Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
8 November 2024
Tulsa County Resident Sentenced to Four Years for Possession of Child Sexual Exploitation MaterialRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Vince Harjo, age 36, of Glenpool, Oklahoma, was sentenced to 48 months imprisonment and lifetime supervised release for possessing sexually explicit material of a minor.
The charges arose from an investigation by the Federal Bureau of Investigation and the Muscogee (Creek) Nation Lighthorse Police Department.
On September 11, 2023, Harjo pleaded guilty to an Information of one count of Possession of Certain Material Involving the Sexual Exploitation of a Child. According to investigators, on February 4, 2023, law enforcement officers responding to a call in Okmulgee, Oklahoma, discovered Harjo in possession of images on his cell phone which depicted the sexual exploitation of a child.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
We encourage anyone who suspects or has information regarding child sexual exploitation, trafficking of minors, sextortion, child pornography, or any other means of child exploitation to immediately contact law enforcement. You can file a report on the National Center for Missing & Exploited Children (NCMEC)'s website at www.cybertipline.com, call 1-800-843-5678, contact the FBI at 1-800-CALL-FBI (1-800-225-5324), or call 877-4-HSI TIP.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Harjo will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Joshua Satter represented the United States.
Texas Resident Pleads Guilty to Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jeffrey Wayne Thompson, age 48, of Fort Worth, Texas, entered a guilty plea to an Indictment charging him with one count of Felon in Possession of Firearm and Ammunition.
The Indictment alleged that February 21, 2023, Thompson knowingly possessed a firearm and six rounds of ammunition after having been previously convicted of a crime punishable by more than one year imprisonment.
The charges arose from an investigation by the Pittsburg County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable D. Edward Snow, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Thompson was allowed to remain on bond pending sentencing.
Assistant United States Attorney Michael E. Robinson represented the United States.
Telefónica Venezolana to Pay over $85M to Resolve Foreign Bribery InvestigationRead the Press Release
Telefónica Venezolana C.A. (Telefónica Venezolana), a Venezuela-based subsidiary of Telefónica S.A. (Telefónica), a publicly traded global telecommunications operator based in Spain, will pay over $85.2 million to resolve an investigation by the Justice Department into a scheme to bribe government officials in Venezuela to receive preferential access to U.S. dollars in a currency auction.
Telefónica Venezolana entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today in the Southern District of New York charging the company with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA).
“Telefónica Venezolana bribed Venezuelan government officials to participate in a government auction through which it exchanged Venezuelan bolivars for U.S. dollars. The company concealed the illicit payments by purchasing equipment at inflated prices from two suppliers who paid the bribes on the company’s behalf,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Telefónica Venezolana chose to support a corrupt regime to circumvent the difficulties of conducting legal business in Venezuela. This resolution is yet another example of the Justice Department’s commitment to fight corruption and hold companies accountable for their criminal conduct.”
“Telefónica Venezolana, a subsidiary and agent of a U.S. issuer, agreed to line the pockets of corrupt Venezuelan officials to gain access to U.S. currency and maintain its position in the Venezuelan telecommunications market,” said U.S. Attorney Damian Williams for the Southern District of New York. “Intermediaries then funneled the bribe payments through U.S. correspondent bank accounts. This office will not tolerate the use and abuse of the U.S. financial system to enrich corrupt foreign officials and those who maintain their market position by appeasing them.”
“This case is an example of the IRS Criminal Investigation (IRS-CI)’s and our law enforcement partners’ relentless effort to fight corruption and protect United States interests,” said Executive Special Agent in Charge Kareem Carter of the IRS-CI Washington Field Office. “We are committed to pursuing investigations into corporate fraud in an effort to protect consumers from bearing the costs associated with criminal activity.”
“Telefónica Venezolana engaged in a complex and criminal financial fraud scheme, in which they bribed Venezuelan government officials to obtain access to U.S. dollars,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “Thanks to the cooperative efforts of HSI, IRS-CI, and the Justice Department, the perpetrators of this conspiracy will be forced to pay for their illicit actions. HSI will continue to collaborate with our law enforcement partners, at home and overseas, to investigate and bring to justice any corporations engaging in such financial crimes.”
According to court documents and admissions, in 2014, Telefónica Venezolana participated in a government-sponsored currency auction in Venezuela that allowed it to exchange its Venezuelan bolivars for U.S. dollars. To ensure its success in the auction, Telefónica Venezolana recruited two suppliers to make approximately $28.9 million in corrupt payments to an intermediary, knowing that some of those funds would be paid as a “commission” to Venezuelan government officials. To conceal the bribe payments, Telefónica Venezolana covered the cost of the bribes by purchasing equipment from the two suppliers at inflated prices. As a result of its corrupt payments, Telefónica Venezolana was permitted to exchange and subsequently received over $110 million through the currency auction, which it used to purchase equipment from the two suppliers it recruited to join the scheme. These funds represented over 65% of the funds that the Venezuelan government awarded in the 2014 currency auction.
As part of the DPA, Telefónica Venezolana and its corporate parent, Telefónica, have agreed, among other things, to continue cooperating with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of New York in any ongoing or future criminal investigation arising during the term of the DPA. In addition, Telefónica Venezolana and Telefónica have agreed to enhance their compliance program where necessary and appropriate, and to report to the government regarding remediation and implementation of their enhanced compliance program.
The Justice Department reached this resolution with Telefónica Venezolana based on a number of factors, including, among others, the nature and seriousness of the offense. Telefónica Venezolana received credit for its cooperation with the department’s investigation, which included: (i) making regular factual presentations to the department based on the information learned in the course of Telefónica Venezolana’s internal investigation; (ii) voluntarily making employees based outside the United States available for interviews in the United States; (iii) producing a significant number of documents to the department, while navigating foreign data privacy and related laws; and (iv) collecting, analyzing, and organizing voluminous evidence and information for the department, accompanied by translations of documents. However, in the initial phases of the department’s investigation, Telefónica Venezolana failed to timely identify, collect, produce, and disclose certain records and important information, which affected investigative efforts by the department and reduced the impact of Telefónica Venezolana’s cooperation.
Telefónica Venezolana also engaged in timely remedial measures, including: (i) disciplining certain employees involved in the relevant misconduct or who were otherwise made aware of the misconduct, including terminating employees; (ii) strengthening its anti-corruption compliance program by building and empowering an independent compliance function, appointing a Chief Compliance Officer with direct access to the Audit Committee of the Board of Directors, and investing in additional compliance resources throughout its global operations; (iii) overhauling its review and approval process for transactions with non-standard pricing, including by ensuring that the compliance function reviews all such transactions globally; (iv) reviewing, enhancing, and testing its broader internal controls for pricing and other transactions with the assistance of a forensic accounting firm; (v) strengthening processes for vetting, engaging, and monitoring third parties, including implementing additional controls concerning payments to third parties through a proprietary software tool; and (vi) establishing risk assessment and audit processes to regularly review and update the compliance program and otherwise mitigate business risks.
In light of these considerations, as well as Telefónica Venezolana’s and Telefónica’s prior history, which includes a resolution involving a subsidiary of Telefónica, Telefónica Brasil S.A., in an action brought by the Securities and Exchange Commission in 2019 for alleged violations of the accounting provisions of the FCPA, the criminal penalty of $85,260,000 calculated under the U.S. Sentencing Guidelines reflects a 20% reduction off the fifth percentile above the low end of the otherwise applicable guidelines fine range.
IRS-CI and HSI are investigating the case as part of the IRS Global Illicit Financial Team in Washington, D.C.
Senior Litigation Counsel Nicola Mrazek and Trial Attorney Abdus Samad Pardesi of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jilan Kamal for the Southern District of New York are prosecuting the case.
The Justice Department’s Office of International Affairs and authorities in Panama, Switzerland, and Luxembourg provided assistance in this matter.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
View the deferred prosecution agreement here.
View the information here.
Telefónica Venezolana to Pay over $85 Million to Resolve Foreign Bribery InvestigationRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York; Nicole M. Argentieri, Principal Deputy Assistant Attorney General for the Criminal Division of the U.S. Department of Justice (“DOJ”); Kareem Carter, Executive Special Agent in Charge of the IRS-CI Washington Field Office; and, Derek W. Gordon, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”) Washington, D.C., Field Office, announced today that TELEFÓNICA VENEZOLANA, C.A. (“TELEFÓNICA VENEZOLANA”), a Venezuela-based subsidiary of Telefónica, S.A. (“Telefónica”), a publicly traded global telecommunications operator based in Spain, will pay over $85.2 million to resolve an investigation by the DOJ into a scheme to bribe government officials in Venezuela to receive preferential access to U.S. dollars in a currency auction.
TELEFÓNICA VENEZOLANA entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today in the Southern District of New York charging the company with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA).
U.S. Attorney Damian Williams said: “Telefónica Venezolana, a subsidiary and agent of a U.S. issuer, agreed to line the pockets of corrupt Venezuelan officials to gain access to U.S. currency and maintain its position in the Venezuelan telecommunications market. Intermediaries then funneled the bribe payments through U.S. correspondent bank accounts. This Office will not tolerate the use and abuse of the U.S. financial system to enrich corrupt foreign officials and those who maintain their market position by appeasing them.”
Principal Deputy Assistant Attorney General Nicole M. Argentieri said: “Telefónica Venezolana bribed Venezuelan government officials to participate in a government auction through which it exchanged Venezuelan bolivars for U.S. dollars. The company concealed the illicit payments by purchasing equipment at inflated prices from two suppliers who paid the bribes on the company’s behalf. Telefónica Venezolana chose to support a corrupt regime to circumvent the difficulties of conducting legal business in Venezuela. This resolution is yet another example of the Justice Department’s commitment to fight corruption and hold companies accountable for their criminal conduct.”
IRS-CI Executive Special Agent in Charge Kareem Carter said: “This case is an example of the IRS Criminal Investigation (CI)’s and our law enforcement partners’ relentless effort to fight corruption and protect United States interests. We are committed to pursuing investigations into corporate fraud in an effort to protect consumers from bearing the costs associated with criminal activity.”
HSI Executive Associate Director Katrina W. Berger said: "Telefónica Venezolana engaged in a complex and criminal financial fraud scheme, in which they bribed Venezuelan government officials to obtain access to U.S. dollars. Thanks to the cooperative efforts of HSI, IRS Criminal Investigations, and the Department of Justice, the perpetrators of this conspiracy will be forced to pay for their illicit actions. HSI will continue to collaborate with our law enforcement partners, at home and overseas, to investigate and bring to justice any corporations engaging in such financial crimes.”
According to court documents and admissions:
In 2014, TELEFÓNICA VENEZOLANA participated in a government-sponsored currency auction in Venezuela that allowed it to exchange its Venezuelan bolivars for U.S. dollars. To ensure its success in the auction, TELEFÓNICA VENEZOLANA recruited two suppliers to make approximately $28.9 million in corrupt payments to an intermediary, knowing that some of those funds would be paid as a “commission” to Venezuelan government officials. To conceal the bribe payments, TELEFÓNICA VENEZOLANA covered the cost of the bribes by purchasing equipment from the two suppliers at inflated prices. As a result of its corrupt payments, TELEFÓNICA VENEZOLANA was permitted to exchange and subsequently received over $110 million through the currency auction, which it used to purchase equipment from the two suppliers it recruited to join the scheme. These funds represented over 65% of the funds that the Venezuelan government awarded in the 2014 currency auction.
As part of the DPA, TELEFÓNICA VENEZOLANA and its corporate parent, Telefónica, have agreed, among other things, to continue cooperating with the DOJ Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Southern District of New York in any ongoing or future criminal investigation arising during the term of the DPA. In addition, TELEFÓNICA VENEZOLANA and Telefónica have also agreed to enhance their compliance program where necessary and appropriate, and to report to the government regarding remediation and implementation of their enhanced compliance program.
The Department reached this resolution with TELEFÓNICA VENEZOLANA based on a number of factors, including, among others, the nature and seriousness of the offense. TELEFÓNICA VENEZOLANA received credit for its cooperation with the Department’s investigation, which included: making regular factual presentations to the Department based on the information learned in the course of TELEFÓNICA VENEZOLANA’s internal investigation; voluntarily making employees based outside the U.S. available for interviews in the U.S.; producing a significant number of documents to the Department, while navigating foreign data privacy and related laws; and collecting, analyzing, and organizing voluminous evidence and information for the Department, accompanied by translations of documents.
However, in the initial phases of the Department’s investigation, TELEFÓNICA VENEZOLANA failed to timely identify, collect, produce, and disclose certain records and important information, which affected investigative efforts by the Department and reduced the impact of TELEFÓNICA VENEZOLANA’s cooperation.
TELEFÓNICA VENEZOLANA also engaged in timely remedial measures, including: disciplining certain employees involved in the relevant misconduct or that were otherwise made aware of the misconduct, including terminating employees; strengthening its anti-corruption compliance program by building and empowering an independent compliance function, appointing a Chief Compliance Officer with direct access to the Audit Committee of the Board of Directors, and investing in additional compliance resources throughout its global operations; overhauling its review and approval process for transactions with non-standard pricing, including by ensuring that the compliance function reviews all such transactions globally; reviewing, enhancing, and testing its broader internal controls for pricing and other transactions with the assistance of a forensic accounting firm; strengthening processes for vetting, engaging, and monitoring third parties, including implementing additional controls concerning payments to third parties through a proprietary software tool; and establishing risk assessment and audit processes to regularly review and update the compliance program and otherwise mitigate business risks.
In light of these considerations, as well as TELEFÓNICA VENEZOLANA and Telefónica’s prior history, which includes a resolution involving a subsidiary of Telefónica, Telefónica Brasil S.A., in an action brought by the Securities and Exchange Commission in 2019 for alleged violations of the accounting provisions of the FCPA, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 20% reduction off the fifth percentile above the low end of the otherwise applicable guidelines fine range.
* * *
The IRS-CI and HSI are investigating the case as part of the IRS Global Illicit Financial Team in Washington, D.C.
The case is being prosecuted by Assistant U.S. Attorney Jilan J. Kamal of the Southern District of New York; Senior Litigation Counsel Nicola Mrazek and Trial Attorney Abdus Samad Pardesi of the Criminal Division’s Fraud Section.
The Justice Department’s Office of International Affairs and authorities in Panama, Switzerland, and Luxembourg provided assistance in this matter.
South Carolina Woman Pleads Guilty to Sending Racist Threats to Kill a Catskill ManRead the Press Release
ALBANY, NEW YORK – Kristin Keeble, age 54, of Pageland, South Carolina, pled guilty today to transmitting a threat to injure another in interstate commerce.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Keeble admitted that on October 26, 2023, she sent four threatening, profanity-laced and racially derogatory audio messages through Facebook Messenger to a man in Catskill, New York. Keeble threatened to kill the victim by hanging him, along with a woman the victim knew, and the woman’s children, from a tree. Keeble purported to be acting with members of the Ku Klux Klan. Keeble knew, from the victim’s Facebook profile photo, that the victim was Black.
At sentencing before United States District Judge Anne M. Nardacci on March 7, 2025, Keeble will face a maximum term of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. 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.
The FBI investigated the case, which Assistant U.S. Attorney Alexander Wentworth-Ping is prosecuting.
South Carolina Woman Pleads Guilty to $1.7 Million Embezzlement SchemeRead the Press Release
CHARLOTTE, N.C. – Kristin Turney, 54, of Catawba, South Carolina, pleaded guilty in federal court today to wire fraud for embezzling more than $1.7 million from her employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina, joins U.S. Attorney King in making today’s announcement.
According to court documents, from 2016 to 2023, Turney executed a scheme to defraud her employer, a Charlotte-based company, by embezzling more than $1.7 million. Turney was in charge of the company’s financial matters, including bank accounts, payroll, accounts payables and receivables, and tax filings. As part of the scheme, Turney misused her access and control over the company’s bank accounts and books and records to write company checks to herself without proper approval or authorization and then deposited the checks into bank accounts under her control. As a result, Turney caused at least 1,000 fraudulent and unauthorized deposits totaling more than $1.7 million to be made from the bank account of the victim company to Turney’s bank account. Turney then covered up the fraud by, among other things, making false accounting entries in the company’s books and records, providing false information to the company’s tax return preparer, and giving false information to the company’s owner and employees. Turney generally spent the embezzled funds to pay for personal expenses, that included hundreds of thousands of dollars in shopping trips, car payments, mortgage payments, tuition payments, and vacation expenses.
The wire fraud charge carries a maximum sentence of 20 years in prison and a $250,000 fine.
In making today’s announcement, U.S. Attorney King thanked the FBI for their investigation of the case.
Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Slidell Man Sentenced for Unlicensed Manufacturing and Dealing in Explosive MaterialsRead the Press Release
NEW ORLEANS, LOUISIANA – DEVIN JUNEAU (“JUNEAU”), age 38, a resident of Slidell, Louisiana, was sentenced on November 7, 2024, by U.S. District Judge Susie Morgan, to time served, after previously pleading guilty to engaging in the business of manufacturing and dealing in explosive materials without a license, in violation of Title 18, United States Code, Sections 842(a)(1) and 844(a)(1), announced U.S. Attorney Duane A. Evans.
According to court documents, on or about February 6, 2024, JUNEAU manufactured and sold M-Type explosive devices that contained explosive materials to undercover agents, without possessing a license to engage in the business of manufacturing and dealing in explosive materials.
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.
U.S. Attorney Evans praised the work of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (A.T.F.). The case is being prosecuted by Assistant United States Attorney Troy Bell of the Violent Crimes Unit.
Second Indictment Returned Charging Orlando Middle School Employee with Distribution and Possession of Child Sex Abuse MaterialRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the return of a superseding indictment charging Mitchell Regan (36, Leesburg) with two counts of distribution of child sex abuse material (CSAM) and one count of possession of CSAM. If convicted, Regan faces a maximum penalty of 20 years in federal prison on each count, including a 5-year minimum sentence on both distribution offenses. Regan is detained in federal custody pending the resolution of this case.
According to the superseding indictment and court records, Homeland Security Investigations (HSI) executed a search warrant at Regan’s residence on October 17, 2024. During a search of Regan’s cellphone, an HSI computer forensic agent located an image of CSAM in his photo gallery. Regan advised law enforcement that he was employed at a middle school and the Boys and Girls Club and that that he teaches chess club and music lessons. A subsequent review of Regan’s social media applications by law enforcement revealed Regan had distributed two videos of CSAM on June 24, 2024.
A superseding indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by HSI and the Orange County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Roofing Business Owner and Payroll Administrator Both Plead Guilty in Employment Tax ConspiracyRead the Press Release
A Florida man and woman both pleaded guilty yesterday to conspiring to defraud the United States by not paying employment taxes to the IRS.
According to court documents and statements made in court, William Skaggs Jr. owned and operated Nastar Roofing, a roofing company that operated throughout the Fort Myers area. Billie Adkison was the business’s main office administrator, whose duties included managing payroll.
Between 2013 and 2023, Nastar employees, including Skaggs and Adksion, and others acting at their direction withdrew over $21 million from the company’s bank accounts to pay employees predominantly in cash without withholding Social Security, Medicare and federal income taxes from those wages. They did this to escape paying employment taxes they knew were legally required.
At times, Nastar used a payroll provider to issue nominal employee paychecks, but Nastar did not inform the payroll company about the cash wages. As such, when the payroll company filed employment tax returns with the IRS that included wages for Nastar employees, the forms were false in that they did not report the cash wages. Similarly, when Nastar did not use a payroll provider and filed its own employment tax returns, it failed to report the substantial cash wages paid to employees. Both Skaggs and Adkison signed a number of these tax returns, knowing that they were false.
In total, Skaggs and Adkison caused a tax loss to the IRS of nearly $2.5 million.
Skaggs and Adkison are scheduled to be sentenced at a later date. They face a maximum penalty of five years in prison. They also face a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger Handberg for the Middle District of Florida made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Kevin Schneider of the Tax Division and Assistant U.S. Attorney Michael Leeman for the Middle District of Florida are prosecuting the case.
Ringleader of Wire Fraud Conspiracy SentencedRead the Press Release
United States Attorney Susan Lehr announced that Abas Ali, age 22, of Omaha, Nebraska, was sentenced November 8, 2024, in federal court in Omaha for conspiring to commit wire fraud and aggravated identity theft. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Ali to 27 months’ imprisonment on the wire fraud charge and 24 months’ imprisonment on the aggravated identity theft charge for a total of 51 months. There is no parole in the federal system. After Ali’s release from prison, he will begin a 5-year term of supervised release on both charges.
A task force of Sarpy County, Douglas County, and Pottawattamie County agencies was assembled to investigate a significant spike in the Omaha and Council Bluffs metro areas in burglarized vehicles. The modus operandi of the thefts was that one member of the conspiracy would drive a vehicle slowly through a residential neighborhood while other members of the conspiracy, called “runners,” would enter vehicles parked in driveways or parked on the street outside of the residence and steal property like credit cards, identification, computers, money, and other valuables.
The members of the conspiracy would then take the stolen cards from the vehicles to area stores like Wal-Mart and other retailers and buy drinks, food, and prepaid cards that they would load up with money from the stolen cards. They would also purchase money orders to further conceal the source of the proceeds and the money orders would be deposited back to bank accounts or bitcoin accounts belonging to the members of the conspiracy.
Law enforcement was able to identify and arrest all five members of the conspiracy.
Co-conspirator Hassan Mohamed was sentenced on June 12, 2024, to 20 months imprisonment on the wire fraud charge and 24 months on the aggravated identity theft charge for a total of 44 months.
Co-conspirator Hazem Sarmin was sentenced on June 14, 2024, to 18 months imprisonment on the wire fraud charge and 24 months on the aggravated identity theft charge for a total of 42 months.
Co-conspirators Ian Betkie will be sentenced December 5, 2024, and Bead Chan will be sentenced January 3, 2025. Both pled guilty to wire fraud and aggravated identity theft.
This case was investigated by the Sarpy County Sheriff’s Office, Douglas County Sheriff’s Office, and the Federal Bureau of Investigation.
Retired Combat Medic Sentenced to 50 Years in Federal Prison for Sexual Exploitation of Two ChildrenRead the Press Release
SAN ANTONIO – A retired Army combat medic was sentenced in federal court to 50 years in prison for two counts of sexual exploitation of children.
According to court documents, Eric Scott McCants, 47, produced sexually explicit videos involving prepubescent children and shared them in a child exploitation group on a social networking application in July 2021. FBI agents seized his phone and discovered additional sexually explicit videos, some of which depicted a second minor female and dated back to as early as October 2018.
McCants was arrested on Aug. 13, 2021 and indicted Sept. 1, 2021 for four counts related to the production, possession and distribution of child pornography. He pleaded guilty Aug. 7, 2024 to two counts of sexual exploitation of children. On Wednesday, he was sentenced to 25 years imprisonment for each count. He will also pay $100,000 in restitution to the two victims.
“This 50-year sentence sends a clear message that the sexual exploitation of children has lasting traumatic effects on vulnerable victims and will not be tolerated in the Western District,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Thank you to our federal law enforcement partners at the FBI for their diligence in this investigation and their dedication to protecting the children of our communities.”
“The details of this case and McCants’ exploitation of minors are horrific, and we hope this sentence will allow his victims some measure of comfort in knowing he will never be able to hurt another child,” said Special Agent in Charge Aaron Tapp for the FBI’s San Antonio field office. “We are dedicated to stopping predators who harm our most vulnerable citizens and want to thank the U.S. Attorney’s Office for their continued assistance in keeping our communities safe.”
The FBI investigated the case.
Assistant U.S. Attorney Tracy Thompson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
###
Repeated Sexual Abuse of a 14-Year-Old Girl Gets Man 12 Year Prison TermRead the Press Release
WASHINGTON – Francisco Flores-Lopez, 34, of Alexandria, VA, was sentenced today to 12 years in prison for sexually abusing a 14-year-old D.C. resident, resulting in her pregnancy, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
Flores-Lopez pleaded guilty on September 4, 2024, to first degree child sexual abuse, in the Superior Court of the District of Columbia. Judge Marisa Demeo sentenced Flores-Lopez to 144 months in prison, followed by 10 years of supervised release. Flores-Lopez will also be required to register as a sex offender.
According to the government’s evidence, the victim met Flores-Lopez over social media and met up for the first time in June 2022, the same month the victim would turn 14 years old. The defendant, who was 32 years old in June 2022, picked up the victim in his truck and brought her to Rock Creek Park in Washington, D.C., where he engaged in penetrative vaginal sex with the victim in his truck. Between June 2022 and March 2023, Flores-Lopez engaged in various sexual acts with this 14-year-old girl at various locations in Rock Creek Park. The victim became pregnant and gave birth to a baby girl while she was still 14. Even after giving birth, Flores-Lopez would come over to the victim’s house and continued to engage in sex with the victim. DNA testing conducted in this case corroborated that Flores-Lopez was the father of the baby born to the victim as a result of the sexual abuse.
In announcing the sentence, U.S. Attorney Graves and Chief. Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also commended the efforts of Assistant U.S. Attorneys Richard Kelley and Sarah Folse, who prosecuted the case.
Pharmacist and Brother Convicted of $15M Medicare, Medicaid, and Private Insurer Fraud SchemeRead the Press Release
A federal jury convicted a pharmacy owner and his brother today for conspiracy to commit health care fraud and wire fraud.
According to court documents and evidence presented at trial, Raad Kouza, a pharmacist in Wayne County, Michigan, and his brother, Ramis Kouza, of Oakland County, Michigan, billed Medicare, Medicaid, and Blue Cross Blue Shield of Michigan for prescription medications that they did not dispense at pharmacies they owned or operated in Michigan. The defendants collectively caused over $15 million of loss to Medicare, Medicaid, and Blue Cross Blue Shield of Michigan.
Raad Kouza and Ramis Kouza were convicted of conspiracy to commit health care fraud and wire fraud. Raad Kouza was also convicted of one count of health care fraud. Both defendants face a maximum penalty of 20 years in prison on the conspiracy count, and Raad Kouza faces a maximum penalty of 10 years in prison on the health care fraud count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing hearings will be set at a later date.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office; and Special Agent in Charge Mario Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI Detroit Field Office and HHS-OIG investigated the case.
Trial Attorneys Claire Sobczak Pacelli, Jeffrey A. Crapko, and Andres Q. Almendarez of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Passaic County Man Sentenced to 82 Months in Prison for Fentanyl, Cocaine, and Ammunition ChargesRead the Press Release
CAMDEN, N.J. – A Passaic County, New Jersey, man was sentenced to 82 months in prison for possessing with intent to distribute fentanyl and cocaine and possessing ammunition by a convicted felon, U.S. Attorney Philip R. Sellinger announced today.
Kadeem Coleman, 31, of Paterson, New Jersey, previously pleaded guilty before Chief U.S. District Judge Renée M. Bumb to possession with intent to distribute fentanyl and cocaine and possession of ammunition by a convicted felon, and was sentenced to 70 months in prison on those counts. At the time Coleman committed these offenses, he was on federal supervised release; for violating the terms of his supervised release, Judge Bumb sentenced Coleman to an additional 12 months in prison to run consecutively. Judge Bumb imposed the sentence on Nov. 7, 2024, in Camden federal court.
According to documents filed in this case and statements made in court:
On October 15, 2021, law enforcement arrested Coleman and searched his residence pursuant a search warrant. Law enforcement recovered fentanyl and cocaine, which was subsequently confirmed through laboratory testing, and over 120 rounds of ammunition. Coleman had previously been federally convicted in the District of New Jersey for unlawful possession of a firearm.
In addition to the prison term, Judge Bumb sentenced Coleman to five years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado, Newark Field Division; the Passaic County Sheriff’s Office, under the direction of Acting Sheriff Gary Giardina; and the Paterson Police Department, under the direction of Officer in Charge Isa Abbassi with the investigation leading to the sentencing.
This case is part of the Paterson Violent Crime Initiative (VCI), which was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Passaic County Prosecutor’s Office, and the City of Paterson’s Department of Public Safety for the purpose of combatting violent crime in and around Paterson. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Paterson Department of Public Safety, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, N.J. State Parole, Bergen County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, and N.J. Department of Corrections.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi‑agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
The government is represented by Assistant U.S. Attorney Farhana C. Melo of the OCDETF/Narcotics Unit in Newark.
Orleans Parish Resident Guilty of Controlled Substances and Gun Control Acts ViolationsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that DIONTAE DORSEY, (“DORSEY”), age 43, of New Orleans, pled guilty on November 7, 2024 to Counts 1, 4, and 8 of an indictment before U.S. District Judge Carl J. Barbier. Sentencing is scheduled for February 27, 2025.
DORSEY was charged in Count 1 with Conspiracy to Distribute, and Possess with Intent to Distribute, Controlled Substances, in violation of Title 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), 841(b)(1)(B), 841(b)(1)(C), and 846. At sentencing, he faces a minimum of 10 years and up to life imprisonment, up to a $10,000,000 fine, and at least 5 years of supervised release.
DORSEY was charged in Count 4 with possessing firearms in furtherance of drug trafficking crimes, in violation of Title 18 U.S.C. § 924(c)(1). At sentencing, he faces a mandatory minimum of 5 years up to life imprisonment, up to a $250,000 fine, and up to 5 years of supervised release following imprisonment. Any sentence on Count 4 must run consecutive to any other sentence.
DORSEY was charged in Count 8 with maintaining a drug-involved premises, in violation of Title 21 U.S.C. § 856(a) and Title 18 U.S.C. § 2. Count 8 carries up to 20 years imprisonment, up to a $500,000 fine, and at least 3 years of supervised release following imprisonment. All three counts also carry a $100 mandatory special assessment fee.
According to the indictment, beginning on a time unknown but continuing until at least May 8, 2024, DORSEY and other individuals, maintained three residences in the Algiers neighborhood of New Orleans for the purpose of packaging and distributing narcotics, including fentanyl, cocaine, and heroin. Several of these individuals furthered this drug trafficking conspiracy by possessing 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.
United States Attorney Evans praised the work of the Drug Enforcement Administration, the Louisiana State Police, the Federal Bureau of Investigation, and the New Orleans Police Department. The prosecution is being handled by Assistant United States Attorney Stuart Theriot of the Narcotics Unit.
Operator of ‘Bitcoin Fog’ Sentenced to More Than 12 Years in Prison for Running Notorious Darknet Cryptocurrency MixerRead the Press Release
WASHINGTON – Roman Sterlingov, 36, a citizen of Russia and Sweden, was sentenced today to more than 12 years – or 150 months – in prison for operating a cryptocurrency mixer that laundered tens of millions of dollars for Darknet narcotics dealers and facilitated illegal conduct by other individuals who participated in a Darknet site for trafficking child sexual abuse material. A cryptocurrency mixer is a service that mixes potentially illegally derived cryptocurrency with others to obscure the trail back to the cryptocurrency’s original source.
The sentence, handed down in U.S. District Court for the District of Columbia, was announced by U.S. Attorney Matthew M. Graves, Deputy Attorney General Lisa Monaco, Principal Deputy Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Chief Guy Fico of the Internal Revenue Service-Criminal Investigation (IRS-CI), and FBI Assistant Director in Charge David Sundberg of the Washington Field Office.
In addition to his term of imprisonment, Sterlingov was sentenced to pay a forfeiture money judgment in the amount of $395,563,025.39, and forfeiture of seized cryptocurrencies and monetary assets valued at approximately $1.76 million. In addition, Sterlingov was ordered to forfeit his interest in the Bitcoin Fog wallet, totaling approximately 1,345 bitcoin and currently valued at more than $103 million.
“As proven at trial, Roman Sterlingov created and used an online tool to process hundreds of millions in illegal transactions, enabling darknet drug dealers and those who sell child sexual abuse material, to operate,” said U.S. Attorney Graves. “Today’s sentence sends an unmistakable message: those who help criminals with online payments for their illegal activities will face serious penalties. This prosecution also provides more proof that we have the skilled investigators and talented prosecutors needed to hold those who operate these darknet sites accountable.”
“Roman Sterlingov ran the longest-running bitcoin money laundering service on the darknet, and today he paid the price,” said Deputy Attorney General Lisa Monaco. “In the deepest corners of the internet, he provided a home for criminals of all stripes, from drug traffickers to identity thieves, to store hundreds of millions of dollars in illicit proceeds. Today’s sentence reflects the Department’s determination to dismantle the criminal networks that enable criminal actors to flourish and ensure consequences for the criminals operating them.”
“Roman Sterlingov laundered over $400 million in criminal proceeds through Bitcoin Fog, his cryptocurrency ‘mixing’ service that was open for business to criminals looking to hide dirty money,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Through his illicit money laundering operation, Sterlingov helped criminals launder proceeds of drug trafficking, computer crime, identity theft, and the sexual exploitation of children. Today’s sentencing underscores the Justice Department’s commitment to holding those who facilitate criminal activity fully accountable for their crimes. I am especially proud of the dedicated investigators and prosecutors who worked tirelessly to unmask and prosecute the Bitcoin Fog scheme.”
“Clearly, Sterlingov’s attempt to shroud his illicit activities in a cloak of anonymity ultimately failed against the sophisticated collaborative work of our Criminal Investigation (CI) special agents and partners,” said Chief Guy Ficco of IRS-CI. “Today’s significant prison term and hundreds of millions in financial sanctions against the defendant emphasizes the seriousness of this conviction and should serve as a stark notice that this type of criminal activity will not be tolerated.”
“The prosecution of Roman Sterlingov and the sentence imposed today should serve as a warning to cybercriminals,” said Assistant Director in Charge David Sundberg. “The FBI will not hesitate to use all tools at its disposal and will leverage our extensive partnerships to disrupt the cybercriminal ecosystem and the individuals who provide the key services that facilitate criminal activity.”
Sterlingov was found guilty on March 12, 2024, of conspiracy, sting money laundering, operating an unlicensed money transmitting business, and violations of the D.C. Money Transmitters Act following a month-long jury trial. The jury also granted forfeiture to the government of several specific assets that law enforcement had previously seized, including over about 1,354 Bitcoin (BTC) held in a Bitcoin Fog wallet, as well as $349,625 and various cryptocurrencies (including Bitcoin, Ethereum, Monero, and Stellar) held in seized Kraken cryptocurrency exchange accounts.
According to the government’s evidence, Sterlingov operated Bitcoin Fog from October 2011 to April 2021. Bitcoin Fog was a cryptocurrency “mixer,” or “tumbler,” and had gained notoriety as a money laundering service for criminals seeking to hide their illicit proceeds from law enforcement. Over the course of its decade-long operation, which stopped only when Sterlingov was arrested and detained, Bitcoin Fog moved well over 1.2 million Bitcoin (BTC) – valued at approximately nearly $400 million at the time of the transactions. The bulk of that cryptocurrency came from darknet marketplaces and was tied to illegal narcotics, computer fraud and abuse activities, and identity theft. Sterlingov’s service also served purveyors of child sexual abuse material (CSAM) through the notorious site Welcome to Video.
Sterlingov -- who used the monikers Akemashite Omedetou and Killdozer and Meth!, among others -- was fully aware that Bitcoin Fog would be used to launder Bitcoin from illegal vendors on the Darknet. As he noted succinctly about a month before creating Bitcoin Fog, Bitcoin and narcotics went hand in hand. “Also, like Silk Road, go ahead and accept payments in bitcoins; then, you will not be intimidated by even the U.S.”
The defendant advertised the site as “for people who have real problems for the law and we provide them the best possible service, and highest possible anonymity.” Those who had “real problems for the law” would mix “your bitcoins in our own pool with other users’ Bitcoins, and get paid back to other accounts from our mixed pool.”
At its launch, Sterlingov publicized Bitcoin Fog as a tool for anonymizing bitcoin transactions and evading law enforcement. His site charged customers a fee for the service. Historically, the largest users of Bitcoin Fog were darknet markets such as Agora, Silk Road, Silk Road 2.0, Evolution, and AlphaBay. As the jury found, Sterlingov’s mixing and tumbling activity was an illegal money transmitting and money laundering service under federal law.
While the identity of a BTC address owner is generally anonymous (unless the owner opts to make the information publicly available), the evidence at trial demonstrated that law enforcement can identify the owner of a particular Bitcoin address by analyzing the blockchain. The analysis can also reveal additional addresses controlled by the same individual or entity. IRS-CI’s analysis determined Bitcoin Fog received approximately 486,861.69 BTC, valued at about $54,897,316 at the time of the transactions, directly from darknet markets. Bitcoin Fog sent approximately 164,931.13 BTC (about $23,690,956 at the time of the transactions) directly to darknet markets. In sum, the anonymizer sent or received more than $78 million in transactions involving known darknet markets, counting only direct transactions.
Based on Bitcoin Fog’s transaction activity over time, Sterlingov made millions in commissions from Bitcoin Fog transactions. Investigators obtained records of Sterlingov’s true-name accounts at several cryptocurrency exchanges. Analysis of those accounts revealed the vast majority of cryptocurrency deposited into Sterlingov’s accounts was originally sourced and traced back to Bitcoin clusters associated with Bitcoin Fog.
Under U.S. law, it is a crime to conspire to commit money laundering, that is, to conduct financial transactions with proceeds from unlawful activity designed to conceal the nature, location, source, ownership, or control of such proceeds. It is also a crime to conduct or attempt to conduct a financial transaction involving property represented to be the proceeds of specified unlawful activity, with the intent to conceal the nature, location, source, ownership, or control of such property. It is also a crime to operate a money transmitting businesses without obtaining an appropriate money transmitting license in the state in which the service operates, or with FinCEN. The District of Columbia also criminalizes similar unlicensed activity.
Sterlingov was arrested April 27, 2021, at Los Angeles International Airport and has remained detained since that time.
This case is being investigated by the IRS-CI District of Columbia Cyber Crime Unit and the FBI Washington Field Office. The Justice Department’s Office of International Affairs and FBI’s Virtual Asset Unit provided invaluable assistance. Additional assistance was provided by Japanese, Swedish, Danish, Romanian, and UK authorities, as well as Europol.
The case is being prosecuted by Assistant U.S. Attorney Christopher B. Brown for the District of Columbia and Trial Attorneys Jeff Pearlman and C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS). Pelker and Brown are members of CCIPS’ National Cryptocurrency Enforcement Team (NCET). Paralegal Specialists Angela De Falco and Divya Ramjee provided valuable assistance.
Ohio Man Convicted of Possession and Distribution of Child Sexual Abuse MaterialsRead the Press Release
TOLEDO, Ohio – A federal jury has convicted an Ohio man of possession and distribution of child sexual abuse materials (CSAM), also known as child pornography. Derran Reebel, 52, of Toledo, was found guilty of committing crimes that violate federal laws regarding the sexual exploitation and abuse of children. According to court documents, Reebel knowingly received and distributed CSAM for nearly eight years, from about Jan. 1, 2014 through Aug. 17, 2022. During a search warrant execution conducted at his residence, investigators found numerous books, magazines, periodicals, films, and video tapes that contained visual depictions of minors engaged in sexually explicit conduct in his possession.
Law enforcement officials also discovered that Reebel used social media for a number of years to chat with minors and send them sexually explicit messages and photos of himself.
Sentencing has not yet been scheduled. Reebel faces a minimum sentence of five years and a maximum of 20 years in prison.
This case was investigated by the FBI-Toledo. The case is being prosecuted by Assistant U.S. Attorneys Sara Al-Sorghali and Frank Spryszak for the Northern District of Ohio.
To report child exploitation, please visit cybertipline.org, or call 1-800-843-5678, 24 hours a day, 7 days a week.
New Orleans Woman Guilty of Federal Controlled Substances Act Violations and Money LaunderingRead the Press Release
NEW ORLEANS, LOUISIANA – Today, U.S. Attorney Duane A. Evansannounced that BRANDIE ROWE (ROWE), age 36, a resident of New Orleans, pled guilty on November 6, 2024, before United States District Judge Jane Triche Milazzo to a two-count superseding indictment. Count One charged ROWE with conspiracy to distribute and possess with intent to distribute a quantity of cocaine, heroin, and fentanyl in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(C). Count Two charged ROWE with conspiracy to launder monetary instruments in violation of Title 18, United States Code, Sections 1956(a)(2)(A) and 1956(h).
According to court documents, ROWE and other co-conspirators distributed of multi-kilogram quantities of cocaine, fentanyl, and heroin within the Eastern District of Louisiana. Additionally, ROWE and the co-conspirators traveled between New Orleans, and other states, in order to transport U.S. Currency and narcotics on behalf of a Drug Trafficking Organization.
As to Count One, ROWE faces up to twenty (20) years imprisonment, a fine of up to $1,000,000.00, at least three years of supervised release, and a mandatory special assessment fee of $100. As to Count Two, ROWE faces up to twenty (20) years imprisonment, a fine of up to $500,000.00, up to three years of supervised release, and a mandatory special assessment fee of $100.
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.
This investigation was led by the Drug Enforcement Administration – New Orleans Field Division Office and was assisted by the Federal Bureau of Investigation, the United States Border Patrol, the Gretna Major Crimes Task Force, the Kenner Police Department, the Jefferson Parish Sheriff’s Office, the St. John’s Parish Sheriff’s Office, the Orleans Parish Sheriff’s Office, and the New Orleans Police Department. The prosecution is being handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
New Jersey Woman Pleads Guilty to Using Fraudulent Passport CardRead the Press Release
BOSTON – A New Jersey woman pleaded guilty yesterday in federal court in Worcester to using a fraudulent passport card at a Shrewsbury credit union while attempting to withdraw money from a customer’s account.
Elizabeth Clemente, 42, pleaded guilty to one count of forgery or false use of a passport. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for Feb. 6, 2025. In June 2024, Clemente was indicted by a federal grand jury.
On Nov. 7, 2023, police responded to a credit union in Shrewsbury where employees reported that Clemente attempted to withdraw money by impersonating a real credit union account holder, “Person #1.” While speaking with law enforcement, Clemente first identified herself “Heather.” When pressed for further identification information, Clemente provided the name of “Person #1,” however Clemente could not remember her date of birth or address. When further questioned, Clemente handed law enforcement a fraudulent U.S. Passport Card. The passport card bore Person #1’s name and actual date of birth but contained Clemente’s photograph.
The charge of forgery or false use of a passport provides for a maximum sentence of 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 United States Attorney Joshua S. Levy; Matthew O’Brien, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and Shrewsbury Police Chief Kevin Anderson made the announcement today. Assistant United States Attorney Danial E. Bennett of the Worcester Branch Office is prosecuting the case.
Multistate Gun Trafficker and Crips Gang Member Sentenced to 11 Years in PrisonRead the Press Release
NEW BERN, N.C. – Jakil Deandre Bond, 28, of Williamston, was sentenced to 141 months in prison for engaging in illegal firearm trafficking and drug distribution. Bond, a validated gang member, organized the purchase of firearms through co-defendants and straw purchasers Malik Jaree Bazemore and Ti’quiran Rodgers, who is also a validated gang member.
“We are targeting the violent gangs and reckless gunrunners fueling violence in our cities,” said U.S. Attorney Michael F. Easley, Jr. “This gun trafficker formed an iron pipeline of firepower from North Carolina to Washington, D.C., where shootings fueled further gang violence. Gun traffickers and straw purchasers are on notice – you are on the pathway to federal prison.”
“Firearms trafficking and straw purchasing is a critical issue that puts too many firearms in the hands of prohibited individuals,” said ATF Special Agent in Charge Bennie Mims. “Our priority is fighting violent gun crime, and when we can find and stop the individuals responsible for illegal firearms purchases, we can better protect our communities and communities across the country.”
“The Greenville Police Department works seamlessly with local, state, and federal partners to ensure that all crimes are fully investigated and prosecuted whether they occur solely in the city limits of Greenville or in instances such as this case where it extends far beyond our jurisdiction,” stated Greenville Police Chief Ted Sauls.
According to court records and evidence presented in court, from 2019 to November 2021, Bond, Bazemore, Rodgers, and Barron Nathaniel Shaw conspired to traffic over 50 firearms from North Carolina to Washington, D.C., and other East Coast areas. Bazemore and Rodgers, both residents of North Carolina, purchased firearms from federally licensed dealers in North Carolina and then transferred the firearms to Bond, Shaw, and others. Bazemore and Rodgers falsely stated that they were purchasing the firearms for personal use on multiple firearm transaction records.
An investigation was launched by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) in September 2019 after the D.C. Metro Police (MPD) recovered several firearms at crime scenes and shootings that were traced back to purchases made in North Carolina. Multiple firearms were found at crime scenes in Washington D.C., Maryland, and in North Carolina, as well as in the possession of validated gang members. The investigation revealed that Bond, a validated member of the Rollin 40’s set of the Crips street gang, organized the purchase of firearms from Bazemore and Rodgers. He then introduced them to Shaw and other contacts in D.C. to expand their straw purchasing operation. Bond and Shaw reimbursed Bazemore and Rodgers for the purchase price of the firearms while compensating them for conducting the transactions.
On January 24, 2023, ATF agents went to Bond’s apartment in Greenville, to serve him with a federal arrest warrant in connection with the gun trafficking conspiracy. As they knocked on the front door, Bond was observed exiting the rear of the residence and placing items on the back porch. Agents searched the apartment and recovered 731 grams of cocaine, 33 grams of cocaine base, 64 grams of fentanyl, three firearms, assorted ammunition, and other drug paraphernalia items.
Barron Shaw was sentenced to 48 months on September 8, 2023, for engaging in the business of dealing firearms without a license.
Malik Bazemore was sentenced to 24 months on September 18, 2024, for engaging in the business of dealing firearms without a license and knowingly making a materially false statement to a federally licensed firearms dealer.
Ti’quiran Rodgers was sentenced to 24 months on October 11, 2024, for engaging in the business of dealing firearms without a license and knowingly making a materially false statement to a federally licensed firearms dealer.
Michael F. Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The ATF, the Greenville Police Department, the Windsor Police Department, the Pitt County Sheriff’s Office, and the MPD investigated the case. Assistant U.S. Attorney Leonard Champaign prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:22-CR-00088-FL.
Mt. Pleasant Man Sentenced to over 33 Years in Prison for Murder and Assault with the Intent to Murder on the Isabella ReservationRead the Press Release
Bay City, MI –A Mount Pleasant man was sentenced to over 33 years in prison for murder and other assaultive crimes, announced United States Attorney Dawn N. Ison.
Johnathan Ashford, 39, was sentenced by United States District Judge Thomas L. Ludington to 400 months’ imprisonment, after having pleaded guilty to murder, assault with intent to murder, and discharge of a firearm in furtherance of a crime of violence on July 16, 2024.
The evidence established that after having an argument with his significant other, Ashford retrieved a 9mm Taurus handgun and shot his significant other multiple times, killing her. Several of the bullets Ashford fired struck a 6-month-old child who his significant other was holding in her arms when he shot her. The baby suffered life threatening injuries, but survived. Both victims are Indians, and the incident occurred on the Isabella Reservation within Indian country in the Eastern District of Michigan.
“The violent actions of this defendant are appalling as he took the life of a young woman and seriously injured a 6-month old child,” said United States Attorney Ison. “Our office has an unwavering commitment to holding accountable those who perpetuate violence in our tribal communities.”
The case was investigated by the Saginaw Chippewa Tribal Police, the Mount Pleasant Police Department, Isabella County Sheriff’s Department, Michigan State Police, Saginaw City Police, Buena Vista Police Department, the Federal Bureau of Investigation, the Bureau of Indian Affairs, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Roy Kranz.
Monroe City, Missouri, Man Sentenced to Twenty Years’ Imprisonment for Distributing MethamphetamineRead the Press Release
SPRINGFIELD, Ill. –Phillip C. Mayfield, 35, who lived in both Monroe City, Missouri, and Quincy, Illinois, was sentenced on November 7, 2024, to twenty years in federal prison for distributing methamphetamine, to be followed by five years of supervised release.
Mayfield was indicted in June 2023 and convicted after a jury trial in June 2024. Over three days of trial testimony, the government presented evidence to establish that Mayfield sold over fifty grams of methamphetamine to another individual in a grocery store parking lot in Quincy in February 2023 and then made a second sale of over fifty grams of methamphetamine in an apartment parking lot in Quincy in March 2023.
At the sentencing hearing before U.S. District Judge Colleen R. Lawless, the government established that Mayfield was on bond in five separate state felony cases at the time he made the drug sales. During the hearing, Judge Lawless noted that Mayfield had a very significant criminal history which included two prior drug trafficking convictions. Judge Lawless also commented that Mayfield was motivated to commit his crimes because he liked the lifestyle of being a drug dealer and the financial means it provided him.
Mayfield remains in the custody of the United States Marshal Service where he has been since his arrest on June 20, 2023. The statutory penalties for distribution of methamphetamine are not less than ten years’ and up to a life term of imprisonment; at least five years and up to a life term of supervised release; and up to a $10,000,000 fine.
The Illinois State Police West Central Illinois Task Force investigated the case, along with the Drug Enforcement Administration, Springfield Resident Office. Assistant U.S. Attorneys Sarah E. Seberger and Matthew Z. Weir represented the government in the prosecution.
The case against Mayfield 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.
Mexican man sent to prison for using fake Union Pacific trucks to smuggle migrantsRead the Press Release
LAREDO, Texas – Another individual has been sentenced for his role in a Laredo human smuggling conspiracy, announced U.S. Attorney Alamdar S. Hamdani.
Jesus Aleman-Serrano, 34, Mexican citizen illegally residing in Laredo, and Laredo pleaded guilty May 8.
U.S. District Judge Diana Saldaña has now imposed a 24-month term of imprisonment for Aleman-Serrano. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. In handing down the prison terms, Judge Saldaña noted the intricacy and level of sophistication involved and the danger the migrants faced.
Two others – Laredo residents Edison Alfredo Escalante, 23, Clarissa Villarreal, 29, previously received sentences of 18 months in prison and time served, respectively. All were also ordered to serve a three-year term of supervised release.
“Moving 11 individuals in dangerously cramped conditions inside a vehicle not only reflects the callousness of these operations but underscores the serious risk to life—where even a minor accident could have led to a tragic outcome,” said Hamdani. “Our efforts, including uncovering two stash houses used by the smuggling organization, send a clear message: we will continue to disrupt and dismantle these dangerous networks to protect lives and uphold the law.”
On Feb. 26, law enforcement observed a work truck displaying Union Pacific decals attempting to bypass the Interstate Highway 35 checkpoint north of Laredo.
Authorities later determined that this vehicle was not registered to Union Pacific; instead, the human smuggling organization had used decals to make it appear legitimate.
Law enforcement stopped the truck and identified Escalante as the driver. Upon further inspection, authorities found eight undocumented individuals concealed under a makeshift compartment in the bed of the truck.
Authorities found the compartment, hidden beneath a metal grate, which had plywood and a 102-pound generator resting on top.
Law enforcement used a crow bar to free three additional females from another small, locked hidden compartment within the vehicle. In total, authorities found 11 undocumented individuals from Mexico and Honduras trapped inside the truck.
Escalante initially told law enforcement he worked for Union Pacific and claimed that people in Mexico forced him to commit the crime.
However, evidence from Escalante’s cell phone revealed his connections to Cartel del Noreste and showed his participation in planning the smuggling event and purchasing the Union Pacific decals.
Later, Escalante admitted to smuggling another group of 10 migrants to San Antonio for the same organization.
Further investigation revealed the location where the undocumented individuals were harbored prior to Escalante transporting them. Authorities obtained a search warrant for a home on the 3600 block of Cancun Loop in Laredo and began surveillance later that day.
Law enforcement observed Aleman Serrano transport two individuals from the Cancun Street address to another apartment on Ligarde Street in a Ford Expedition. They approached the apartment and contacted the owner, who authorities identified as Villarreal.
Villarreal admitted Aleman Serrano hired her to “take care” of the people and that she knew they were undocumented.
Law enforcement later executed the search warrant at the Cancun Street address, where Aleman Serrano was identified as one of the owners. The evidence revealed this address was used as a stash house to harbor undocumented individuals.
Authorities recovered handwritten ledgers documenting the dates the migrants arrived, the number of days they stayed and how much was being charged.
Both Escalante and Aleman Serrano will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations, Border Patrol and the Laredo Police Department conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
This sentencing is also the result of the coordinated efforts of Joint Task Force Alpha (JTFA). Attorney General Merrick B. Garland established JTFA in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to combat the rise in prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador and Honduras. The initiative was expanded to Colombia and Panama to combat human smuggling in the Darién in June 2024. JTFA comprises detailees from U.S. attorneys’ offices along the southwest border including the Southern District of California, districts of Arizona and New Mexico and the Western and Southern Districts of Texas. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by the Human Rights and Special Prosecutions Section, and supported by the Office of Prosecutorial Development, Assistance and Training; Narcotic and Dangerous Drug Section; Money Laundering and Asset Recovery Section; Office of Enforcement Operations; Office of International Affairs; and the Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, Drug Enforcement Administration and other partners. To date, JTFA’s work has resulted in over 325 domestic and international arrests of leaders, organizers and significant facilitators of human smuggling, more than 270 U.S. convictions, more than 210 significant jail sentences imposed and forfeitures of substantial assets.
Assistant U.S. Attorney and JTFA detailee Jennifer Day prosecuted this case.
Methuen Man Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Methuen man pleaded guilty in federal court in Boston to illegally reentering the United States after deportation.
Santos Guzman, 55, pleaded guilty to illegal reentry before U.S. District Court Judge Denise J. Casper who scheduled sentencing for Feb. 12, 2025. Guzman was indicted by a federal grand jury in December 2021.
Guzman is a citizen of the Dominican Republic who entered the United States at an unknown date and unknown location and thereafter was convicted in 2019 of two state drug trafficking crimes. In November 2019, Guzman was ordered removed from the United States and on Jan. 7, 2020, he was deported to the Dominican Republic. Thereafter, at an unknown time and place, he reentered the United States. In November 2021, Guzman was arrested on a new state drug trafficking offense. A copy of his fingerprint from his removal document was compared to his fingerprint taken in connection with his November 2021 arrest and they were identical to each other.
The charge illegal reentry provides for a maximum sentence of 20 years in prison three years of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.Acting United States Attorney Joshua S. Levy; Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and Methuen Police Chief Scott J. McNamara made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of the Major Crimes Unit prosecuted the case.
Man Pleads Guilty to Federal Charges After Robbing Two Montgomery Convenience StoresRead the Press Release
Montgomery, Ala. – On November 8, 2024, Jalen Lamarcus Gunn, a 21-year-old man from Montgomery, Alabama, pleaded guilty to federal robbery and firearm charges, announced Acting United States Attorney Kevin Davidson.
According to his plea agreement and other court records, on April 27, 2024, Gunn entered a convenience store on Wares Ferry Road in Montgomery and leapt over the counter. Gunn then pointed a firearm at the clerk and demanded money from the register be placed in a plastic bag. Gunn then fled the store with approximately $3,000. Just two days later, on April 29th, Gunn robbed a convenience store on Perry Hill Road in a similar fashion, again pointing a handgun at the clerk and demanding money. This time, Gunn made away with $2,500 and multiple packs of cigarettes. During his plea hearing, Gunn pleaded guilty to two counts of interference with interstate commerce by robbery and one count of brandishing a firearm in furtherance of a federal crime of violence.
A sentencing hearing will be scheduled in the coming months. At that hearing, Gunn faces a sentence of seven years to life in prison. A federal district court judge will determine any sentence based on the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
The Federal Bureau of Investigation and Montgomery Police Department investigated this case, with Assistant United States Attorney Christopher P. Moore prosecuting.
Latimer County Resident Pleads Guilty to Federal Firearm ChargeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Teresa Louise Lightfoot, age 51, of Wilburton, Oklahoma, entered a guilty plea to one count of Felon in Possession of a Firearm.
The Indictment alleged that on September 28, 2023, Lightfoot knowingly possessed a semiautomatic pistol after having been convicted of a crime punishable by imprisonment for a term exceeding one year.
The charges arose from an investigation by the Latimer County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Lightfoot will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Jonathan E. Soverly represented the United States.
Lake County Man Indicted for Receiving Child Sex Abuse MaterialRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Bryce Fleetwood (26, Clermont) with two counts of receipt of child sex abuse material (CSAM). If convicted, Fleetwood faces a maximum penalty of 20 years in federal prison on each count, including a 5-year minimum term of imprisonment. Fleetwood is currently in custody pending the resolution of this case.
According to the indictment and evidence presented in court, on May 11 and November 15, 2022, Fleetwood, using an online social media messaging application, received CSAM depicting young children.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations, the Lake County Sheriff’s Office, and the Polk County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Sarah Janette Swartzberg
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Kansas Man Sentenced to 20 Years in Prison for Methamphetamine and Gun ChargesRead the Press Release
United States Attorney Susan Lehr announced that Brandon L. Hutchinson, age 39, of Wichita, Kansas, was sentenced today in federal court in Omaha, Nebraska, after having pled guilty to conspiracy to possess with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Hutchinson to 240 months’ imprisonment. Hutchinson also forfeited $ $2,033.37 seized in the investigation. There is no parole in the federal system. After Hutchinson’s release he will begin a 5-year term of supervised release.
On July 16, 2023, law enforcement received an anonymous tip that a fugitive was staying with Hutchinson at a Columbus motel and that he was in possession of controlled substances. Columbus police officers went to the motel where they confirmed that Hutchinson was currently renting a room.
After a drug detecting canine indicated to the odor of narcotics coming from within the room rented by Hutchinson, officers knocked on the door which was opened by Hutchinson who indicated the fugitive was within. The fugitive was removed and Hutchinson was secured until a search warrant was obtained.
After a warrant was obtained, a search of the room revealed approximately 1700 grams of meth in a bag with men’s clothing, approximately 200 “M 30” fentanyl pill along with suspected fentanyl powder, scales, baggies, a 9 mm Taurus handgun within arm’s reach of the drugs, and approximately $2033.37 in cash, most of which was found on Hutchinson’s person. Lab testing found Hutchinson’s DNA on the gun.
This case was investigated by the Columbus Police Department.
KC Man Sentenced to 26 Years for Heroin Conspiracy, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been sentenced in federal court for his role in a conspiracy to distribute heroin and of illegally possessing firearms.
Edgar A. Mejia, 49, was sentenced by U.S. District Judge Greg Kays on Thursday, Nov. 7, to 26 years and 10 months in federal prison without parole.
On March 22, 2024, Mejia was found guilty at trial of one count each of conspiracy to distribute heroin and possessing firearms in furtherance of a drug-trafficking crime.
On Oct. 10, 2022, law enforcement officers searched a 2000 Coachman recreational vehicle that belonged to Mejia. At the time of the search, Mejia was in custody in Oklahoma following his arrest for drug trafficking. Investigators in Oklahoma received information that Mejia had additional drugs and firearms hidden in his Coachman RV, and notified local authorities.
Officers located Mejia’s RV parked next to an abandoned residence in the 2300 block of Drury Avenue in Kansas City, Mo. Investigators searched the RV and found, hidden behind a wall in the kitchen, 541 grams of heroin, a Springfield Armory Hellcat 9mm semi-automatic handgun, an American Tactical AR-15-style rifle, and ammunition.
Mejia pleaded guilty to two counts of the indictment prior to trial, then went to trial on the remaining counts of the indictment. Six days prior to his trial, Mejia pleaded guilty to one count of possessing the heroin inside the RV with the intent to distribute it and one count of being a felon in possession of the firearms recovered from the RV.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Mejia has two prior state felony convictions for possession of a controlled substance and prior federal felony convictions for conspiracy to distribute methamphetamine and for being a felon in possession of a firearm.
This case was prosecuted by Assistant U.S. Attorneys Ashleigh A. Ragner and Robert M. Smith and Special Assistant U.S. Attorney Jessica L. Jennings. It was investigated by the Jackson County Drug Task Force; the District Attorney’s Task Force for the 13th Judicial District in Ottawa and Delaware Counties, Oklahoma; Wyandotte Nation Tribal Police Department, Wyandotte, Oklahoma; the Kansas City, Mo., Police Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Justice Department Sues Mississippi State Senate for Race DiscriminationRead the Press Release
WASHINGTON — The Justice Department filed a lawsuit today against the Mississippi State Senate for discriminating against a Black former staff attorney in its Legislative Services Office (LSO). The lawsuit, filed in the U.S. District Court for the Southern District of Mississippi, alleges that the Senate paid her about half the salary of her white colleagues in violation of Title VII of the Civil Rights Act of 1964 (Title VII).
Title VII is a federal statute that prohibits racial discrimination in compensation and other forms of employment discrimination on the basis of sex, race, color, national origin or religion.
“Discriminatory employment practices, like paying a Black employee less than their white colleagues for the same work, are not only unfair, they are unlawful,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Black employee at issue in this lawsuit was paid about half the salary of her white colleagues in violation of federal law. This lawsuit makes clear that race-based pay discrimination will not be tolerated in our economy. Our work to eliminate race-based pay disparities is about promoting compliance with the law and promoting equity and fairness for all workers.”
The department alleges in the complaint that the Senate discriminated against Kristie Metcalfe by paying her significantly less than every other LSO attorney, all of whom were white. The complaint further alleges that Ms. Metcalfe and these other attorneys had substantially the same job responsibilities and yet she was paid less than these attorneys throughout her eight-year tenure. The LSO is a non-partisan office that provides legal services, such as drafting bills, for all members of the Senate. In the 34 years prior to Ms. Metcalfe’s hire, the LSO employed only white attorneys.
The complaint alleges the pay gap between Ms. Metcalfe and her white colleagues began when she was hired and was perpetuated in several additional discriminatory pay actions. In 2011, Ms. Metcalfe was paid a starting salary significantly lower than any LSO attorney in over 30 years. Just one month after her hire, every attorney but Ms. Metcalfe was given a substantial raise, further widening the pay gap and leaving her with a salary less than half of what her white colleagues were earning. In the following years, the Senate consistently paid Ms. Metcalfe many times less than her white colleagues. Finally, near the end of Ms. Metcalfe’s tenure, the Senate hired a white attorney with no previous legislative experience and a similar number of years of legal experience as Ms. Metcalfe at a salary significantly higher than Ms. Metcalfe’s. At a meeting with Senate officials responsible for setting LSO salaries, Ms. Metcalfe complained about the pay disparity with the new hire, but the Senate denied her request for comparable pay.
Through this lawsuit, the department is seeking back pay and compensatory damages for Ms. Metcalfe, in addition to injunctive and other appropriate relief.
The Equal Employment Opportunity Commission (EEOC)’s Jackson Area Office investigated and attempted to resolve Ms. Metcalfe’s charge of discrimination before referring it to the Justice Department for litigation. More information about the EEOC is available at www.eeoc.gov.
The full and fair enforcement of Title VII is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division and the Employment Litigation Section is available at www.justice.gov/crt/ and www.justice.gov/crt/employment-litigation-section.
Trial Attorneys Louis Whitsett and Young Choi of the Civil Rights Division’s Employment Litigation Section and Assistant U.S. Attorney James Graves III for the Southern District of Mississippi are handling the case.
Justice Department Sues Mississippi State Senate for Race DiscriminationRead the Press Release
The Justice Department filed a lawsuit today against the Mississippi State Senate for discriminating against a Black former staff attorney in its Legislative Services Office (LSO). The lawsuit, filed in the U.S. District Court for the Southern District of Mississippi, alleges that the Senate paid her about half the salary of her white colleagues in violation of Title VII of the Civil Rights Act of 1964 (Title VII).
Title VII is a federal statute that prohibits racial discrimination in compensation and other forms of employment discrimination on the basis of sex, race, color, national origin or religion.
“Discriminatory employment practices, like paying a Black employee less than their white colleagues for the same work, are not only unfair, they are unlawful,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Black employee at issue in this lawsuit was paid about half the salary of her white colleagues in violation of federal law. This lawsuit makes clear that race-based pay discrimination will not be tolerated in our economy. Our work to eliminate race-based pay disparities is about promoting compliance with the law and promoting equity and fairness for all workers.”
The department alleges in the complaint that the Senate discriminated against Kristie Metcalfe by paying her significantly less than every other LSO attorney, all of whom were white. The complaint further alleges that Ms. Metcalfe and these other attorneys had substantially the same job responsibilities and yet she was paid less than these attorneys throughout her eight-year tenure. The LSO is a non-partisan office that provides legal services, such as drafting bills, for all members of the Senate. In the 34 years prior to Ms. Metcalfe’s hire, the LSO employed only white attorneys.
The complaint alleges the pay gap between Ms. Metcalfe and her white colleagues began when she was hired and was perpetuated in several additional discriminatory pay actions. In 2011, Ms. Metcalfe was paid a starting salary significantly lower than any LSO attorney in over 30 years. Just one month after her hire, every attorney but Ms. Metcalfe was given a substantial raise, further widening the pay gap and leaving her with a salary less than half of what her white colleagues were earning. In the following years, the Senate consistently paid Ms. Metcalfe many times less than her white colleagues. Finally, near the end of Ms. Metcalfe’s tenure, the Senate hired a white attorney with no previous legislative experience and a similar number of years of legal experience as Ms. Metcalfe at a salary significantly higher than Ms. Metcalfe’s. At a meeting with Senate officials responsible for setting LSO salaries, Ms. Metcalfe complained about the pay disparity with the new hire, but the Senate denied her request for comparable pay.
Through this lawsuit, the department is seeking back pay and compensatory damages for Ms. Metcalfe, in addition to injunctive and other appropriate relief.
The Equal Employment Opportunity Commission (EEOC)’s Jackson Area Office investigated and attempted to resolve Ms. Metcalfe’s charge of discrimination before referring it to the Justice Department for litigation. More information about the EEOC is available at www.eeoc.gov.
The full and fair enforcement of Title VII is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division and the Employment Litigation Section is available at www.justice.gov/crt/ and www.justice.gov/crt/employment-litigation-section.
Trial Attorneys Louis Whitsett and Young Choi of the Civil Rights Division’s Employment Litigation Section and Assistant U.S. Attorney James Graves III for the Southern District of Mississippi are handling the case.
Justice Department Announces Murder-For-Hire and Related Charges Against IRGC Asset and Two Local OperativesRead the Press Release
Shakeri Was Tasked by Iranian Regime with Surveilling and Plotting to Assassinate President-Elect Donald J. Trump
Note: View the criminal complaint here.
Farhad Shakeri, 51, of Iran; Carlisle Rivera, also known as Pop, 49, of Brooklyn, New York; and Jonathon Loadholt, 36, of Staten Island, New York, were charged today in a criminal complaint in connection with their alleged involvement in a plot to murder a U.S. citizen of Iranian origin in New York. Rivera was arrested in Brooklyn, New York, and Loadholt was arrested in Staten Island, New York, yesterday. Shakeri remains at large and is believed to reside in Iran. Rivera and Loadholt made their initial appearance in the Southern District of New York yesterday and were ordered detained pending trial.
“There are few actors in the world that pose as grave a threat to the national security of the United States as does Iran,” said Attorney General Merrick B. Garland. “The Justice Department has charged an asset of the Iranian regime who was tasked by the regime to direct a network of criminal associates to further Iran’s assassination plots against its targets, including President-elect Donald Trump. We have also charged and arrested two individuals who we allege were recruited as part of that network to silence and kill, on U.S. soil, an American journalist who has been a prominent critic of the regime. We will not stand for the Iranian regime’s attempts to endanger the American people and America’s national security.”
“The charges announced today expose Iran's continued brazen attempts to target U.S. citizens, including President-elect Donald Trump, other government leaders and dissidents who criticize the regime in Tehran,” said FBI Director Christopher Wray. “The Islamic Revolutionary Guard Corps — a designated foreign terrorist organization — has been conspiring with criminals and hitmen to target and gun down Americans on U.S. soil and that simply won’t be tolerated. Thanks to the hard work of the FBI, their deadly schemes were disrupted. We're committed to using the full resources of the FBI to protect our citizens from Iran or any other adversary who targets Americans.”
“Actors directed by the Government of Iran continue to target our citizens, including President-elect Trump, on U.S. soil and abroad. This has to stop,” said U.S. Attorney Damian Williams for the Southern District of New York. “Today’s charges are another message to those who continue in their efforts – we will remain unrelenting in our pursuit of bad actors, no matter where they reside, and will stop at nothing to bring to justice those who harm our safety and security. I want to thank the career prosecutors of this office and our law enforcement partners for their ongoing work in this and related investigations. They are truly the best of the best and work tirelessly to keep our country safe.”
According to the complaint and other public statements and filings, the Government of the Islamic Republic of Iran (the Government of Iran) is actively targeting nationals of the United States and its allies living in countries around the world for attacks, including assault, kidnapping, and murder, both to repress and silence dissidents critical of the Iranian regime and to take vengeance for the January 2020 death of then-Commander of the Islamic Revolutionary Guard Corps (IRGC) Qods Force (IRGC-QF), Qasem Soleimani, who was killed by a U.S. drone strike in Baghdad. The IRGC is an Iranian military and counterintelligence agency under the authority of Iran’s Supreme Leader, comprised of components including an external operations force, the IRGC-QF, and has been designated as a foreign terrorist organization by the U.S. Secretary of State since April 15, 2019. The IRGC has publicly stated its desire to avenge the death of Soleimani, and, among its activities, the IRGC plots and conducts attack operations outside Iran targeting U.S. citizens residing in the United States and abroad.
Shakeri is an IRGC asset residing in Tehran, Iran. Shakeri immigrated to the United States as a child and was deported in or about 2008 after serving 14 years in prison for a robbery conviction. In recent months, Shakeri has used a network of criminal associates he met in prison in the United States to supply the IRGC with operatives to conduct surveillance and assassinations of IRGC targets. Two members of Shakeri’s network are his co-defendants, Loadholt and Rivera. At Shakeri’s instruction, Loadholt and Rivera have spent months surveilling a U.S. citizen of Iranian origin residing in the United States (Victim-1). Victim-1 is an outspoken critic of the Iranian regime and has been the target of multiple prior plots for kidnapping and/or murder directed by the Government of Iran. In exchange for Shakeri’s promise of $100,000, Rivera and Loadholt repeatedly sought to locate Victim-1 for murder.
During their efforts to locate and kill Victim-1, Shakeri, Loadholt, and Rivera shared messages about their progress and photographs relating to their scheme. For example, in or about February 2024, Rivera and Loadholt messaged about an incoming payment from Shakeri, and then traveled to Fairfield University, where Victim-1 was scheduled to appear, and took photographs on campus. In or about April, Shakeri sent Rivera a series of voice notes discussing their efforts to locate and kill Victim-1. In one voice note, Shakeri told Rivera that Victim-1 spent most of her time in particular locations of her home, and told Rivera that “you just gotta have patience … You gotta wait and have patience to catch her either going in the house or coming out, or following her out somewhere and taking care of it. Don’t think about going in. In is a suicide move.” On several occasions over the last several months, consistent with this instruction from Shakeri, Rivera and/or Loadholt have surveilled a location in Brooklyn that they had identified as associated with Victim-1.
In addition, according to statements made by Shakeri in recorded interviews with law enforcement agents, the IRGC has also tasked Shakeri with carrying out other assassinations against U.S. and Israeli citizens located in the United States. In particular, Shakeri has informed law enforcement that he was tasked on Oct. 7, 2024, with providing a plan to kill President-elect Donald J. Trump. During the interview, Shakeri claimed he did not intend to propose a plan to kill Trump within the timeframe set by the IRGC. He also stated he was tasked with surveilling two Jewish American citizens residing in New York City and offered $500,000 by an IRGC official for the murder of either victim. He was also tasked with targeting Israeli tourists in Sri Lanka.
Shakeri, Rivera, and Loadholt have all been charged with murder-for-hire, which carries a maximum penalty of 10 years in prison; conspiracy to commit murder-for-hire, which carries a maximum penalty of 10 years in prison; and money laundering conspiracy, which carries a maximum penalty of 20 years in prison.
Shakeri has also been charged with conspiring to provide material support to a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; providing material support to a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; and conspiracy to violate the International Emergency Economic Powers Act and sanctions against the Government of Iran, which carries a maximum penalty of 20 years in prison. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI New York Field Office is investigating the case. The U.S. Customs and Border Protection New York Field Office and Drug Enforcement Administration New York Division assisted in the investigation.
Assistant U.S. Attorneys Jacob H. Gutwillig and Michael Lockard and Special Assistant U.S. Attorney Julie Isaacson for the Southern District of New York, Trial Attorneys Dmitry Slavin of the National Security Division’s Counterterrorism Section, and Christopher Rigali and Leslie Esbrook of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jury Convicts Militia Members of Conspiracy to Murder Border Patrol Officers, Attempted Murder of FBI AgentsRead the Press Release
JEFFERSON CITY, Mo. – Two members of the 2nd American Militia have been convicted by a federal trial jury for their roles in a conspiracy to murder U.S. Border Patrol agents and, related to their shooting at FBI agents at the time of their arrest, of attempting to murder federal agents.
Jonathan S. O’Dell, 34, of Warsaw, Mo., and Bryan C. Perry, 39, of Clarksville, Tennessee were found guilty on Thursday, Nov. 7, of conspiracy to murder officers and employees of the United States government. They planned to travel to Texas to shoot at illegal immigrants crossing the United States – Mexico border. They also planned to murder officers and employees of the U.S. Border Patrol who would attempt to stop them.
O’Dell and Perry also were found guilty of a conspiracy to assault federal officers and employees and a conspiracy to injure federal officers and employees. They were found guilty of seven counts of the attempted murder of FBI special agents, seven counts of assaulting FBI special agents with a deadly weapon, three counts of assaulting FBI special agents, 14 counts of using a firearm in furtherance of a crime of violence, and one count of damaging federal property.
Additionally, O’Dell was found guilty of one count of threatening to injure another person. On the morning of the first day of trial, O’Dell also pleaded guilty to one count of illegally possessing a firearm while subject to a court order of protection, one count of making a false statement to a federal agent, and one count of escaping from custody. O’Dell escaped from the Phelps County Jail in Rolla, Mo., on Sept. 29, 2023, while being detained in this case. He stole a car and fled to Ray County, Mo., where he was recaptured following a high-speed flight from law enforcement on Oct. 1, 2023.
Additionally, Perry was found guilty of two counts of being a felon in possession of a firearm, one count of possessing body armor by a violent felon, and one count of threatening to injure another person.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Perry has a prior felony conviction for aggravated robbery.
Evidence introduced during the trial indicated that, throughout the summer, and fall of 2022, Perry and O’Dell recruited and attempted to recruit other individuals to join the 2nd American Militia, a group they co-founded. They advertised a recruitment event in Warsaw prior to leaving for the United States – Mexico border.
On Sept. 5, 2022, Perry, bringing at least two stolen firearms, body armor, and gas masks with him, traveled from Tennessee to Warsaw to live with O’Dell. They used O’Dell’s residence as a staging site as they prepared for their trip to the border and collected firearms, paramilitary gear, ammunition, and other supplies.
Perry posted several videos on TikTok in an attempt to recruit other members into their conspiracy. O’Dell and Perry also communicated with several individuals outside the state of Missouri.
On Sept. 12, 2022, Perry posted a video on TikTok in which he discussed illegal immigrants coming into the United States from Mexico. Perry stated that the U.S. Border Patrol was committing treason by allowing these illegal immigrants to enter the United States, and that the penalty for treason was death. Perry posted another video on TikTok the next day in which he stated that he was “ready to go to war against this government.”
On Sept. 22, 2022, Perry posted a video on TikTok in which he stated, “we’re out to shoot to kill” and that “our group is gonna go protect this country.” On Oct. 3, 2022, Perry posted a video on TikTok in which he stated, “we were going out huntin’,” that his group was taking their “full kits,” and that they were leaving for the United States – Mexico border on Oct. 8, 2022.
O’Dell and Perry continued to conduct preparatory steps to further their conspiracy, including continuing to recruit others, attempting to acquire other gear, and practicing shooting at targets with firearms.
On Oct. 7, 2022, the FBI executed a search warrant at O’Dell’s residence. Federal agents approached the property at about 6 a.m. in vehicles with red and blue lights activated. As the FBI approached, an agent utilized a loudspeaker in the lead armored vehicle, the “Bearcat,” to announce they were with the FBI and that they had a search warrant for the residence. Seven agents were inside or behind the Bearcat. The FBI agent began to repeat the announcement, again stating that they were with the FBI, when gunshots were fired from a front window at the lead FBI vehicle. Perry fired 11 shots from his Voodoo Innovations multi-caliber rifle with an AM-15 lower receiver. Several rounds hit the lead FBI vehicle.
Agents responded by deploying flash bangs around the residence. Agents used the Bearcat to conduct a breach of the front door of the residence using an affixed ram. Agents did not return fire and, after the gunshots ceased, the FBI established a perimeter and began communicating with the persons inside the residence to come out.
O’Dell and his girlfriend came out of the residence and surrendered to authorities. Perry eventually came out of the residence. Perry took down an American flag from the front porch of the residence and walked down the steps while waving the flag. After beginning to walk to the agents, Perry then turned around and moved back to the residence. Agents pursued Perry, who began to fight and swing his fists, striking the agents several times and causing injury to at least one agent before he was taken into custody.
Agents then searched the residence and found six firearms, 23 magazines filled with ammunition, 1,770 rounds of various other ammunition, 11 spent casings, two sets of body armor with corresponding plate carrier vests, one handheld radio, two sniper rests, two gas masks, two ballistic helmets, multiple containers of a binary explosive mixture commonly sold as an exploding target, zip ties, and two 2nd American Militia patches. Agents also found two go-bags that contained food, provisions, and other gear.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., deliberated for about two hours and 23 minutes before returning guilty verdicts yesterday to U.S. District Judge Brian C. Wimes, ending a trial that began Monday, Oct. 28.
Under federal statutes, O’Dell and Perry each are subject to a mandatory minimum sentence of 10 years in federal prison without parole, and up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Casey Clark and Ashley Turner. It was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, the Missouri State Highway Patrol, the Phelps County, Mo., Sheriff’s Department, the Ray County, Mo., Sheriff’s Department, the Caldwell County, Mo., Sheriff’s Department, and the Kansas City, Mo., Police Department.
Indictment Accuses Mail Carrier of Selling Arrow Key and Stolen ChecksRead the Press Release
ST. LOUIS – A mail carrier was arrested Thursday on an indictment that accuses her of selling a key to U.S. Postal Service mail collection boxes and selling checks stolen from the mail.
Cambria Hopkins, 29, of Florissant, Missouri, was indicted October 30 on one count of conspiracy, one count of unlawful use of a mail key and one count of bribery. After her arrest at the U.S. Post Office in Clayton, she appeared in U.S. District Court in St. Louis and pleaded not guilty.
The indictment says Hopkins was a postal carrier based in Clayton, Missouri on March 20, 2022, when she accepted money from Malik A. Jones for her “arrow key,” which allows access to U.S. Postal Service collection boxes, knowing that Jones was planning on using the key to steal mail. Hopkins also stole mail that came into her possession as a postal carrier, removed checks from that mail and provided those checks to Jones, the indictment says. Jones paid Hopkins in cash, electronically via CashApp and by buying her groceries, the indictment says.
Jones, 27, pleaded guilty October 25 to bank fraud and aggravated identity theft and is scheduled to be sentenced on Jan. 30, 2025.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
“This indictment represents the hard work and dedication by USPS OIG Special Agents and U.S. Postal Inspectors working with the U.S. Attorney’s Office to bring charges on this significant mail theft investigation,” said Special Agent in Charge Dennus Bishop, U.S. Postal Service, Office of Inspector General, Central Area Field Office. “The majority of postal employees are hard-working public servants dedicated to moving mail to its proper destination. The USPS OIG, along with our law enforcement partners, remain committed to safeguarding the U.S. Mail and ensuring the accountability and integrity of U.S. Postal Service employees.”
“The U.S. Postal Inspection Service is the federal law enforcement branch of the U.S. Postal Service charged with protecting the nation’s mail system from illegal use. With the collaborative investigative efforts of our law enforcement partners, the Postal Inspection Service investigates and pursues those responsible for committing financial fraud stemming from the theft of mail.” said Inspector in Charge Ruth Mendonça who leads the Chicago Division of the U.S. Postal Inspection Service, which includes the St. Louis Field Office.
The conspiracy charge carries a potential penalty of up to 5 years in prison, a $250,000 fine, or both prison and a fine. The mail key charge carries a maximum sentence of 10 years and the bribery charge is punishable by a maximum prison term of 15 years.
The U.S. Postal Service Office of Inspector General and U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.
Illegal Immigrant Sentenced to Federal Prison for Possession of Cocaine and Illegal Re-Entry into the United StatesRead the Press Release
LAKE CHARLES, La. – United States Attorney Brandon B. Brown announced that Jose Albino Ramos Hernandez, 38, a citizen of Mexico, has been sentenced to 60 months in prison for possession with intent to distribute cocaine and illegal re-entry of removed alien. United States District Judge James D. Cain, Jr. presided over the sentencing hearing.
According to information presented in court, Hernandez illegally re-entered the United States on numerous occasions after being deported and removed. On March 16, 2011, a Notice and Order of Expedited Removal was entered against him by the U.S. Department of Homeland Security and on or about March 18, 2011, he was removed via port of entry in Brownsville, Texas and was prohibited from entering the United States for a period of 5 years. However, on November 1, 2012, Hernandez reentered the United States at or near Laredo, Texas. On April 26, 2013, Hernandez was removed from the United States and was prohibited from entering the United States again for a period of 20 years. A review of Hernandez’s history showed that since 2006, he has illegally entered the United States over seven times.
On September 8, 2022, Hernandez was again found to be in the United States illegally. He was arrested by troopers with the Louisiana State Police in Calcasieu Parish, Louisiana, as the result of a traffic stop of a vehicle in which he was a passenger. Troopers deployed a K-9 officer to conduct an open-air sniff of the vehicle and the K-9 alerted to the presence of the odor of narcotics emitting from the vehicle. A search of the vehicle revealed approximately one kilogram of cocaine hidden in the rear pocket of the driver’s seat, as well as a Taurus Model PT111 Millennium G2 pistol and a 9mm Polymer 80 Model PF940C pistol inside. Hernandez was charged with possession with intent to distribute cocaine and illegal re-entry of a removed alien and pleaded guilty to the charges on June 22, 2023.
The case was investigated by U.S. Department of Homeland Security and Louisiana State Police and prosecuted by Assistant United States Attorney LaDonte A. Murphy.
# # #
Idabel Resident Sentenced for Murder and Federal Firearms ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Zachary Carlton Ty Capps, age 29, of Idabel, Oklahoma, was sentenced to 210 months in prison for one count of Second Degree Murder in Indian Country, and 120 months in prison for one count of Using, Carrying, Brandishing, and Discharging a Firearm During and In Relation to a Crime of Violence. The sentences are set to be served consecutively for a total of 330 months in prison.
The charges arose from an investigation by the Federal Bureau of Investigation, the McCurtain County Sheriff’s Office, and the Choctaw Nation Lighthorse Police.
On September 12, 2023, Capps pleaded guilty to the charges. According to investigators, on the evening of November 15, 2022, Capps fatally shot the victim in the head with a .44 caliber revolver. The crimes occurred in McCurtain County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Kenneth J. Gonzales, U.S. District Judge in the United States District Court for the District of New Mexico, sitting by assignment, presided over the hearing in Muskogee, Oklahoma. Capps will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Benjamin D. Traster represented the United States.
Houstonian found guilty of committing armed robberies of Houston-area fast-food restaurantsRead the Press Release
HOUSTON – A federal jury has convicted a 25-year-old man for interference with commerce by robbery and brandishing a firearm during a crime of violence, announced U.S. Attorney Hamdani.
The jury deliberated for two hours and 45 minutes before finding Caleb Pickens guilty following a four-day trial.
Law enforcement began investigating a series of armed robberies at fast-food restaurants, primarily McDonald’s, and convenience stores, which drew attention to Pickens.
Pickens came to the attention of law enforcement between after they began an investigation into a series of armed robberies of fast-food restaurants, mainly McDonald’s, and convenience stores.
HOUSTON – A federal jury has convicted a 25-year-old man for interference with commerce by robbery and brandishing a firearm during a crime of violence, announced U.S. Attorney Hamdani.
The jury deliberated for two hours and 45 minutes before finding Caleb Pickens guilty following a four-day trial.
Law enforcement began investigating a series of armed robberies at fast-food restaurants, primarily McDonald’s, and convenience stores which drew attention to Pickens.
In January, Pickens wore either a red Nike sweatshirt or a black hooded jacket while committing a series of armed robberies at McDonald’s locations and brandishing a pistol.
Occasionally, Pickens held the gun to victims’ heads, backs or stomachs, demanding money from the safe. In one incident, he eventually fired his pistol into a microwave oven at a McDonald’s location.
During the robberies, Pickens ordered the manager to hand over the money from the safe before exiting through the restaurant’s back door.
He fled the locations in a stolen black Chevrolet Tahoe that had a broken left rear window, used scissors to start the ignition and drove away.
Law enforcement located the vehicle and started conducting surveillance. On Jan. 23, the Chevy Tahoe arrived at a McDonald’s in Houston where Pickens again committed another armed robbery.
Authorities arrested him on scene. At that time, he was wearing the same Nike sweatshirt and hooded jacket and was in possession of a pistol.
“Going to McDonald’s has become a quintessential part of American life, offering a familiar, convenient spot for families to come together for a meal, where kids feast on Happy Meals searching for hidden toys,” said Hamdani. “Pickens turned that idyllic scene into a violent nightmare when he robbed several locations and pointed his gun at his victims. This verdict will insure that he is taken off Houston’s streets and away from its families for many years to come.”
He has been and will remain in custody pending sentencing.
U.S. District Judge David Hittner presided over the trial and set sentencing for Feb. 13, 2025. At that time, Pickens faces up to life imprisonment and a possible $250,000 maximum fine.
The Houston Police Department’s Violent Crime Task Force and FBI conducted the investigation. Assistant U.S. Attorneys Jill Stotts and Brian Hrach are prosecuting the case.
Hartford Substance Abuse Counselor Pleads Guilty to Health Care FraudRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that THELMA “WENDY” EPPS, 59, of Hartford, waived her right to be indicted and pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to health care fraud.
According to court documents and statements made in court, Epps was a Licensed Alcohol and Drug Abuse Counselor (LADC) with an office located at 330 Main Street in Hartford. In April 2013, she enrolled as a participating provider in the Connecticut Medicaid program along with an entity affiliated with Epps called Miracles to Destiny LLC. In July 2018, the Medicaid program suspended Epps from participating as a provider in the program based on a finding of a credible allegation of fraud. Medicaid told Epps that any attempt to circumvent her suspension by submitting claims for services performed by Epps or Miracles to Destiny LLC through other agencies or other billing numbers would result in termination of her provider agreement.
In 2019, Epps entered into an agreement with Dennis Tomczak, a Connecticut LADC who was a participating provider in Medicaid. Epps and Tomczak agreed that Tomczak would bill Medicaid using his Medicaid provider number for psychotherapy counseling services purportedly provided by Epps. These claims falsely represented that Tomczak had personally provided the services. In return for Tomczak billing the services, Epps agreed to pay Tomczak 25 percent of the amount Medicaid paid Tomczak. Between approximately April 2019 and November 2022, Medicaid paid Tomczak $330,547.71 for fraudulent claims for services purportedly provided by Epps that were billed under Tomczak’s provider number.
At some point during their scheme, Tomczak expressed concerns to Epps about the number and frequency of services that Epps told Tomczak she was providing. At about this time, Epps entered into a similar agreement with Shawn Tyson, a LADC in Connecticut, whereby Tyson would use his Medicaid provider number to submit claims to Medicaid for services Epps purportedly provided to Medicaid clients.
In November 2019, Epps assisted Tyson with the process of enrolling Tyson as a participating provider in Medicaid. Tyson’s provider application listed the location at which Tyson would provide services as 330 Main Street, Third Floor, in Hartford, the location of the Epps’s and Miracles to Destiny LLC’s office. Once Tyson was enrolled as a Medicaid provider, Tyson provided Epps with his login information to the online portal for submitting claims to Medicaid, which Epps then used to submit claims. For a brief period before Tyson was enrolled as a Medicaid provider, unbeknownst to Tomczak, Epps submitted claims through Tomczak’s provider number for services purportedly provided by Tyson, by representing to Tomczak that she had performed these services. Medicaid paid Tomczak a total of $7,879.40 for these services.
During the scheme involving Epps and Tyson, Tyson would provide Epps the names of Medicaid patients and dates that Tyson purportedly provided psychotherapy counseling services to the patients, and Epps would then bill Medicaid for these services using Tyson’s provider number. Epps would also submit claims using Tyson’s provider number for services she purportedly provided to Medicaid patients. These claims falsely represented that Tyson had personally provided the services to the patients.
Epps and Tyson submitted and caused to be submitted claims for hundreds of thousands of dollars of psychotherapy services that neither Epps nor Tyson had actually provided to Medicaid clients. When Epps warned Tyson that he should not bill Medicaid for having provided psychotherapy to patients on holidays, such as July 4 and Thanksgiving, Tyson would typically change the dates of services and resubmit the list of services to Epps.
Medicaid paid Tyson $663,081.32 for claims that falsely represented that Tyson had personally provided services, or falsely represented that services had been provided when, in fact, they were not provided at all.
Epps has agreed to pay $1,001,058.43 in restitution to the Connecticut Medicaid program.
Judge Dooley scheduled sentencing for January 31, at which time Epps faces a maximum term of imprisonment of 10 years. She is released on a $50,000 bond pending sentencing.
Tomczak and Tyson have pleaded guilty to related charges and await sentencing.
This investigation has been conducted by the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG) and the Federal Bureau of Investigation, with the assistance of the Connecticut Department of Social Services. The case is being prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.
The U.S. Attorney’s Office, Connecticut Chief State’s Attorney’s Office, and Connecticut Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Four Defendants Sentenced for Attempted Armed Robbery of Dunwoody Jewelry StoreRead the Press Release
ATLANTA - Four multi-convicted felons, each of whom was on probation or parole when they joined an interstate robbery crew led by a south Georgia prison inmate, have been sentenced to federal prison for their involvement in the attempted smash-and-grab armed robbery of a Dunwoody, Georgia, jewelry store.
“These defendants posed a significant threat to public safety when they terrorized innocent victims during their crime spree,” said U.S. Attorney Ryan K. Buchanan. “The successful prosecutions of these armed career criminals resulted from the tenacious and collaborative work of our federal and state law enforcement partners who disrupted the defendants’ violent activities and helped to prevent them from targeting other members of our communities.”
“These defendants clearly showed no regard for the law as they continued their crimes even while on parole. All four were willing to put innocent civilians at risk during the commission of these armed robberies and it is fortunate no one was hurt because of their selfish desire for wealth,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta. “Hopefully this federal sentence will send the message that the FBI will not tolerate the behavior of repeat violent offenders.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: In July 2023, FBI special agents began investigating jewelry store robberies throughout the southeastern United States. During the investigation, agents discovered that the robberies were being orchestrated by Deuntria Lyons, who was at the time serving six life sentences at Valdosta State Prison for planning other robberies from behind bars.
In November 2023, the FBI intercepted dozens of telephone conversations and text messages between Lyons and his associates, including Melvin Asbury, Mark Oliver, and Santino Parks. In those communications, Lyons and Oliver discussed the date, location, and other details of Lyons’s plan to rob a jewelry store in Dunwoody, Georgia, including plans for two of the robbers to enter the store armed with handguns while a third accomplice waited in a getaway car.
On December 1, 2023, agents observed three of the robbers park a car near the jewelry store that Lyons discussed in his previous communications. Agents arrested Oliver, Parks, and Jamaury Marshall at the scene, and recovered masks, gloves, trash bags, two sledgehammers, two loaded Glock pistols, and a loaded high-capacity magazine from the vehicle. Shortly thereafter, Georgia State Patrol troopers arrested Asbury in another vehicle.
On December 12, 2023, the U.S. Attorney’s Office for the Western District of North Carolina obtained an indictment charging Lyons and a second person with conspiracy to commit robbery and other offenses.
At the time of their arrests, Asbury, Marshall, Parks, and Oliver were all on probation or parole with the state of Georgia following convictions for violent crimes. Asbury was granted parole in 2022 after serving nearly 17 years of a 20-year sentence for armed robbery, kidnapping, aggravated assault, burglary, and weapons-possession offenses. Marshall was on probation after having been imprisoned for burglary, aggravated assault, and weapons-possession offenses. Similarly, Parks was on probation for robbery by force, aggravated battery, and burglary. Oliver was on probation for robbery and acts of violence while in prison.
U.S. District Judge Mark H. Cohen sentenced the defendants as follows:
- Melvin Asbury, 39, of Atlanta, Georgia, was sentenced to five years, three months in prison to be followed by three years of supervised release after he pleaded guilty on June 20, 2024, to attempted Hobbs Act robbery.
- Jamaury Marshall, 29, of Johns Creek, Georgia, was sentenced to eight years, four months in prison to be followed by three years of supervised release after he pleaded guilty on June 7, 2024, to possession of a firearm, which he was prohibited from possessing due to his status as a convicted felon.
- Mark Anthony Oliver, 23, of Atlanta, Georgia, was sentenced to five years, three months in prison to be followed by three years of supervised release after he pleaded guilty on June 26, 2024, to attempted Hobbs Act robbery.
- Santino Demarco Parks, 29, was sentenced to seven years in prison to be followed by three years of supervised release after he pleaded guilty on June 20, 2024, to conspiracy to commit Hobbs Act robbery, attempted Hobbs Act robbery, and possession of a firearm as a convicted felon.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Theodore S. Hertzberg and Leanne M. Marek 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.
Former Teacher Who Catfished Students Sentenced to 33 Years in PrisonRead the Press Release
MACON, Ga. – A former Washington County high school teacher who catfished his students and uploaded sexually explicit content on social media was sentenced to serve 33 years in prison.
Michael Allen Dendy, 33, of Milledgeville, Georgia, was sentenced to serve 400 months in prison to be followed by ten years of supervised release by U.S. District Judge Marc Treadwell on Nov. 7. In addition, Dendy will have to register as a child sex offender upon release from federal prison. Dendy previously pleaded guilty to one count of production of child pornography and one count of distribution of child pornography on July 30. There is no parole in the federal system.
“We are committed to holding people like Michael Allen Dendy accountable to the fullest extent of the law for monstrously preying on adolescents, in this case tricking minors to send him explicit images and uploading them online for other predators to view,” said U.S. Attorney Peter D. Leary. “I am thankful for our law enforcement partners who are dedicated to protecting the innocent and bringing child predators to justice.”
“Educators are entrusted with the responsibility to protect and guide our youth, and the actions of this former teacher represent a severe betrayal of that trust. By creating false identities to deceive minors and exploit them in such a harmful way, Dendy caused profound damage to those he was meant to safeguard,” said Acting Special Agent in Charge Steven N. Schrank who oversees investigations across Georgia and Alabama. “HSI is dedicated to ensuring justice for the victims and will tirelessly pursue those who prey upon vulnerable members of our community.”
“Michael Allen Dendy will no longer be able to prey on children and he will be an old man when he is released from prison,” said Washington County Sheriff Joel Cochran. “We are resolute in our commitment to safeguarding our children and ensuring that those who prey on them are held accountable. I want to extend my heartfelt gratitude to all law enforcement officers, prosecutors and support personnel who worked tirelessly on this case. Your dedication and hard work have made our community safer and brought us closer to justice for the victims.”
According to court documents and statements referenced in court, the Washington County Sheriff’s Office (WCSO) received multiple complaints regarding child pornography being posted on the social media platform Discord in Dec. 2022. Deputies were informed that several local high school students had their images posted to the platform under “WACO Confessions” without their knowledge or approval. The investigation found “WACO Confessions” was created by an individual—later determined to be Dendy—under the username “TheOneYouLeftBehind.” The IP address most frequently used to access the account was tracked to Dendy’s residence. Dendy was a teacher at Washington County High School in Sandersville, Georgia, from Aug. 2020 until his arrest by WCSO deputies on Jan. 20, 2023.
Dendy admitted to obtaining nude images of individuals, particularly of underage students at Washington County High School. He confirmed that he would communicate with the students using fake Instagram accounts—posing as a young male and a young female on Instagram—and that he never met with any students in person. Dendy also admitted to creating “WACO Confessions.” Dendy said that he began his catfishing scheme in 2016, when he lived in Mississippi and continued while residing in Maryland and Georgia. Dendy said he was not able to stop despite knowing that what he was doing was wrong. Dendy taught at three schools previously: Griffin High School in Griffin, Georgia, from 2018-2020; St. Charles High School in Waldorf, Maryland, from 2017-2018; and Starkville High School in Starkville, Mississippi, from 2014-2016. Parents and guardians of children who may have encountered Dendy and have concerns related to this investigation can contact the Homeland Security Investigations (HSI) tip line at 1-866-347-2423.
A search warrant executed at Dendy’s residence recovered numerous electronic devices containing CSAM and chat conversations between Dendy and several identified victims. Specifically, between Jan. 1, 2023, and Jan. 31, 2023, Dendy persuaded a 16-year-old to engage in sexually explicit conduct, film the conduct and share it through social media. In a separate incident, on Dec. 11, 2022, Dendy uploaded a video to “WACO Confessions” depicting a minor, who was between the ages of 14 and 15, engaging in sexually explicit conduct.
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 www.projectsafechildhood.gov.
The case was investigated by WCSO and Homeland Security Investigations (HSI), with assistance from the Leesburg Police Department (Virginia), the Charles County Sheriff’s Office (Maryland), and the Middle Judicial Circuit of Georgia District Attorney’s Office.
Assistant U.S. Attorney Daniel Peach prosecuted the case for the Government.
Former Police Officer Sentenced to Federal Prison for Possessing Child PornographyRead the Press Release
PORTLAND, Ore.—A former police officer from Pendleton, Oregon was sentenced to federal prison today for possessing child pornography on the Umatilla Indian Reservation.
Cameron Jacob Sheoships, 57, was sentenced to 87 months in federal prison and five years’ supervised release. Sheoships’ sentencing follows a prior guilty plea that included a pattern enhancement for his repeated sexual abuse of a minor beginning in the 1990s.
According to court documents, in August 2022, the FBI received a tip that suspected child pornography had been traced to the Umatilla Indian Reservation in Eastern Oregon. By mid-September 2022, investigators received additional tips associated with Google and Twitter accounts later linked to Sheoships, a former tribal police officer. In May 2023, the FBI executed federal search warrants on Sheoships’ residence and person, and located numerous photos and videos depicting child sexual abuse on Sheoships’ cellphone.
On June 13, 2023, a federal grand jury in Portland returned an indictment charging Sheoships with possessing child pornography and, on April 24, 2024, he pleaded guilty to the single charge.
This case was investigated by the FBI and prosecuted by Cassady A. Adams, Assistant U.S. Attorney for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former CFO Sentenced to 41 Months in Prison for Embezzling $2 MillionRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Friday sentenced the former CFO of a St. Louis County, Missouri company to 41 months in prison for embezzling $2 million. Richard D. Zellner was also ordered to repay the money.
Between approximately January 2019 and January 2024, Zellner used his employer’s bank accounts to pay off the balance of his personal credit cards. Zellner repeatedly paid off that balance once he’d incurred thousands of dollars in charges, which typically occurred every few days or couple of weeks. Zellner spent the money on vacations, travel, personal bills and purchases of gold and precious metals. He covered up his thefts by altering company accounting records by creating fake work orders and bills.
Zellner also used the company’s credit cards for personal expenses.
Zellner made a total of over 1,000 unauthorized transactions during his scheme, fraudulently obtaining about $ $2,062,051.
Zellner, 66, of O’Fallon, Missouri, waived grand jury indictment and pleaded guilty in August in U.S. District Court in St. Louis to one count of wire fraud.
The FBI and the Maryland Heights Police Department investigated the case. Assistant U.S. Attorney Jonathan Clow prosecuted the case.
Former Bosnian Combatant Sentenced for Passport FraudRead the Press Release
BOSTON – A Winthrop, Mass. man was sentenced yesterday in federal court in Boston for fraudulently obtaining a U.S. passport and then using it to enter the United States from Istanbul, Turkey in 2021.
Azem Gigo Zebic, 52, was sentenced by U.S. District Judge Denise J. Casper to 18 months of probation, 100 hours of community service and a $2000 fine. In addition, Zebic’s U.S. passport will be surrendered to the government. In June 2023, Zebic pleaded guilty to one count of use of a fraudulently obtained passport.
Zebic was admitted to the United States from Croatia in 1997 after falsely claiming that he had been the subject of persecution by Serb forces during the Bosnian War. Zebic falsely claimed, among other things, that Serb forces had captured, interrogated, beaten him and forced him to pull wounded soldiers from the front lines. Further, once in the United States, Zebic continued to make false statements about his past, including that he had never assisted anyone else enter the country illegally. However, Zebic had, in fact, assisted another alleged Bosnian combatant – Kemal Mrndzic – enter the United States unlawfully by falsely claiming that he was Mrndzic’s half-brother. Mrndzic was convicted in October 2024 by a federal jury in Boston of a 25 year scheme to conceal his persecution of Serb prisoners at the notorious Celebici prison camp, and related crimes. Zebic testified at Mrndzic’s trial.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations, New England; Amy Connelly, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; Matthew O’Brien, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and Jennifer De La O, Director of Field Operations, U.S. Customs and Border Protection, Boston Field Office made the announcement. This matter was investigated with the assistance of the Justice Department’s Office of International Affairs, the United States Interagency Human Rights Violators & War Crimes Center and the United States Citizen and Immigration Service. Assistance was provided by the Criminal Division’s Human Rights and Special Prosecutions Section and the United States Embassies in Sarajevo, Belgrade and Helsinki. The Australian Federal Police, Bosnian and Herzegovinian Ministry of Justice, Serbian Ministry of Justice, law enforcement authorities in Finland and the Royal Canadian Mounted Police all provided valuable assistance. The Cook County (Ill.) Sheriff’s Office and Swampscott (Mass.) Police Department also provided valuable assistance. Assistant U.S. Attorneys John T. McNeil and Jason A. Casey of the National Security Unit prosecuted the case.
Ethos Laboratories Agrees to Pay $6.5 Million to Resolve Allegations of Fraudulent BillingRead the Press Release
BOSTON – A Kentucky-based laboratory, Ethos Laboratories (Ethos), has agreed to pay $6.5 million to resolve allegations that it submitted false claims for payment to Medicare for urine drug testing (UDT) and for its proprietary test for chronic pain, known as the Foundation Pain Index (FPI).
According to the settlement agreement, Ethos admits that between Jan. 1, 2017 and July 15, 2024, Ethos submitted multiple claims for UDT for the same patient, on the same date of service, using the same urine sample. Ethos performed presumptive UDT via a relatively inexpensive test that could quickly yield qualitative results. It also performed definitive UDT via a more complex and expensive method that provided a quantitative result. Ethos performed and billed Medicare for both presumptive and definitive UDT for the same substance regardless of the results of the presumptive UDT and without determining that definitive UDT was necessary. Further, Ethos at times submitted claims for testing done pursuant to blanket UDT orders that were the same for all patients from a particular provider’s practice, without obtaining any individualized determination of medical necessity by the ordering provider. In some instances, these blanket orders included substances with positivity rates below 0.01%.
In addition, per the settlement agreement, Ethos admits that between Nov. 12, 2020, and Oct. 6, 2023, it submitted claims for FPI testing for patients in a provider’s practice without any individualized determination of medical necessity by the ordering provider, and, in some cases, without the provider’s knowledge that Ethos was performing FPI testing. Ethos also submitted claims for FPI testing at high frequencies, including testing some patients multiple times in the same month.
On July 18, 2023, based on information provided by the Department of Justice, Medicare suspended Ethos’s receipt of Medicare payments. Pursuant to that payment suspension, Medicare retained more than $6.5 million of billed claims from Ethos. As part of the settlement agreement, Ethos has agreed to forfeit the $6.5 million to satisfy this settlement. The settlement was reached after the government’s review of Ethos’s financial disclosures concerning its financial condition. In connection with the settlement, Ethos also entered into a five-year corporate integrity agreement with the Department of Health and Human Services Office of Inspector General.
Acting United States Attorney Joshua S. Levy; Roberto Coviello, Special Agent in Charge of the Department of Health & Human Services, Office of the Inspector General; and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Abraham R. George, Chief of the Civil Division handled the matter.
El Salvadorian National Sentenced for Illegal Re-EntryRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that LORENZO ALEXANDER BENITEZ (“BENITEZ”), age 40, a citizen of El Salvador, was sentenced by United States District Judge Susie Morgan on November 7, 2024 to two years of probation, after previously pleading guilty to illegal reentry of a removed alien, a violation of Title 8, United States Code, Section 1326(a).
According to court documents, BENITEZ admitted to reentering the United States illegally after previously being deported on July 27, 2018. BENITEZ was encountered by law enforcement on April 29, 2024, while driving on Interstate 610 in New Orleans.
U.S. Attorney Evans praised the work of United States Customs and Border Patrol in investigating this matter. Assistant United States Attorney Paul J. Hubbell of the General Crimes Unit is in charge of the prosecution.
Doctor Convicted of Accepting Kickbacks for Blood, Urine SamplesRead the Press Release
An internal medicine doctor was convicted last week of accepting more than $200,000 in kickbacks for sending patient samples to particular labs, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Dr. Hector Ubaldo, 60, was indicted in September. After a two-day trial, it took a federal jury just 14 minutes to find him guilty of conspiracy to pay and receive healthcare kickbacks and solicitation and receipt of illegal kickbacks.
According to evidence presented at trial, Dr. Ubaldo accepted cash from so-called “marketers” in return for sending patients’ blood and urine samples to particular labs, including R.K. Clinical, which then billed insurance companies and Medicare for running diagnostic tests.
Dr. Ubaldo also entered into sham medical advisory agreements with the labs and marketers, whereby he was supposed to provided advisory services in exchange for a monthly fee. The labs and marketers had no need for these advisory services and Dr. Ubaldo provided no such services. Instead, the medical advisory service agreements served as a fraudulent vehicle to funnel kickback payments to Dr. Ubaldo in exchange for his sending samples to specific labs.
On multiple occasions, one of the marketers met with Dr. Ubaldo at his office and handed over thousands of dollars in cash. Surreptitiously recorded video of the meetings was introduced into evidence in court.
“To tell you the truth, I need the cash,” Dr. Ubaldo told the marketer at one of the meetings.
Dr. Ubaldo later stated, “The minimum I’m willing to [expletive] take on a monthly basis is about $10 grand.”
Over the course of the scheme, Dr. Ubaldo accepted more than $253,000 in bribes. The lab was able to bill insurers roughly $3.4 million as result of their illegal relationship with Dr. Ubaldo.
Dr. Ubaldo now faces up to 15 years in federal prison: five years on the conspiracy count and 10 years on the solicitation and receipt count. Following his conviction, Dr. Ubaldo was taken into custody as he awaits sentencing.
The marketer in question pleaded guilty before trial to one count of conspiracy to pay and receive healthcare kickbacks and now faces up to five years in federal prison. R.K Clinical owner Kelly Nelson, who also pleaded guilty before trial, was sentenced in May to 30 months in federal prison.
In total, the Northern District of Texas has prosecuted more than fifteen doctors, marketers, and lab owners connected to this larger scheme over the last several years.
The Federal Bureau of Investigation’s Dallas Field Office and the Defense Criminal Investigative Service conducted the investigation. Assistant U.S. Attorneys P.J. Meitl and Nancy Larson tried the case. U.S. District Judge Mark Pittman presided Dr. Ubaldo’s trial.
Danvers Man Convicted of Money Laundering and Operating Unlicensed Money Transmitting BusinessRead the Press Release
BOSTON – A Danvers man has been convicted, following a five-day trial, of money laundering and operating an unlicensed, “no questions asked” money transmitting business that converted more than $1 million in cash to the digital currency Bitcoin, including on behalf of scammers and a drug dealer.
Trung Nguyen, a/k/a “DCS420”, 48, was convicted of one count of conducting an unlicensed money transmitting business and one count of concealment money laundering. The jury also found Nguyen not guilty of a separate count of money laundering. United States District Judge Richard G. Stearns scheduled sentencing for Feb. 12, 2025. Nguyen was indicted by a federal grand jury on May 30, 2023.
“Money laundering is the lifeblood of a wide swath of criminal conduct,” said Acting U.S. Attorney Joshua S. Levy. “This defendant’s ‘no questions asked’ money laundering operation allowed a known drug dealer to turn their dirty cash into more deadly meth to pump onto our streets and it allowed scammers to swindle vulnerable victims out of their hard-earned savings. Money launderers may think that Bitcoin is some new frontier for cleaning dirty money anonymously, it is not. Together with our law enforcement partners, we are carefully monitoring these markets and will continue to investigate and prosecute the money launderers who are essential cogs in the illicit drug and fraud trades.”
“Nguyen deliberately set up his money service business to evade banking regulations and to circumvent financial safeguards that prevent illicit proceeds from entering legitimate commerce. Our investigation proved that Nguyen knew he was working with criminals by accepting money from victims of scams and a drug dealer. HSI is a global leader in investigating illicit finance and bringing money launderers like Nguyen to justice,” said HSI New England Special Agent in Charge Michael J. Krol.
“The guilty verdict of Trung Nguyen demonstrates IRS Criminal Investigation’s commitment to the prosecution of all who choose to not only break the law themselves but also those who assist criminals in facilitating their criminal activities,” said Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office. “Nguyen operated an unlicensed money service businesses and concealed his financial activity in a nominee business bank account in an effort to conceal his bitcoin conversion activity. Through Nguyen’s actions, he allowed criminals to conceal their activity by converting bulk cash into bitcoin, allowing them to easily and covertly integrate their ill-gotten gains into the mainstream financial system.”
Between September 2017 and October 2020, Nguyen owned and operated National Vending, LLC. Through National Vending, Nguyen accepted cash from customers and, in exchange for a fee, sent them Bitcoin in return. Exchangers of virtual currency, including Bitcoin exchangers, are money transmitters under federal law and are subject to federal anti-money laundering (AML) regulations. The regulations required them to register as money service businesses with the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) and to maintain effective AML programs, including by filing Suspicious Activity Reports with FinCEN, and by filing Currency Transaction Reports for Bitcoin-for-cash exchanges of more than $10,000.
Nguyen purposely failed to register National Vending with FinCEN, despite being required to do so. In 10 transactions in 2018, Nguyen accepted a total of $250,000 in cash from an individual who identified himself to Nguyen as a methamphetamine dealer. In 2019 and 2020, Nguyen also accepted approximately $325,000 from a romance scam victim from Kansas City, Mo.; $60,000 from a romance scam victim from Glastonbury, Ct., and $60,000 from a romance scam victim from central Massachusetts—each of whom had been tricked into converting cash into Bitcoin and sending it to con artists overseas. Nguyen failed to file Suspicious Activity Reports or Currency Transaction Reports on any of these transactions, including cash transactions of more than $10,000.
Nguyen concealed his money transmitting business by, among other ways, holding National Vending out to banks, cryptocurrency exchanges, and state authorities as a vending machine business, using encrypted messaging apps to communicate with customers, using technologies that made it more difficult to trace Bitcoin transactions and breaking cash deposits of more than $10,000 into smaller cash deposits over consecutive days or at different branches of the same bank. Nguyen also enrolled in a paid course on concealing his business that recommended Nguyen purport to operate “a business for which cash deposits from around the country make sense” and that he “develop [his] cover story,” “create a list or your suppliers Fictitious of course,” and “Don’t say the word ‘Bitcoin.”
The charge of money laundering provides for a sentence of up to 20 years, three years of supervised release and a fine of up to $500,000 or twice the value of the property involved in the transaction. The charge of conducting an unlicensed money transmitting business provides for a sentence of up to five years in prison, 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; HSI SAC Krol; IRS SAC Chavis; and Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division made the announcement today. Assistant U.S. Attorneys Seth B. Kosto and Benjamin A. Saltzman of the Securities, Financial & Cyber Fraud Unit are prosecuting the case.
DOJ Files Statement of Interest Regarding Unnecessary Segregation of Youth with Mental Health Disabilities in L.A. County and California Foster Care SystemRead the Press Release
LOS ANGELES – The Justice Department today filed a statement of interest in a federal lawsuit alleging the foster care system operated by Los Angeles County and the State of California fails to provide youth with mental health disabilities with sufficient access to housing, behavioral health, and other services and, instead, places them in institutions for care.
In Ocean S., et al., v. Los Angeles County, et al., (C.D. Calif., 23cv06921) the plaintiffs, who are transition-age foster youth, contend that the defendants’ administration of the foster care system unnecessarily segregates youth with mental health disabilities in violation of federal law.
The Americans with Disabilities Act (ADA), the Rehabilitation Act, and the Supreme Court’s decision in Olmstead v. L.C., 527 U.S. 581 (1999) require state and local governments to eliminate unnecessary segregation of persons with disabilities and to administer services to people with disabilities in the most integrated setting appropriate to their needs.
The Department of Justice files statements of interest in ongoing court cases to inform the court and the public of its views on certain matters of law.
“Youth with disabilities who do not receive the critical services that they need to thrive in the community often end up in a vicious cycle of institutionalization,” said United States Attorney Martin Estrada. “Under the law, people with disabilities deserve to live and receive services in the most integrated setting appropriate to their needs, such as in their homes and communities. My office is committed to upholding civil rights for all, including people with disabilities.”
In the Ocean S. lawsuit, the Justice Department’s statement of interest pertains to the “integration mandate” and explains that the ADA bars public entities from placing an individual with a disability at serious risk of needless institutionalization. The statement of interest also clarifies that the plaintiffs can state a serious risk claim without alleging that they seek specific community-based services that exist in an institution. It also states that the plaintiffs do not need to include an appropriateness determination from a treatment professional in their complaint, and that a public entity’s oversight and administration of its service system may be sufficient to allege causation.
Assistant United States Attorney Amy Xu of the Civil Division’s Civil Rights Section and attorneys from the Special Litigation Section of the Justice Department’s Civil Rights Division worked on the statement of interest.
Individuals in the seven counties of the Central District of California may file a complaint asserting civil rights violations with the Civil Rights Section, Civil Division of the U.S. Attorney’s Office by completing and submitting this form (English) (Spanish) by email to [email protected].
Court Permanently Enjoins Miami Tax Return Preparers, Orders Them to Pay DisgorgementRead the Press Release
The U.S. District Court for the Southern District of Florida issued a permanent injunction yesterday against Miami tax return preparer Niclas Pierre, and his tax return preparation business, Niclas Tax and Express Inc. The court also issued a permanent injunction against Elius Bessard and his tax return preparation business, Bessard Immigrations and Tax Services LLC.
The injunctions bar Pierre and Bessard from preparing tax returns, working for or owning a tax preparation business, assisting others to prepare tax returns or transferring a list of customers. The court also ordered Pierre to pay $563,000 and Bessard to pay $208,000 in ill-gotten gains received from their return preparation businesses. Pierre and Bessard each agreed to both the injunction and the order to pay.
The complaint alleged that Pierre and Bessard prepared returns for customers that claimed various false or fabricated deductions and credits, including fabricated residential energy credits, false and fraudulent deductions and inflated business expenses. According to the complaint, Pierre and Bessard each prepared over a thousand tax returns for customers over the past six years.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Pierre and Niclas PI.pdf Bessard and Bessard Tax Injunction.pdfColorado Man Sentenced for Money Laundering SchemeRead the Press Release
ALBUQUERQUE – A Colorado man was sentenced to two years of supervised release and ordered to pay restitution in the amount of $242,210 after pleading guilty to money laundering and conspiracy to commit wire fraud.
According to court documents, in 2015, James Matison, the former Restoration Projects Director at WildEarth Guardians, manipulated his co-defendant, Jeffrey Ham, the owner of Timberline Environmental LLC, a WildEarth Guardians contractor, into participating in the scheme by claiming his wife suffered a traumatic brain injury and they were facing financial hardship.
As part of the scheme, Matison created fraudulent invoices from Timberline to WildEarth Guardians, which he approved for payment, causing the non-profit to issue checks to Timberline. Matison deposited these checks into Timberline's account, then transferred the funds to his personal account.
The scheme continued until March 2019 and accumulated a total of $242,210 in fraudulent billings to WildEarth Guardians, with Matison pocketing virtually all the proceeds. When WildEarth Guardians began investigating, Matison asked Ham to create new invoices to cover up the crimes.
Ham pleaded guilty to conspiracy to commit wire fraud and was sentenced on October 3, 2024, to serve a term of three years on probation.
U.S. Attorney Alexander M.M. Uballez and the Department of the Interior (DOI) Office of Inspector General, and the Environmental Protection Agency (EPA) Office of Inspector General made the announcement today.
The Environmental Protection Agency Office of Inspector General and the Department of the Interior Office of Inspector General investigated this case. Assistant United States Attorney Jeremy Peña is prosecuting the case.
# # #