Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 13 September 2024
Raleigh County Woman Sentenced to Prison for Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Ashley Nicole Luster, 29, of Sophia, was sentenced today to eight months in prison, to be followed by three years of supervised release, for aiding and abetting the distribution of methamphetamine.
According to court documents and statements made in court, on July 13, 2022, Luster sold approximately 25 grams of methamphetamine to a confidential informant at a Beckley apartment complex while aided and abetted by co-defendant Angelo Johnson. Luster admitted that she handed the controlled substances over after Johnson took the money.
Johnson, 29, of Beckley, was sentenced on December 8, 2023 to three years and one month in prison, to be followed by three years of supervised release, after pleading guilty to aiding and abetting the distribution of methamphetamine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Beckley/Raleigh County Drug and Violent Crime Unit. The Beckley/Raleigh County Drug and Violent Crime Unit consists of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department, and the Beckley Police Department.
Chief United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Andrew D. Isabell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-13.
Prisoner Who Escaped from Bloomfield Halfway House Receives Additional Time in PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that LUIS PADILLA, 39, formerly of Waterbury, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for escaping from a halfway house in Bloomfield.
According to court documents and statements made in court, on February 27, 2018, Padilla was sentenced in Hartford federal court to 78 months of imprisonment for conspiring with others to traffic narcotics from Connecticut to Maine. On March 17, 2021, Padilla was transferred from a federal prison in West Virginia to the Drapelick Center, a Residential Reentry Center (halfway house) in Bloomfield, to complete his custodial sentence. On June 1, 2022, Padilla walked out of the Drapelick Center and never returned. He was located and arrested in Bangor, Maine, on April 5, 2024.
On June 10, 2024, Padilla pleaded guilty to escape from the custody of the Attorney General.
This matter was investigated by the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Rahul Kale.
Philadelphia Woman Charged with Stealing Social Security Disability Benefits of Homicide Victim Found Buried Under Rowhome BasementRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Holly Sadowski, 37, of Philadelphia, Pennsylvania, was arrested and charged by indictment on charges of Social Security fraud, wire fraud, and aggravated identity theft, for concealing the death of a woman, referred to as E.W., to steal her Social Security Administration (“SSA”) disability benefits totaling approximately $99,447.90.
The indictment alleges that the deceased woman’s remains were found buried beneath approximately six to eight feet of concrete in the basement of a Philadelphia home in which she had resided. According to the indictment, the last time E.W. was seen alive was on or about December 12, 2012. During her lifetime, E.W. received Disability Insurance Benefits from the SSA, due to an intellectual disorder.
The indictment further alleges that a DNA analysis of the human remains recovered from the concrete basement concluded that the remains were those of E.W. The Philadelphia Medical Examiner’s Office and a forensic anthropologist examined E.W.’s remains and concluded that the cause of death was blunt trauma to the head and neck and the manner of death was homicide. The forensic anthropologist estimated that E.W. died at least four years and up to ten years prior to the recovery of her remains.
Defendant Sadowski was indicted for accessing the deceased woman’s bank account and stealing her Social Security benefits for her own personal use. In furtherance of the scheme to defraud, Sadowski is charged with utilizing the deceased’s name, date of birth, and Social Security number to continue to access her bank account containing the Social Security benefit funds. Sadowski is charged with fraudulently obtaining and converting to her own use approximately $99,447.90 in SSA benefits payments intended for E.W.
If convicted, the defendant faces a maximum possible sentence of 107 years’ imprisonment, three years of supervised release, a $1,750,000 fine, and a $700 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General and the Philadelphia Police Department and is being prosecuted by Special Assistant United States Attorneys Megan Curran and Laura J. Bradbury.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Peridot Woman Sentenced to 15 Years for Killing Her HusbandRead the Press Release
PHOENIX, Ariz. – Terri Lynn Victor, 43, of Peridot, was sentenced on August 26, 2024, by U.S. District Judge Diane J. Humetewa to 180 months in prison, followed by three years of supervised release. Victor is a member of the San Carlos Apache Tribe.
In the late-night hours of July 6, 2022, and into the early morning hours of July 7, 2022, Victor stabbed her husband in the chest, ultimately killing him. Victor pleaded guilty to Voluntary Manslaughter on February 14, 2024.
The investigation in this case was conducted by the San Carlos Apache Police Department and the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorneys Dimitra Sampson and Vinnie Lichvar, District of Arizona, Phoenix.
CASE NUMBER: CR-22-01129-PHX-DJH
RELEASE NUMBER: 2024-122_Victor# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Ohio County Man Sentenced for Federal Firearms OffenseRead the Press Release
WHEELING, WEST VIRGINIA – Mustafa A. Baker, age 55, of Wheeling, West Virginia, was sentenced to 30 months in prison for the unlawful possession of a firearm.
According to court documents and statements made in court, Wheeling Police officers pulled over Baker’s vehicle because of an outstanding warrant and found a loaded 9mm semiautomatic pistol and 10 rounds of ammunition. Baker is prohibited from having firearms because of eight prior felony convictions in Virginia, including drug possession, 3rd offense DUI, felony domestic assault, and felony assault and battery.
Baker will serve three years of supervised release after his prison sentence.
Investigative agencies include the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Wheeling Police Department.
Special Assistant U.S. Attorney John Kyle, also with the Brooke County Prosecuting Attorney's Office, prosecuted the cases on behalf of the government.
U.S. District Judge John Preston Bailey presided.
North Carolina Woman Sentenced to Prison for Role in Counterfeit Currency ConspiracyRead the Press Release
BECKLEY, W.Va. – Crystal Wilks, 24, of Lenoir, North Carolina, was sentenced today to one year and six months in prison, to be followed by three years of supervised release, and ordered to pay $800 in restitution for conspiracy to commit an offense against the United States. Harris admitted to her role in a conspiracy to create and pass counterfeit United States currency in the Southern District of West Virginia.
According to court documents and statements made in court, on October 12, 2022, Wilks and co-defendants Xavier Sanders and Jamarcus Harris traveled with another individual from North Carolina to West Virginia. Wilks admitted that they passed counterfeit $100 bills at businesses in Beckley, Fayetteville and Summersville.
Wilks and her co-conspirators rented a room that evening at a Summersville hotel, where they attempted to create new counterfeit United States currency. Wilks admitted that their counterfeiting process involved bleaching $1 bills, scanning a genuine $100 bill, and printing the scanned image on the bleached bills.
Harris, 33, of Lenoir, North Carolina, was sentenced on February 2, 2024, to two years and nine months in prison, to be followed by three years of supervised release, and ordered to pay $800 in restitution after pleading guilty to conspiracy to commit an offense against the United States. Sanders, 25, of Charlotte, North Carolina, pleaded guilty on November 9, 2023, to conspiracy to commit an offense against the United States and sentenced on April 26, 2024, to three years of probation after serving five months in jail .
United States Attorney Will Thompson made today’s announcement and commended the investigative work of the United States Secret Service.
Chief United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Alexander A. Redmon, Andrew D. Isabell and Ryan Blackwell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-54.
New Orleans Man Sentenced for Firearm and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA- HERBERT COOPER (“COOPER”), age 28, a resident of New Orleans, was sentenced on September 5, 2024, by U.S. District Judge, Eldon E. Fallon, to 120 months’ imprisonment after previously pleading guilty to Counts 1, 2, and 3 of a superseding bill of information. The Court also ordered that COOPER be placed on supervised release for 5 years following release from imprisonment and pay a $300 mandatory special assessment fee.
Count 1 charged COOPER with possession with intent to distribute a controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D). Count 2 charged COOPER with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i). Count 3 charged COOPER with being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
According to court documents, COOPER was previously convicted of felony offenses in St. Tammany Parish and Orleans Parish. Due to his criminal history, he is prohibited from having a firearm. On March 13, 2022, while conducting video surveillance of the 300 block of North Gayoso Street in New Orleans, New Orleans Police Department (“NOPD”) officers observed COOPER conduct a suspected hand-to-hand narcotics distribution transaction. When a uniformed NOPD officer approached COOPER, he fled and discarded a loaded Glock Model 23, .40 caliber semi-automatic handgun, with an extended magazine containing twenty-five (25) live rounds of ammunition. Upon COOPER’s arrest, NOPD officers discovered approximately $2,300.00 in cash on his person. Officers also recovered 1460.5 grams of marijuana, 29.46 grams of methamphetamine, a bottle half-filled with Promethazine, a digital scale, plastic sandwich baggies, and a standard, as well as an extended magazine for a Glock Model 23, semi-automatic handgun, from COOPER’s vehicle.
On March 23, 2022 after obtaining a search warrant for a residence and a safe used by COOPER, officers recovered $12,000.00 in cash, two falsified Western Union money orders for $900.00 each, a Smith and Wesson, .38 Special revolver with an obliterated serial number, a Social Security card, and birth certificate, belonging to COOPER.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. This case was prosecuted by Assistant United States Attorney Troy Bell of the Violent Crime Unit.
New Hampshire Man Sentenced to Eight Years in Prison for His Role in Methamphetamine Trafficking ConspiracyRead the Press Release
BOSTON – A member of a nationwide drug trafficking ring was sentenced today in federal court in Boston. During the investigation over 160 pounds of pure methamphetamine, as well as an AK-47, a Glock with no serial number, two loaded Smith & Wesson handguns and over 4,200 rounds of ammunition were seized. An illegal marijuana grow operation with hundreds of marijuana plants was also dismantled.
Eric Daneault, 48, of Manchester, N.H., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to eight years in prison to be followed by three years of supervised release. On Feb. 16, 2024, Daneault pleaded guilty to one count of a superseding indictment charging him with conspiracy to distribute and to possess with intent to distribute 500 grams or more of a mixture and substance containing methamphetamine. The superseding indictment also charged 10 other defendants with controlled substance offenses, firearm offenses and money laundering offenses.
In approximately October 2020, investigators received information about drug trafficking activities of a large-scale methamphetamine supplier in the Boston area. In late 2020, investigators identified Reshat Alkayisi as a large-scale methamphetamine trafficker who distributed multi-pound quantities to multiple co-conspirators throughout the New England area. Daneault was identified as one of Alkayisi’s methamphetamine distributors. In May 2021, Alkayisi distributed approximately over 5.3 kilograms of methamphetamine to Daneault.
Daneault is the fourth defendant to be sentenced. All other defendants have pleaded guilty and are awaiting sentencing.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Valuable assistance was provided by the Massachusetts Department of Correction; Norfolk County Sherriff’s Office; and Concord, Hudson, Peabody, Reading, Watertown and Waltham Police Departments. Assistance was also provided by the Massachusetts, Rhode Island, New Hampshire and Maine State Police. Assistant U.S. Attorneys Alathea Porter and Katherine Ferguson of the Criminal Division are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Michigan Man Sentenced to 60 Months in Federal Prison for Firearms ChargeRead the Press Release
COUNCIL BLUFFS, Iowa – A Michigan man was sentenced yesterday to five years (60 months) in federal prison for possessing a firearm as a felon.
According to public court documents, Michael Anthony McBride, 30, was stopped for speeding by the Iowa State Patrol in Adair County on July 21, 2023. A search of McBride’s vehicle led to the discovery of user quantities of marijuana and cocaine, a digital scale, and two firearms: a loaded nine-millimeter pistol and a semi-automatic “ghost gun.” McBride admitted to purchasing the firearms for protection. The nine-millimeter pistol had been reported stolen from a residence in Mt. Pleasant, Michigan in June 2023. McBride had been convicted of a felony drug crime in Michigan and was therefore prohibited from possessing firearms.
After completing his term of imprisonment, McBride will be required to serve a three-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Iowa State Patrol, Iowa Division of Narcotics Enforcement, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Miami Jury Finds Convicted Child Molester Guilty of Naturalization FraudRead the Press Release
MIAMI – On Sept. 11. a federal jury found Orlando Chavez, 43, a convicted child molester, guilty of naturalization fraud and using a fraudulently obtained naturalization certificate.
According to testimony and evidence presented during the two-day trial, Chavez was born in Cuba. On July 14, 2017, he submitted an Application for Naturalization to U.S. Citizenship and Immigration Services (USCIS). On his application, and under penalty of perjury, Chavez falsely responded “No” to two questions: “Were you EVER involved in any way with any of the following: Forcing or trying to force, someone to have any kind of sexual conduct or relations?”; and “Have you EVER committed, assisted in committing, or attempted to commit, a crime or offense of which you were not arrested?” On April 19, 2018, Chavez was interviewed by a USCIS officer and provided the same responses to the same questions while under oath and penalty of perjury. In a ceremony on April 30, 2018, Chavez took the Oath of Allegiance and was naturalized as a United States citizen. On May 19, 2018, Chavez used his fraudulently obtained naturalization certificate as proof of United States citizenship to apply for a passport from the U.S. Department of State.
In Oct. 2019, Chavez was convicted of two counts of child abuse for conduct against a minor victim under 12 years of age between Jan. 1 and Dec. 31, 2014. He was sentenced to 14 months in prison, five years of probation and was ordered to attend a sex offender treatment program. Chavez was not arrested for these offenses until after he was naturalized.
U.S. District Judge Roy Altman is scheduled to sentence Chavez on Jan. 8, after considering the U.S. Sentencing Guidelines and other statutory factors. In addition to any sentence imposed, Chavez’s citizenship will be automatically revoked.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Field Office Director Garrett Ripa of the U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), and District Director Brett R. Rinehart of the USCIS Miami and Caribbean District made the announcement.
Special Assistant U.S. Attorney Melissa Shaw and Assistant U.S. Attorney Yisel Valdes for the Southern District of Florida are prosecuting the case. The case was presented by ICE’s ERO division in Miami as part of Operation False Haven, an ongoing national initiative designed to identify and prosecute child molesters and other egregious felons who fraudulently obtained United States citizenship.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 24-cr-20035.
###
Meriden Man Pleads Guilty to Cocaine Trafficking OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MIGUEL ACEVEDO, 41 of Meriden, pleaded guilty today in New Haven federal court to cocaine trafficking offenses.
According to court documents and statements made in court, on June 7, 2021, Meriden Police arrested Acevedo on state crack cocaine distribution and firearm possession charges. On that date investigators seized from Acevedo approximately 390 grams of cocaine and $281,000 in cash.
In December 2022, while he was released on bond in his state case, investigators made two controlled purchases of cocaine from Acevedo.
Acevedo was arrested on a federal criminal complaint on February 14, 2023. On that date, a search of his residence on South Avenue in Meriden and his business on West Main Street in Meriden revealed approximately 40 grams of cocaine and more than $3,000 in cash. At the time of his arrest, investigators also seized two vehicles owned by Acevedo, an SUV and a minivan. A search of the minivan revealed a hidden trap that contained six kilograms of cocaine, drug paraphernalia, and a loaded firearm.
After his arrest, Acevedo was released on a $60,000 appearance bond, cosigned by three sureties. Within 24 hours of his release, Acevedo was observed meeting with several visitors at his home and receiving a paper bag from one visitor who was a known drug associate. Acevedo has been detained since March 1, 2023, when his bond was revoked. On July 25, 2023, U.S. District Judge Kari A. Dooley granted the government’s motion to forfeit Acevedo’s appearance bond.
Acevedo pleaded guilty to one count of possession with intent to distribute, and distribution of, cocaine, and one count of possession with intent to distribute five kilograms or more of cocaine. At sentencing, which is not scheduled, he faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
The state charges against Acevedo stemming from his June 2021 arrest are pending. The cash that was seized in June 2021 was previously forfeited.
Acevedo’s criminal history includes a 2008 federal narcotics trafficking conviction for which he was sentenced to 60 months of imprisonment.
This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force and the Meriden Police Department. The DEA New Haven Task Force includes members from the DEA, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Waterbury, East Haven, Branford, West Haven, Ansonia, Meriden, Naugatuck, and Shelton Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Lauren C. Clark through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Member of Makah Tribe convicted at trial of abusive sexual contactRead the Press Release
Tacoma – A 46-year-old member of the Makah Tribe was convicted of abusive sexual contact yesterday in U.S. District Court in Tacoma following a three-day trial, announced U.S. Attorney Tessa M. Gorman. The jury deliberated for about an hour before finding Schyler Colfax, guilty. The Neah Bay, Washington, man faces up to two years in prison when sentenced by U.S. District Judge Benjamin H. Settle on October 29, 2024. Colfax will be required to register as a sex offender.
According to records filed in the case, Colfax had regular access to the home of the victim on Makah Tribal lands. On October 23, 2023, Colfax was found in the bedroom of the 13-year-old victim who had stayed home from school due to illness. Adult relatives found Colfax in the victim’s bed and ordered him to leave. The victim immediately disclosed to her guardians that Colfax had touched her inappropriately. The family then reported the conduct to Neah Bay Police and Colfax was arrested that evening.
The FBI joined the Neah Bay police in the investigation and an experienced forensic interviewer took a statement from the child. Because the crime occurred on tribal land and involved tribal members the case was prosecuted in federal court.
Colfax was indicted in November 2023 and has been in custody at the Federal Detention Center at SeaTac, Washington since his arrest on November 16, 2023.
The case is being prosecuted by Assistant United States Attorneys Michael Harder and Celia Lee, who both serve as Tribal Liaisons for the U.S. Attorney’s Office.
Massachusetts Business Owner Indicted for over $18 Million Paycheck Protection Program FraudRead the Press Release
BOSTON – A Carlisle man has been indicted by a federal grand jury for allegedly submitting fraudulent Paycheck Protection Program (PPP) loan applications on behalf of multiple companies he owns and controls.
Durgaprasad Rao, 65, was charged with four counts of wire fraud and three counts of money laundering. In May 2024, Rao was arrested and charge by criminal complaint.
According to the charging documents, Rao is the owner and operator of Accelerated Engineering, LLC., a product engineering service provider, and Upstream Global Services, Inc., a software company that provides software consulting services and temporary staffing needs.
It is alleged that, between April 2020 and May 2021, Rao submitted numerous fraudulent applications seeking over $18 million in PPP funds for various companies in multiple states including companies in Massachusetts, Wisconsin and Georgia. Nine of the fraudulent PPP loan applications Rao allegedly submitted were for companies he owned and controlled. For Rao’s Massachusetts-based companies, he received nearly $7 million in PPP loans – of which, one PPP loan of over $1.5 million was approved for forgiveness.
Rao’s PPP loan applications allegedly contained false statements regarding payroll and the number of employees that worked for his companies and included fraudulent supporting documents, including false tax return documents and false payroll records. It is further alleged that Rao misused the funds he received by, among other things, transferring the funds to foreign businesses he owned and purchasing a luxury condominium in New York City.
The charges of wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charges of money laundering each provide for a sentence of 10 years in prison, three years of supervised release, and a fine of up to $250,000 or twice the amount of the criminally derived property involved in the transaction. 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; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division, Boston Field Office; Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Carlisle Police Chief Andrew Amendola made the announcement today. Assistant U.S. Attorneys Brian Sullivan and David Tobin of the Major Crimes Unit are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus and https://www.justice.gov/coronavirus/combatingfraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maryland Man Sentenced for Possession of Ammunition and Possession of Substances with Intent to DistributeRead the Press Release
Greenbelt, Maryland – On Tuesday, September 10, 2024, the Honorable Lydia K. Griggsby sentenced Boie Barry, age 32, of Hyattsville, Maryland, to eight years in federal prison, followed by three years of supervised release, for possession of ammunition by a convicted felon and possession of controlled substances with intent to distribute.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland, Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and Chief Malik Aziz of the Prince George’s County Police Department.
According to the guilty plea, law enforcement officers were patrolling Hyattsville, Maryland in September of 2022, when they observed a vehicle parked in a handicap space without a handicap placard. Officers approached the vehicle, smelled and saw marijuana in the vehicle’s center console, and directed Barry, who had been sitting in the front passenger seat, to step out. As Barry stepped out, an officer saw a bulge in Barry’s front left pocket. The officer repeatedly directed Barry to keep his hands up, and when Barry eventually raised his hands, the officer saw a firearm in his waistband. Barry tried to flee but was stopped by other officers. Officers recovered a 9mm privately manufactured firearm bearing no apparent serial number, commonly known as a “ghost gun,” which was equipped with a laser sight and fully automatic switch and loaded with 32 rounds of ammunition. The switch allowed the firearm to fire in fully automatic mode, making it a machinegun. Officers also found bags in Barry’s front left pocket containing various controlled substances, including cocaine, cocaine base, methamphetamine, para-fluorofentanyl and fentanyl. They also found $1,565.75 on Barry’s person that were proceeds from his drug trafficking.
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 Barron commended ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Joshua Rosenthal and Patrick Kibbe, and Special Assistant U.S. Attorney Lanay Mitchell, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
# # #
Man Sentenced to Prison for Making Bomb Threat to Scott Air Force BaseRead the Press Release
EAST ST. LOUIS, Ill. – A district judge in southern Illinois sentenced a Florida man to 87 months’ imprisonment after he used social media to make a bomb threat to Scott Air Force Base and cyberstalked an active duty Air Force member.
DeAyre M. Jones, 32, of Land O’ Lakes, Florida, pleaded guilty to one count of interstate communication with threat to injure, one count of cyberstalking and one count of threatening and conveying false information concerning use of fire or an explosive.
“The defendant intentionally disrupted operations at Scott Air Force Base to make a bomb threat and send harassing messages to base officials,” said U.S. Attorney Rachelle Aud Crowe. “Luckily, this incident was a false alarm, but our national security and the Air Force community depend on uninterrupted service at the base. I’m grateful to the investigators for their efforts to hold this offender accountable.”
According to court documents, Jones used multiple fake Facebook profiles to accuse a woman, whom he previously had a personal relationship with, of having a bomb and tracker attached to her car at Scott Air Force Base in September 2022.
“This successful joint investigation between our office, the FBI, and assistance by the Untied States Marshall Service sends the message that we treat any disruption to the Air Force mission very seriously. The tireless efforts of all teams involved ensured the base remained safe and fully operational at all times,” said Special Agent Joseph Straus, AFOSI Detachment 301, Commander.
After detecting the threat, base officials dispatched an explosive detection canine and the Explosive Ordinance Disposal team to search the suspected vehicle and surrounding lot but did not find any items of concern. The victim identified Jones as the potential suspect, and investigation revealed that he had created multiple fake Facebook profiles to harass the victim and make several bomb threats to the base.
“DeAyre Jones embarked on a campaign of harassment that brought extreme distress to the victim and led to a hoax bomb threat which created chaos in the day-to-day operations of Scott Airforce Base,” said Special Agent in Charge Christopher Johnson. “Hoax threats cause a significant drain on resources and taxpayer dollars and put innocent people at risk. Because safety is paramount to the FBI and our law enforcement partners, we will use all available resources to investigate and determine the credibility of a bomb threat.”
In addition, Jones also admitted to sending threatening and harassing messages to the victim and other base officials from August through December 2022.
The U.S. Air Force Office of Special Investigations and the FBI Springfield Field Office contributed to the investigation. Assistant U.S. Attorney Daniel S. Carraway prosecuted the case.
Man Sentenced for Transporting Three Teens to San Diego for ProstitutionRead the Press Release
NEWS RELEASE SUMMARY – Sept 13, 2024
SAN DIEGO – Clifford Stokes Jr. of Tempe, Arizona, was sentenced in federal court today to 10 years in prison for transporting a 19-year-old woman and two 16-year-old girls from Arizona to San Diego in January 2023 to engage in prostitution. One of the minor victims was reported as a missing juvenile from Arizona at the time Stokes drove her and the other two victims to an area in San Diego known for street-based commercial sex trafficking.
On January 17, 2023, San Diego Human Trafficking Task Force officers were conducting an operation in a high-prostitution area to recover sex trafficking victims when they observed Stokes driving his vehicle with out-of-state plates into the area and letting two of the victims out of the car. Officers observed as the victims began walking the street and waving at vehicles. When Stokes returned to the area in his vehicle to pick up the two victims, task force officers initiated a traffic stop. Stokes, the driver of the vehicle, was found to be in possession of a loaded firearm, and the three victims were passengers.
The adult victim told investigators that Stokes used violence and threats of violence to require her to earn $1,000 a day in commercial sex acts for his financial benefit. Officers were able to quickly identify the juvenile victims and contact Child Welfare Services, helping to reunite the victims with their families back home to Arizona.
“Today’s sentence underscores the gravity of human trafficking crimes,” said U.S. Attorney Tara McGrath. “The road to recovery for these young girls will be long and painful, but they will walk free from fear and brutality years before this defendant is released from prison.”
“This sentencing sends a clear message to potential offenders that they will be held accountable for their criminal behavior and the exploitation of the youth in California will not be tolerated,” said Attorney General Bonta. “I’m extremely grateful to our San Diego Human Trafficking Task Force, local law enforcement and our federal partners for their dedication and commitment to keeping our communities safe. My office always stands ready to work with our partners across California to fight for public safety.”
“Predatory behavior will not be tolerated by HSI,” said Christopher Davis, acting special agent in charge for HSI San Diego. “This investigation demonstrates HSI’s unwavering commitment to protecting the victims of these crimes and bringing these predators to justice.”
If you are living or working under threat of violence or extortion, or you suspect someone else may be, call the National Human Trafficking Resource Center toll free, 24/7 Hotline: CALL: (888) 373-7888 or TEXT BeFree or 233733.
This case was prosecuted by Assistant U.S. Attorney Derek Ko and Lyndzie M. Carter.
DEFENDANTS Case Number 23-cr-00258-TWR
Clifford Stokes Jr. Age: 23 Tempe, AZ
SUMMARY OF CHARGES
Transportation for Purpose of Prostitution – Title 18, U.S.C., Section 2421(a)
Maximum penalty: Ten years in prison and $250,000 fine
INVESTIGATING AGENCIES
San Diego Human Trafficking Task Force
San Diego Police Department
San Diego Sheriff’s Office
California Highway Patrol
Man Indicted for Weapons ViolationRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on August 29, 2024, CUONG QUOC TRAN (“TRAN”), age 38, of Slidell, La, was indicted for possession of a machine gun, in violation of Title 18 United States Code, Section 922(o).
If convicted, TRAN faces up to 10 years of imprisonment, a fine of up to $250,000, a period of up to 3 years of supervised release, and a mandatory special assessment fee of $100.00.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and the United States Coast Guard Investigative Service. The case is being prosecuted by Assistant United States Attorney Carter K.D. Guice, Jr. of the General Crimes Unit .
Licensed professional counselor indicted in $2 million health care fraud schemeRead the Press Release
McALLEN, Texas – A 46-year-old resident of Mission has been taken into custody on charges of health care fraud and aggravated identity theft in connection with a scheme to defraud the Texas Medicaid Program, announced U.S. Attorney Alamdar S. Hamdani.
Juan Martin Flores, 46, is set to make his initial appearance before U.S. Magistrate Judge J. Scott Hacker at 9 a.m.
The indictment, returned Aug. 7 and unsealed upon his arrest Sept. 12, alleges he submitted or caused the submission of over 15,000 fraudulent claims to Medicaid for services that were never provided. Between 2018 and 2022, the claims resulted in approximately $2 million in Medicaid payments, according to the charges. The indictment further alleges Flores used the personal information of Medicaid beneficiaries without their consent to facilitate the fraudulent billing scheme.
According to the charges, Flores submitted claims under his national provider identifier number, representing that he provided counseling services at his office in Brownsville. However, he allegedly never actually rendered those services. The indictment details multiple instances in which he unlawfully used Medicaid beneficiaries' identities in the fraudulent claims.
Flores is charged with 10 counts of health care fraud, each carrying a possible 10-year-maximum sentence and up to a $250,000 fine. He is also facing three counts of aggravated identity theft. If convicted, he faces a mandatory two years in federal prison which must be served consecutively to any other sentence imposed.
The FBI, Department of Health and Human Services – Office of Inspector General and Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Assistant U.S. Attorney Andrew R. Swartz and Eric D. Flores are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Lancaster Man Sentenced to Federal Prison for Drug and Firearm ChargesRead the Press Release
COLUMBIA, S.C. — Kevin Lamont Clinton, 50, of Lancaster, was sentenced to more than five years in federal prison after pleading guilty to possession with intent to distribute fentanyl and felon in possession of a firearm and ammunition.
Evidence presented to the court showed that in 2019, the Lancaster County Sheriff’s Office, the South Carolina Law Enforcement Division, Department of Homeland Security, and the Bureau of Alcohol, Tobacco, Firearms and Explosives were investigating unlawful drug activity in the Lancaster County area. In December 2019, agents served a search warrant at Clinton’s residence in Lancaster after making a controlled purchase of heroin from Clinton at the residence. Clinton was found sitting on a bed with a loaded .40 caliber pistol next to him. A further search of the bedroom uncovered plastic baggies containing over 18 grams of a drug mixture containing fentanyl. More ammunition was found scattered throughout the house. In July 2020 and August 2020, Clinton was also found with firearms and illegal drugs at different locations in Lancaster County.
Clinton is prohibited from possessing firearms due to previous felony convictions. Clinton had a 1997 federal conviction for possession with intent to distribute crack cocaine. In 2006, Clinton had convictions for resisting arrest and possession of crack cocaine.
United States District Judge Mary Geiger Lewis sentenced Clinton to 71 months in prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Lancaster County Sheriff’s Office, the South Carolina Law Enforcement Division, the Department of Homeland Security, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. U.S. Attorney Christopher D. Taylor is prosecuting the case.
###
Justice Department Commemorates 30th Anniversary of the Violence Against Women ActRead the Press Release
Today, the Justice Department hosted hundreds of survivors, advocates, victim services professionals, community leaders, government officials, and partners from the criminal and civil justice systems in the Great Hall of the Robert F. Kennedy Building to commemorate the 30th anniversary of the passage of the Violence Against Women Act (VAWA). The event, which featured remarks from Attorney General Merrick B. Garland, Deputy Attorney General Lisa Monaco, and Principal Deputy Associate Attorney General Benjamin Mizer and was broadcast live on the Department’s website, included a series of panel discussions focused on the impact of VAWA in addressing domestic violence, sexual assault, dating violence, and stalking in the last 30 years.
During the event, Attorney General Garland announced the designation of an initial set of 78 communities across 47 states, territories, and the District of Columbia for designation under Section 1103 of the VAWA Reauthorization Act of 2022. The Justice Department – through its U.S. Attorneys’ Offices and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Field Divisions – will partner with each designated jurisdiction to develop a plan to reduce intimate partner firearm violence and to prioritize prosecutions of domestic violence offenders prohibited under 18 U.S. Code Section 922(g) from owning firearms. The Justice Department anticipates additional jurisdictions to be designated as U.S. Attorneys’ Offices continue coordination with their local stakeholders. This effort will build on the $690 million in grant funding under VAWA programs that the Department announced earlier this week.
“Three decades ago, VAWA transformed our national response to domestic violence, sexual assault, dating violence, and stalking,” said Attorney General Garland. “Its enactment sent a message: gender-based and intimate-partner violence is not just a private matter, not just a local matter, but a national crisis — one that our country was no longer willing to tolerate. As we take stock of the progress that VAWA has advanced, the Department of Justice remains committed to using every tool at our disposal to end these forms of violence and support survivors.”
First enacted in 1994, VAWA was the first comprehensive federal law focused on preventing and addressing domestic violence, sexual assault, and stalking. When it was first passed, VAWA initially focused on providing resources and training to improve the responses and policies of law enforcement, prosecutors, and courts, as well as support victim services to address crimes historically treated as private matters. As Congress subsequently reauthorized VAWA, it enhanced its policies and expanded grant funding streams in 2000, 2005, 2013, and 2022. OVW has issued more than $11 billion in funding authorized by VAWA in its lifetime
As part of its observance of VAWA’s anniversary, the Department released this week a series of resources designed to bolster the coordinated community response to effectively responding to domestic violence, dating violence, sexual assault, and stalking. The resources include updated guidance to support health care providers and other professionals, including criminal justice practitioners and victim advocates, when responding to the immediate needs of sexual assault patients.
The Department’s Office on Violence Against Women (OVW) published the third edition of the National Protocol for Sexual Assault Medical Forensic Examinations (SAFE Protocol) for adults and adolescents. The protocol provides detailed guidelines for responding to the immediate needs of sexual assault patients. The protocol was authorized by VAWA’s 2000 reauthorization and first published in 2004. The protocol has the same emphasis and values as the previous versions, but it is updated to reflect current technology, science, and standards of practice. For this revision, OVW solicited input from experts in relevant disciplines, including physicians, forensic nurses, prosecutors, law enforcement, victim advocates, civil attorneys, forensic scientists, and experts in culturally specific and underserved populations.
“As a young staffer on the Senate Judiciary Committee thirty years ago, I was privileged to play a small part in the passage of the original Violence Against Women Act, which profoundly changed how our country protects survivors of domestic violence and sexual assault,” said Deputy Attorney General Lisa Monaco. “Today, with the largest funding level ever, VAWA’s programs are providing more access to services for survivors, more resources to help law enforcement respond, and more capacity to keep guns out of the hands of domestic abusers. On this milestone anniversary, the legacy of the Violence Against Women Act lives in the courage, stories, and voices of victims and survivors who made the original law possible. And it’s in the future work by all of us to shape a safer world for women everywhere.”
OVW also published a new report, Answering the Call: Thirty Years of the Violence Against Women Act, that chronicles the impact of VAWA grant funding. It uses research findings, numbers, archival material, and grantees’ and survivors’ own words to present snapshots of the ways VAWA transforms communities’ efforts to support survivors, hold offenders accountable, and work collaboratively to end domestic violence, sexual assault, dating violence, and stalking.
“Thanks to VAWA and its expansion over the last 30 years, we’ve pursued additional pathways to justice, acknowledging that access to justice looks different for each survivor,” said Principal Deputy Associate Attorney General Mizer. “I’m proud to say that this year OVW launched three new grant solicitations to implement the new restorative practices pilot program included in the 2022 VAWA reauthorization, including funding for pilot sites, national training and technical assistance, and a robust evaluation program. OVW will be awarding more than $29 million to support restorative practice programs that will expand access to justice for survivors.”
In addition to the OVW resources released today, the Department joined the Departments of Agriculture, Treasury, Veterans Affairs, and Housing and Urban Development to issue an interagency statement that affirms VAWA’s housing protections for survivors of domestic violence, sexual assault, dating violence, and stalking as well as other individuals, such as those who assist survivors.
“A coordinated community response is just as important at the federal level as it is within a community,” said OVW Director Rosie Hidalgo. “Too often, an individual facing violence feels forced to remain at home with their abuser because they don’t have anywhere else to go. By providing housing security, we can help support survivors and give them a pathway to safety. We’re grateful to our federal partners as we work together toward our common goal of ending gender-based violence and providing safety, security, and justice.”
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
Jury convicts Galena man of assault with a deadly weaponRead the Press Release
TOPEKA, KAN. – A federal jury convicted a Kansas man of assault with a deadly weapon following an incident on a United States Army installation.
In November 2023, Jordan Thompson, 24, assaulted an adult male victim while at Fort Riley in Junction City, Kansas.
According to court documents and evidence presented at trial, Thompson was involved in a domestic dispute with his estranged wife. He used a 9 mm caliber pistol to threaten the victim, who was at the home of the child’s mother, and then Thompson left with the minor.
Thompson is scheduled to be sentenced on December 12, 2024, and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Department of Army Criminal Investigation Division, Fort Riley Department of the Army Civilian Police, Kansas Bureau of Investigation, Federal Bureau of Investigation, Kansas Highway Patrol, and the Butler County Sheriff’s Office investigated the case.
Special Assistant U.S. Attorney Robin Graham and Assistant U.S. Attorney Sara Walton are prosecuting the case.
###
Juneau man charged with sexually exploiting a childRead the Press Release
JUNEAU, Alaska – A Juneau man made his initial appearance yesterday on a criminal charge related to his alleged production of child pornography.
According to court documents, William Steadman, 34, was arrested on Sept. 6 after he allegedly produced child sexual abuse materials (CSAM) depicting a minor known to him. Additionally, court documents indicate that he allegedly spent time with other children in his community.
Steadman is charged with sexual exploitation of a child, also known as production of child pornography. The defendant made his initial court appearance on Sept. 12 before U.S. Magistrate Judge Matthew M. Scoble of the U.S. District Court for the District of Alaska. If convicted, he faces a mandatory minimum of 25 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
The U.S. Secret Service is investigating the case. If anyone has information concerning Steadman’s alleged actions or may have encountered someone in person or online using the name William Steadman, please contact [email protected].
Assistant U.S. Attorneys Mac Caille Petursson, Jack Schmidt, William Reed and Trial Attorney McKenzie Hightower of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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 https://www.justice.gov/psc.
###
Johnstown Man Pleads Guilty to Money Laundering Charge in Connection with Series of International Fraud ScamsRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy to commit money laundering, United States Attorney Eric G. Olshan announced today.John M. Trabert Jr., 54, pleaded guilty to one count before United States District Judge Stephanie L. Haines on September 12, 2024.
In connection with the guilty plea, the Court was advised that, from in and around January 2020 through in and around March 2022 in the Western District of Pennsylvania, Trabert knowingly and unlawfully conspired with other individuals to commit money laundering by acting as a “money mule”— a person who, at someone else’s direction, receives and moves money obtained from victims of fraud—in a variety of romance, real estate, and gold scams. The scheme consisted of a co-conspirator outside of the United States directing victims, who believed they were investing in real estate, gold, or financial support of a fictional love interest, to send funds to one of Trabert’s bank accounts. Trabert then conducted financial transactions using proceeds of the fraud scams at the direction of and in concert with his co-conspirator, with Trabert retaining a portion of each transaction as personal profit.
Judge Haines scheduled sentencing for January 14, 2025. The law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $500,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Arnold P. Bernard Jr. is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that led to the prosecution of Trabert.
Ismael “El Mayo” Zambada Garcia, Co-Founder of the Sinaloa Cartel, Arraigned in Brooklyn on International Drug ChargesRead the Press Release
Defendant Allegedly Led the Sinaloa Cartel with Joaquin “El Chapo” Guzman Loera for Decades and Continued for Years Since El Chapo’s Arrest
MIAMI – Ismael “El Mayo” Zambada Garcia, 76, a citizen of Mexico, was arraigned this morning in federal court in Brooklyn, New York, on 17 counts related to drug trafficking, firearms offenses, and money laundering. This fifth superseding indictment relates to El Mayo’s decades-long leadership of the Sinaloa Cartel, one of the most violent and powerful drug trafficking organizations in the world and conspiracy to manufacture and distribute fentanyl. El Mayo was previously charged with running a continuing criminal enterprise, as well as murder conspiracy, money laundering conspiracy, cocaine, heroin, methamphetamine, and marijuana manufacture and distribution conspiracy, as well as other drug-related crimes.
El Mayo was ordered detained pending trial and was transferred yesterday to the Eastern District of New York from the Western District of Texas, following his arrest in New Mexico on July 25.
“El Mayo, the co-founder and leader of the Sinaloa Cartel, has been charged with overseeing a multi-billion-dollar conspiracy to flood American communities with narcotics, including deadly fentanyl,” said Attorney General Merrick B. Garland. “We allege that El Mayo built, and for decades led, the Sinaloa Cartel’s network of manufacturers, assassins, traffickers, and money launderers responsible for kidnapping and murdering people in both the United States and Mexico, and importing lethal quantities of fentanyl, heroin, meth, and cocaine into the United States. Now, El Mayo joins the many other Sinaloa Cartel leaders who have faced charges in an American courtroom for the immeasurable harm they have inflicted on families and communities across our country.”
“For years, Ismael ‘El Mayo’ Zambada Garcia and the Sinaloa Cartel he led manufactured illicit fentanyl and peddled it across our country, profiting off of the pain of countless American communities,” said Secretary of Homeland Security Alejandro N. Mayorkas. “Thanks to the dedicated work of brave Homeland Security Investigations Agents and their federal partners, the United States is disrupting and dismantling drug trafficking operations across the world, ensuring Cartel kingpins like Mr. Zambada Garcia are brought to justice, and keeping Americans safe from the scourge of fentanyl.”
“For decades, the Sinaloa Cartel has profited from poisoning and killing Americans, and fueling violence on both sides of our southern border,” said Deputy Attorney General Lisa Monaco. “Today’s arraignment of Zambada Garcia is the latest step in a whole-of-government effort to strike back against one of the world’s most dangerous criminal organizations and protect our communities from the fentanyl epidemic.”
“Today’s arraignment is another forceful reminder of the FBI’s commitment to pursuing justice for the American lives lost to the violence and trafficking of deadly drugs, like fentanyl, associated with Zambada Garcia and those he directed as a leader of the Sinaloa Cartel,” said FBI Director Christopher Wray. “The FBI will not stop in our pursuit of those who engage and facilitate the cartel’s sophisticated operations that cause immense harm to Americans and poison communities across our country.”
“Defeating the Sinaloa Cartel is DEA’s top operational priority and today, with the capture and additional charges filed against Ismael Zambada Garcia we are that much closer,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “Better known as ‘El Mayo’, Zambada Garcia is the co-founder and leader of the Sinaloa Cartel, one of the most ruthless and dangerous cartels in Mexico and responsible for the unprecedented drug crisis facing the United States. With Zambada Garcia no longer in power we have struck at the heart of the Sinaloa Cartel’s operations. He may have eluded capture for three decades, but today he is seeing what it means to face justice in America. Let this be a reminder to his associates and others, American lives depend on DEA remaining laser focused on destroying the cartels, their networks, and their global supply chain and that is what we will continue to do.”
“Zambada Garcia will now face the American justice system,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “His arrest means that he will now have to face charges for leading the Sinaloa Cartel’s multi-billion-dollar criminal enterprise that funneled drugs onto our streets and violence and despair into our communities. But our work is not done. We will go after the leaders of the Sinaloa Cartel and the drug trafficking organizations around the world.”
“Zambada Garcia’s day of reckoning in a U.S. courtroom has arrived and justice will follow,” said U.S. Attorney Breon Peace for the Eastern District of New York. “If convicted, never again will he deliver fentanyl, cocaine, and other deadly drugs and associated violence into our country or make millions as hundreds of thousands of innocent lives are lost. It is my hope that the countless family members and friends of victims who succumbed to his cartel’s poisons, and the countless members of law enforcement who fearlessly risked their lives fighting this scourge, should take comfort in knowing that Zambada Garcia will be held accountable for his multitude of crimes.”
“Today’s arraignment sends a clear message to drug traffickers around the world — we will find you and bring you to justice,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “The men and women of HSI are working diligently with our partners around the globe to investigate, intercept and halt the flow of illegal drugs into the United States and keep illegal drugs off our streets.”
“The arraignment of this individual is a result of the relentless work of law enforcement partners at all levels to stem the tide of illegal drugs and drug related violence in our country,” said Superintendent Steven G. James of the New York State Police (NYSP). “Strong partnerships are key, and as a result, a dangerous international drug trafficking operation, and the organized crime perpetuated by it, has been shut down. The State Police will continue to tenaciously work in conjunction with our partners to seek out those who deliberately put others in danger.”
El Mayo was first indicted in the Eastern District of New York in 2009 and most recently in a fifth superseding indictment in February. As alleged, El Mayo was a co-founder of the Sinaloa Cartel together with his co-defendant Joaquin Guzman Loera, also known as El Chapo, and together they ran the Sinaloa Cartel together from Mexico until El Chapo’s arrest in 2016. Following a trial, El Chapo was convicted in the Eastern District of New York in 2019 and sentenced to life plus 30 years in prison.
According to allegations in the superseding indictment, from 1989 to 2024, El Mayo led a continuing criminal enterprise responsible for the importation and distribution of massive quantities of narcotics and which generated billions of dollars in profits. To ensure the success of the Sinaloa Cartel, El Mayo employed thousands of people in South and Central America, throughout Mexico and in the United States. Through a complex, layered structure, El Mayo was able to assure transportation routes for the narcotics he sold from source of supply to distribution on the streets of the United States. El Mayo also employed groups of “sicarios” or hit-men, who at his orders carried out kidnappings and murders in Mexico and elsewhere — including murders in the United States — to eliminate anyone who threatened this valuable narcotics pipeline and to retaliate against rivals and those suspected of cooperating with the U.S. government. The billions of dollars generated from the drug sales were then transported and laundered back to Mexico.
As set forth in the superseding indictment and other court filings, the Sinaloa Cartel, under El Mayo’s leadership, expanded its drug business into fentanyl manufacturing and distribution no later than 2012 and is responsible for the distribution of many thousands of kilograms of fentanyl into the United States. El Mayo also allegedly expanded the power and influence of the Sinaloa Cartel by making millions of dollars each year in corruption payments and conducting regular campaigns of brutal violence, including retaliatory murders that were allegedly committed on his orders as recently as just weeks prior to his arrest.
If convicted, El Mayo faces a mandatory minimum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
FBI, DEA, and HSI investigated the case.
Assistant U.S. Attorney Andrea Goldbarg for the Southern District of Florida; Assistant U.S. Attorneys Francisco J. Navarro, Robert M. Pollack, Adam Amir, and Lauren A. Bowman for the Eastern District of New York; and Trial Attorneys Melanie Alsworth and Kirk Handrich of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case. The U.S. Attorneys’ Offices for the Northern District of Illinois, Central District of California, Southern District of California, and Western District of Texas provided substantial assistance.
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.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Ismael “El Mayo” Zambada Garcia, Co-Founder of the Sinaloa Cartel, Arraigned in Brooklyn on International Drug ChargesRead the Press Release
Ismael “El Mayo” Zambada Garcia, 76, a citizen of Mexico, was arraigned this morning in federal court in Brooklyn, New York, on 17 counts related to drug trafficking, firearms offenses, and money laundering. This fifth superseding indictment relates to El Mayo’s decades-long leadership of the Sinaloa Cartel, one of the most violent and powerful drug trafficking organizations in the world and conspiracy to manufacture and distribute fentanyl. El Mayo was previously charged with running a continuing criminal enterprise, as well as murder conspiracy, money laundering conspiracy, cocaine, heroin, methamphetamine, and marijuana manufacture and distribution conspiracy, as well as other drug-related crimes.
El Mayo was ordered detained pending trial and was transferred yesterday to the Eastern District of New York from the Western District of Texas, following his arrest in New Mexico on July 25.
“El Mayo, the co-founder and leader of the Sinaloa Cartel, has been charged with overseeing a multi-billion-dollar conspiracy to flood American communities with narcotics, including deadly fentanyl,” said Attorney General Merrick B. Garland. “We allege that El Mayo built, and for decades led, the Sinaloa Cartel’s network of manufacturers, assassins, traffickers, and money launderers responsible for kidnapping and murdering people in both the United States and Mexico, and importing lethal quantities of fentanyl, heroin, meth, and cocaine into the United States. Now, El Mayo joins the many other Sinaloa Cartel leaders who have faced charges in an American courtroom for the immeasurable harm they have inflicted on families and communities across our country.”
“For years, Ismael ‘El Mayo’ Zambada Garcia and the Sinaloa Cartel he led manufactured illicit fentanyl and peddled it across our country, profiting off of the pain of countless American communities,” said Secretary of Homeland Security Alejandro N. Mayorkas. “Thanks to the dedicated work of brave Homeland Security Investigations (HSI) Agents and their federal partners, the United States is disrupting and dismantling drug trafficking operations across the world, ensuring Cartel kingpins like Mr. Zambada Garcia are brought to justice, and keeping Americans safe from the scourge of fentanyl.”
“For decades, the Sinaloa Cartel has profited from poisoning and killing Americans, and fueling violence on both sides of our southern border,” said Deputy Attorney General Lisa Monaco. “Today’s arraignment of Zambada Garcia is the latest step in a whole-of-government effort to strike back against one of the world’s most dangerous criminal organizations and protect our communities from the fentanyl epidemic.”
“Today’s arraignment is another forceful reminder of the FBI’s commitment to pursuing justice for the American lives lost to the violence and trafficking of deadly drugs, like fentanyl, associated with Zambada Garcia and those he directed as a leader of the Sinaloa Cartel,” said FBI Director Christopher Wray. “The FBI will not stop in our pursuit of those who engage and facilitate the cartel’s sophisticated operations that cause immense harm to Americans and poison communities across our country.”
“Defeating the Sinaloa Cartel is DEA’s top operational priority and today, with the capture and additional charges filed against Ismael Zambada Garcia we are that much closer,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “Better known as ‘El Mayo’, Zambada Garcia is the co-founder and leader of the Sinaloa Cartel, one of the most ruthless and dangerous cartels in Mexico and responsible for the unprecedented drug crisis facing the United States. With Zambada Garcia no longer in power we have struck at the heart of the Sinaloa Cartel’s operations. He may have eluded capture for three decades, but today he is seeing what it means to face justice in America. Let this be a reminder to his associates and others, American lives depend on DEA remaining laser focused on destroying the cartels, their networks, and their global supply chain and that is what we will continue to do.”
“Zambada Garcia’s day of reckoning in a U.S. courtroom has arrived and justice will follow,” said U.S. Attorney Breon Peace for the Eastern District of New York. “If convicted, never again will he deliver fentanyl, cocaine, and other deadly drugs and associated violence into our country or make millions as hundreds of thousands of innocent lives are lost. It is my hope that the countless family members and friends of victims who succumbed to his cartel’s poisons, and the countless members of law enforcement who fearlessly risked their lives fighting this scourge, should take comfort in knowing that Zambada Garcia will be held accountable for his multitude of crimes.”
“Zambada Garcia will now face the American justice system,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “His arrest means that he will now have to face charges for leading the Sinaloa Cartel’s multi-billion-dollar criminal enterprise that funneled drugs onto our streets and violence and despair into our communities. But our work is not done. We will go after the leaders of the Sinaloa Cartel and the drug trafficking organizations around the world.”
“Today’s arraignment sends a clear message to drug traffickers around the world — we will find you and bring you to justice,” said HSI Executive Associate Director Katrina W. Berger. “The men and women of HSI are working diligently with our partners around the globe to investigate, intercept and halt the flow of illegal drugs into the United States and keep illegal drugs off our streets.”
“The arraignment of this individual is a result of the relentless work of law enforcement partners at all levels to stem the tide of illegal drugs and drug related violence in our country,” said Superintendent Steven G. James of the New York State Police (NYSP). “Strong partnerships are key, and as a result, a dangerous international drug trafficking operation, and the organized crime perpetuated by it, has been shut down. The State Police will continue to tenaciously work in conjunction with our partners to seek out those who deliberately put others in danger.”
El Mayo was first indicted in the Eastern District of New York in 2009 and most recently in a fifth superseding indictment in February. As alleged, El Mayo was a co-founder of the Sinaloa Cartel together with his co-defendant Joaquin Guzman Loera, also known as El Chapo, and together they ran the Sinaloa Cartel together from Mexico until El Chapo’s arrest in 2016. Following a trial, El Chapo was convicted in the Eastern District of New York in 2019 and sentenced to life plus 30 years in prison.
According to allegations in the superseding indictment, from 1989 to 2024, El Mayo led a continuing criminal enterprise responsible for the importation and distribution of massive quantities of narcotics and which generated billions of dollars in profits. To ensure the success of the Sinaloa Cartel, El Mayo employed thousands of people in South and Central America, throughout Mexico and in the United States. Through a complex, layered structure, El Mayo was able to assure transportation routes for the narcotics he sold from source of supply to distribution on the streets of the United States. El Mayo also employed groups of “sicarios” or hit-men, who at his orders carried out kidnappings and murders in Mexico and elsewhere — including murders in the United States — to eliminate anyone who threatened this valuable narcotics pipeline and to retaliate against rivals and those suspected of cooperating with the U.S. government. The billions of dollars generated from the drug sales were then transported and laundered back to Mexico.
As set forth in the superseding indictment and other court filings, the Sinaloa Cartel, under El Mayo’s leadership, expanded its drug business into fentanyl manufacturing and distribution no later than 2012 and is responsible for the distribution of many thousands of kilograms of fentanyl into the United States. El Mayo also allegedly expanded the power and influence of the Sinaloa Cartel by making millions of dollars each year in corruption payments and conducting regular campaigns of brutal violence, including retaliatory murders that were allegedly committed on his orders as recently as just weeks prior to his arrest.
If convicted, El Mayo faces a mandatory minimum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
FBI, DEA, and HSI investigated the case.
Trial Attorneys Melanie Alsworth and Kirk Handrich of the Criminal Division’s Narcotic and Dangerous Drug Section; Assistant U.S. Attorneys Francisco J. Navarro, Robert M. Pollack, Adam Amir, and Lauren A. Bowman for the Eastern District of New York; and Assistant U.S. Attorney Andrea Goldbarg for the Southern District of Florida are prosecuting the case. The U.S. Attorneys’ Offices for the Northern District of Illinois, Central District of California, Southern District of California, and Western District of Texas provided substantial assistance.
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.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ismael "El Mayo" Zambada Garcia, Co-Founder of the Sinaloa Cartel, Arraigned in Brooklyn on International Drug Trafficking ChargesRead the Press Release
Ismael “El Mayo” Zambada Garcia, a citizen of Mexico, was arraigned this morning in federal court in Brooklyn on a fifth superseding indictment charging him with conspiring to manufacture and distribute fentanyl. The superseding indictment relates to Zambada Garcia’s decades-long leadership of the Sinaloa Cartel, one of the most violent and powerful drug trafficking organizations in the world. Zambada Garcia was previously charged with running a continuing criminal enterprise, as well as murder conspiracy, money laundering conspiracy, cocaine, heroin, methamphetamine, and fentanyl manufacture and distribution conspiracy, as well as other drug-related crimes. Today’s proceeding was held before United States Magistrate Judge James R. Cho. Zambada Garcia was ordered detained pending trial. If convicted of the continuing criminal enterprise count, Zambada Garcia faces a mandatory life sentence.
Zambada Garcia was transferred yesterday to the Eastern District of New York from the Western District of Texas, following his arrest in New Mexico on July 25, 2024.
Merrick B. Garland, United States Attorney General; Lisa O. Monaco, United States Deputy Attorney General; Breon Peace, United States Attorney for the Eastern District of New York; Markenzy Lapointe, United States Attorney for the Southern District of Florida; Nicole M. Argentieri, Principal Deputy Assistant Attorney General and head of the Criminal Division; David Sundberg, Assistant Director in Charge, Federal Bureau of Investigation, Washington Field Office (FBI); Anne Milgram, Administrator, Drug Enforcement Administration; Katrina W. Berger, Executive Associate Director, U.S. Department of Homeland Security, Homeland Security Investigations (HSI); and Steven G. James, Superintendent, New York State Police (NYSP), announced the arraignment.
“El Mayo, the co-founder and leader of the Sinaloa Cartel, has been charged with overseeing a multi-billion-dollar conspiracy to flood American communities with narcotics, including deadly fentanyl,” said Attorney General Merrick B. Garland. “We allege that El Mayo built, and for decades led, the Sinaloa Cartel’s network of manufacturers, assassins, traffickers, and money launderers responsible for kidnapping and murdering people in both the United States and Mexico, and importing lethal quantities of fentanyl, heroin, meth, and cocaine into the United States. Now, El Mayo joins the many other Sinaloa Cartel leaders who have faced charges in an American courtroom for the immeasurable harm they have inflicted on families and communities across our country.”
“For decades, the Sinaloa Cartel has profited from poisoning and killing Americans, and fueling violence on both sides of our southern border,” stated Deputy Attorney General Monaco. “Today’s arraignment of Zambada Garcia is the latest step in a whole-of-government effort to strike back against one of the world’s most dangerous criminal organizations and protect our communities from the fentanyl epidemic.”
“Zambada Garcia’s day of reckoning in a U.S. courtroom has arrived and justice will follow,” stated United States Attorney Peace. “If convicted, never again will he deliver fentanyl, cocaine, and other deadly drugs and associated violence into our country or make millions as hundreds of thousands of innocent lives are lost. It is my hope that the countless family members and friends of victims who succumbed to his cartel’s poisons, and the countless members of law enforcement who fearlessly risked their lives fighting this scourge, should take comfort in knowing that Zambada Garcia will be held accountable for his multitude of crimes.”
Mr. Peace also expressed his thanks to the U.S. Attorney’s Office for the Western District of Texas, and the United States Marshals Service for their assistance on the case.
“Zambada Garcia can no longer hide from the American justice system,” stated United States Attorney Lapointe. “His arrest means that he will now have to face charges for leading the Sinaloa Cartel’s multi-billion dollar criminal enterprise that funneled drugs onto our streets and violence and despair into our communities. But our work is not done. We will continue to go after the leaders of the Sinaloa Cartel and the drug trafficking organizations around the world.”
“Defeating the Sinaloa cartel is DEA’s top operational priority and today, with the capture and additional charges filed against Ismael Zambada Garcia we are that much closer. Better known as ‘El Mayo,’ Zambada Garcia is the co-founder and leader of the Sinaloa Cartel, one of the most ruthless and dangerous cartels in Mexico and responsible for the unprecedented drug crisis facing the United States,” stated DEA Administrator Milgram. “With Zambada Garcia no longer in power we have struck at the heart of the Sinaloa cartels’ operations. He may have eluded capture for three decades, but today he is seeing what it means to face justice in America. Let this be a reminder to his associates and others, American lives depend on DEA remaining laser focused on destroying the cartel, their networks, and their global supply chain and that is what we will continue to do.”
“Today’s arraignment sends a clear message to drug traffickers around the world — you will be brought to justice,” said Homeland Security Investigations Executive Associate Director Katrina W. Berger. “The men and women of HSI are active partners in investigating, intercepting and halting the flow of illegal drugs into the United States and keeping them off our streets.”
“The arraignment of this individual is a result of the relentless work of law enforcement partners at all levels to stem the tide of illegal drugs and drug related violence in our country,” stated NYSP Superintendent James. “Strong partnerships are key, and as a result, a dangerous international drug trafficking operation, and the organized crime perpetuated by it, has been shut down. The State Police will continue to tenaciously work in conjunction with our partners to seek out those who deliberately put others in danger.”
Zambada Garcia was first indicted in the Eastern District of New York in 2009 and most recently in the fifth superseding indictment in February 2024. As alleged, Zambada Garcia was a co-founder of the Sinaloa Cartel together with his co-defendant Joaquin Guzman Loera (El Chapo), and the two of them ran the Sinaloa Cartel together from Mexico until El Chapo’s arrest in 2016. Following a trial, El Chapo was convicted in the Eastern District of New York in 2019 and sentenced to life imprisonment plus 30 years. Zambada Garcia, however, continued his brutal reign until his arrest just weeks ago.
According to the superseding indictment, from 1989 to 2024, Zambada Garcia led a continuing criminal enterprise responsible for the importation and distribution of massive quantities of narcotics and which generated billions of dollars in profits. To ensure the success of the Sinaloa Cartel, Zambada Garcia employed thousands of people in South and Central America, throughout Mexico and in the United States. Through a complex, layered structure, Zambada Garcia was able to assure transportation routes for the narcotics he sold from source of supply to distribution on the streets of the United States; this included securing corrupt officers, transportation routes, and storage facilities to ensure that narcotics safely transited through various countries for ultimate distribution in the United States. Zambada Garcia also employed groups of “sicarios” or hit men, who at his orders carried out kidnappings and murders in Mexico and elsewhere—including murders in the United States—to eliminate anyone who threatened this valuable narcotics pipeline and to retaliate against rivals and those suspected of cooperating with the United States government. The billions of dollars generated from the drug sales were then transported and laundered back to Mexico.
As set forth in the superseding indictment and other court filings, the Sinaloa Cartel under Zambada Garcia’s leadership expanded its drug business into fentanyl manufacturing and distribution no later than 2012 and is responsible for the distribution of many thousands of kilograms of fentanyl into the United States. Zambada Garcia also expanded the power and influence of the Sinaloa Cartel by making millions of dollars each year in corruption payments and conducting regular campaigns of brutal violence, including retaliatory murders that were allegedly committed on his orders as recently as just weeks prior to his arrest.
The charges in the superseding indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
This superseding indictment is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Francisco J. Navarro, Robert M. Pollack, Adam Amir, and Lauren A. Bowman are leading the prosecution for the Eastern District of New York with the assistance of Paralegal Specialist Melissa Bennett. Assistant United States Attorney Andrea Goldbarg of the Southern District of Florida and Trial Attorneys Melanie Alsworth and Kirk Handrich of the U.S. Department of Justice Criminal Division’s Narcotic and Dangerous Drug Section are leading the prosecution for their respective offices.
The case was investigated by the FBI, HSI and DEA. Substantial assistance was provided by the U.S. Attorneys’ Offices for the Northern District of Illinois, Central District of California, Southern District of California, and Western District of Texas.The Defendant:
Ismael Zambada Garcia (also known as “El Mayo”)
Age: 76
MexicoE.D.N.Y. Docket No. 9-CR-466 (BMC) (S-5)
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared recently before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Sept. 11 was:
Airian Mariah Russette, 30, of Havre and Box Elder, on charges of false statement during a firearms transaction and use of a firearm in commission of a drug trafficking crime. If convicted of the most serious crime, Russette faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release on the false statement charge and a mandatory minimum of five years to life, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the charge of use of firearm in a drug trafficking crime. Russette was released pending further proceedings. The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Division of Criminal Investigation, Chippewa Cree Law Enforcement, Havre Police Department, and Hill County Sheriff’s Office conducted the investigation. PACER case reference. 24-46.
Appearing on Sept. 10 was:
Tommy Michael VanHoose, 66, of Great Falls, on charges of submitting a false tax return. If convicted of the most serious crime, VanHoose faces a maximum of three years in prison, a $250,000 fine and one year of supervised release. VanHoose was released pending further proceedings. The IRS Criminal Investigation conducted the investigation. PACER case reference. 24-60.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Sept. 12 was:
Bradley James Turcotte, 35, of Ronan, on charges of conspiracy to possess with intent to distribute fentanyl and possession with intent to distribute controlled substances. If convicted of the most serious crime, Turcotte faces a maximum of 10 years in prison, a $10 million fine and five years of supervised release. Turcotte was detained pending further proceedings. The Blackfeet Law Enforcement Services, Drug Enforcement Administration and Homeland Security Investigations investigated the case. PACER case reference. 24-11.
Appearing on Sept. 11 was:
Damien Michael Duffey, 31, of Butte, on charges of felon in possession of a firearm. If convicted of the most serious crime, Duffey faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Duffey was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Butte-Silver Bow Police Department and Montana Probation and Parole investigated the case. PACER case reference. 24-26.
Cheryl Ester Eslami, 44, of Kalispell, on charges of conspiracy to posses with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Eslami faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Eslami was detained pending further proceedings. PACER case reference. 24-47.
Appearing for an initial appearance on a criminal complaint on Sept. 11 was:
Joey Lee Forward, 34, of Missoula, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Forward faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Forward was detained pending further proceedings. The FBI’s Montana Regional Violent Crime Task Force investigated the case. PACER case reference. 24-55.
Appearing on Sept. 5 was:
Taylor Gale Penny, 35, of Missoula, on charges of conspiracy to possess with intent to distribute fentanyl and possession with intent to distribute fentanyl. If convicted of the most serious crime, Penny faces a mandatory minimum of 10 years to life in prison, a $10 million fine and five years of supervised release. Penny was detained pending further proceedings. The FBI’s Montana Regional Violent Crime Task Force investigated the case. PACER case reference. 24-51.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Sept. 3 was:
Dalton David Murray, 26, of Billings, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and possession of an unregistered firearm. If convicted of the most serious crime, Murray faces a mandatory minimum of 10 years to life in prison, a $10 million fine and five years of supervised release. Murray was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Division of Criminal Investigation and Montana Highway Patrol investigated the case. PACER case reference. 24-123.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Indictment Charges Stamford Man with PCP Distribution, Firearm Possession OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Bridgeport has returned a three-count indictment charging JAMAINE JONES, 34, of Stamford, with PCP distribution and firearm possession offenses.
The indictment was returned on August 21, 2024. Jones, who had been detained since state custody since his arrest by Stamford Police on February 9, 2024, appeared yesterday before U.S. Magistrate Judge Thomas O. Farrish in Hartford and pleaded not guilty to the charges.
The indictment alleges that on February 9, 2024, Jones possessed with intent to distribute phencyclidine (PCP), and possessed a loaded Beretta 9mm semi-automatic handgun. The indictment further alleges that Jones’ criminal history includes state felony convictions for drug, robbery, and assault offenses.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment charges Jones with possession with intent to distribute phencyclidine, an offense that carries a maximum term of imprisonment of 20 years; possession of firearm in furtherance of a drug trafficking crime, an offense that carries a mandatory consecutive sentence of at least five years; and unlawful possession of a firearm by a felon, an offense that carries a maximum term of 15 years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. A charge is only an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted the Drug Enforcement Administration and the Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins through the Justice’s Department’s Project Safe Neighborhoods (PSN) and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn.
OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs, and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Hueytown Man Found Guilty of Plotting to Murder a Federal ProsecutorRead the Press Release
Montgomery, Alabama – On September 12, 2024, a federal jury in Birmingham, Alabama convicted 32-year-old Michael Roman Black, a resident of Hueytown, Alabama, on charges of threatening to murder and soliciting the murder of a federal prosecutor, and for making false statements to a federal agent, announced Acting United States Attorney Kevin P. Davidson for the Middle District of Alabama.
According to court records and evidence presented during his trial, in February 2023, Black was incarcerated in Hoover, Alabama after federal charges were brought against him by the U.S. Attorney’s Office for the Northern District of Alabama. While in custody, Black told another inmate about his plan to have one of the federal prosecutors working on his case murdered by two associates “on the outside.” Black shared specific details of who he planned to contact and that he would have them shoot the prosecutor while in her car.
Law enforcement learned of this threat, and after confirming its legitimacy and seriousness, developed an operation to successfully thwart the murder plot. When questioned by federal agents, Black made false statements in an attempt to cover up his plan.
On March 28, 2023, a federal grand jury in Birmingham indicted Black for making a threat to murder a federal official, solicitation to commit murder, and making false statements to a federal agent.
“A threat against a prosecutor or law enforcement professional is a serious offense and a direct attack against our system of justice,” stated Acting United States Attorney Davidson. “I am grateful for the diligent work of law enforcement in identifying and thwarting this plot to take the life of a public servant simply seeking justice for the people of the United States.”
Following his conviction, Black faces a sentence in federal prison of up to 10 years for threatening to murder a federal official, up to 20 years for soliciting a murder, and up to 5 years for making a false statement to a federal agent. A sentencing hearing for Black is scheduled for December 12, 2024. At that hearing, a federal district court judge will determine Black’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Drug Enforcement Administration, Federal Bureau of Investigation, United States Marshals Service, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Hoover Police Department, and Jefferson County Sheriff’s Office investigated and assisted on this case, with Assistant United States Attorney John J. Geer, III from the Middle District of Alabama prosecuting.
Houma Man Sentenced for Making False Statements to Federal AgentsRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that DONDRE MORGAN, (“MORGAN”), age 32, of Houma, LA, was sentenced on September 10, 2024 for Making False Statements to Federal Agents, in violation of Title 18, United States Code, Section 1001(a)(2).
According to court documents, on April 7, 2022, MORGAN made materially false statements to special agents with the U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division. Specifically, MORGAN lied about his involvement and participation in a Paycheck Protection Program (PPP) loan fraud scheme.
United States District Judge Darrel James Papillion sentenced MORGAN to ten months of imprisonment, followed by three (3) years of supervised release, payment of restitution in the amount of $55,945.33, and a $100.00 mandatory special assessment fee.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. The Department of Veterans Affairs, Office of the Inspector General, is an active member of the PRAC Fraud Task Force.
The PRAC was established to promote transparency and facilitate coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 20 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending, including spending via the Paycheck Protection Program (PPP), and Economic Injury Disaster Loan (EIDL) program. This case was also supported by the PRAC’s Pandemic Analytics Center of Excellence, which applies the latest advances in analytic and forensic technologies to help OIGs and law enforcement pursue data-driven pandemic relief fraud investigations.”
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The United States Attorney’s Office would also like to acknowledge the assistance of the Department of Veteran Affairs, Office of the Inspector General; United States Department of Labor, Office of the Inspector General; United States Department of Homeland Security, Homeland Security Investigations; and the United States Secret Service’s Cyber Fraud Task Force, consisting of the Jefferson Parish Sheriff’s Office, Lafourche Parish Sheriff’s Office, Thibodeaux Police Department, and the Louisiana Bureau of Investigation, with this matter. The prosecution of this case is being handled by Assistant United States Attorney Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant United States Attorney Edward Rivera, COVID-19 Fraud Coordinator of the Financial Crimes Unit; and Assistant United States Attorney Mary Katherine Kaufman, of the General Crimes Unit.
Hollywood Hills Man Who Operated Orange County Drug Treatment Facilities Found Guilty of Paying Nearly $2.9 Million in KickbacksRead the Press Release
LOS ANGELES – A federal jury has found a Hollywood Hills man guilty of nearly a dozen felonies for paying illegal kickbacks for patient referrals to his addiction treatment facilities located in Orange County, the Justice Department announced today.
Casey Mahoney, 48, was found guilty on Wednesday of one count of conspiracy to solicit, receive, pay, or offer illegal remunerations for patient referrals, seven counts of illegal remunerations for patient referrals, and three counts of money laundering.
According to evidence presented at a nine-day trial, from at least October 2018 to December 2020, Mahoney paid nearly $2.9 million in illegal kickbacks to so-called “body brokers” who referred patients to Mahoney’s addiction treatment facilities, the Huntington Beach-based Healing Path Detox LLC, and the San Juan Capistrano-based Get Real Recovery Inc.
Those body brokers in turn paid thousands of dollars in cash to patients, which some patients used to purchase drugs, to induce those patients to attend treatment at Mahoney’s facilities. Mahoney concealed the illegal kickbacks by entering into sham contracts with the body brokers which purportedly required fixed payments and prohibited payments based off of the volume or value of the patient referrals.
In reality, Mahoney and the brokers negotiated payments based on the patients’ insurance reimbursements and the number of days Mahoney was able to bill for treatment. Mahoney also laundered the proceeds of the conspiracy through payments to the mother of one of the body brokers, which Mahoney falsely characterized as consulting fees.
The jury also found Mahoney not guilty of one count of aiding and assisting the preparation of a false tax document.
United States District Judge Josephine L. Staton scheduled a January 17, 2025, sentencing hearing, at which time Mahoney will face a maximum penalty of five years in prison on the conspiracy charge, up to 10 years in prison on each illegal remuneration count, and up to 20 years in prison on each money laundering count.
The FBI and IRS Criminal Investigation investigated this matter. The California Department of Insurance provided valuable assistance.
Assistant United States Attorney Nandor Kiss of the Santa Ana Branch Office and Justice Department Trial Attorney Siobhan M. Namazi of the Criminal Division’s Fraud Section are prosecuting this case.
Mahoney’s conviction arose out of violations of the Eliminating Kickbacks in Recovery Act (EKRA). EKRA was enacted in October 2018 as part of comprehensive legislation designed to address the opioid crisis in order to target the rise in body brokering and substance abuse facility profiteering.
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 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24.7 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, 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.
Haines City Drug Trafficker Sentenced to More Than 12 YearsRead the Press Release
Tampa, FL – Senior U.S. District Judge Charlene Edwards Honeywell has sentenced Robert Lubin (36, Haines City) to 12 years and 6 months in federal prison for attempted possession with the intent to distribute 400 grams or more of fentanyl and possession with the intent to distribute 500 grams or more of cocaine. Lubin entered a guilty plea on June 18, 2024.
According to court documents, in July 2023, Lubin sold fentanyl to an individual. That same month, Lubin arranged for a parcel of narcotics to be shipped to himself. The parcel was intercepted and contained 991.8 grams of fentanyl. In September 2023, Lubin was arrested with more than 3 kilograms of cocaine in his vehicle. Lubin had acquired the narcotics in Georgia and was transporting them back to the Middle District of Florida.
This case was investigated by the Drug Enforcement Administration, the U.S. Postal Inspection Service, the Lakeland Police Department, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Samantha E. Beckman.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Greece woman pleads guilty for her role in fraud schemeRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Nickola Ferra, of Greece, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to wire fraud, which carries a maximum penalty of 30 years in prison and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that Ferra engaged in an extensive pattern of conduct involving document fraud, wire fraud, bank fraud, retail theft, and identity theft. One part of the scheme involved Ferra and others obtaining merchandise by theft or fraud from local retailers, which was then returned in exchange for gift cards and store credit or sold to third parties. In furtherance of the scheme, Ferra presented forged and/or stolen passports and other stolen identification and credit information to merchants. Fraudulent purchases also included car and hotel rentals. The stolen identity information was also used in attempts to open credit cards and obtain loans in other individuals’ names. At least 10 identity theft victims and thousands of dollars in losses have been identified.
The plea is the result of an investigation by the U.S. Department of State’s Diplomatic Security Service, under the direction of Special Agent-in-Charge Brian Wood.
Sentencing is scheduled for January 28, 2025, at 9:15 a.m. before Judge Siragusa.
.# # # #
Glynn County man sentenced to federal prison for distributing sexually exploitive photos of childrenRead the Press Release
BRUNSWICK, GA: A Glynn County man has been sentenced to prison after pleading guilty to distributing images of child sexual exploitation and abuse.
Thomas Webster, 62, of St. Simons Island, Ga., was sentenced to 76 months in prison after pleading guilty to Distribution of Child Pornography, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Lisa Godbey Wood also ordered Webster to pay financial penalties and restitution of $80,300, to register as a sex offender, and serve 15 years of supervised release upon completion of his prison term. There is no parole in the federal system.
“Images of child sexual abuse are lasting reminders of the abuse suffered by each victim, and those who distribute these images perpetuate the victimization,” said U.S. Attorney Steinberg. “Thanks to the diligence of our law enforcement partners, Thomas Webster will no longer share these harmful images and is being held accountable for his crimes.”
As described in court documents and testimony, in February 2021, a CyberTip reporting the distribution of child sexual abuse material was shared with the Georgia Internet Crimes Against Children Task Force and the Georgia Bureau of Investigation. The information identified images that were shared from a Glynn County address through Twitter, now known as X.
The Glynn County Police Department and the FBI determined Webster operated the account that shared the child sexual abuse images, and during a search of his St. Simons residence investigators seized multiple electronic devices storing more than 1,000 images of child pornography. Webster was arrested shortly after his indictment on federal charges in October 2023, and pled guilty to one count of Distribution of Child Pornography in April.
“Webster will spend the next six years of his life in prison, which should send a strong message to anyone who even contemplates distributing images of innocent children,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Along with our state and local law enforcement partners, the FBI is committed to working collectively to prosecute child predators.”
The case was investigated by the FBI, the GBI, and the Glynn County Police Department, and prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorney L. Alexander Hamner.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
Four Miami Residents Charged with Reaping over $1 Million from Friends and Family Insider Trading SchemeRead the Press Release
MIAMI – A federal indictment was unsealed today charging four Miami area residents with obtaining over $1 million from illegal securities trading. As described in the indictment, the defendants shared confidential information within a close circle of family members and friends, then used that information to buy stock or options at a lower price and sell at a profit after the information became public.
The indictment charges Federico Nannini, 26, Mauro Nannini, 63, Alejandro Thermiotis, 26, and Francisco Tonarely, 25, all of Miami, Fla., with one count of conspiracy to commit securities fraud, in violation of 18 U.S.C. § 371, twelve counts of securities fraud, in violation of 18 U.S.C. § 1348, and twelve counts of securities fraud, in violation of 15 U.S.C. §§ 78j(b) & 78ff. All four defendants were arrested, and initial hearings commenced this afternoon.
According to the indictment, which includes forfeiture allegations, the scheme unfolded in this way:
In approximately June 2022, Federico Nannini began advising Coral Gables based MasTec Inc. (MasTec) about the company’s proposed acquisition of Infrastructure and Energy Alternative Inc. (IEA). At the time, both MasTec and IEA traded on the NASDAQ Stock Market.
Immediately after, Federico Nannini began sharing confidential information about the acquisition with Mauro Nannini and Thermiotis. Federico Nannini, Thermitois, and Tonarely had attended high school together in Pinecrest, Fla.
Mauro Nannini bought shares the day after Federico Nannini received access to financial information about the proposed acquisition. Thermiotis also passed the confidential acquisition information to Tonarely, shortly after Tonarely texted him: “I want to make some money right now . . . What we do?” After Thermiotis passed the confidential information to Tonarely, he texted: “Not a soul okay.” According to the indictment, Tonarely responded back: “Obviously . . . You told me not to.” Days later, Tonarely’s family member signed a letter sponsoring Thermiotis’s membership at a Miami yacht club.
As the acquisition progressed, Federico Nannini updated his father and close friend about the transaction. Thermiotis, in turn, continued to update Tonarely.
At one point in July 2022, when Federico Nannini became worried the acquisition would not go through, Mauro Nannini sold his IEA stock, according to the indictment.
When Federico Nannini received confidential financials that indicated the acquisition was going forward, he texted Thermiotis: “Its going thru . . . Holy shit bro.” Thermiotis responded: “Don’t text . . .But lfg.” At that point, Mauro Nannini began to buy back his position in IEA stock and options.
When MasTec’s acquisition of IEA was reported publicly on July 25, 2022, Mauro Nannini, Thermiotis, and Tonarely all sold their shares and option contracts in IEA at a profit. Two days later, on July 27, 2022, Federico Nannini texted Thermiotis a picture of a Rolex Daytona, saying “You wanna hook it up for the boy. I know it’s a little over budget but this is the one.” Thermiotis responded: “Haahaha yeah but give it a bit . . . Prices should come down a bit on everything.”
A conviction for securities fraud, in violation of 15 U.S.C. §§ 78j(b) & 78ff, carries a maximum penalty of 25 years’ imprisonment; conspiracy to commit securities fraud, in violation of 18 U.S.C. § 371, carries a maximum penalty of 5 years’ imprisonment; and securities fraud, in violation of 18 U.S.C. § 1348, carries a penalty of 20 years’ imprisonment.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, made the announcement.
U.S. Attorney Lapointe commended the investigative efforts of FBI Miami. Assistant U.S. Attorneys Elizabeth Young, Eli Rubin, Alexandra Comolli are prosecuting this case, with assistance from Yisel Valdes. Assistant U.S. Attorney Annika Miranda is handling asset forfeiture. The United States Securities and Exchange Commission (SEC) also filed civil actions today against the four defendants.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 24-CR-20398.
###
Former Southern Pine Credit Union Finance Officer Sentenced to PrisonRead the Press Release
VALDOSTA, Ga. – The former Controller of Southern Pine Credit Union in Valdosta was sentenced to serve five years in prison and pay back more than $1.2 million in restitution after she admitted to a long-running bank loan and aggravated identity theft scheme.
Teresa Paulo, of Valdosta, was sentenced to serve 24 months imprisonment for aggravated identity theft and 36 months imprisonment for bank fraud to be served consecutively for a total of 60 months in prison on Sept. 12. In addition, Paulo was ordered to pay $1,238,638.29 in restitution to Southern Pine Credit Union. Paulo pleaded guilty to these charges on Nov. 2, 2023.
Leah Lehman, 63, of Valdosta, was sentenced to serve 24 months imprisonment for aggravated identity theft and 48 months imprisonment for bank fraud to be served consecutively for a total of 72 months in prison on May 30. In addition, Lehman was ordered to pay $4,491,253.97 in restitution to Southern Pine Credit Union. Lehman pleaded guilty to these charges on Oct. 26, 2023.
U.S. District Judge W. Louis Sands is presiding over these cases. The defendants are not eligible for parole.
“Financial fraud has a far-reaching ripple effect that negatively impacts people, businesses and the community,” said U.S. Attorney Peter D. Leary. “We take financial crimes seriously, and we will work alongside our law enforcement partners to hold fraudsters accountable.”
“These sentencings are the direct result of a diligent investigation by hardworking FBI employees and our partners at the Federal Deposit Insurance Corporation, Office of Inspector General,” said Rich Bilson, Supervisory Senior Resident Agent of FBI Atlanta’s Valdosta office. “The defendants’ greed driven scheme stole hundreds of thousands of dollars and damaged the financial security of innocent victims. They will now be held accountable for their blatant misuse of the power of their positions.”
“The criminal behavior in these cases represent the most egregious betrayal of trust by two of this institution’s leaders, resulting in years of ill-gotten gains for the defendants, all while violating the faith that SPCU’s members placed in them,” said Kyle A. Myles, Special Agent in Charge of the Federal Deposit Insurance Corporation, Office of Inspector General, Atlanta Region. “We are
grateful to our regulatory and law enforcement partners in this case and will continue to vigorously investigate allegations of financial crime at FDIC-supervised institutions and in support of our fellow financial regulators.”
According to court documents and statements referenced in court, Paulo was Southern Pine Credit Union’s (SPCU) controller from Oct. 2011 to June 2020 and Lehman served as President of SPCU from 1990 to 2020. The Credit Union’s members are employees of the local paper mill and their families.
Lehman began her fraud in June 2003, when she created a share secured loan in a SPCU account using the name and social security number of a member without that individual’s knowledge. From Feb. 2012 to May 31, 2020, Lehman paid off the loan and rebooked it multiple times with additional advances. She would take the proceeds and put them in a joint share draft account she had with the individual, using the proceeds to pay for a boat, a hunting club share, personal expenses and gifts to family members. This loan was repaid in full. However, Lehman created another share secured loan in another individual’s name without their knowledge and would also pay off the loan and rebook it multiple times for personal spending. To conceal these activities, Lehman created false credit transactions using the names and passwords of SPCU employees. These transactions would advance the due date on the loans, which prevented these loans from appearing on quarterly call reports to the NCUA and allowed Lehman to defer or not make payment on these loans. Following these transactions, Lehman created debit entries to put the loans back on the accounts, which would often include interest accrued on the outstanding loans. She made additional fraudulent loan advances simultaneously with those entries to advance the loan dates. She reflected the loans as being paid off at the end of the quarter to prevent possible detection of artificial growth in the SPCU loan portfolio. In total, the drafts needed to pay off the loan balances at each quarter grew to $4,112,870.63, excluding payments and interest, as of May 31, 2020.
Paulo committed a similar fraud scheme to Lehman. In Oct. 2011, Paulo created a share secured loan in a SPCU account using the name and social security number of a member without that individual’s knowledge. From Nov. 2011 until May 29, 2020, Paulo took out additional advances on the loan as well as additional loans from the account. Paulo would transfer the loan proceeds into a joint account for personal spending purposes. She created another share secured account using the personal identity of another individual and would pay off the loan and rebook it multiple times with additional advances, using the proceeds for her own personal expenses or electronically transfer money into her family’s accounts. Paulo concealed her schemes as Lehman concealed hers: creating false credit transactions using the usernames and passwords of SPCU employees to simulate the payoff of the loans, which would advance the due date on the loans. Paulo also created debit entries using other people’s usernames and passwords to put the loans back on the accounts, which would often include interest accrued on the outstanding loans. The drafts needed to pay off the loan balances at each quarter grew to $1,233,201.77, excluding payments and interest, as of May 31, 2020. Paulo made $7,736.16 in legitimate payments to the loan balances.
These cases were investigated by the FBI and the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC OIG).
Assistant U.S. Attorney Hannah Couch prosecuted these cases for the Government
Former Prison Guard Pleads Guilty to Conspiring to Smuggle Drugs into Virginia PrisonRead the Press Release
BOSTON – A Virginia man pleaded guilty today to conspiring to distribute controlled substances and launder drug proceeds with co-conspirators in Massachusetts and Virginia.
Kenneth J. Owen, 24, of Charlotte Court House, Va., pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute MDMA and buprenorphine and two counts of money laundering conspiracy. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for Dec. 10, 2024.
In December 2019 and January 2020, Owen conspired with Sathtra Em, a Lowell resident, and Michael Mao, an inmate at the Buckingham Correctional Center in Dillwyn, Va., to smuggle MDMA and buprenorphine in the form of Suboxone and generic Suboxone sublingual films into the prison. At the time, Owen was working as a correctional officer at Buckingham.
As part of the conspiracy, Em mailed the drugs to Owen’s residence and paid him $1,600 in bribes to deliver the drugs and other contraband to Mao in the prison. Mao then sold the smuggled drugs to other inmates at Buckingham and Em collected the drug debts on behalf of Mao in the same Cash App accounts she used to pay the bribes to Owen. Owen used a Cash App account with the name “Carlos” to receive the bribes from Em, and he cashed out the funds to his bank account within minutes of receiving them.
Em and Mao previously pleaded guilty to their roles in the conspiracy. On Aug. 14, 2024, Em was sentenced to 21 months in prison to be followed by three years of supervised release. Mao is scheduled to be sentenced on Nov. 18, 2024.
The charge of conspiracy to distribute and to possess with intent to distribute MDMA and buprenorphine provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000, or twice the amount of the property involved, whichever is greater. Both charges also include forfeiture of assets traceable to or involved in the distribution and laundering offenses. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Special assistance was provided by the Drug Enforcement Administration, the Internal Revenue Service’s Criminal Investigations and the Virginia Department of Corrections. Assistant U.S. Attorney Fred M. Wyshak, III of the Organized Crime & Gang Unit and Assistant U.S. Attorney Alexandra Amhrein of the Asset Forfeiture Unit, are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former Orange County Resident Linked to White Supremacist Group Pleads Guilty to Plotting and Engaging in Violence at Political RalliesRead the Press Release
LOS ANGELES – A former resident of Huntington Beach who has been linked to a white supremacy extremist group pleaded guilty today to planning and engaging in riots at political rallies across California.
Robert Paul Rundo, 34, pleaded guilty to one count of conspiracy to violate the federal Anti-Riot Act.
“This defendant sought to incite riots to promote a white-supremacist agenda and impede the constitutional rights of others,” said United States Attorney Martin Estrada. “Safeguarding civil rights goes to the core of my office’s mission and we will continue to unite with our community against those who promote hate and divisiveness.”
“Mr. Rundo’s cowardly and unprovoked acts of violence were unjustly carried out upon his victims, leaving those who were victimized, their families, and our community torn by hate,” said Akil Davis, Assistant Director in Charge of the Los Angeles Field Office. “The FBI and our law enforcement partners will continue to ensure that if a crime is motivated by bias, it will be investigated, and the perpetrators held responsible for their actions. We encourage everyone to report such crimes to the FBI.”
According to his plea agreement, between March 2017 and May 2018, Rundo and others participated in an organization that ultimately was rebranded as the “Rise Above Movement” (RAM). RAM representing itself as a fighting group of a new nationalist and white supremacy identity movement. As part of their membership in RAM, Rundo and others attended rallies with the intent to provoke and engage in violence.
To prepare for violent physical conflicts, Rundo and others held hand-to-hand and other fighting training sessions, which they organized through telephone calls, social media, and text messages. Rundo organized and attended several such training sessions in 2017. On various social media platforms, Rundo and others posted messages and photographs of themselves preparing for or engaging in violence, accompanied by statements such as “#rightwingdeathsquad.”
In March 2017, Rundo and other RAM members held a training in San Clemente to prepare to engage in violence at political events, including a rally on March 25, 2017, in Huntington Beach. At the Huntington Beach rally, Rundo and other RAM members pursued and assaulted other persons, including one protestor whom Rundo tackled and punched multiple times. Following the event, Rundo and his co-conspirators posted online photographs and videos celebrating the assaults they had committed.
Rundo also helped organize training for RAM members in anticipation of a rally scheduled to occur on April 15, 2017, in Berkeley. At the Berkeley rally, there were several violent clashes throughout the day. In one such instance, Rundo and several of his co-conspirators crossed a police barrier erected to separate opposing groups. They then punched and kicked several people. Following the event, Rundo and his co-conspirators again posted online photographs and videos celebrating the assaults they had committed.
On June 10, 2017, Rundo and others attended a rally in San Bernardino, at which they confronted and pursued protesters.
In the months following these events, Rundo and his accomplices continued to publicly celebrate their assaults, including through online posts with photos and videos of RAM members assaulting people.
United States District Judge Josephine L. Staton scheduled a December 13 sentencing hearing, at which time Rundo will face a statutory maximum sentence of five years in federal prison.
Two other defendants have been charged in this case:
- Robert Boman, 31, of Torrance, who is charged with one count of conspiracy to violate the Anti-Riot Act and one count of rioting; and
- Tyler Laube, 28, of Redondo Beach, who pleaded guilty in October 2023 to one count of interfering with a federally protected right and later was fined $2,000 and sentenced to time already served in custody.
The FBI’s Joint Terrorism Task Force investigated this case.
Assistant United States Attorneys Kathrynne N. Seiden and Anna P. Boylan of the Terrorism and Export Crimes Section are prosecuting this case.
Former Missouri Prison Employee Indicted on Drug ChargesRead the Press Release
ST. LOUIS – A former employee of a Missouri state prison appeared in U.S. District Court Friday to answer drug charges.
Steven M. Reminger, 53, was indicted September 12 on three felony charges: conspiracy to distribute and possess with the intent to distribute controlled substances, attempt to possess with the intent to distribute controlled substances and making a false statement.
He appeared in court Friday and pleaded not guilty.
The indictment alleges that the drug conspiracy began in November 2021. The indictment says Reminger made a false statement on Nov. 8, 2021, by providing a false name to employees of the U.S. Postal Service when applying for a Post Office Box in Farmington, Missouri. Reminger’s attempt to possess controlled substances occurred on May 24 and 25 of 2022, the indictment alleges. A forfeiture allegation says $19,000 in cash, knives and cellular phones were seized on May 25, 2022.
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.
The drug charges carry a penalty of up to 20 years in prison, a $1 million fine or both prison and a fine. The false statements charge carries a penalty of up to five years in prison and a $250,000 fine.
The Missouri Department of Corrections Office of Professional Standards, the U.S. Postal Inspection Service and the Missouri State Highway Patrol are investigating the case. Assistant U.S. Attorney Paul Rebar is prosecuting the case.
Former Luxury Homebuilder Sentenced for Defrauding the United StatesRead the Press Release
BOSTON – The former project manager of a now-defunct luxury home building business in West Springfield. Mass. was sentenced yesterday for conspiring to defraud the United States.
Jason Pecoy, 44, of Wilbraham, was sentenced by U.S. District Court Judge Mark G. Mastroianni to two years of probation, and a fine of $7,500. The government recommended a sentence of 21 to 27 months in prison, followed by a three-years of supervised release, and order mandatory restitution in the amount of $35,982. In June 2024, Pecoy was convicted by a federal jury of two counts of conspiracy to defraud the United States.
Jason Pecoy was previously indicted in December 2019 along with his father, Kent Pecoy, and Kevin M. Kennedy, the former owner of a golf management company, for conspiring to defraud the United States by concealing cash payments for the construction of Kennedy’s two homes in East Longmeadow and West Dennis. The defendants were later charged in a superseding indictment in January 2020.On Dec. 11, 2023, Kennedy was convicted by a federal jury of conspiracy to defraud the United States and making a false statement to a federally insured financial institution. He was sentenced to 13 months in prison, followed by three years of supervised release on April 24, 2024. On May 16, 2024, Kent Pecoy pleaded guilty to two counts of conspiracy to defraud the United States and one count of making a false statement to a federally insured financial institution. Kent Pecoy was sentenced in August 2024 to time served (one day) and two years of supervised release. He was also ordered to pay a $24,000 fine and $35,982 in restitution.
From 2009 through 2016, Kennedy conspired with Kent Pecoy, the owner of Kent Pecoy and Sons Construction Inc. (KPSC), and his son, Jason Pecoy, a KPSC project manager, to obstruct and impede the Internal Revenue Service and the collection of taxes by concealing Kennedy’s cash payments for construction of the East Longmeadow and West Dennis homes. Kennedy paid the Pecoys in cash, all of which the Pecoys failed to deposit into business bank accounts, but rather distributed the cash directly to vendors and subcontractors. When they did deposit the cash, the Pecoys deposited funds in amounts less than $10,000 to avoid the filing of currency transaction reports. The evidence proved that when the Pecoys created and maintained separate ledgers documenting Kennedy’s cash payments, created and maintained false contracts and cover sheets and created false entries in KPSC’s accounting system to conceal the cash payments.
Acting United States Attorney Joshua S. Levy and Special Agent in Charge, Harry T. Chavis Jr., Internal Revenue Service Criminal Investigation Boston Field Office made the announcement today. Assistant U.S. Attorneys Steven H. Breslow and Neil L. Desroches of the Springfield Branch Office prosecuted the case along with Trial Attorney Eric B. Powers of the Justice Department’s Tax Division.
Former FMC Prison Guard Pleads Guilty to Three Counts of Sexual Abuse of a WardRead the Press Release
LEXINGTON, Ky. – A Lexington man, Jacob Salcido, 40, pleaded guilty on Friday, before Chief U.S. District Judge Danny Reeves, to three counts of sexual abuse of a ward.
According to his plea agreement, from September 5, 2020, to December 21, 2020, while employed as a Correctional Officer at the Federal Medical Center in Lexington, Salcido knowingly engaged in sexual acts with three inmates. Salcido admitted that, based on his training and experience, he was aware that any sexual contact between FMC staff and inmates was strictly forbidden and constituted a criminal offense.
“Jacob Salcido blatantly exploited his power as a correctional officer by sexually abusing three women in his custody,” said Deputy Attorney General Lisa Monaco. “The Justice Department’s commitment to eradicating sexual abuse within the ranks of the Federal Bureau of Prisons continues through every case we prosecute. Today’s guilty plea is the latest but certainly not the last in our efforts to eradicate sexual abuse in federal prisons.”
“Federal Bureau of Prisons Correctional Officers are responsible for fostering a safe and humane environment for inmates to serve out their sentences,” said Inspector General Michael E. Horowitz. “Instead, Salcido abused his authority and sexually abused three inmates that were in his custody and care. The DOJ OIG is committed to aggressively investigating these types of allegations and bringing perpetrators to justice.”
“Instead of ensuring the safety and security of those in his care, the defendant chose to maliciously prey on vulnerable individuals, and betrayed an important obligation to the public,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “This disgraceful conduct has done enduring damage to his victims. It has also eroded trust in faithful public servants, those who perform their civic duties honorably. We are committed to our efforts to protect individuals, and to combat abuses by those who callously betray their responsibilities to those in their care and to the public they serve.”
United States Attorney Shier; William J. Hannah, Special Agent in Charge, Department of Justice, Office of the Inspector General, Chicago Field Office; and Michael Stansbury, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the guilty plea.
The investigation was conducted by DOJ-OIG and FBI. The United States was represented by Assistant U.S. Attorney Zach Dembo.
Salcido is scheduled to be sentenced on December 13, 2024. This offense carries penalties of up to 15 years in prison and a $250,000 fine. However, any sentence will be imposed by the Court, after its consideration of the guilty plea, the U.S. Sentencing Guidelines, and the federal sentencing statutes.
— END —
Former Bureau of Prisons Correctional Officer Pleads Guilty to Sexual Abuse of a WardRead the Press Release
A former Federal Bureau of Prisons (FBOP) correctional officer pleaded guilty today to three counts of sexual abuse of a ward.
Jacob Salcido, 40, of Lexington, Kentucky, pleaded guilty today to sexual abuse of a ward. According to his plea agreement, beginning on Sept. 5, 2020, through Dec. 21, 2020, while employed as a correctional officer at the Federal Medical Center (FMC) in Lexington, Salcido knowingly engaged in a sexual act with three inmates. Salcido admitted that he was aware that based on his training and experience that any sexual contact between FMC staff and inmates was strictly forbidden and was a federal crime.
“Jacob Salcido blatantly exploited his power as a correctional officer by sexually abusing three women in his custody,” said Deputy Attorney General Lisa Monaco. “The Justice Department’s commitment to eradicating sexual abuse within the ranks of the Federal Bureau of Prisons continues through every case we prosecute. Today’s guilty plea is the latest but certainly not the last in our efforts to eradicate sexual abuse in federal prisons.”
“Federal Bureau of Prisons Correctional Officers are responsible for fostering a safe and humane environment for inmates to serve out their sentences,” said Inspector General Michael E. Horowitz. “Instead, Salcido abused his authority and sexually abused three inmates that were in his custody and care. The DOJ OIG is committed to aggressively investigating these types of allegations and bringing perpetrators to justice.”
“Instead of ensuring the safety and security of those in his care, the defendant chose to maliciously prey on vulnerable individuals, and betrayed an important obligation to the public,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “This disgraceful conduct has done enduring damage to his victims. It has also eroded trust in faithful public servants, those who perform their civic duties honorably. We are committed to our efforts to protect individuals, and to combat abuses by those who callously betray their responsibilities to those in their care and to the public they serve.”
Salcido is scheduled to be sentenced on Dec. 13.
Salcido faces a maximum penalty of 15 years in prison and a maximum fine of $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
DOJ-OIG and the FBI investigated the case.
Assistant U.S. Attorney Zach Dembo for the Eastern District of Kentucky is prosecuting the case.
FBOP is committed to rooting out misconduct within its ranks and working with law enforcement partners to prosecute violations of federal law. The numerous FBOP employees working diligently to ensure justice for the victims of misconduct are critical to the department’s reform efforts.
Five-Time Convicted Felon Sentenced to More Than 6 Years in Federal Prison for Firearms OffenseRead the Press Release
Orlando, Florida – U.S. District Judge John Antoon II has sentenced Reginald Dugger, Jr. (42, Orlando) to six years and six months in federal prison for possessing a firearm as a convicted felon. The court also ordered Dugger to forfeit a Rock Island Armory revolver, a Palmetto State Armory rifle, and associated ammunition, all of which were seized from his residence on February 29, 2024. Dugger entered a guilty plea on May 21, 2024.
According to court documents, on February 29, 2024, agents from Homeland Security Investigations (HSI) executed a federal search warrant at Dugger’s home. During the search, agents located a currency counter, drugs, and two loaded firearms within plain view and accessible to Dugger. At the time, Dugger had several prior felony convictions. As such, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Noah P. Dorman.
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.
Final Defendant Sentenced in 2016 Robbery Spree in Haywood County, TennesseeRead the Press Release
Jackson, TN – Cordarious Baltimore, 30, of Brownsville, Tennessee, was sentenced to 246 months in federal prison after his conviction for multiple robberies and firearm offenses. Baltimore was the final defendant to be sentenced regarding a series of 2016 business robberies which occurred in and around Brownsville. Kevin G. Ritz, United States Attorney for the Western District of Tennessee, announced the sentencing today.
According to the information presented in court, over a period of five days in April 2016, three businesses in the Brownsville, Haywood County area were robbed by two masked men armed with pistols. During this time, two different shootings occurred where 9mm shell casings and a .22 LR shell casing were recovered by the Brownsville Police Department on the scenes.
On April 25, 2016, after the robbery of a truck stop, deputies with the Haywood County Sheriff's Department collected clothing on a nearby road that was worn by the armed robbers. Deputies sent those items of evidence to the Tennessee Bureau of Investigation (TBI) for DNA analysis, which in 2018 linked Baltimore’s co-conspirators, Lacey Jeter and Johnny Lee Nixon, Jr., to the clothing.
On April 26, 2016, officers with the Brownsville Police Department observed a vehicle that matched the description of the vehicle seen leaving the scene of the earlier truck stop robbery and initiated a traffic stop. After a brief chase, the vehicle crashed in rural Haywood County and the occupants of the vehicle fled leaving behind two pistols similar to ones described by witnesses to the recent robberies. The Brownsville Police Department collected the firearms and TBI Agents were able to confirm that the shell casings recovered after the shootings were fired from one of the firearms recovered near the scene of the crash.
In October 2022, Baltimore pled guilty to conspiracy to commit Hobbs Act robbery, commission of Hobbs Act robbery, brandishing a firearm during and in relation to a crime of violence, and three counts of possession of a firearm by a convicted felon. On September 12, 2024, United States District Court Judge J. Daniel Breen sentenced Baltimore to 246 months incarceration followed by 5 years of supervised release on September 12, 2024. There is no parole in the federal system.
Jeter pled guilty and was sentenced in April 2022. Nixon was convicted by a jury and was sentenced to 160 months incarceration and 5 years supervised release in February 2020.
United States Attorney Ritz said: “This defendant’s serious violent crimes justify this significant federal prison sentence. Our citizens deserve to feel safe in their communities, and that is why this office will continue to work with our federal, state, and local law enforcement partners to vigorously enforce federal firearm and robbery laws.”
The Haywood County Sheriff’s Department said: “The Haywood County Sheriff’s Office is glad to be involved in the resolution of this case against Cordarious Baltimore. One of the goals of the Haywood County Sheriff’s Office is to make all residents and visitors to Haywood County feel safer from the criminal element and achieving a conviction in this incident falls within that goal of the agency. We appreciate the assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in this investigation, and the efforts of the United States Attorney’s Office for the Western District of Tennessee in helping achieve the greatest amount of time allowable under law for those involved in violent crimes, especially gun crimes.”
This case was investigated by the Haywood County Sheriff’s Department, Brownsville Police Department, the Tennessee Bureau of Investigation, the United States Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
United States Attorney Ritz thanked Assistant United States Attorney Hillary Parham who prosecuted this case on the government’s behalf, as well as the law enforcement partners who investigated this case.
###
For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
Film Producer Indicted for Multi-Decade Tax ConspiracyRead the Press Release
A film producer and an Australian accountant were indicted by a federal grand jury yesterday for crimes related to their roles in a multi-decade conspiracy to defraud the United States by concealing the movie producer’s income and assets offshore.
According to the indictment, Nigel Sinclair is a film producer who founded several successful movie production companies and Anthony Stewart is an accountant in Australia. In 2000, Sinclair allegedly co-owned Intermedia, a film production company he co-founded. He allegedly held half of his Intermedia shares in the name of a Maltese nominee entity that he controlled. When the company was listed on a foreign stock exchange, Sinclair allegedly caused his shares held by the Maltese company to be sold for approximately $25 million. He and Stewart then conspired with others to conceal these proceeds by depositing them into nominee bank accounts in Switzerland. Over the years, Sinclair allegedly used these proceeds to fly on private jets, purchase an $800,000 guitar owned by a famous rock musician, fund his next production company and build himself an 8,000 square foot vacation home in the Jackson Hole area of Wyoming. Stewart and others, among other things, allegedly used corporate entities and created fake documents to disguise the true ownership and source of the funds Sinclair used to do so.
In 2004, one of Sinclair’s co-conspirators was allegedly arrested in Australia and his laptop seized. The laptop allegedly contained files related to Sinclair and other individuals’ offshore financial dealings. According to the indictment, the seizure of the laptop was the impetus for a significant tax evasion investigation in Australia, code-named Project Wickenby. As the investigation progressed, and concerned about a possible IRS inquiry as well, Sinclair, Stewart and their co-conspirators allegedly took steps to avoid detection by authorities, including by moving Sinclair’s assets into the name of new nominees, destroying potentially incriminating documents by flushing them down the toilet, talking in code and communicating on burner phones.
In 2015, Sinclair allegedly tried to use the IRS’ Streamlined Domestic Offshore Procedures. Under those procedures, the IRS allegedly offered taxpayers with undisclosed foreign assets the opportunity to make timely, accurate and complete disclosures to resolve their non-compliance and limit their criminal exposure. Allegedly, a taxpayer who certified under penalties of perjury that their failure to comply was non-willful — usually defined as the result of negligence or mistake — could pay significantly reduced penalties. In his disclosure Sinclair allegedly made several false statements about his foreign assets and underreported their value. In addition, despite admitting in his 2015 voluntary disclosure that he had a foreign bank account, Sinclair allegedly did not report that bank account on Reports of Foreign Bank Account and Financial Accounts (FBARs) that he filed with the U.S. Treasury Department for 2016 or 2017.
Lastly, in 2020, Sinclair allegedly encouraged one of his co-conspirators to tell a false narrative to U.S. authorities as part of a grand jury investigation.
Sinclair allegedly caused a tax loss to the IRS of more than $5 million.
Sinclair and Stewart were charged with conspiracy to defraud the United States. Sinclair was also charged with filing false tax returns, filing false FBARs and obstruction of justice. If convicted, Sinclair and Stewart face a maximum penalty of five years in prison for conspiracy. Sinclair also faces a maximum penalty of three years in prison for each filing a false tax return charge, a maximum penalty of five years in prison for each false FBAR charge and a maximum penalty of 20 years in prison for the obstruction charge.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case. Assistance was provided by the Joint Chiefs of Global Tax Enforcement (J5), which brings together the taxing authorities of Australia, Canada, the Netherlands, United Kingdom and United States.
Trial Attorneys Peter J. Anthony and Erika V. Suhr and Assistant Chief Matthew Kluge of the Tax Division are prosecuting the case. Former Trial Attorney Christopher M. Magnani assisted in the investigation.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sinclair Indictment.pdfFederal Jury Convicts St. Croix Man of Theft of Social Security BenefitsRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found David Leopold Huber (35, St. Croix) guilty of theft of government property. Huber faces a maximum penalty of 10 years in federal prison. His sentencing hearing is scheduled for December 11, 2024.
According to evidence presented at trial, Huber’s mother was receiving benefits from the Social Security Administration (SSA). Huber’s mother died on August 9, 2016. The SSA did not receive notice that she had died and continued to pay out benefits on her behalf until July 2020. Huber was a joint account holder on the account into which his mother’s SSA benefits were deposited. Huber transferred the SSA benefits deposited after his mother’s death into his own personal account and used the funds for various personal expenses. In total, Huber stole approximately $47,952 in SSA benefits.
This case was investigated by the Social Security Administration - Office of the Inspector General. It is being prosecuted by Special Assistant United States Attorney Suzanne Huyler.
Federal Jury Convicts Cherokee County Resident of First Degree MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Steven Dewayne Beard, age 51, of Stilwell, Oklahoma, was found guilty by a federal jury of one count of First Degree Murder in Indian Country and two federal firearms offenses.
The jury trial began with testimony on Monday, September 9, 2024, and concluded, on Friday, September 14, 2024, with the guilty verdicts.
During the trial, the United States presented evidence that Beard intentionally shot and killed the victim with malice aforethought. According to investigators, Beard and the victim were romantic rivals for the same woman. On March 29, 2023, Beard became angry and ordered the woman to remove her property from his residence while he was away. Knowing that the victim was the woman’s only ride and would accompany her to remove her items, Beard hid his vehicle, and waited inside for the two to return. When the woman and victim arrived, Beard shot the victim in the chest. The victim fell to the ground where Beard shot the victim in the chest again at pointblank range. The crime occurred in Cherokee County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
The guilty verdicts were the results of investigations by the Cherokee County Sheriff’s Office, the Cherokee Nation Marshal’s Service, and the Federal Bureau of Investigation.
The Honorable Ronald A. White, Chief District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the trial and ordered the completion of a presentence report. The sentencing will be scheduled following completion of the report. Beard will remain in custody of the United States Marshal until sentencing.
Assistant United States Attorneys Kevin Gross and T. Cameron McEwen represented the United States.
Federal Authorities Working with Local Partners to Reduce Domestic Violence in MilwaukeeRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced today that Milwaukee is among an initial set of 78 communities that Attorney General Merrick B. Garland has approved for designation under Section 1103 of the Violence Against Women Act Reauthorization Act of 2022 (VAWA).
As announced by the Attorney General, the United States Department of Justice - through its United States Attorney’s offices (USAOs) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Field Divisions - will partner with each designated jurisdiction to develop a plan to reduce intimate partner firearm violence and to prioritize prosecutions of domestic violence offenders prohibited from owning firearms under federal law.
“The United States Attorney’s Office is committed to working with all of our dedicated and talented law enforcement and community partners to continue to reduce domestic violence and hold offenders accountable,” said U.S. Attorney Haanstad. “Including Milwaukee in today’s designation demonstrates the Justice Department’s commitment to use all available federal tools to make all of our communities as safe as possible.”
“This important announcement will strengthen our partnerships between law enforcement and communities to assist victims of domestic violence,” said ATF Special Agent in Charge Christopher Amon of the Chicago Field Division. “ATF prioritizes investigations of prohibited persons who illegally possess firearms and look forward to the United States Attorney's leadership to prosecute these important cases.”
Communities have been designated by Attorney General Garland in close coordination with community stakeholders. The designated jurisdictions span 47 states and include rural areas, suburban areas, urban areas, and Tribal communities. The Justice Department used data to identify communities that could benefit from increased focus on intimate partner violence resources and where the local jurisdiction is committed to partnering with the Department to increase the use of federal tools to prosecute domestic violence offenders who unlawfully possess firearms.
The Justice Department anticipates additional jurisdictions to be designated as USAOs continue coordination with their local stakeholders. All USAOs, with or without specific community designations under Section 1103, will continue to combat intimate partner firearm violence and prioritize prosecutions of domestic violence offenders as part of their Project Safe Neighborhoods strategy and in support of the Department’s Comprehensive Strategy for Reducing Violent Crime.
# # #
For further information contact:
Public Information Officer
(414) 297-1700
Follow us on Twitter
Dominican National Pleads Guilty for Role in Human Smuggling Venture that Resulted in 11 DeathsRead the Press Release
A Dominican national pleaded guilty today to his role in a human smuggling venture that resulted in the deaths of multiple migrants.
Fermín Montilla, 45, pleaded guilty to one count of bringing aliens to the United States at a place other than a designated port of entry resulting in death.
According to court documents, Montilla was involved in a maritime human smuggling venture that attempted to bring migrants illegally to the United States. On or about the evening of May 12, 2022, Montilla knowingly brought 48 persons to the United States unlawfully. Montilla’s actions caused the deaths of 11 of those people.
The defendant is expected to be sentenced later this year and faces a statutory maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico; and Special Agent in Charge Rebecca González-Ramos of Homeland Security Investigations (HSI) San Juan made the announcement.
HSI San Juan investigated this case, with assistance from U.S. Customs and Border Protection, U.S. Border Patrol, the U.S. Coast Guard, and the Puerto Rico Police Bureau.
Trial Attorney Angela Buckner of the Criminal Division’s Human Rights and Special Prosecutions Section and U.S. Coast Guard Special Assistant U.S. Attorney Helena Daniel for the District of Puerto Rico are prosecuting the case.
The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Defendant Pleads Guilty to Unlawful ReentryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Basilio Antonio-Hernandez, age 40, entered a guilty plea to one count of Unlawful Reentry of Removed Alien.
The Indictment alleged that on May 26, 2024, Antonio-Hernandez, an alien, was found in the United States without the express consent of the Secretary of the Department of Homeland Security after having been previously deported and removed on three prior occasions.
The charges arose from an investigation by the Heavener Police Department and the Enforcement and Removal Operations branch of the U.S. Department of Homeland Security’s Immigration and Customs Enforcement Division.
The Honorable Jason Robinson, 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. Antonio-Hernandez will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Patrick Flanigan represented the United States.