicted by a federal grand jury on child pornography charges, United States Attorney William Ihlenfeld announced.
McCauley, age 66 of Buckhannon, West Virginia, is charged with two counts of production and one count of possession of child pornography. The indictment alleges that McCauley enticed a 17-year-old boy to engage in sexually explicit conduct for photo and video production. The indictment further charges McCauley with knowingly possessing illegal images on his computer.
“As alleged, David McCauley produced child pornography involving a juvenile boy on multiple occasions,” said U.S. Attorney Ihlenfeld. “Those who prey upon and exploit our youth will be held accountable, no matter their status in the community.”
McCauley faces at least 15 years and up to 30 years in prison for each of the production charges and up to 10 years on the possession charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Kimberley Crockett is prosecuting the case on behalf of the government.
The case was investigated by the Federal Bureau of Investigation, the Pittsburgh Police Department, and the Upshur County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
An indictment is merely an allegation, and each defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Brownsville resident heads to prison for trafficking cocaine in hidden compartmentRead the Press Release
BROWNSVILLE, Texas – A 51-year-old man has been sentenced following his conviction for possession with intent to distribute cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Rosalio Mendoza pleaded guilty May 1.
U.S. District Judge Rolando Olvera has now ordered Mendoza to serve 120 months in federal prison to be immediately followed by five years of supervised release. In handing down the sentence, the court noted the severity of drug case punishments and admonished Mendoza that should he ever return to the drug business, he could be facing potential life in federal prison.
On Jan. 26, Mendoza applied for entry into the United States at the Veteran’s Port of Entry in Brownsville, at which time authorities referred him to secondary inspection.
There, a K-9 alerted law enforcement to the driver’s side door and eventually to the center console in the vehicle. Law enforcement removed the console and found a hidden compartment containing 14 packages that tested positive for cocaine.
The drugs had a combined weight of 12.42 kilograms with an estimated street value of $155,250.
Mendoza will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Jose Arreola prosecuted the case.
Brockton Man Convicted of Passport FraudRead the Press Release
BOSTON – A Brockton man was convicted today following a three-day trial for lying that his United States passport had been lost in order to secure a replacement to enter the country, when in fact, the passport had been confiscated by the prosecutor’s office in Cabo Verde following his arrest for the murders of two victims.
Johnny Barros Brandao, 41, was convicted of one count of passport fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Jan. 9, 2025. Brandao was arrested on May 9, 2023.
According to court records, on March 27, 2014, in Cabo Verde, Brandao allegedly shot an individual in the head using a .45 caliber revolver, took one million and five hundred thousand Cape Verdean Escudos from the victim and then dumped the victim’s body on the side of a road next to a waste dump. On July 26, 2021, Brandao allegedly shot and killed another individual using a 9mm caliber firearm and threw the victim’s body off a bank at the same place as the 2014 victim.
Brandao was arrested in Cabo Verde on these charges. On Dec. 12, 2022, after a period of pretrial detention, Brandao was released subject to supervision. The Cabo Verde court also ordered that Brandao not depart Cabo Verde – confiscating his Cabo Verdean national ID card as well as his United States and Cabo Verde passports.
On Dec. 28, 2022, Brandao applied for a replacement United States passport at the U.S. Embassy in Dakar, Senegal. In the section of the form that directs the applicant to explain how his prior passport was lost or stolen, Brandao reported he had lost his passport in Dakar, Senegal while out to dinner on Dec. 25, 2022.
“Johnny Barros Brandao was accused of two homicides in Cape Verde. Rather than facing those charges, he chose to lie to U.S. authorities in order to replace his confiscated passport and flee to America to evade justice,” said Acting United States Attorney Joshua S. Levy. “I am grateful for the diligent work of my office and our law enforcement counterparts, without their commitment, a suspected murderer would be walking our streets and avoiding prosecution for his crimes.”
“The Diplomatic Security Service is firmly committed to working with the U.S. Department of Justice and our other law enforcement partners to investigate allegations of crime related to passport and visa fraud. And DSS’ global network of special agents working together to interdict visa and passport crimes is vital to bringing those who commit these crimes to justice,” said Special Agent in Charge Matthew O’Brien of the U.S. Department of State’s Diplomatic Security Service (DSS) Boston Field Office.
The charge of passport fraud provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. 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 U.S. Attorney Levy and U.S. DSS SAC O’Brien made the announcement today. Valuable assistance was provided by U.S. Customs and Border Protection and the U.S. Department of Homeland Security Federal Protective Services. Assistant United States Attorneys Meghan Cleary, David Tobin and Brian Sullivan of the Major Crimes Unit are prosecuting the case.
Beaumont convenience store robbers guilty of killing clerk with firearmRead the Press Release
BEAUMONT, Texas – Two men who robbed a Beaumont convenience store and killed the clerk last December have pleaded guilty to federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Larry Nathaniel Hagan, 27, of Houston, pleaded guilty to possessing and discharging a firearm in furtherance of a crime of violence resulting in death before U.S. District Judge Marcia Crone on October 2, 2024. Keandre Marquis Robinson, 20, of Beaumont, pleaded guilty to the same offense before Judge Crone on October 1, 2024.
According to information presented in court, on December 29, 2023, Robinson and Hagan were wearing masks and brandishing semi-automatic pistols when they entered the Kris Food Mart located on Gulf Street in Beaumont. Robinson quickly forced the clerk behind the counter and demanded cash while Hagan guarded the front door. Seconds later, Robinson shot the clerk two times in the chest, killing him. Robinson grabbed cigarettes from behind the counter and fled with Hagan. No cash was taken.
Later that night, the Beaumont Police Department posted images from the robbery to social media and a tip identified Robinson. Police detained Robinson about three hours after the robbery as he was leaving his residence just a few blocks from the store. Robinson later confessed to his role in the robbery and killing but would not identify Hagan.
Detectives searched Robinson’s phone and discovered text messages with Hagan related to the robbery. The texts began on December 28 at 10:15 a.m. and ended a few minutes after the robbery. During the conversation, Robinson and Hagan planned to rob the store to “[g]et some money.” In one text, Robinson told Hagan that he would “knock [the clerk’s] top” [to eliminate any] “lose [sic] ends…”. The conversation ended on December 29 at 10:07 p.m. (approximately 4 minutes after the shooting). In that text, Hagan told Robinson to “[s]tay in the house for some days”.
Robinson was indicted by a federal grand jury on February 7, 2024. Hagan, who was at large until April 24, 2024, when he was arrested in New Orleans by the U.S. Marshals Service, was added to the indictment by the federal grand jury on May 1, 2024.
Robinson and Hagan each face up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Beaumont Police Department, the FBI, and the U.S. Marshals Service, and prosecuted by Assistant U.S. Attorney John B. Ross.
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Baltimore Man Sentenced to 14 Years in Federal Prison for A Series of Armed Bank and Commercial RobberiesRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Dexter Nikoe Eaton, age 34, of Baltimore, to 14 years in federal prison, followed by 3 years of supervised release, for armed bank robbery, related to a series of bank and armed commercial robberies.
The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office and Commissioner Richard Worley of the Baltimore Police Department.
According to Eaton’s plea agreement, between June 3 and July 30, 2022, Eaton committed six separate robbery incidents-five robberies and one attempted robbery of banks and other businesses and used a firearm in four of the robberies. Specifically, Eaton admitted that on June 3, 2022, he robbed a bank in the 3200 block of West North Avenue in Baltimore, providing a note to the teller that demanded money and threatened to kill the teller’s family if the teller did not comply with Eaton’s demands. On June 9, 2022, Eaton attempted to rob a check cashing and financial services business located in the 1600 block of West North Avenue, again by passing a note to the teller. The teller refused to read the note, instead activating an alarm, and Eaton fled. Law enforcement collected the note passed by Eaton, which again demanded money and threatened to kill the family of the employee if Eaton’s demands were not met.
On June 10, 2022, Eaton, armed with a handgun, entered a bank in the 3200 block of West North Avenue wearing a black head covering and a surgical mask and pointed the gun at customers and employees stating, “Nobody move. Give me $4,000 or everyone in this b***h is dead.” Eaton forced a customer to the ground at gunpoint and took the customer’s wallet and cash. With the gun still pointed at the customer’s head, Eaton demanded that an employee get him $4,000 or Eaton would shoot the customer. The bank employee, fearing for her safety and the safety of others, gave Eaton cash, and Eaton fled the bank. On June 27, Eaton, armed with a handgun, robbed a bank in the 4700 block of Liberty Heights Avenue in Baltimore, pointing a gun at the security guard’s head and forcing the security guard to accompany Eaton to the teller window, where a customer was conducting a transaction. With the gun still at the security guard’s head, Eaton demanded that the teller give him $7,000-$8,000 and threatened to shoot the security guard and the customer if the teller did not give him money or pushed any alarms. Fearing for her safety, the teller gave Eaton cash and he fled the bank.
Finally, on July 23, 2022, and July 30, 2022, Eaton robbed two businesses in the 3100 block of West North Avenue. In both robberies, Eaton held employees at gunpoint and demanded money, threatening an employee in the second robbery for moving too slow. The employees in both robberies gave Eaton cash and he left the stores.
U.S. Attorney Barron praised the FBI and Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Reema Sood and Paul E. Budlow, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Atlanta Man Sentenced for Million-Dollar Money Order SchemeRead the Press Release
ATLANTA - Jeremiah Carbon has been sentenced to federal prison for depositing nearly $1.5 million in fraudulent money orders into accounts at several metro Atlanta banks and for possessing a firearm as a convicted felon.
“Carbon took advantage of a monetary instrument intended to serve as a secure means for transferring funds and used it for his personal gain,” said U.S. Attorney Ryan K. Buchanan. “Maintaining the security of our banking systems is paramount as millions of Americans rely on these institutions to protect and grow their finances. Thanks to the investigative efforts of our law enforcement partners at the U.S. Secret Service, Carbon will be held accountable and will face the consequences for his crimes.”
“Carbon believed he could evade law enforcement when he resumed his criminal ways,” said Frederick D. Houston, Special Agent in Charge of the U.S. Secret Service Atlanta Field Office. “What he learned is that the Secret Service consistently adapts our methods to uncover illicit financial schemes. We are mandated to safeguard our nation’s critical financial infrastructure and will continue to deploy every asset to do just that.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Between December 2019 and September 2022, Carbon purchased nearly 1,500 money orders from retail stores in Georgia and at least two other states using fake names and fake driver’s licenses, many of which were legitimate driver’s license numbers of individuals. Carbon made copies of the blank money orders, completed those money orders with fictitious purchasers’ names, and then deposited the copied money orders into one of multiple bank accounts in at least five different federally insured banks. Some of the bank accounts were in Carbon’s name, and others were in the names of his conspirators. After Carbon deposited the copied money orders into the bank accounts, he returned all of the originally purchased blank money orders to the various retail stores and received refunds. Carbon purchased, copied, deposited, and then returned almost 1,500 money orders totaling nearly $1.5 million.
Carbon was also recorded on surveillance cameras at the various retail store locations buying and returning the money orders. In some instances, after using a fake driver’s license to purchase money orders, Carbon made additional purchases from the retail store using his actual debit card.
On February 22, 2022, deputies with the Gwinnett County Sheriff’s Office conducted a traffic stop while Carbon was driving due to an unrelated traffic violation. During the stop, deputies discovered multiple blank money orders, a receipt for the recently purchased money orders, a printer/copier, and a paper cutter. Additionally, Carbon was found to be in possession of a semi-automatic firearm, which he was prohibited from possessing due to his status as a convicted felon.
Jeremiah Carbon, 36, of Lithonia, Georgia was sentenced by U.S District Judge Victoria M. Calvert to three years, five months in prison to be followed by three years of supervised release. Carbon was convicted on charges of bank fraud conspiracy, bank fraud, and being a felon in possession of a firearm, after he pleaded guilty on June 6, 2024.
This case was investigated by the U.S. Secret Service.
Assistant U.S. Attorneys Bethany L. Rupert and Alison Prout prosecuted the case.
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.
Asbestos Removal Training Center Owner Convicted of Making False Statements to EPA and RIDOHRead the Press Release
PROVIDENCE, RI – The owner of a Rhode Island-based asbestos abatement training center admitted to a federal judge on Tuesday that he provided false documentation to the Rhode Island Department of Health, attesting that nearly two dozen individuals paid for, attended, and successfully completed an Environmental Protection Administration (EPA)-approved abatement training program when, in fact, no one attended the classes, announced United States Attorney Zachary A. Cunha.
The Toxic Substances Control Act, implemented by the EPA, requires that workers who perform asbestos abatement attend and pass an EPA-approved asbestos training program which, in Rhode Island, is overseen by the Rhode Island Department of Health (RIDOH).
Jose Virgilio Fernandez, owner of Rhode Island Safety Environment Training Center (“RISE”), was accredited by RIDOH to provide asbestos abatement training courses to workers. An investigation by RIDOH and EPA revealed that, on multiple occasions between 2021 and 2023, Fernandez submitted documents to RIDOH falsely certifying that participants attended all days of instruction and achieved passing examination scores.
As reflected in charging documents and information provided to the court, Fernandez falsely stated in signed documents that twenty individuals, whose names he provided to the RIDOH, attended and successfully completed a five-day, 40-hour program the week of May 22, 2023. In fact, no one attended the training sessions, with the exception of an EPA agent acting in an undercover capacity who attended for two hours on the first day of classes. Fernandez later admitted to the EPA that, in many cases, he issued certificates to asbestos workers even though they did not actually attend or complete the abatement class.
Fernandez pleaded guilty on Tuesday to a federal charge of making false statements. He is scheduled to be sentenced on January 7, 2025. The defendant’s sentence will be determined by a federal district court judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
“Asbestos poses significant health risks when handled improperly,” remarked U.S. Attorney Cunha, “and that’s why commonsense environmental regulations require that those working with it be trained to do so safely. Fernandez’ lies put Rhode Island contractors, not to mention those exposed to improperly handled asbestos, at risk. This week's guilty plea should serve as a reminder to those who cut corners with toxic substances that they will be held accountable.”
“Proper training ensures protocols are followed for the handling of hazardous substances, lead, and asbestos by workers and supervisors on jobsites throughout Rhode Island,” stated Tyler Amon, Special Agent in Charge for the Environmental Protection Agency’s Criminal Investigation Division in New England. “Training providers that cut corners undercut the companies playing by the rules and the integrity of Rhode Island’s important training certification mission.”
The case is being prosecuted by Assistant United States Attorney John P. McAdams.
The matter was investigated by the Environmental Protection Agency and the Rhode Island Department of Health.
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Arizona Man Sentenced for 10 Kilograms of CocaineRead the Press Release
United States Attorney Susan Lehr announced that Carlos Daniel Ruelas, age 21, of Arizona, was sentenced October 2, 2024, in federal court in Omaha, Nebraska for possessing cocaine with intent to distribute. United States District Judge Brian C. Buescher sentenced Ruelas to 46 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release. Ruelas also agreed to forfeit $68,460.
On July 31, 2023, the DEA Criminal Interdiction Unit was working at the bus station in Omaha, Nebraska, when they made contact with Xavier Olivas-Valenzuela. During the contact, Olivas-Valenzuela admitted to contraband in his bag. When investigators began to search his bag, Olivas-Valenzuela ran out the door. After a short pursuit, Olivas-Valenzuela was detained. A search of his luggage resulted in 51 pounds of methamphetamine being seized. A search that night of Olivas-Valenzuela’s phone showed that he was directed to stay at a residence in the 1700 block of N. 10th Street. A search warrant was obtained for that residence. Investigators found Ruelas at the residence, along with 10 kilograms of cocaine and $68,460.
Olivas-Valenzuela has pleaded guilty and is set for sentencing on October 23, 2024.
This case was investigated by the Nebraska State Patrol and the Drug Enforcement Administration.
Activity in the U.S. Attorney's Office Recent SentencingsRead the Press Release
Drug Trafficking
Amanda Rose Brown, 40, of Riverton, Wyoming was sentenced to 15 months’ imprisonment with three years of supervised release for distribution of methamphetamine. According to court documents, on Sept. 26, 2023, agents conducted a controlled buy of 3.5 grams of methamphetamine from Brown for $150 on the Wind River Indian Reservation. A review of Brown's Facebook account showed she was contacted by multiple parties looking for "blues" (fentanyl) and either she had them or sought to get them; she also advised she had methamphetamine and could get "bud". She was indicted on May 16, pleaded guilty on July 1, and U.S. District Court Judge Alan B. Johnson imposed the sentence on Sept. 26, in Cheyenne. The Wyoming Division of Criminal Investigation investigated the crime and Assistant U.S. Attorney Timothy W. Gist prosecuted the case. Case No. 24-00081Firearm Offenses
John Otis Marsh, 57, of Wamsutter, Wyoming was sentenced to eight months’ imprisonment with two years of supervised, release for being a felon in possession of a firearm and possession of an unregistered firearm. According to court documents, on June 8, 2022, deputies were called to a Love's convenience store in Wamsutter to investigate an injured man. The victim said he was threatened with a gun, punched, and dragged by a man who shared a trailer with Marsh. The victim stayed, with the permission from Marsh, in a camper across the road, on Marsh’s land. The investigation led the deputies to the trailer where they found multiple guns and ammunition. Both Marsh and his roommate are convicted felons and unlawfully possessed the firearms. Marsh was indicted on July 19, 2023 and pleaded guilty on July 12. U.S. District Court Judge Alan B. Johnson imposed the sentence on Sept. 25. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigate the crime and Assistant U.S. Attorney Jonathan C. Coppom prosecuted the case. Case No. 23-00099Littlefawn Lebeau, 41, of Fort Washakie, Wyoming was sentenced to 12 months and one day in federal prison with three years of supervised release for being a felon in possession of a firearm. According to court documents, on Dec. 23, 2023, law enforcement was called to Lander Sage West Hospital for a report of a self-inflicted gunshot wound. The defendant denied she had shot herself in the foot at first because she knew she was a felon and illegally possessed the firearm, but later admitted to the accident. She was indicted on Jan. 4, pleaded guilty on July 12, and U.S. District Court Judge Alan B. Johnson imposed the sentence on Sept. 25, in Cheyenne. This crime was investigated by the FBI and the case was prosecuted by Assistant U.S. Attorney Michael J. Elmore. Case No. 24-CR-00018
Illegal Re-entry of a Previously Deported Alien
Jesus Montano-Martinez, 32, of Chihuahua, Mexico, was sentenced to time served plus 10 days to allow for deportation proceedings, for illegal reentry of a previously deported alien into the United States. According to court documents, on Feb. 20, Montano-Martinez was arrested by Wyoming Highway Patrol in Carbon County for driving under the influence of alcohol and not having valid immigration documents permitting him to be in the U.S. The Immigration and Customs Enforcement (ICE) was contacted. A Deportation Officer processed the defendant and obtained fingerprints matching pre-existing fingerprints in their database indicating Montano-Martinez was in the U.S. illegally. ICE investigated the crime and Assistant U.S. Attorney Michael J. Elmore prosecuted the case. U.S. District Court Judge Alan B. Johnson imposed the sentence on Sept. 24, in Cheyenne. Case No. 24-CR-00127
About the United States Attorney’s Office
The United States Attorney’s Office is responsible for representing the federal government in virtually all litigation involving the United States in the District of Wyoming, including all criminal prosecutions for violations of federal law, civil lawsuits brought by or against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Office is involved in several programs designed to make our communities safer. They include:Environmental Justice
The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.
Project Safe Childhood
Project Safe Childhood (PSC) is a DOJ initiative that combats the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for sexual contact is well-known and serious.
Project Safe Neighborhoods
Project Safe Neighborhoods (PSN) is a nationwide commitment to reducing gun and gang crime in America by networking existing local programs that target gun crime and providing these programs with additional tools necessary to be successful.
Victim Witness Assistance
The Victim Witness Coordinator for the United States Attorney’s Office for the District of Wyoming is dedicated to making sure that victims of federal crimes and their family members are treated with compassion, fairness, and respect.
To report a federal crime, go to: https://www.justice.gov/actioncenter/report-crime#trafficking
68 Defendants Charged in Indictment of Dozens of Members and Associates of San Fernando Valley White Supremacist GangRead the Press Release
LOS ANGELES – Federal and local law enforcement have arrested 42 members and associates of the SFV Peckerwoods, a San Fernando Valley-based white supremacist street gang, on a 76-count federal grand jury indictment alleging they engaged in a years-long pattern of racketeering activity that included trafficking of drugs – including fentanyl – illegal firearms possession, and COVID-19 benefits and loan fraud, the Justice Department announced today.
The indictment unsealed today charges a total of 68 defendants with a score of federal crimes: conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, conspiracy to distribute controlled substances, distribution of controlled substances, bank fraud, conspiracy to commit bank fraud, aggravated identity theft, possession of a firearm in furtherance of a drug trafficking crime, unlawful possession of a firearm and ammunition by a felon, and possession of 15 or more unauthorized access devices.
The 29 defendants arrested today are expected to be arraigned this afternoon in United States District Court in downtown Los Angeles. Prior to today’s takedown, 13 defendants were already in custody.
During the investigation, law enforcement seized large quantities of illegal firearms, and dozens of pounds of fentanyl, methamphetamine, and heroin, according to the indictment.
“The Peckerwoods’ violent white-supremacist ideology and wide-ranging criminal activity pose a grave menace to our community,” said United States Attorney Martin Estrada. “By allegedly engaging in everything from drug-trafficking to firearms offenses to identity theft to COVID fraud, and through their alliance with a neo-Nazi prison gang, the Peckerwoods are a destructive force. In prosecuting the members of the Peckerwoods criminal organization, our office is carrying out its mission to protect the public from the most dangerous threats.”
“The Justice Department has dealt a decisive blow to the San Fernando Valley (SFV) Peckerwoods, a violent white supremacist gang that we charge is responsible for trafficking deadly fentanyl and other drugs, committing robberies, and perpetrating financial fraud to fund both their criminal enterprise and that of the Aryan Brotherhood,” said Attorney General Merrick B. Garland. “With today’s charges and arrests, the Justice Department, together with our state, local, and federal partners has targeted the heart of this gang’s operations, and we will continue to zero in on the criminal enterprises that endanger our communities.”
“This operation, led by our Joint Terrorism Task Force, disrupted a racially motivated violent extremist group who engaged in a wide range of criminal activity,” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “This case strikes at the heart of our collective mission to rid our communities of the corrosive elements that fuel violence and extremism that greatly impact our way of life. The FBI, along with our federal, state, and local partners, remains strongly committed to working every day to make sure the people of the Southland remain safe.”
“The San Fernando Valley Peckerwoods, the Aryan Brotherhood and their associates are fused by one thing: hatred,” Matthew Allen, Special Agent in Charge, DEA Los Angeles Field Division. “It appears, however, that the business of hate was not enough for them. Driven by greed, they engaged in other crimes, including drug distribution, pushing out deadly fentanyl onto our streets. Operating from corners of the San Fernando Valley, they conducted their crimes within and beyond the 8-1-8 community. Today’s large-scale indictments and arrests reflect our relentless commitment to dismantling criminal organizations that continue to harm our communities.”
According to the indictment that a grand jury returned on September 26, the Peckerwoods is a street gang based in communities in the San Fernando Valley whose members engage in a wide variety of criminal activity, including drug trafficking, violent crime, and fraud. As a white supremacist gang, the Peckerwoods at times takes orders from the Aryan Brotherhood, California’s dominant prison-based white supremacist gang, and maintains an alliance with the Mexican Mafia prison gang, which controls most Latino street gangs in California. The Peckerwoods use Nazi tattoos, graffiti, and iconography to indicate their violent white supremacy extremist ideology. These tattoos and iconography include swastikas, the symbol “88”, used by violent white supremacy extremists as code for “Heil Hitler,” and images of Nazi aircraft.
Members and associates of the gang used social media to share information with each other about their criminal activities and gang rules, to identify gang members in good standing, and to target people who broke the gang’s rules. The social media use included a members-only Facebook group and private, direct messages between the gang’s members and associates.
From at least December 2016 to September 2024, Peckerwoods members conducted and participated in the affairs of their criminal enterprise by engaging in violence and threats of violence to preserve and expand the gang’s criminal operations, which promoted a climate of fear. Members and associates of the gang illegally maintained firearms and ammunition in furtherance of these aims.
To generate revenue for the gang, its members trafficked narcotics, including fentanyl, heroin, and methamphetamine. Specifically, lead defendant Claire Patricia Haviland, 62, of Chatsworth, and co-defendants Brian Glenn Ekelund, 53, of Chatsworth, and Brianne Brewer, 38, of North Hollywood, maintained and oversaw drug stash houses where large quantities of fentanyl, heroin, methamphetamine, and other drugs were stored prior to distribution. Haviland and Ekelund allegedly mailed illegal drugs to customers and used applications such as Zelle and CashApp to receive money from drug buyers and send money to their drug sources.
They also generated revenue via robberies and financial fraud and participated in identity theft schemes. For example, from at least March 2021 to July 2023, defendants Sean Craig Gluckman, 35, of Encino, Maria Anna James, 30, of Canyon Country, and others submitted false and fraudulent applications for the Paycheck Protection Program (PPP), which was designed to aid businesses harmed by the economic fallout from the COVID-19 pandemic. The defendants – posing as sole proprietors – signed fraudulent PPP loan applications on behalf of individuals incarcerated in California state prisons and collected a portion of the fraudulently obtained proceeds from co-conspirators as payment for their assistance.
Gluckman in April 2021 submitted an application that falsely stated he was a self-employed “artist/writer” with a gross income of nearly $250,000. Later that month, he obtained a PPP loan in the amount of $20,833. In a separate scheme, Gluckman submitted fraudulent unemployment insurance (UI) applications in the names of other people to the California Employment Development Department (EDD) to fraudulently obtain jobless benefits.
“The proliferation of gang related organized crime deteriorates the core of our society,” said Los Angeles Police Chief Dominic Choi. “Taking guns out of the hands of gang members and drugs from our streets is just one more step towards reducing this deterioration. Today is yet another example of how local, regional, and federal law enforcement, with a matched dedication, are working together to investigate, apprehend and prosecute criminals.”
“When criminal organizations cross jurisdictional lines, it makes conducting investigations and subsequent prosecutions much more difficult,” said Ventura County Sheriff Jim Fryhoff. “Having our federal law enforcement partners involvement in such cases greatly enhances our ability to protect not only the citizens of our county, but also those of our region of the state.”
“The DOL-OIG will continue to allocate investigative resources to support our local, state, and federal law enforcement partners in the fight against organized crime, particularly when it involves matters within our jurisdiction,” said Quentin Heiden, Special Agent in Charge of the United States Department of Labor Office of Inspector General’s Western Region. “This investigation reinforces our commitment to protecting the integrity of the nation's unemployment system.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted, the defendants would face a statutory maximum sentence of life in federal prison.
The FBI, the Drug Enforcement Administration, the Los Angeles Police Department, and the Ventura County Sheriff’s Office are investigating this matter. Other law enforcement agencies that assisted in today’s takedown are the Simi Valley Police Department; California Highway Patrol; the Glendale Police Department; the Burbank Police Department; the Redondo Beach Police Department; the Beverly Hills Police Department; the Los Angeles County Sheriff’s Department; the United States Marshals Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the United States Department of Veterans Affairs Police; the United States Department of Labor; the Federal Bureau of Prisons; the Los Angeles County Probation Department; the Los Angeles County Department of Children and Family Services; the Pasadena Fire Department; United States Customs and Border Protection; and IRS Criminal Investigation.
Assistant United States Attorneys Reema M. El-Amamy of the Terrorism and Export Crimes Section, Jeremiah M. Levine of the Violent and Organized Crime Section, and Alexander Su of the Asset Forfeiture and Recovery Section are prosecuting this 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.
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 September 15, 2022, the Attorney General selected the U.S. Attorney’s Offices for the Central and Eastern Districts of California to jointly 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.
Tuesday 1 October 2024
‘Swatting’ Phone Call Targeted IRS Employee, Led to LockdownRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been charged in federal court with making a hoax telephone call that led to an IRS employee being detained and the IRS office on Pershing Road being locked down.
Anthony M. Alford, 46, was charged in a criminal complaint that was filed under seal in the U.S. District Court in Kansas City, Mo., on Friday, Sept. 27. The complaint was unsealed and made public today following Alford’s arrest and initial court appearance. Alford remains in federal custody pending a detention hearing on Friday, Oct. 4.
The federal criminal complaint alleges that Alford placed a hoax telephone call to emergency services, falsely claiming that an individual was armed with a firearm and was threatening to shoot people in an IRS building.
According to an affidavit filed in support of the criminal complaint, Alford called 911 on Sept. 10, 2024, and reported that a person identified in court documents as “Victim One” had a gun and was threatening to shoot up the Internal Revenue Service building at 333 W. Pershing Road in Kansas City, Mo. Victim One is an employee of the IRS.
Kansas City police officers were dispatched to the building, where they contacted IRS security and Federal Protective Service officers. Victim One had been detained and searched for weapons based on the 911 call. Following the 911 call, the B-Wing of the IRS building was locked down. The IRS announced that there was an active shooter in the building and told those in the B-Wing to stay locked down.
Victim One was unarmed. Victim One told investigators she had been dating Alford for about a month and was trying to break up with him. Alford had never been violent, she said, but had exhibited controlling, possessive, and jealous behavior. Alford had repeatedly called and messaged her the previous night, she said, and earlier that morning sent her messages threatening to involve the police.
Investigators interviewed Alford afterward, according to the affidavit, and he told them Victim One did not threaten to shoot up the IRS Building, as he had said in the 911 call. Alford stated his intention when he called 911 was to instigate trouble for Victim One at work.
The charges contained in this complaint 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.
This case is being prosecuted by Assistant U.S. Attorney Sean T. Foley. It was investigated by the Department of Homeland Security, Federal Protective Service, the Kansas City, Mo., Police Department, and the Treasury Inspector General for Tax Administration.
Youth Mentor with Philadelphia Anti-Gun Violence Organization Sentenced to 10 Years in Prison for Participating in Interstate Gun Trafficking ConspiracyRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Kyle McLemore, 47, of Philadelphia, Pennsylvania, was sentenced today by United States District Court Judge Harvey Bartle III to 120 months in prison, three years of supervised release, and a $300 special assessment for selling illegal firearms from South Carolina on the streets of Philadelphia.
McLemore was one of seven defendants convicted for participating in a scheme to straw purchase nearly 60 firearms in South Carolina and traffic them up the “Iron Pipeline” to Philadelphia. Between approximately November 2020 and February 2021, McLemore worked closely with co-conspirator Terrance Darby in Philadelphia to place orders for firearms with co-conspirator Ontavious Plumer, who was incarcerated in a South Carolina prison. Plumer would then direct other co-conspirators to straw purchase firearms at gun stores in South Carolina and transport them to Philadelphia, where Darby, McLemore, and co-conspirator Cory Brookins would resell them.
McLemore started trafficking firearms with Darby just a few months after he was released on parole from a Pennsylvania state prison after serving 21 years for a 1999 murder conviction. While he was reselling illegal guns in Philadelphia, McLemore worked as a “youth advocate” at the NoMo (New Options More Opportunities) Foundation, an organization that provides children and teens with education, tutoring, mentoring, career readiness training, behavioral health counseling, and other services to reduce the factors that lead to gun violence.
McLemore was charged in a superseding indictment on March 6 of this year with conspiracy, dealing in firearms without a license, and possession of a firearm by a felon. He pleaded guilty to all three counts on May 8. Darby, Plumer, Brookins, and three other co-conspirators have also been convicted and sentenced for their roles in the conspiracy.
“Kyle McLemore sold dozens of guns from South Carolina on the streets of Philadelphia, while pretending to work to reduce gun violence on those same streets,” said U.S. Attorney Romero. “My office and the ATF will continue to target gun traffickers for federal prosecution – and federal prison time. Every illegal gun and unlawful seller we put out of commission makes our city that much safer.”
“McLemore knew all too well from his criminal history and community work that illegally trafficked firearms fuel the deadly violence in his community,” said ATF Special Agent in Charge Eric DeGree. “Stopping gun trafficking, which puts firearms in the hands of violent criminals and other prohibited people, is a top priority at ATF. We work tirelessly with our local, state and federal partners to dismantle trafficking operations and federally prosecute the criminals that endanger our communities.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorneys J. Jeanette Kang and Matthew T. Newcomer and Special Assistant United States Attorney Alexander B. Bowerman.
Winterport Man Sentenced to 20 Years for Distributing Child Sexual Abuse MaterialRead the Press Release
BANGOR, Maine: A Winterport man was sentenced today in U.S. District Court in Bangor for distributing child pornography.
U.S. District Judge Stacey D. Neumann sentenced Steven Mathis, 35, to 240 months in prison, to be followed by 20 years of supervised release. Mathis pleaded guilty on April 25, 2024.
According to court records, in August 2021, Mathis used an online chat platform to discuss child sexual abuse material with others. In one exchange, another user requested a sexually explicit image of a child, and Mathis provided an image. In an interview with the Maine State Police, Mathis admitted that he had distributed child sexual abuse material online.
Homeland Security Investigations (HSI) and the Maine State Police investigated the case.
To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material – in legal terms, "child pornography” – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer revictimization every time the images are shared or viewed. File a report with the National Center for Missing & Exploited Children at https://report.cybertip.org or 1-800-843-5678. If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit https://www.justice.gov/usao-me/psc.
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Vice President of International Cargo Airline Sentenced to 32 Months in Prison for Defrauding EmployerRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that ABILASH KURIEN was sentenced to 32 months in prison by U.S. District Judge Jesse M. Furman in connection with a massive scheme to defraud Polar Air Cargo Worldwide, Inc. (“Polar”), a leading cargo airline, of more than $32 million dollars in revenue. KURIEN previously pled guilty to conspiracy to commit wire fraud and money laundering.
U.S. Attorney Damian Williams said: “Abilash Kurien betrayed his employer’s trust. Over the course of more than a decade, Kurien took millions of dollars in kickbacks for himself and caused tens of millions in dollars in losses to the company he worked for. This Office and our law enforcement partners will not stop in rooting out corporate fraud.”
According to the charging documents and other filings and statements made in court:
From at least in or about 2009 through in or about July 2021, KURIEN and at least nine other individuals participated in a massive scheme to defraud Polar. At all relevant times, KURIEN and three codefendants were senior executives of Polar (the “Executive Defendants”), and six codefendants (the “Vendor Defendants”) owned and operated various Polar vendors and customers.
The Executive Defendants agreed to accept millions of dollars in kickbacks from the Vendor Defendants, and also reaped substantial financial benefits as a result of their secret ownership interests in certain Polar vendors, in exchange for ensuring that those vendors received favorable business arrangements with Polar. The fraud they perpetrated—which involved a substantial portion of Polar’s senior management and at least 10 customers and vendors of Polar—led to pervasive corruption of Polar’s business, touching nearly every aspect of the company’s operations, for over a decade.
As a result of the scheme, the Executive Defendants, along with two co-conspirators who also worked as senior executives at Polar, received unlawful payments, either directly or through various limited liability companies they controlled, in excess of approximately $23 million in kickback payments or disbursements as a result of their ownership of conflicted companies.
KURIEN was Polar’s Vice President of Marketing, Revenue Management, and Network Planning. He personally received kickbacks totaling over $7 million.
Nine of the defendants charged in this case have pleaded guilty. Skye Xu, the remaining defendant, is scheduled for trial on October 28, 2024.
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In addition to the prison term, KURIEN, 46, of Wilton, Connecticut, was sentenced to 3 years of supervised release. KURIEN was also ordered to forfeit $7,192,064.41 and to make restitution to Polar in the amount of $22,956,341.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Danielle Kudla, Kevin Mead, Qais Ghafary, and Jerry J. Fang are in charge of the prosecution.
U.S. Attorney’s Office, ATF, and HSI Charge Mexican Nationals with Federal Firearms OffensesRead the Press Release
ALBUQUERQUE – Two Mexican nationals are facing federal charges for allegedly attempting to traffic a machinegun, rifles, and a grenade into Mexico.
Fernando Espino-Ortiz and Perla Janeth Ruiz-Lozano appeared before a federal judge today. Espino will remain in custody and Ruiz will be released on conditions pending trial, which has not been scheduled.
According to the criminal complaint, on September 25, 2024, Espino and Ruiz allegedly traveled from Mexico to Albuquerque to illegally purchase firearms, including a machinegun, three rifles, and a grenade from an undercover ATF agent. The defendants brought $100,000 in cash to exchange for the weapons.
During the transaction, Espino took possession of the weapons and loaded them into a vehicle, stating they were to be transported back to Mexico. Both defendants were arrested at the scene.
If convicted of the current charges, Espino and Ruiz each face up to 15 years in prison.
U.S. Attorney Alexander M.M. Uballez, Brendan Iber, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Jason T. Stevens, Acting Special Agent in Charge of Homeland Security Investigations (HSI) El Paso made the announcement today.
The ATF and HSI jointly investigated this case with assistance from the New Mexico State Police. The U.S. Attorney’s Office for the District of New Mexico is 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.
View the Criminal Complaint (Fernando Espino Ortiz et al.).pdfA criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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U.S. Attorney’s Office indicts five child exploitation cases in September, discusses joint effort to protect Alaska’s childrenRead the Press Release
ANCHORAGE, Alaska – U.S. Attorney S. Lane Tucker announced that a federal grand jury in Alaska returned five unrelated child exploitation indictments in September, emphasizing Alaska law enforcement efforts to investigate and prosecute cases to keep children safe.
“Those who target children for sexual gratification are an urgent threat to our communities,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “My office, alongside our dedicated federal, state and local law enforcement partners, maintains our steadfast commitment to identifying, investigating, and prosecuting anyone who tries to harm our children—especially in this digital age, where predators can reach victims from anywhere in the world.”
“These arrests demonstrate the FBI's continued prioritization of combatting child exploitation crimes in Alaska – no matter where these violations occur or who commits them,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. "Together with our law enforcement partners and the FBI's Child Exploitation and Human Trafficking Task Force, we will identify, investigate, and hold accountable those who put our most vulnerable at risk."
"We, whether it is as a federal law enforcement agency such as HSI or as a community as a whole, have a duty to protect the most vulnerable among us, our children," said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. "Victims of any type of child exploitation crime are survivors of unimaginable trauma. When we successfully stop child predators, we help victims attain safety and a chance to reclaim their lives.”
“The U.S. Secret Service stands firmly with our law enforcement partners to investigate crimes that exploit and target children,” said Glen Peterson, U.S. Special Agent in Charge of the U.S. Secret Service’s Seattle Field Office. “We continue to use our tools, resources and expertise to identify and arrest individuals that victimize children.”
U.S. v. Feltovic
According to court documents, on Aug. 22, 2024, William Alexander Feltovic, 36, an Anchorage U.S. Postal employee, allegedly attempted to coerce an individual who had not attained the age of 18 years to engage in sexual activity. Feltovic was arrested on Sept. 23 and is charged with one count attempted coercion and enticement of a minor. If convicted, he faces a mandatory minimum penalty of 10 years in prison.
The U.S. Department of Homeland Security Investigations is investigating the case. Assistant U.S. Attorney Chris Schroeder is prosecuting the case.
U.S. v. Hadley
According to court documents, in June 2023, Jesse Hadley, 31, of Kotzebue used a minor in Bethel to produce and possess visuals of child pornography. Hadley was arrested on Sept. 30 and is charged with one count sexual exploitation of a child—production of child pornography and one count sexual exploitation of a child—possession of child pornography. If convicted, he faces a mandatory minimum of 15 years in prison.
The FBI Anchorage Field Office and the Bethel Police Department are investigating the case. Assistant U.S. Attorney Seth Brickey is prosecuting the case.
U.S. v. Madros
According to court documents, on Aug. 27, 2024, George Floyd Madros III, 43, of Anchorage, contacted an individual he thought was a 13-year-old female on a social media platform. Madros and the individual began communicating through a private chat via the platform and text messages. Madros then allegedly asked the individual for sexually explicit content, asked to meet in person, and talked about potential sexual interactions if they met in person. Madros was arrested on Aug. 28 on related charges filed in a criminal complaint. The indictment charges Madros with one count of attempted coercion and enticement of a minor. If convicted, he faces a mandatory minimum penalty of 10 years in prison.
The FBI Anchorage Field Office is investigating the case. Assistant U.S. Attorney Ainsley McNerney is prosecuting the case.
U.S. v. Rose
According to court documents, on Aug. 27, 2024, Robert Nicholas Roy Rose, 44, of Anchorage, contacted an individual he thought was a 13-year-old girl on a social media platform. Throughout the course of the chat, Rose allegedly had sexually explicit conversations with the individual, including explanations of actions he wanted to do or perform with the 13-year-old, and organized a time to meet in person.
In 2006, Rose was convicted of sexual abuse of a minor in the first degree in the Superior Court for the State of Alaska. As part of the conviction, he was required to register as a sex offender in Alaska. Rose was arrested on Aug. 30 on related charges filed in a criminal complaint. The indictment charges Rose with one count of attempted exploitation of a child – production of child pornography, one count of attempted coercion and enticement of a minor, and one count offense by a registered sex offender. If convicted, he faces a mandatory minimum of 25 years in prison for the one charge of attempted production of child pornography, followed by an additional mandatory minimum penalty of 10 years in prison that runs consecutively for the count of offense by a registered sex offender.
The FBI Anchorage Field Office is investigating the case. Assistant U.S. Attorney Ainsley McNerney is prosecuting the case.
U.S. v. Steadman
According to court documents, William Steadman, 34, of Juneau, allegedly produced child sexual abuse materials (CSAM) depicting a minor known to him. Additionally, court documents indicate that he allegedly spent time with other children in his community. Steadman was arrested on Sept. 6 on related charges filed in a criminal complaint. The indictment charges Steadman with sexual exploitation of a child, also known as production of child pornography. If convicted, he faces a mandatory minimum of 25 years in prison.
The U.S. Secret Service is investigating the case. Assistant U.S. Attorneys Mac Caille Petursson, Jack Schmidt, William Reed and Trial Attorney McKenzie Hightower of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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U.S. Attorney’s Office Announces Sentencing of Mentmore Man for Federal Firearms Violation After Domestic Violence IncidentRead the Press Release
ALBUQUERQUE – A Mentmore man was sentenced to 63 months in federal prison for federal firearms offenses following a domestic violence incident during which he assaulted his wife and kidnapped their four children.
There is no parole in the federal system.
According to court documents, on the morning of September 23, 2021, Rumaldo Peshlakai's wife reported to the Navajo Nation Police Department that she had been assaulted by Peshlakai, 43, an enrolled member of the Navajo Nation. He then fled their home with their four children, ages 10, 7, 5, and 2, in his wife’s vehicle. The wife informed police that Peshlakai was likely under the influence of alcohol and cocaine, armed with a firearm, and had threatened to shoot officers if they attempted to stop him.
A multi-agency search ensued, involving the Navajo Nation Police Department, FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, and U.S. Marshals Service. Peshlakai evaded law enforcement for several hours, traversing over six miles on foot and at one point hiding the children in a drainage culvert. Along the way, Peshlakai buried the firearms under a tree along the path they walked and covered the hole with leaves and branches in an attempt to conceal them. Peshlakai eventually left the children at his mother’s home in Fort Defiance, Arizona, before turning himself in the next day, on September 24, 2021.
Following Peshlakai’s arrest, with the assistance of a specially-trained K-9 gun-sniffing canine, law enforcement recovered three firearms – two handguns and a rifle – that he had buried during his escape. As a previously convicted felon – including a prior federal conviction for being a felon in possession of firearms and ammunition, Peshlakai was prohibited from possessing firearms or ammunition.
Upon his release from prison, Peshlakai will be subject to three years of supervised release. He was also ordered to forfeit the firearms and ammunition, which included a Glock 19 9mm handgun, a Phoenix Arms .25 Automatic Colt pistol, a Marlin .22 caliber rifle, and various calibers and brands of ammunition.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Gallup Resident Agency of the FBI Albuquerque Field Office and the Navajo Police Department and Department of Criminal Investigations investigated this case with assistance from the FBI Phoenix Field Office, United States Marshals Service, New Mexico State Police, McKinley County Sheriff's Office and Bernalillo County Sheriff's Office. Assistant U.S. Attorneys Alexander F. Flores and Kimberly Bell are prosecuting the case.
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U.S. Attorney's Office Announces Guilty Plea in Federal Assault CaseRead the Press Release
ALBUQUERQUE – An Ohkay Owingeh man pleaded guilty in federal court to assault resulting in serious bodily injury after shooting John Doe.
According to the plea agreement, on June 28, 2023, Robert Abeyta, 51, an enrolled member of the Pueblo of Ohkay Owingeh, confronted John Doe at Doe's residence while armed with a pistol. Abeyta threatened John Doe with the firearm before shooting him multiple times in the upper body. John Doe suffered gunshot wounds to his cheek, neck, shoulder, and chest.
Abeyta will remain on conditions of release pending sentencing, which has not yet been scheduled. At sentencing, Abeyta faces seven to 10 years in prison. Upon his release from prison, Abeyta will be subject to up to three years of supervised release.
U.S. Attorney Alexander M.M. Uballez made the announcement today.
The Bureau of Indian Affairs investigated this case with assistance from the Ohkay Owingeh Police Department and Santa Clara Police Department. Assistant U.S. Attorney Meg Tomlinson is prosecuting the case.
View the Plea Agreement (Abeyta).pdf# # #
U.S. Attorney's Office Announces Guilty Plea in Fatal Navajo CrashRead the Press Release
ALBUQUERQUE – An Arizona man pleaded guilty in federal court today to charges of involuntary manslaughter and assault resulting in serious bodily injury, admitting to causing a fatal three-vehicle crash.
According to the plea agreement, Olan Jumbo, 31, an enrolled member of the Navajo Nation, admitted that on November 26, 2022, shortly after midnight, he caused a three-vehicle crash in Navajo, New Mexico while driving under the influence of alcohol. Jumbo was speeding when he collided with a vehicle driven by Jane Doe, with John Doe as a passenger. As a result of the collision, Jane Doe suffered fatal injuries, while John Doe sustained serious bodily harm.
At sentencing, Jumbo faces up to 10 years in prison. Upon his release from prison, Jumbo will be subject to up to three years of supervised release.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Department of Criminal Investigations. Assistant U.S. Attorney Meg Tomlinson is prosecuting the case.
View the Plea Agreement (Jumbo).pdf# # #
U. S. Attorney Hairston Announces $48 Million in Justice Department GrantsRead the Press Release
GREENSBORO, NC – United States Attorney Sandra J. Hairston for the Middle District of North Carolina (NCM) today announced that communities, organizations, and programs in the district have been awarded at least $27,949,065 in Department of Justice grants as part of the end-of-year funding cycles of the Department’s Office of Justice Programs and Office on Violence Against Women.
In addition, the North Carolina Courts, State Bureau of Investigation, and Departments of Justice, Public Safety, and Corrections, were awarded more than $20 million in grants for programs and research with state-wide impacts.
“Everyone deserves to feel safe in their community and supported if the unthinkable happens and they become a victim of crime,” said U.S. Attorney Hairston. “These grants help improve public safety, serve crime victims, support America’s youth, advance science, support law enforcement, and promote equal justice for all. I am pleased that the Department of Justice is making these funds available to our community partners and proud of the work we are engaged in, together, to create a safer, more equitable country.”
Office on Violence Against Women (OVW)
Created in 1995 to implement the provisions of the Violence Against Women Act (VAWA) and its subsequent reauthorizations, OVW provides national leadership on domestic violence, sexual assault, dating violence, and stalking. OVW has distributed over $11 billion in funding authorized by VAWA since its enactment. Through its grant programs and partnerships, OVW helps strengthen local responses to domestic violence, sexual assault, dating violence, and stalking and provides funding annually to all 50 states, six territories, and many Tribal nations. By funding essential services for survivors, OVW ensures that communities are better equipped to address these critical issues.
Recent OVW awards for FY24 to entities in NCM total at least $2,997,009 and include the following recipients:
City of Greensboro$500,000.00NC Coalition Against Domestic Violence$114,533.00Alamance County$950,000.00Winston-Salem State University$499,976.00Second Bloom of Chatham, Inc$550,000.00Stand Up - Speak Out of NC$328,500.00Office of Justice Programs
The Office of Justice Programs provides federal leadership, grants, training, technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime; advance equity and fairness in the administration of justice; assist victims; and uphold the rule of law. More information about OJP and its program offices – the Bureau of Justice Assistance, Bureau of Justice Statistics, National Institute of Justice, Office of Juvenile Justice and Delinquency Prevention, Office for Victims of Crime, and SMART Office – can be found at www.ojp.gov.
NCM organizations and programs received a total of at least $24,952,056 in funding from OJP in the recent grant-making cycle, including the following:
City of Winston-Salem$300,000.00City of Greensboro$500,000.00City of Durham$549,671.00Justicematters Inc$800,000.00Maggies Outreach Community Economic
Development Center
$705,604.00Research Triangle Institute$17,408,550.00Piedmont Triad Regional Council$862,040.00Randolph County$150,000.00Moore County$900,000.00Rockingham County$900,000.00Alamance County$900,000.00UNC Greensboro$799,995.00PSN funding (NC DPS)$176,196.00These awards include $2.7 million for RTI International and its subrecipients, the Eradicate Hate Global Summit and the International Association of Chiefs of Police, to launch BJA’s new Coordinated Hate Crimes Resource Center; $1.8 million for establishing veterans courts; and $176,198 for Project Safe Neighborhood sites in NCM. More information about these and other OJP awards can be found on the OJP Grant Awards Page.
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Two Fugitive Tenderloin Drug Traffickers Sentenced to Prison After Being Extradited from HondurasRead the Press Release
SAN FRANCISCO – Two drug dealers who fled to Honduras from the Bay Area while on bond pending federal drug trafficking charges have been extradited to San Francisco and were sentenced to prison terms of 82 months and 34 months, announced U.S. Attorney Ismail J. Ramsey and Drug Enforcement Administration (DEA) Acting Special Agent in Charge Bob P. Beris.
Victor Viera-Chirinos, 42, was one of 14 defendants indicted in August 2019 for trafficking large quantities of heroin, methamphetamine, cocaine base, and cocaine in San Francisco’s Tenderloin neighborhood. Viera-Chirinos was a high-level manager responsible for overseeing portions of the network’s drug trafficking activities. On Apr. 28, 2020, he was ordered released on bond. He pleaded guilty to one count of conspiring to possess and distribute controlled substances in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(B). One week prior to his sentencing scheduled for June 2, 2021, Viera-Chirinos fled. The court issued an arrest warrant and federal authorities ultimately found Viera-Chirinos in Honduras. Viera-Chirinos was extradited to the United States and on Sept. 4, 2024, the Hon. Charles R. Breyer, U.S. District Judge, sentenced him, ordering him to serve 82 months in prison.
Mayer Benegas-Medina, 30, was indicted on Dec. 16, 2020, in a separate conspiracy to distribute and possess with intent to distribute fentanyl in the Tenderloin. Benegas-Medina was also ordered released on bond. The terms of his release included electronic monitoring and a curfew. In March 2021, he fled. Federal authorities ultimately found him in Honduras and extradited him to the United States. Benegas-Medina pleaded guilty to the conspiracy charge and on Sept. 24, 2024, the Hon. William H. Alsup, U.S. District Judge, sentenced him to 34 months in prison.
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. The Justice Department’s Office of International Affairs worked with Honduran authorities to secure the extradition of Viera-Chirinos and Benegas-Medina to the United States.
Assistant U.S. Attorneys Sailaja M. Paidipaty and Dan M. Karmel are prosecuting the case with the assistance of Madeline Wachs. The prosecution is the result of an investigation by DEA.
Two Businesses and Their Owner Consent to an $850,000 Judgment to Resolve COVID-19 Relief Fraud AllegationsRead the Press Release
BOISE– Brett Deuter and his businesses, Deuter Construction, LLC, and Enlighten, LLC, consented to an $850,000 judgment against them in United States District Court after admitting to violations of the False Claims Act, U.S. Attorney Josh Hurwit announced.
The fraud perpetrated by Deuter involved misappropriating funds from two different COVID-19 Relief Programs: the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program.
In the consent judgment, Deuter admitted that Deuter Construction no longer had employees or operations at the time that it applied for PPP funds. Deuter further admitted that the recipient of the PPP funds – Enlighten, LLC – was ineligible to receive funds because it was not in operation prior to the COVID-19 pandemic. Deuter also admitted to falsely stating the PPP loan was exclusively used for payroll and other covered expenses when, in fact, some of the funds were used to cover Deuter’s personal expenses, including personal credit card debt and gambling expenses in Las Vegas, Nevada.
Additionally, Deuter admitted to recklessly making false statements in an application for EIDL funds. Deuter falsely claimed that the EIDL funds would be used as working capital to alleviate economic injury caused by the pandemic. Instead, Deuter used the EIDL funds to pay personal and business debts incurred before the pandemic started. Deuter also admitted that EIDL funds were used to purchase real property in Hailey, Idaho.
“Fighting COVID-19 relief fraud has been, and will continue to be, a priority for my office,” said U.S. Attorney Hurwit. “We will continue to bring to justice those individuals and companies who seek to obtain taxpayer funds through fraudulent schemes or illegal practices.”
This judgment includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Stuart Hallam. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. Mr. Hallam will receive approximately $161,500 as his share of the total settlement.
“This outcome demonstrates our unwavering commitment to ensuring relief funds provided through the PPP and EIDL programs are used for their intended purposes,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “The unauthorized use of these funds for personal expenditures undermines the integrity of these programs. The whistleblower award serves as a tool to bring more whistleblowers forward. This result would not have been possible without the qui tam relator and the hard work of our dedicated law enforcement partners.”
This matter was investigated jointly by the U.S. Attorney’s Office for the District of Idaho and the Small Business Administration, Office of Inspector General. Assistant U.S. Attorney Elliot Wertheim handled this case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department 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 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 www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For additional case information and publicly available court documents, see United State ex rel. Stuart Hallam v. Brett Deuter, et. al., 1:23-CV-00348 (U.S. District Court for the District of Idaho).
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Tulsa Man Sentenced for Coercion of a Minor and Possessing More than 600 Sexually Explicit Photos of Minor ChildrenRead the Press Release
TULSA, Okla. – Today, U.S. District Judge John D. Russell sentenced Justin Ray Walters, 49, for Coercion and Enticement of a Minor and Possession of Child Pornography. Judge Russell ordered Walters to be sentenced to 300 months of imprisonment, followed by ten years of supervised release. Upon his release, Walters will also be required to register as a sex offender.
According to court documents from November 2022 through April 2023, Walters professed his love and engaged in sexually explicit conversations with a child victim he knew was under 16 years old. Walters pressured the child victim to produce and share sexually explicit conduct. Additionally, Walters possessed more than 600 images that depicted the sexual abuse of children. Several of the images showed the sexual abuse of children under the age of 12.
Walters will remain in custody pending transfer to the U.S. Bureau of Prisons.
Homeland Security Investigations and the Oklahoma State Bureau of Investigation investigated the case. Assistant U.S. Attorney Stacey Todd prosecuted the case.
If you believe sexually explicit photos or videos of you were posted online, Take It Down can help. Take It Down is a free online website hosted by the National Center for Missing and Exploited Children. You can anonymously request help to remove or stop the sharing of sexually explicit content. Take It Down also provides services for victims, survivors, siblings and caregivers looking for mental health and peer support. Further, if you are being threatened by image sharing or other forms of online exploitation, you can submit a report online.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Terre Haute Man Pleads Guilty to Firearms Trafficking OffenseRead the Press Release
Louisville, KY – Today, a Terre Haute, Indiana, man pleaded guilty to illegally transferring a firearm to a convicted felon.
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, Commissioner Phillip Burnett, Jr. of the Kentucky State Police, and Sheriff Derek Polston of the Russell County Sheriff’s Office made the announcement.
According to court documents, Shawn Michael Kays, 41, pleaded guilty to an information charging firearms trafficking. According to the plea agreement, between November of 2023 and January of 2024, Kays transported and transferred a Smith & Wesson, Model SD9VE, nine-millimeter pistol to a convicted felon. A criminal complaint filed on September 19, 2024, alleged that firearm was later used to kill a Russell County Sheriff’s Deputy on September 16, 2024. Kays is not charged with or alleged to have been involved in the shooting.
Sentencing is scheduled for February 10, 2025. The maximum penalty is fifteen years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
There is no parole in the federal system.
This case is being investigated by the ATF Louisville Field Division, Bowling Green Branch Office, and the Russell County Sheriff’s Office, with assistance from the ATF Columbus Field Division, The ATF Indianapolis Field Division Office, and the Kentucky State Police.
Assistant U.S. Attorney R. Nicholas Rabold, of the U.S. Attorney’s Bowling Green Branch Office, is prosecuting this case.
This case was prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted, and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
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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Tehama County Man Sentenced to over 19 Years in Prison for Child Exploitation OffenseRead the Press Release
SACRAMENTO, Calif. — Eduardo Castillo, 39, of Corning, was sentenced today to 19 years and seven months in prison for online enticement of a minor for sexual purposes, U.S. Attorney Phillip A. Talbert announced.
Castillo had previously fled to Mexico to avoid prosecution; however, he was returned to the United States in August 2023 thanks to the collaboration of the FBI, Mexican law enforcement officials, and Mexican immigration officials.
According to court documents, between July 13, 2020, and Aug. 27, 2020, Castillo used a cellphone and the internet to entice at least five minor victims into sending him images and videos of themselves engaging in sexually explicit conduct.
During that timeframe, Castillo posed as one or more teenage girls on social media platforms such as Snapchat and Instagram. Using images of teenage girls that he had downloaded from the internet, Castillo initiated chats and then exchanges of images with his male victims. Castillo then asked for child sexual abuse material in return, assuring his victims that the images and videos would be deleted. In reality, Castillo screen-recorded the videos and images and saved them on his devices.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Denise N. Yasinow prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Sumter Man Sentenced to Federal Prison After Multi-State Drug Trafficking InvestigationRead the Press Release
COLUMBIA, S.C. — Seneca Moore, 43, of Sumter was sentenced to 12 years in federal prison after pleading guilty to distribution of methamphetamine.
Evidence presented to the court showed that on July 28, 2020, Moore sold 112 grams of methamphetamine to FBI agents during an undercover operation. The initial meeting took place at Moore’s trucking business in Mayesville. Moore later left the location and texted the buyer to meet him in the parking lot of a local gas station where he sold 112 grams of meth with 99 percent purity to the FBI. During the sale, Moore spoke of the prices the meth could be sold for and of other drugs he could provide.
Further information presented to the court revealed that April 28, 2021, Moore conducted a second drug transaction at his trucking business. Law enforcement became aware of this transaction after the North Carolina State Bureau of Investigation and the FBI received information that a drug courier was headed to Sumter County from Alamance, N.C. to purchase a large amount of cocaine from Moore at his trucking business. Agents with the FBI contacted the Drug Enforcement Administration and the Sumter County Sheriff’s Office, who established surveillance in the area. Agents observed the courier arrive at Moore’s trucking business in a blue sedan and interact with Moore before leaving the location. DEA and Sumter County reported the information back to North Carolina and the Alamance Narcotics Enforcement Team, NCSBI, and DEA established surveillance in North Carolina and observed the same car arriving back in Alamance County. The Alamance County Sheriff’s Office performed a traffic stop on the vehicle and searched the vehicle after a narcotics K-9 alerted to the presence of drugs. Officers found 16.04 kilograms of cocaine in the trunk of the vehicle.
As a condition of Moore’s guilty plea, he was required to forfeit his interest in nine properties, 31 items of personal property, including vehicles, and his business inventory. Moore has a prior federal conviction for conspiracy to possess with intent to distribute crack cocaine.
United States District Judge Sherri A. Lydon sentenced Moore to 144 months imprisonment, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
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. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the FBI Charlotte Field Office, the Drug Enforcement Administration, the North Carolina State Bureau of Investigation, the Alamance Narcotics Enforcement Team, the Alamance County Sheriff’s Office, the Sumter County Sheriff’s Office, and the Sumter Police Department. Assistant U.S. Attorney Lamar Fyall is prosecuting the case.
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Sioux Falls Man Sentenced to Federal Prison for Possession of Child PornographyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Lawrence L. Piersol has sentenced a Sioux Falls, South Dakota, man convicted of Possession of Child Pornography. The sentencing took place on September 30, 2024.
Justin Lee Williams, age 48, was sentenced to three years and five months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Once released, Williams must register as a sex offender.
Williams was indicted by a federal grand jury in February of 2024. He pleaded guilty on July 15, 2024.
The conviction stemmed from incidents between March 23, 2023, and June 27, 2023, when Williams possessed images of child pornography. A CyberTip was received which showed that Williams had accessed child pornography on his cellular phone. Law enforcement conducted multiple searches and located two cell phones with several images and videos of child pornography, including that of a minor female as young as 6-10 years old.
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.
This case was investigated by Homeland Security Investigations, the South Dakota Internet Crimes Against Children Task Force, and the National Center for Missing and Exploited Children. Assistant U.S. Attorney Elizabeth A. Ebert-Webb prosecuted the case.
Williams was immediately remanded to the custody of the U.S. Marshals Service.
Sex Trafficker Sentenced to 27 Years in Federal PrisonRead the Press Release
CHICAGO — A Joliet, Ill. man has been sentenced to 27 years in federal prison for sex trafficking and facilitating the sex trafficking of multiple women.
KENDALL GUYTON admitted in a plea agreement that he recruited three women to engage in commercial sex acts from 2017 to 2020. Guyton admitted that he advertised commercial sex acts online and arranged for the victims to meet individuals in various locations in the Chicago area. He provided the victims with illicit drugs, including heroin or cocaine, and often beat his victims to force them to comply with his demands.
At sentencing, the government presented evidence that Guyton facilitated the trafficking of at least five other victims, including a minor, by beating and sexually assaulting them.
Guyton, 29, pleaded guilty last year to one count of sex trafficking by force, fraud, and coercion. U.S. District Judge Sara L. Ellis imposed the 27-year sentence on Thursday during a hearing in federal court in Chicago.
A co-defendant, GREGORY INGRAM, 45, of Richton Park, Ill., also pleaded guilty to his role in the trafficking of multiple victims, including a minor whom he invited to live in his home while he trafficked her. Ingram controlled the 14-year-old victim using drugs and threats of harm. Judge Ellis in May sentenced Ingram to 20 years in federal prison.
The sentences were 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 Carol Stream, Ill. Police Department, Lisle, Ill. Police Department, Will County, Ill. Sheriff’s Office, Joliet Police Department, Richton Park Police Department, and Downers Grove, Ill. Police Department.
“Defendant’s crimes were incredibly serious and had long-lasting impacts on his victims,” Assistant U.S. Attorneys Christine M. O’Neill and Prashant Kolluri argued in the government’s sentencing memorandum in Guyton’s case. “Defendant knew these women were vulnerable and he preyed upon these vulnerabilities.”
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by calling 1-800-843-5678 or logging on to http://www.missingkids.com. The service is available 24 hours a day, seven days a week.
Schenectady Woman Pleads Guilty to Charges Related to Theft of Social Security BenefitsRead the Press Release
ALBANY, NEW YORK – Annmarie Ditoro, age 42, of Schenectady, New York, pled guilty yesterday to multiple counts of social security fraud, announced United States Attorney Carla B. Freedman and Amy Connelly, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, New York Field Office.
Ditoro admitted that she stole Supplemental Security Income (“SSI”) benefits and Social Security Survivor’s benefits intended for her four disabled children. Ditoro was previously the representative payee for all four of her children. A representative payee is a person or organization receiving Social Security benefits on another person’s behalf and tasked with ensuring the benefits are used only to support the beneficiary. Ditoro admitted that Schenectady Department of Social Services removed all four of her children from her custody in July 2022. Ditoro failed to inform the Social Security Administration of the change in custody, and she continued to receive Social Security benefits on her children’s behalf. Ditoro admitted that she spent the benefits for her personal use despite knowing that she was not entitled to that money. In total, Ditoro stole over $25,000 in benefit payments intended for her children.
Ditoro faces a maximum term of imprisonment of 5 years, a fine of up to $250,000, and a term of supervised of up to 3 years. She will also be required to pay restitution to the Social Security Administration. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Sentencing is scheduled for January 31, 2025, in Albany.
This case was investigated by the Social Security Administration Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Paul J. Tuck.
Saratoga County Man Sentenced for Drug and Firearms OffensesRead the Press Release
ALBANY, NEW YORK – Anthony Luizzi, age 24, of Halfmoon, New York, was sentenced today to 210 months in prison, and to pay a $10,000 fine, for drug and gun crimes in connection with his trafficking of large amounts of fentanyl, cocaine and methamphetamine, and his possession of more than 30 firearms.
United States Attorney Carla B. Freedman; Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division; and Bryan Miller, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement.
Luizzi previously pled guilty to conspiracy to distribute and possess with intent to distribute cocaine, methamphetamine, and fentanyl; possession with intent to distribute cocaine, methamphetamine and fentanyl; and possession of firearms in furtherance of drug trafficking crimes.
Luizzi admitted that he conspired to distribute, and possessed with intent and distribute, cocaine, methamphetamine, and fentanyl, from his residence in Halfmoon, and at an apartment on Western Avenue in Albany. On May 23, 2023, law enforcement searched his apartment in Halfmoon and found more than 11 kilograms of fentanyl pills, along with five firearms, including a shotgun with a defaced serial number. Law enforcement also seized $2,616 as drug proceeds. On that same day, law enforcement also searched the apartment on Western Avenue and found 34 more firearms, as well as more than 400 grams of fentanyl pills, more than 7,000 grams of pills containing methamphetamine, and more than 700 grams of cocaine.
United States District Judge Anne M. Nardacci also ordered that Luizzi serve a 5-year term of supervised release following his release from prison and ordered the forfeiture of the $2,616 in cash found at his Halfmoon residence.
The following defendants have also been charged in connection with this investigation:
- Brandon Bartley was sentenced on September 24, 2024, to 180 months in prison and to pay a $5,000 fine, for drug and gun crimes.
- Devon Newsome pled guilty on September 3, 2024, to unlawfully transferring firearms as part of the firearms trafficking conspiracy. Newsome is scheduled to be sentenced on January 6, 2025.
- Jabree Jones was charged with a violation of the terms of his supervised release on May 23, 2023, based on violations of federal gun and drug trafficking laws, and has been detained pending the resolution of the supervised release violation petition. A final revocation hearing is currently scheduled for December 17, 2024. The charges against Jones are merely accusations. He is presumed innocent unless and until proven guilty.
The DEA and the ATF are investigating the case, with assistance from the Saratoga County Sheriff’s Office (SCSO), the United States Postal Inspection Service (USPIS), U.S. Department of Labor, Office of Inspector General (USDOL-OIG), and Henry County Police Department in Georgia. Assistant U.S. Attorney Alexander Wentworth-Ping is prosecuting the case.
Russian National Indicted for Series of Ransomware AttacksRead the Press Release
The Justice Department today unsealed an indictment charging Russian national Aleksandr Viktorovich Ryzhenkov (Александр Викторович Рыженков) with using the BitPaymer ransomware variant to attack numerous victims in Texas and throughout the United States and hold their sensitive data for ransom.
According to the indictment obtained in the Northern District of Texas, beginning in at least June 2017, Ryzhenkov allegedly gained unauthorized access to the information stored on victims’ computer networks. Ryzhenkov and his conspirators then allegedly deployed the strain of ransomware known as BitPaymer and used it to encrypt the files of the victim companies, rendering them inaccessible. An electronic note left on the victims’ systems contained a ransom demand and instructions on how to contact the attackers to begin ransom negotiations. Ryzhenkov and his conspirators allegedly demanded that victims pay a ransom to obtain a decryption key and prevent their sensitive information from being made public online.
The indictment further alleges that Ryzhenkov and others used a variety of methods to intrude into computer systems, including phishing campaigns, malware, and taking advantage of vulnerabilities in computer hardware and software. Ryzhenkov and coconspirators used this access to demand millions of dollars in ransom. Ryzhenkov is believed to be in Russia. View the FBI’s wanted poster for him here.
In coordination with the indictment’s unsealing, the Office of Foreign Assets Control of the U.S. Department of the Treasury today announced that Ryzhenkov was added to its list of specially designated nationals. The designation blocks property and interests in any property the designee may have in the United States and prohibits U.S. financial institutions from engaging in certain transactions and activities with the designated individual. To learn more, view the Treasury announcement here.
“The Justice Department is using all the tools at its disposal to attack the ransomware threat from every angle,” said Deputy Attorney General Lisa Monaco. “Today’s charges against Ryzhenkov detail how he and his conspirators stole the sensitive data of innocent Americans and then demanded ransom. With law enforcement partners here and around the world, we will continue to put victims first and show these criminals that, in the end, they will be the ones paying for their crimes.”
“Ransomware attacks – particularly those deployed by bad actors with ties to Russia – can paralyze a company in the time it takes to open a laptop. Whether or not the ransom is paid, recovering from a ransomware attack is generally costly and time-consuming,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “The U.S. Attorney’s Office for the Northern District of Texas is committed to pursuing cybercriminals who hold data hostage, no matter where in the world they may be hiding.”
“Aleksandr Ryzhenkov extorted victim businesses throughout the United States by encrypting their confidential information and holding it for ransom,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Addressing the threat from ransomware groups is one of the Criminal Division’s highest priorities. The coordinated actions announced today demonstrate, yet again, that the Justice Department is committed to working with its partners to take an all-tools approach to protecting victims and holding cybercriminals accountable.”
“The FBI together with partners continues to leverage all resources to impose cost on criminals engaging in ransomware attacks,” said FBI Deputy Director Paul Abbate. “Today’s indictment delivers a clear message to those who engage in cyber-criminal activity – you will face severe consequences for your illicit activities and will be held accountable under the law.”
The FBI Dallas Field Office is investigating the case.
Trial Attorney Debra L. Ireland of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Vincent J. Mazzurco for the Northern District of Texas are prosecuting the case.
Victims of ransomware attacks are encouraged to contact their local FBI field office. For additional information on ransomware, please visit StopRansomware.gov.
An indictment is merely an allegation. Under United States law, all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Russian National Indicted for Series of Ransomware AttacksRead the Press Release
The Justice Department today unsealed an indictment charging Russian national Aleksandr Viktorovich Ryzhenkov (Александр Викторович Рыженков) with using the BitPaymer ransomware variant to attack numerous victims in Texas and throughout the United States and hold their sensitive data for ransom.
According to the indictment, beginning in at least June 2017, Ryzhenkov allegedly gained unauthorized access to the information stored on victims’ computer networks. Ryzhenkov and his conspirators then allegedly deployed the strain of ransomware known as BitPaymer and used it to encrypt the files of the victim companies, rendering them inaccessible. An electronic note left on the victims’ systems contained a ransom demand and instructions on how to contact the attackers to begin ransom negotiations. Ryzhenkov and his conspirators allegedly demanded that victims pay a ransom to obtain a decryption key and prevent their sensitive information from being made public online.
The indictment further alleges that Ryzhenkov and others used a variety of methods to intrude into computer systems, including phishing campaigns, malware, and taking advantage of vulnerabilities in computer hardware and software. Ryzhenkov and coconspirators used this access to demand millions of dollars in ransom. Ryzhenkov is believed to be in Russia. View the FBI’s wanted poster for him here.
In coordination with the indictment’s unsealing, the Treasury Department's Office of Foreign Assets Control today announced that Ryzhenkov was added to its list of specially designated nationals. The designation blocks property and interests in any property the designee may have in the United States and prohibits U.S. financial institutions from engaging in certain transactions and activities with the designated individual. To learn more, view the Treasury announcement here.
“The Justice Department is using all the tools at its disposal to attack the ransomware threat from every angle,” said Deputy Attorney General Lisa Monaco. “Today’s charges against Ryzhenkov detail how he and his conspirators stole the sensitive data of innocent Americans and then demanded ransom. With law enforcement partners here and around the world, we will continue to put victims first and show these criminals that, in the end, they will be the ones paying for their crimes.”
“The FBI, together with partners, continues to leverage all resources to impose cost on criminals engaging in ransomware attacks,” said FBI Deputy Director Paul Abbate. “Today’s indictment delivers a clear message to those who engage in cyber-criminal activity – you will face severe consequences for your illicit activities and will be held accountable under the law.”
“Aleksandr Ryzhenkov extorted victim businesses throughout the United States by encrypting their confidential information and holding it for ransom,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Addressing the threat from ransomware groups is one of the Criminal Division’s highest priorities. The coordinated actions announced today demonstrate, yet again, that the Justice Department is committed to working with its partners to take an all-tools approach to protecting victims and holding cybercriminals accountable.”
“Ransomware attacks – particularly those deployed by bad actors with ties to Russia – can paralyze a company in the time it takes to open a laptop. Whether or not the ransom is paid, recovering from a ransomware attack is generally costly and time-consuming,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “The U.S. Attorney’s Office for the Northern District of Texas is committed to pursuing cybercriminals who hold data hostage, no matter where in the world they may be hiding.”
The FBI Dallas Field Office is investigating the case.
Trial Attorney Debra L. Ireland of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Vincent J. Mazzurco for the Northern District of Texas are prosecuting the case.
Victims of ransomware attacks are encouraged to contact their local FBI field office. For additional information on ransomware, please visit StopRansomware.gov.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Repeat Sex Offender Sentenced to 25 Years in Federal Prison for Attempted Sexual Exploitation of a ChildRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on September 30, 2024, Senior United States District Judge William C. Griesbach sentenced David J. Fuchs (age: 41), formerly of Janesville, Wisconsin, to 25 years in federal prison for attempting to sexually exploit a child.
According to court records, Fuchs engaged in a conversation with an undercover law enforcement officer from the Outagamie County Sheriff’s Office, who was posing online as a 12-year-old girl. During the conversation, Fuchs repeatedly described his desire to have sex with the child, sending multiple explicit photographs of himself and requesting explicit photographs from the undercover officer. Fuchs explained to the undercover officer, in explicit terms, how he intended to “teach” the young girl how to have sexual intercourse. During many of the sexually explicit conversations, Fuchs expressed his belief that the 12-year-old girl was in school. He planned to meet the girl at a travel plaza near Madison, Wisconsin, and he promised to bring her art supplies. On March 15, 2024, Fuchs arrived at a travel plaza with the intention of meeting a 12-year-old girl. The United States Marshals Service placed him under arrest.
Court records further indicate that the undercover officer from the Outagamie County Sheriff’s Office also talked to Fuchs using a different undercover identity. During this conversation, Fuchs offered to pay $100 to have sex with a 7-year-old girl. Fuchs was also talking to undercover officers from the Madison Police Department, the Manitowoc County Sheriff’s Office, and the Fox Valley Metro Police Department, who were posing online as underage girls.
Fuchs is a registered sex offender with prior convictions for attempted second degree sexual assault of a child and sexual assault of an intoxicated victim.
This case was investigated by the Outagamie County Sheriff’s Office, the Manitowoc County Sheriff’s Office, the Fox Valley Metro Police Department, and the Madison Police Department, with assistance from the Rock County Sheriff’s Office and the United States Marshals Service. It was prosecuted by Assistant United States Attorney Alex Duros.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Readout of Justice Department’s “Walk the Redline” Event to Commemorate the Third Anniversary of the Combating Redlining InitiativeRead the Press Release
To commemorate the third anniversary of the Justice Department's Combating Redlining Initiative, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Matthew M. Graves for the District of Columbia conducted a walking tour yesterday along Washington D.C.'s historic U Street Corridor.
This year also marks the Justice Department’s 30th anniversary of redlining enforcement efforts. In 1994, the department filed its first redlining case against Chevy Chase Federal Savings Bank in Washington, D.C. Walking the historic U Street Corridor highlights the roots of the department’s fair lending enforcement efforts and continued commitment to fight for equal opportunity for all people and communities impacted by redlining.
Assistant Attorney General Clarke and U.S. Attorney Graves met with three of the longest enduring Black-owned businesses in Washington D.C. — Industrial Bank, Lee’s Flower and Card Shop and Ben’s Chili Bowl — to discuss how access to credit and financial services impacted the neighborhood. Leaders reflected on the local Black community’s rich history of entrepreneurship and contributions to the local economy despite historical redlining.
Redlining is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race or national origin of the people who live in those communities. Starting in 2025, lenders will also be required to collect and report on the racial demographics of small business loans provided by financial institutions.
“These three legacy D.C. establishments underscore how access to credit and loan services can be transformative in providing access to economic opportunity and generational wealth for Black communities,” said Assistant Attorney General Clarke. “Our Combating Redlining Initiative is holding financial institutions accountable for unlawful redlining practices and has resulted in historic relief to close the widening wealth gap between communities of color and others. As we expand our efforts, we look forward to reviewing future data on business loans to ensure that banks are engaged in fair lending to small businesses.”
“Industrial Bank’s relationship with Lee’s Flower and Card Shop and Ben’s Chili Bowl shows how businesses can thrive when banks provide access to lending,” said U.S. Attorney Graves. “The U.S. Attorney’s Office for the District of Columbia, along with our partners at the Civil Rights Division, are committed to holding accountable those banks that are not providing equal access to lending.”
In October 2021, Attorney General Merrick B. Garland and Assistant Attorney General Clarke launched the Justice Department’s Combating Redlining Initiative as the most aggressive and coordinated effort to fight discriminatory lending against communities of color. The Initiative brings a comprehensive approach by working with U.S. Attorneys’ Offices, State Attorneys General and financial regulatory agencies nationwide to address redlining.
Since 2021, the department has reached major milestones since its launch, including:
- Securing 13 settlements totaling $137 million in relief for communities of color across the country in California, Delaware, Florida, New Jersey, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, Texas and Tennessee.
- Securing a historic amount of relief that includes $121 million in subsidies for home loans and is expected to generate over $1 billion in investment in affected communities in places such as Houston; Memphis, Tennessee; Newark, New Jersey; Los Angeles; and Charlotte, North Carolina.
Information about the Justice Department’s fair lending enforcement work can be found at www.justice.gov/crt/fair-lending-program. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online. Information about the U.S. Attorney’s Office’s civil rights enforcement may be found at www.justice.gov/usao-dc/affirmative-civil-rights-and-environmental-justice.
Beginning in 2025, consistent with section 1071 of the Dodd-Frank Act, lenders will be required to collect and report certain demographic data for small business loan applications. Information about the Consumer Financial Protection Bureau’s small business lending rulemaking may be found at Small business lending rulemaking | Consumer Financial Protection Bureau (consumerfinance.gov).
Assistant Attorney General Clarke and U.S. Attorney Graves meet with management at Industrial Bank. Assistant Attorney General Clarke and U.S. Attorney Graves are shown a mural by the owners of Lee's Flower and Card Shop. Assistant Attorney General Clarke and U.S. Attorney Graves tour Ben's Chili Bowl.Readout of Justice Department’s “Walk the Redline” Event Meeting with D.C. Local Business Leaders to Commemorate the Third Anniversary of the Combating Redlining InitiativeRead the Press Release
WASHINGTON – To commemorate the third anniversary of the Justice Department's Combating Redlining Initiative, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Matthew M. Graves for the District of Columbia conducted a walking tour along Washington D.C.'s historic U Street Corridor.
This year also marks the Justice Department’s 30th anniversary of redlining enforcement efforts. In 1994, the department filed its first redlining case against Chevy Chase Federal Savings Bank in Washington, D.C. Walking the historic U Street Corridor highlights the roots of the department’s fair lending enforcement efforts and continued commitment to fight for equal opportunity for all people and communities impacted by redlining.
Assistant Attorney General Clarke and U.S. Attorney Graves met with three of the longest enduring Black-owned businesses in Washington D.C. — Industrial Bank, Lee’s Flower and Card Shop and Ben’s Chili Bowl — to discuss how access to credit and financial services impacted the neighborhood. Leaders reflected on the local Black community’s rich history of entrepreneurship and contributions to the local economy despite historical redlining.
Redlining is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race or national origin of the people who live in those communities. Starting in 2025, lenders will also be required to collect and report on the racial demographics of small business loans provided by financial institutions.
“These three legacy D.C. establishments underscore how access to credit and loan services can be transformative in providing access to economic opportunity and generational wealth for Black communities,” said Assistant Attorney General Clarke. “Our Combating Redlining Initiative is holding financial institutions accountable for unlawful redlining practices and has resulted in historic relief to close the widening wealth gap between communities of color and others. As we expand our efforts, we look forward to reviewing future data on business loans to ensure that banks are engaged in fair lending to small businesses.”
“Lee’s Flower and Card Shop, Ben’s Chili Bowl and Industrial Bank are perfect examples of how businesses can thrive when banks provide equal access to lending,” said U.S. Attorney Graves. “The U.S. Attorney’s Office for the District of Columbia, along with our partners at the Civil Rights Division, are committed to holding accountable those banks that are not providing equal access.”
In October 2021, Attorney General Merrick B. Garland and Assistant Attorney General Clarke launched the Justice Department’s Combating Redlining Initiative as the most aggressive and coordinated effort to fight discriminatory lending against communities of color. The Initiative brings a comprehensive approach by working with U.S. Attorneys’ Offices, State Attorneys General and financial regulatory agencies nationwide to address redlining.
Since 2021, the department has reached major milestones since its launch, including:
- Securing 13 settlements totaling $137 million in relief for communities of color across the country in California, Delaware, Florida, New Jersey, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, Texas and Tennessee.
- Securing a historic amount of relief that includes $121 million in subsidies for home loans and is expected to generate over $1 billion in investment in affected communities in places such as Houston; Memphis, Tennessee; Newark, New Jersey; Los Angeles; and Charlotte, North Carolina.
Information about the Justice Department’s fair lending enforcement work can be found at www.justice.gov/crt/fair-lending-program. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online. Information about the U.S. Attorney’s Office’s civil rights enforcement may be found at www.justice.gov/usao-dc/affirmative-civil-rights-and-environmental-justice.
Beginning in 2025, consistent with section 1071 of the Dodd-Frank Act, lenders will be required to collect and report certain demographic data for small business loan applications. Information about the Consumer Financial Protection Bureau’s small business lending rulemaking may be found at Small business lending rulemaking | Consumer Financial Protection Bureau (consumerfinance.gov).
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Project Safe Neighborhoods News for September 2024Read the Press Release
SACRAMENTO, Calif. — The Project Safe Neighborhoods (PSN) initiative brings together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence. At the core of PSN is setting focused and strategic enforcement priorities that help prevent violence from occurring in the first place. U.S. Attorney Phillip A. Talbert announces the following actions in federal PSN cases.
Indictments
Anthony Carter, 22, of Elk Grove, and Isaiah Rowland, 28, of Antelope, were indicted on Aug. 15, 2024, each charged with being a felon in possession of a firearm. The indictment was unsealed following their arrests on Sept. 5. According to court documents, Carter is prohibited from possessing a firearm due to prior felony convictions for reckless evasion of a peace officer, felon in possession of a firearm, and possession of a firearm by a person on probation. Rowland, too, is prohibited from possessing a firearm due to prior felony convictions for robbery, failure to appear on a felony charge, and carrying a loaded firearm. This case is the result of the ongoing collaboration between the Sacramento Police Department and its local, state, and federal partners as part of a Public Safety Partnership (PSP) to address violent crime in the community. Started in 2022, the Sacramento PSP is a multi-faceted violence-reduction strategy that relies on innovative data-driven strategies to promote public and community safety. Participating PSP partners include: the Sacramento District Attorney’s Office, Sacramento FBI, Sacramento DEA, Sacramento ATF, the Sacramento U.S. Marshals, and the U.S. Attorney’s Office. Assistant U.S. Attorney Zulkar Khan is prosecuting the case.
Richard Lee Dazo, 38, of West Sacramento, was indicted on Sept. 12, 2024, charged with being a felon in possession of a firearm and ammunition. According to court documents, on Aug. 13, 2024, Dazo was found to be in possession of a loaded Remington 870 shotgun and a pellet gun loaded with live ammunition. Dazo is prohibited from possessing a firearm due to prior felony convictions for assault with force likely to produce great bodily injury and criminal street gang activity, being a felon in possession of a firearm, possession of metal knuckles, and possession of a concealed dirk or dagger. This case is the product of an investigation by the West Sacramento Police Department, FBI Safe Streets Task Force, and Yolo County District Attorney’s Office. Special Assistant U.S. Attorney Matthew De Moura is prosecuting the case.
If convicted, defendants Carter, Rowland and Dazo face a maximum statutory penalty of 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Guilty Plea
Sean Arthur Robinson, 37, of Stockton, pleaded guilty on Sept. 10, 2024, to illegal possession of a firearm. According to court documents, law enforcement officers recovered a loaded Glock 27 semi-automatic firearm and a loaded magazine inside a vehicle while serving a search warrant at Robinson’s residence in Stockton in September 2022. The firearm had previously been reported stolen from Sacramento. Robinson is prohibited from possessing firearms due to prior convictions for elder abuse and for carrying a loaded firearm in public. Law enforcement’s investigation into Robinson began at least as early as May 2021, when surveillance footage captured him engaging in a violent shootout at the Grand Hyatt Hotel near San Francisco International Airport. During this incident, Robinson and a compatriot attempted to carjack at least two other vehicles. Following the shootout, law enforcement officers seized a black duffel bag that surveillance footage captured Robinson carrying just before the firefight began and contained three illegal firearms. This case is the product of an investigation by the FBI with assistance from the San Francisco Police Department. Assistant U.S. Attorneys Justin Lee and Sam Stefanki are prosecuting the case.
Robinson is scheduled to be sentenced on Jan. 7, 2025. He faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Sentencings
Jacob Harding-Abeyta, 31, of Vallejo, was sentenced on Sept. 10, 2024, to four years and nine months in prison for being a felon in possession of a firearm and possession of cocaine for sale. According to court documents, on Oct. 7, 2020, a parole search of Harding-Abeyta’s residence resulted in the discovery of a loaded .45-caliber Springfield XDS firearm in his bedroom. Harding-Abeyta is prohibited from possessing firearms or ammunition because he was previously convicted in Solano County for attempted murder in 2014. Officers also discovered 39 grams of powder cocaine, a digital scale, plastic baggies, and other drug paraphernalia. A search of the defendant’s phone revealed that he was selling this and other cocaine. Additionally, Harding-Abeyta also admitted in his plea agreement that he committed obstruction of justice by attempting to suborn perjury of a witness during a prior evidentiary hearing in this case. This case was the product of an investigation by the Solano County Sheriff’s Office, the Solano County District Attorney’s Office, the ATF, and the FBI’s Solano County Violent Crimes Task Force. Assistant U.S. Attorneys Haddy Abouzeid, Jason Hitt, Adrian T. Kinsella prosecuted the case.
Sovan Leng, 34, of Stockton was sentenced on Sept. 10, 2024, to two years and six months in prison for being a felon in possession of a firearm. According to court documents, on Oct. 16, 2023, Leng was found to be in possession of a Glock-17 9 mm pistol. Leng is prohibited from possessing a firearm due to several prior felony convictions for assault with a deadly weapon, carrying a loaded firearm, possession of a stolen vehicle, being a felon in possession of a firearm, and possession of a controlled substance. This case was the product of an investigation by the Stockton Police Department and ATF. Assistant U.S. Attorneys Alstyn Bennett and Zulkar Khan prosecuted the case.
These cases are 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 U.S. Department of Justice 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.
Previously extradited Nigerian national sent to prison for role in multimillion-dollar business email compromise schemeRead the Press Release
HOUSTON – A 45-year-old dual citizen of Nigeria and the United Kingdom has been ordered to federal prison following his conviction in a wire fraud conspiracy involving two districts, announced U.S. Attorneys Alamdar S. Hamdani and Dena J. King for the Southern District of Texas (SDTX) and Western District of North Carolina (WDNC), respectively.
Oludayo Kolawole John Adeagbo aka John Edwards and John Dayo arrived in the United States in August 2022 following his extradition from the United Kingdom to face criminal charges filed in SDTX and WDNC. He pleaded guilty April 8 for his criminal conduct in both cases.
U.S. District Judge Kenneth Bell of the Western District of North Carolina has now ordered Adeagbo to serve a total of 84 months in federal prison to be immediately followed by one year of supervised release. The court also ordered him to pay $942,655.03 in restitution to the victims.
“Adeagbo ran a sophisticated 21st century cyber-criminal operation hiding behind fake email accounts and anonymous internet addresses to steal from the innocent, a crime as old as time itself,” said Hamdani. “Business Email Compromise (BEC) scams have become an epidemic with individuals and businesses suffering debilitating financial losses, while eroding society’s trust in digital communications and undermining overall economic stability. That’s why prosecutors and agents in two jurisdictions worked tirelessly to identify Adeagbo and reach across the Atlantic to bring him to justice.”
“BEC schemes, like the one perpetrated by Adeagbo and his co-conspirators, are sophisticated and devastating crimes that target the trust businesses and institutions place in their daily operations,” said King. “By exploiting this trust, fraudsters steal millions of dollars from unsuspecting victims. This case demonstrates the commitment of my office and our law enforcement partners to pursue justice for those impacted by these schemes and to hold cybercriminals accountable, regardless of where they are operating from.”
"Oludayo Adeagbo and his coconspirators perpetrated transnational cyber-enabled fraud schemes that targeted schools, government entities, and companies across the United States, and caused millions of dollars in losses,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Adeagbo’s extradition, plea, and sentencing underscore the Criminal Division’s commitment to working with our law enforcement partners to pursue cybercriminals who target American victims, no matter where that pursuit leads. We are especially grateful to the Government of the United Kingdom for its assistance in this case.”
"Oludayo Adeagbo thought he was pretty slick stealing other people’s money via this scam. His victims, however, strongly disagreed,” said FBI Executive Assistant Director Michael Nordwall. “Instead of enjoying the fruits of his illegal labors, Adeagbo will now be spending time in a federal prison. The BEC is one of the fastest growing and most costly scams and the only way to fight it is through cooperation, often international cooperation, and this case is a prime example of partnerships working.”
A BEC scheme, also referred to as “cyber-enabled financial fraud,” is a sophisticated scam that often targets individuals, employees or businesses involved in financial transactions or that regularly perform wire transfer payments. Fraudsters are usually part of larger criminal networks operating in the United States and abroad.
There are many variations of BEC scams. Generally, the schemes involve perpetrators gaining unauthorized access to legitimate email accounts or creating email accounts that closely resemble those of individuals or employees associated with the targeted businesses or involved in business transactions with the victim businesses. The scammers then use the compromised or fake email accounts to send false wiring instructions to the targeted businesses or individuals, to dupe the victims into sending money to bank accounts controlled by perpetrators of the scheme. Generally, the money is quickly transferred to other accounts in the United States or overseas.
The Texas BEC Scheme
From November 2016 until July 2018, Adeagbo conspired with others to participate in multiple cyber-enabled business email compromises in an attempt to steal more than $3 million from victim entities in Texas, including local government entities, construction companies and a Houston-area college. Adeagbo and his co-conspirators registered domain names that looked similar to legitimate companies. They then sent emails from those domains pretending to be employees at those companies to clients or customers of the companies they impersonated and deceived those customers into sending wire payments to bank accounts the co-conspirators controlled.
The North Carolina BEC Scheme
From Aug. 30, 2016, to Jan. 12, 2017, Adeagbo and others defrauded a North Carolina university of more than $1.9 million via a BEC scheme. Adeagbo and his co-conspirators obtained information about significant construction projects occurring throughout the United States, including an ongoing multimillion-dollar project at the victim university. To execute the scheme, Adeagbo and others registered a domain name similar to that of the legitimate construction company in charge of the university’s project and created an email address that closely resembled that of an employee of the construction company. Using the fake email address, the fraudsters deceived and directed the university to wire a payment of more than $1.9 million to a bank account someone working under the direction of Adeagbo and his co-conspirators controlled. Upon receiving the payment, Adeagbo and his co-conspirators laundered the stolen proceeds through a series of financial transactions designed to conceal the fraud.
Co-conspirator Donald Ikenna Echeazu, 42, a dual citizen of Nigeria and the United Kingdom extradited to the United States, was previously sentenced to 18 months in prison followed by a year of supervised release and was ordered to pay $655,408.87 in restitution for his role in the conspiracy.
Adeagbo will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI’s Houston Cyber Task Force and Charlotte Field Office conducted the investigation with assistance of the FBI’s Cyber and Criminal Investigative Divisions. The United Kingdom’s National Crime Agency, Metropolitan Police Service, City of London Police and Crown Prosecution Service also provided substantial assistance. The Department of Justice’s Office of International Affairs helped secure the arrest and extradition.
SDTX Assistant U.S. Attorney (AUSA) Rodolfo Ramirez prosecuted the case along with WDNC AUSA Graham Billings and Trial Attorney Brian Mund of the Justice Department’s Criminal Division Computer Crime and Intellectual Property Section.
If you suspect you are a victim of a BEC scheme, you can file a complaint online with the FBI’s Internet Complaint Crime Complaint Cetner (IC3) at bec.ic3.gov. The IC3 staff reviews complaints to detect patterns or other indicators of significant criminal activity for potential criminal prosecution.
Previously Extradited Nigerian National Sentenced for Role in Multimillion-Dollar Business Email Compromise Schemes Targeting Educational Institutions and Businesses in North Carolina and TexasRead the Press Release
CHARLOTTE, N.C. – A dual citizen of Nigeria and the United Kingdom was sentenced today to seven years in prison for his role in a multimillion-dollar business email compromise (BEC) scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina, and Alamdar S. Hamdani, U.S. Attorney for the Southern District of Texas.
According to court documents, Oludayo Kolawole John Adeagbo, 45, conspired with others to participate in multiple cyber-enabled BEC schemes that defrauded a North Carolina university of more than $1.9 million, and attempted to steal more than $3 million from victim entities in Texas, including local government entities, construction companies, and a Houston-area college.
Adeagbo, also known as John Edwards and John Dayo, arrived in the United States in August 2022 after he was extradited from the United Kingdom to face criminal charges filed in Charlotte and in Houston. On April 8, 2024, Adeagbo pleaded guilty to one count each of wire fraud and conspiracy to commit wire fraud for his criminal conduct in both cases, following the transfer of the case in the U.S. District Court for the Southern District of Texas to the U.S. District Court for the Western District of North Carolina.
“BEC schemes, like the one perpetrated by Adeagbo and his co-conspirators, are sophisticated and devastating crimes that target the trust businesses and institutions place in their daily operations,” said U.S. Attorney King. “By exploiting this trust, fraudsters steal millions of dollars from unsuspecting victims. This case demonstrates the commitment of my office and our law enforcement partners to pursue justice for those impacted by these schemes and to hold cybercriminals accountable, regardless of where they are operating from.”
“Adeagbo ran a sophisticated 21st century cyber-criminal operation hiding behind fake email accounts and anonymous internet addresses to steal from the innocent, a crime as old as time itself,” said U.S. Attorney Hamdani. “BEC scams have become an epidemic with individuals and businesses suffering debilitating financial losses, while eroding society’s trust in digital communications and undermining overall economic stability. That’s why prosecutors and agents in two jurisdictions worked tirelessly to identify Adeagbo and reach across the Atlantic to bring him to justice.”
“Oludayo Adeagbo thought he was pretty slick stealing other people’s money via this scam. His victims, however, strongly disagreed,” said Executive Assistant Director Michael Nordwall of the FBI. “Instead of enjoying the fruits of his illegal labors, Adeagbo will now be spending time in a federal prison. The BEC is one of the fastest growing and most costly scams and the only way to fight it is through cooperation, often international cooperation, and this case is a prime example of partnerships working.”
“As a North Carolina University planned for growth with a new construction project, Adeagbo worked on a scheme to defraud the school by stealing nearly two million dollars of its funding,” said Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office. “When he and his conspirators first committed this business email compromise more than seven years ago, they likely never expected to get caught. This federal prison sentence shows the FBI will do everything possible to find and hold international financial fraudsters accountable.”
“Mr. Adeagbo's multimillion-dollar BEC scheme inflicted substantial financial damage on trusted educational institutions, government municipalities, and innocent businesses within our community,” said Special Agent in Charge Douglas Williams of the FBI Houston Field Office. “In a world increasingly reliant on the digital landscape, this sentencing serves as a powerful reminder that cybercrime has real consequences. FBI Houston will continue to investigate, attribute, and impose severe consequences on cyber criminals seeking to harm others through deceit and fraud.”
A BEC scheme, also referred to as “cyber-enabled financial fraud,” is a sophisticated scam that often targets individuals, employees, or businesses involved in financial transactions or that regularly perform wire transfer payments. Fraudsters are usually part of larger criminal networks operating in the United States and abroad.
There are many variations of BEC scams. Generally, the schemes involve perpetrators gaining unauthorized access to legitimate email accounts or creating email accounts that closely resemble those of individuals or employees associated with the targeted businesses or involved in business transactions with the victim businesses. The scammers then use the compromised or fake email accounts to send false wiring instructions to the targeted businesses or individuals, to dupe the victims into sending money to bank accounts controlled by perpetrators of the scheme. Generally, the money is quickly transferred to other accounts in the United States or overseas.
The North Carolina BEC Scheme
According to court documents and court proceedings, from August 30, 2016, to January 12, 2017, Adeagbo, his codefendant, Donald Ikenna Echeazu, 42, a dual citizen of Nigeria and the United Kingdom extradited to the United States, and others defrauded a North Carolina university (the University) of more than $1.9 million via a BEC scheme.
Court records show that Adeagbo and his co-conspirators obtained information about significant construction projects occurring throughout the United States, including an ongoing multi-million-dollar project at the University. To execute the scheme, Adeagbo, Echeazu, and others registered a domain name similar to that of the legitimate construction company in charge of the University’s project and created an email address that closely resembled that of an employee of the construction company. Using the fake email address, the fraudsters deceived and directed the University to wire a payment of more than $1.9 million to a bank account controlled by an individual working under the direction of Adeagbo and his co-conspirators. Upon receiving the payment, Adeagbo and his co-conspirators laundered the stolen proceeds through a series of financial transactions designed to conceal the fraud.
The Texas BEC Scheme
According to information contained in court documents, from November 2016 until July 2018, Adeagbo conspired with others to participate in multiple cyber-enabled business email compromises in an attempt to steal more than $3 million from victim entities in Texas, including local government entities, construction companies and a Houston-area college. As with the scheme in North Carolina, Adeagbo and his co-conspirators registered domain names that looked similar to legitimate companies. They then sent emails from those domains pretending to be employees at those companies to clients or customers of the companies they impersonated and deceived those customers into sending wire payments to bank accounts the co-conspirators controlled.
Adeagbo remains in federal custody. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
On May 16, 2023, Echeazu was sentenced to 18 months in prison followed by a year of supervised release and was ordered to pay $655,408.87 in restitution for his role in the conspiracy.
As part of his sentence, Adeagbo was sentenced to one year of supervised release following his sentence of incarceration and ordered to pay $942,655.03 in restitution for his role in the scheme.
The FBI’s Houston Cyber Task Force and Charlotte Field Office conducted the investigation with assistance from the FBI’s Cyber and Criminal Investigative Divisions. The United Kingdom’s National Crime Agency, Metropolitan Police Service, City of London Police and Crown Prosecution Service also provided substantial assistance. The Justice Department’s Office of International Affairs helped secure the arrest and extradition.
Assistant U.S. Attorney Graham Billings for the Western District of North Carolina, Assistant U.S. Attorney Rodolfo Ramirez for the Southern District of Texas, and Trial Attorney Brian Mund of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.
If you suspect you are a victim of a BEC scheme, you can file a complaint online with the FBI’s Internet Complaint Crime Complaint Center (IC3) at bec.ic3.gov. The IC3 staff reviews complaints to detect patterns or other indicators of significant criminal activity for potential criminal prosecution. The FBI provides a variety of resources relating to BEC scams through the IC3, which can be located at www.ic3.gov. For more information on BEC scams, visit: www.fbi.gov/scams-and-safety/common-scams-and-crimes/business-email-compromise
Pittsburgh Felon Charged with Escape and Bank RobberyRead the Press Release
PITTSBURGH, Pa. - A former resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of escape and bank robbery, United States Attorney Eric G. Olshan announced today.
The two-count Indictment named John J. Flick, 58, as the sole defendant.
According to the Indictment, on September 2, 2024, Flick left a halfway house in Pittsburgh, where he was serving out a previous sentence for a 2021 bank robbery. The Indictment further alleges that, on the following day, Flick robbed a bank in Dormont.
The law provides for a maximum total sentence of up to 25 years in prison, a fine of up to $500,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, United States Marshals Service, and Allegheny County Police Department conducted the investigation leading to the Indictment.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Who Committed Two Armed Carjackings Hours Apart Sentenced to 16 Years in PrisonRead the Press Release
Philadelphia Man Sentenced to 16 Years in Prison for Committing Two Armed Carjackings Hours Apart
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Amir Wilson, 22, of Philadelphia, Pennsylvania, was sentenced today by United States District Court Judge Juan R. Sánchez to 192 months’ imprisonment and five years of supervised release for his role in two armed carjackings committed in Philadelphia in May 2021.
In December 2023, a federal jury convicted Wilson of conspiracy, two counts of carjacking, and using or carrying a firearm during a crime of violence.
During the first carjacking, on May 15, 2021, Wilson and his co-conspirators pulled alongside a man leaving for work, brandished guns, and demanded his car key while holding him at gunpoint. The group then fled in their vehicle and the victim’s stolen vehicle.
Hours later, at around 3 a.m. on May 16, 2021, Wilson and his co-conspirators pulled alongside two men who were leaving a graduation celebration for a friend. The carjackers again brandished guns, demanded the key to that victim’s vehicle, and fled the scene in the victim’s car. A short time later, Philadelphia police spotted the carjacked vehicle and attempted to stop it. The vehicle led police in a high-speed car chase, which ended with officers halting their pursuit for safety reasons. Police found the second victim’s car abandoned nearby, a short time later.
At approximately 5:15 p.m. that same day, Philadelphia police spotted the first victim’s vehicle. They attempted to stop the car, but it fled from police, leading them on another chase. Police caught up to the car after it struck another vehicle and crashed through a fence in North Philadelphia. Wilson fled from the car on foot and was apprehended thereafter on scene.
“These gunpoint carjackings were terrifying for the victims, who were targeted out of nowhere while just going about their lives,” said U.S. Attorney Romero. “My office and our partners on the Carjacking Task Force won’t stand for these senseless acts of violence and we’re using every tool we’ve got to bring the criminals responsible to justice, as Amir Wilson now knows. Today’s sentence keeps him off the street for quite a while and our community is safer, as a result.”
“Carjacking is a dangerous federal crime that will land you in federal prison,” said ATF Special Agent in Charge Eric DeGree. “This perpetrator threatened his victims with a gun, and twice recklessly raced the car he stole, endangering the neighborhood until he finally crashed it. The ATF Philadelphia Field Division works diligently with the Philadelphia Carjacking Task Force to solve cases using ATF’s unique forensic and investigative tools. Thanks to our cooperative efforts, this violent criminal has been taken off Philadelphia’s streets, making our communities that much safer.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorneys Martin E. Howley, Jr. and Priya T. De Souza.
Pennsylvania Man Admits Trafficking Heroin and Cocaine into ConnecticutRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ISRAEL MENDOZA, also known as “D-Nice” and “Israel Mandosa,” 44, formerly of Reading, Pennsylvania, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to conspiracy to distribute, and to possess with intent to distribute, heroin and cocaine.
According to court documents and statements made in court, in 2018, the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force began investigating a Hartford area narcotics trafficking operation that involved the use of the U.S. Mail to ship parcels of drugs and drug proceeds. Investigators determined that Mendoza supplied Michael Copeland, of Bloomfield, with large quantities of cocaine, and that Copeland, at Mendoza’s direction, mailed parcels containing cash to individuals in California. In September and October, U.S. Postal Inspectors in California intercepted and seized two parcels, each containing approximately $13,000 in cash, that Copeland mailed in Connecticut to addresses in the Fresno area. Investigators analyzed postal records and identified dozens of additional parcels connected to this drug trafficking network that are suspected to have contained narcotics or drug proceeds.
In February 2019, investigators seized a parcel containing nearly 500 grams of cocaine that had been mailed from California to a Bloomfield residence that was connected to Copeland.
Mendoza worked with others, including Neliobet DeJesus and Danny Rhodes, in the Hartford area to distribute heroin and cocaine. During the investigation, after DeJesus had moved to Orlando, Florida, investigators identified a mail parcel that was destined for a residence in Orlando that was linked to DeJesus. A court authorized search of the parcel revealed approximately 500 grams of cocaine and approximately five grams of fentanyl.
On October 31, 2019, a grand jury in Hartford returned an indictment charging Mendoza, Copeland, DeJesus, and Rhodes with narcotics trafficking offenses. Mendoza remained a fugitive until his arrest on August 14, 2023, in California.
Judge Dooley scheduled sentencing for March 10, 2025, at which time Mendoza faces a maximum term of imprisonment of 20 years. Mendoza has been detained since his arrest.
Copeland, DeJesus and Rhodes previously pleaded guilty. On December 8, 2021, Rhodes was sentenced to 87 months of imprisonment; on December 16, 2021, Copeland was sentenced to 30 months of imprisonment; and on March 7, 2022, DeJesus was sentenced to 30 months of imprisonment.
This matter has been investigated by the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force, which includes members from the U.S. Postal Inspection Service, the U.S. Postal Service – Office of the Inspector General, the Connecticut Army National Guard, and the Hartford, New Britain, Meriden, and Town of Groton Police Departments. The Drug Enforcement Administration’s Hartford Task Force, Homeland Security Investigations (HSI), Connecticut State Police, and Hartford Police Department assisted the investigation.
The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Ohio and Virginia Men Convicted of Conspiracy to Commit Securities FraudRead the Press Release
CLEVELAND – A jury convicted two men for conspiring to artificially inflate prices on a low-value stock being sold to investors. After a trial that proceeded in two stages for over four weeks, Paul Spivak, 65, of Willoughby Hills, Ohio, and Charles Scott, 70, of Alexandria, Virginia, were found guilty of conspiracy to commit securities fraud. Spivak was also found guilty on two counts of wire fraud in the first stage of trial, and he then pled guilty to four other counts of wire fraud, two counts of securities fraud, and a separate count of conspiracy to commit securities fraud. Scott was then found guilty of a securities fraud conspiracy and one count of securities fraud in the second stage of trial.
According to court documents, trial testimony, and exhibits, Spivak was the majority owner and chief executive officer of U.S. Lighting Group, Inc. (USLG), a publicly traded Florida corporation based in Euclid, Ohio, that focused on the design and manufacture of commercial LED lights, aftermarket auto parts, and fiberglass recreational campers and boats. The company traded on OTC Markets under the ticker USLG and was considered a “penny” stock due to its lower market value. Penny stocks are more vulnerable to price manipulation because they draw less scrutiny and have lower trading volume than other stocks.
Between 2016 and 2019, Spivak and his co-conspirators manipulated USLG’s stock price to their financial benefit. He and his co-conspirators arranged to take USLG public through a reverse merger with a shell company. They sought to artificially inflate or “pump” up the price of USLG stock using call rooms and other manipulative practices. One co-conspirator who helped to take USLG public and inflate the stock price was Richard Mallion, who was previously convicted of securities fraud and banned for life from participating in the securities industry. Numerous investors throughout the country were pressured to purchase USLG stock while Mallion and other co-conspirators covertly arranged for sell orders to match with the buy orders that the call rooms generated.
While the stock price was artificially inflated, Spivak arranged for co-conspirators to act as unlicensed stockbrokers, cold-calling investors to sell them restricted shares of USLG stock. The brokers used aliases and represented the stock as offered at a steep discount relative to the apparent market price. Spivak arranged to pay those brokers large, undisclosed commissions, while concealing the true nature of USLG’s payments to those brokers by entering into fraudulent consulting agreements with them and requiring them to submit invoices that falsely described commission payments as payments for other services.
Between 2016 and 2019, USLG took in approximately $6.9 million from numerous restricted stock investors—many of them elderly and located throughout the country—in increments between $4,000 and $1 million. During that time, the company made approximately 200 payments totaling $2 million in undisclosed commissions to those unlicensed stockbrokers.
From February through June of 2021, Spivak and Scott engaged with undercover agents and a confidential source, who together posed as co-conspirators arranging to artificially inflate or “pump” up the price of USLG. Spivak arranged for them to receive stock, to be sold at inflated prices, from Scott and another co-conspirator, who had also agreed to kick back proceeds to USLG.
Spivak and Scott arranged for Scott to sell free-trading USLG stock to undercover agents and to send approximately half of the proceeds of those sales back to USLG in exchange for additional restricted stock. Undercover agents, in turn, would sell USLG stock at inflated prices, and then use some of the profits to buy more free-trading shares from Scott, who would then kick back additional money to USLG to buy more restricted stock.
Six of the defendants’ co-conspirators previously pled guilty to conspiracy to commit securities fraud and other charges in this matter. Those co-conspirators included Mallion, Spivak’s wife, Olga Smirnova, and a number of the unlicensed stockbrokers. A seventh co-conspirator, Robert Louis Carver, also admitted to participating in this scheme as an unlicensed stockbroker using a stolen identity, all while he was a fugitive in a long-pending securities fraud matter in the U.S. District Court for the Central District of California (Case No. 8:11-CR-62).
“These men orchestrated an aggressive, fraudulent scheme to benefit their company, enrich themselves, and to add to their personal coffers at the expense of others. They not only withheld information, but also purposely engaged a team of affiliates that devised tactics to make it appear that USLG shares were a valuable and valid investment to people who thought they were investing in good faith,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “We will not tolerate those who think they can outsmart and manipulate the system through fraud and misrepresentation. This verdict helps protect our citizens and our business communities from these predatory methods and serves as a warning to others who are tempted to break federal securities laws because of greed.”
On April 21, 2025, Spivak was sentenced to 17 years and five months in prison and ordered to pay a $200,000 fine by U.S. District Judge J. Philip Calabrese. Spivak was also ordered to serve three years of supervised release after imprisonment. Restitution is to be determined.
On Feb. 12, 2025, Scott was sentenced to 42 months in prison and ordered to pay a $500,000 fine by U.S. District Judge J. Philip Calabrese. Scott was also ordered to serve two years of supervised release after imprisonment.
The case was investigated by the FBI Cleveland Division. This case was prosecuted by Assistant U.S. Attorneys Elliot Morrison, Megan Miller, and Stephanie Wojtasik for the Northern District of Ohio.
Report investment, financial, and related violations at https://www.sec.gov/submit-tip-or-complaint.
Note: This page was updated Jan. 10, 2025, to reflect the rescheduled sentencing date for Spivak.
Note: This page was updated Jan. 16, 2025, to reflect the rescheduled sentencing date for Scott.
Note: This page was updated Feb. 12, 2025, with sentencing information for Scott.
Note: This page was updated April 22, 2025,with sentencing information for Spivak.
Ohio Woman Sentenced to 40 Years in Prison for Killing Husband with Controlled SubstanceRead the Press Release
TOLEDO, Ohio – Amanda Hovanec, 37, of Wapakoneta, Ohio, has been sentenced to 40 years in prison by U.S. District Judge James R. Knepp, II, after pleading guilty to multiple charges, including distributing a controlled substance that resulted in the death of her husband. Amanda Hovanec was also ordered to serve 10 years of supervised release and ordered to pay restitution in the amount of $2,108,559.36.
According to court documents, Hovanec and her husband, Timothy, were married and had three children. They moved several times for his job with the U.S. Department of State, which included an assignment in South Africa around 2018. While there, Hovanec developed a relationship with a South African citizen named Anthony Theodorou. Hovanec initiated divorce proceedings against her husband in 2020 after returning to the United States. In December 2021, she began to deny her husband visitation with their children despite a court order to permit it. After her husband filed several contempt motions against Hovanec for denying visitation, a judge ordered that the children be given visitation with their father in April 2022, and further ordered that the husband become the residential parent and legal custodian of their children for two months that summer, beginning in May.
The children went with their father for an April weekend visitation, as ordered, after which their father returned them to Hovanec’s Wapakoneta residence. Later, a missing persons investigation was opened when the husband failed to check out of an area hotel where he had been staying.
During the investigation, law enforcement officials discovered the husband’s abandoned car in Dayton, Ohio. It had been equipped with a dash camera. Review of the camera’s video showed that the husband had returned the children to Hovanec’s residence around 7 p.m. on April 24, 2022. Video footage showed Hovanec and her mother, Anita Green, waiting outside the residence next to the garage. Hovanec was then seen walking toward the driver’s side of the vehicle and heard telling the children, “I have a surprise for you inside.” The children entered the residence, followed by Green. Seconds later, the victim was heard saying, “What the heck are you doing? Did you just assault me?” and then, “Get away from me . . . Get off of me.” The victim and Hovanec came into the camera’s view, at which time video footage captured her pulling on her husband’s shirt as he tried to use his cellphone. She wrestled with him and eventually knocked the phone out of his hand. She then pulled on his back to bring him to the ground, holding him around the neck until his body went limp and he became unresponsive, lying on the driveway. Hovanec stood up, picked up her husband’s cellphone, removed his smart watch, and turned off his vehicle’s engine, at which point the dash camera stopped recording.
After first attempting to cover up her crimes, Hovanec later confessed to investigators that she injected her husband in the shoulder with “poison” that she understood would kill him within minutes. She also admitted to disposing of his car in Dayton, and burying his body in a wooded area not far from her home. Theodorou was in Ohio at the time of the incident. He not only obtained the substance used to kill the victim, but also helped Hovanec bury her husband’s body. Green, who both Hovanec and Theodorou confirmed knew about the plan to murder the victim in advance, was charged as an accessory after the fact. She agreed to drive them and the victim’s body to the grave site, which was dug in advance of the murder.
The investigation determined that the victim was injected with M-99, also known as Etorphine, a Schedule I controlled substance approximately 1000 times more potent than morphine. It is used in veterinary medicine for zoo and wildlife anesthesia.
According to court records, Hovanec considered killing her husband for at least a year before the murder and had considered alternate means to do so, including hiring a hitman, before settling on injecting him with M-99.
“Hovanec’s violent and intentional actions were cold-blooded, calculated, and cruel. Her extreme malevolence toward her husband and complete disregard for how his murder would affect their innocent children is incomprehensible and unforgiveable,” said U.S. Attorney Rebecca Lutzko for the Northern District of Ohio. “We know that no amount of time served can bring back a family’s loved one. But our hope is that the victim’s family may find some sense of closure as they painstakingly work to heal from this unimaginable and horrific tragedy.”
Theodorou was sentenced to 18 years in prison and three years of supervised release after pleading guilty to conspiracy to import, importation and distribution of a controlled substance that resulted in death. He was also ordered to pay $2,108,559.36 in restitution, of which a part will be paid jointly and severally with Hovanec and Green. Anita Green was sentenced to 10 years in prison and two years of supervised release after pleading guilty to being an accessory to the crimes committed by Amanda Hovanec and Anthony Theodorou.
This case was investigated by the FBI Cleveland Division, Lima Resident Agency, the Auglaize County Sheriff’s Office, the Ohio Bureau of Criminal Investigation (BCI), and the Lucas County Coroner’s Office.
The case was prosecuted by Assistant U.S. Attorneys Alissa Sterling and Michelle Baeppler for the Northern District of Ohio.
Ohio Man Agrees to Plead Guilty to Interstate Transportation of Stolen Andy Warhol Art PrintRead the Press Release
LOS ANGELES – An Ohio man has agreed to plead guilty to a federal criminal charge for trafficking a stolen Andy Warhol print worth at least $175,000.
Image Source: Federal Plea AgreementBrian Alec Light, 58, of Hudson, Ohio (formerly a resident of downtown Los Angeles), is expected to plead guilty in the coming weeks to one count of interstate transportation of stolen goods. His initial appearance in federal court is scheduled for October 28.
According to his plea agreement, a thief stole the Warhol print – a trial proof depicting former Soviet Union leader Vladimir Lenin and was print number 44 of 46 total Warhol made – from the victim’s home in Los Angeles County in early 2021. The victim informed law enforcement of its theft soon after, as well as the original gallery in West Hollywood that sold him the artwork. Days after the theft, the thief brought the artwork to a pawnshop, which purchased it. The pawnshop’s owner contacted Light for help selling the artwork, which Light knew was stolen. Light contacted an auction house to sell the print within weeks of its theft. Light told the pawnshop owner to drop off the Warhol at the auction house in Beverly Hills so that it could be transported to Dallas for inspection and sale, which the pawnshop owner did.
The auction house shipped the Warhol artwork to Dallas where it was to be inspected and included in an upcoming auction in the spring of 2021. An employee of the auction house in Dallas reached out to the gallery in West Hollywood for its opinion of the piece. The gallery immediately recognized the piece as the stolen piece of art. As a result, the gallery notified the auction house of its stolen nature and notified the FBI. When the FBI questioned Light about it, he lied and created a fake receipt purporting to show that he bought the print before it was stolen.
Upon pleading guilty, Light will face a statutory maximum sentence of 10 years in federal prison.
As part of his plea agreement, Light will forfeit the stolen artwork retrieved by law enforcement.
The FBI’s Art Crime Team is investigating this matter.
Assistant United States Attorney Erik Silber, Senior Counsel in the Criminal Division and Assistant United States Attorneys Dominique Caamano and Matthew O’Brien, of the Environmental Crimes and Consumer Protection Section, are prosecuting this case.
North Carolina Woman Pleads Guilty to Wire Fraud and Money Laundering in Connection with Embezzlement of Funds from Her EmployerRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Rhonda Rochelle Canidate, age 48, of Greensboro, North Carolina, pleaded guilty before U.S. District Court Judge Christopher C. Conner to a two-count criminal information charging her with wire fraud and money laundering, in connection with a scheme to embezzle funds from her employer between 2021 and 2022.
According to U.S. Attorney Gerard M. Karam, between March 2021 and July 2022, Canidate was employed as an accounting specialist at Henry Molded Products Company (“Henry Molded”) in Lebanon, Pennsylvania. Between October 2021 and June 2022, Canidate entered false payment entries for former Henry Molded employees into Henry Molded’s third-party payroll software, causing the software to issue direct deposit payments from Henry Molded’s bank account to bank accounts controlled by Canidate in the name of the former employees. This fraud not only financially injured Henry Molded; it also harmed the former employees by creating an overpayment for tax purposes.
Canidate caused a loss of $532,050 and has agreed to pay restitution in accordance with a schedule to be determined by the Court.
The case was investigated by the Internal Revenue Service. Assistant United States Attorney David C. Williams is prosecuting the case.
The maximum combined penalty under federal law for these offenses is 30 years, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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North Carolina Man Sentenced for Methamphetamine TraffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Phillip Scott Barnette, 41, of High Point, North Carolina, was sentenced to 200 months in federal prison for conspiracy to possess with intent to distribute and to distribute crystal methamphetamine, fentanyl, and cocaine base.
According to court documents, Barnette, also known as “E-Lo,” worked with others to sell methamphetamine in Falling Waters, West Virginia, and the surrounding area.
Barnette will serve three years of supervised release following his prison sentence.
Assistant U.S. Attorney Kyle Kane prosecuted the case on behalf of the government.
The investigation was conducted by the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office.
U.S. District Judge Gina M. Groh presided.
New York Resident Sentenced to 12 Years in Prison for Sexual Exploitation of a MinorRead the Press Release
ERIE, Pa. - A resident of Harford, New York, has been sentenced in federal court to 12 years in prison, to be followed by 10 years of supervised release, and ordered to pay a special assessment in the amount of $5,200 on his conviction of violating federal laws relating to the sexual exploitation of a minor, United States Attorney Eric G. Olshan announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Noah Oliver Fisch-Lewis, 32.
According to information presented to the Court, from September 23, 2022, until October 8, 2022, Fisch-Lewis communicated with an undercover agent posing as the mother of a 10-year-old girl. During this period, Fisch-Lewis repeatedly expressed, in very graphic terms, his desire to engage in sexual activity with the minor. On October 8, 2022, Fisch-Lewis drove from upstate New York to Erie, Pennsylvania, for the purpose of engaging in illicit sexual conduct with the purported 10-year-old and was taken into custody upon his arrival at the agreed meeting place.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation, Homeland Security Investigations, Pennsylvania State Police, Erie Police Department, Millcreek Police Department, and Erie County Detectives for the investigation leading to the successful prosecution of Fisch-Lewis.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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.