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22 October 2024
Seven Members of Moscow-Based Criminal Organization Plead Guilty in over $1.7 Billion International Telemedicine SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Hafizullah Ebady pleaded guilty to health care fraud conspiracy. The proceeding was held before United States District Judge William F. Kuntz, II. Ebady is the seventh defendant to plead guilty in connection with a sprawling international health care fraud and money laundering scheme. Ebady’s co-defendants Joshua Manuel Alegria, David Gary Bishoff, Brycen Kay Millett, Dela Saidazim, Anthony Santamaria and Hershel Tsikman previously pleaded guilty. An eighth co-defendant and the leader of the organization, Brian Sutton, a U.S. citizen residing in Russia, remains at large.
The defendants participated in an international scheme to acquire pharmacies across the United States with pre-existing relationships with private health insurance companies. Using those pharmacies, in conjunction with call centers to induce individuals to accept unnecessary medications and a network of recruited physicians, the defendants generated more than $1.7 billion in fraudulent prescriptions purportedly filled by the scheme pharmacies. The charges against Sutton and others were announced on November 7, 2023.
Breon Peace, United States Attorney for the Eastern District of New York, and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty pleas.
“Using aliases, shell companies and straw owners, moving their operations overseas, and laundering millions of dollars through foreign countries, the defendants conducted a sophisticated, multi-faceted scheme, employing scores in call centers and remote billing teams to line their pockets to the tune of more than a billion dollars,” stated United States Attorney Peace. “Health care fraud victimizes American businesses and drives up the cost of care for all. Let these convictions serve as a message: we will work tirelessly to investigate and prosecute those who exploit American health care plans no matter where in the world they operate.”
Mr. Peace expressed his appreciation to the Port Authority of New York and New Jersey, Office of Inspector General, for its work on the case.
As alleged, between 2017 and 2022, Sutton, a U.S. citizen residing in Russia, led his co-defendants in carrying out an international scheme to bill private insurers for over $1.7 billion in fraudulent prescriptions. At Sutton’s direction, the co-conspirators oversaw call centers initially based in Utah, but later operated from Russia and other foreign nations. Call center employees telephoned beneficiaries enrolled in private insurers’ health care plans and offered prescription medications at little to no cost to the beneficiaries and without any medical exam to determine whether the medications were medically necessary. The defendants also recruited doctors purportedly to review prescriptions by nurse practitioners and physician’s assistants after telemedicine visits. Contrary to what the recruited doctors were told, in many cases there were no telemedicine visits between the beneficiaries and any medical professionals. The co-conspirators generated fraudulent prescriptions under the physicians’ names and National Provider Identifier (NPI) numbers. Despite the prescriptions, many beneficiaries never received the medications.
To conceal their involvement, the defendants operated under multiple aliases, funneled hundreds of millions of dollars through pass-through shell companies and straw owners, used end-to-end encrypted communications and moved operations overseas. Specifically, the defendants purchased and operated dozens of existing brick-and-mortar pharmacies through straw owners including in Brooklyn, Staten Island, Manhattan, Long Island, New Jersey, Pennsylvania, Texas, Michigan and Alabama. The co-conspirators also laundered millions of dollars in fraudulent proceeds from overseas through pass-through shell companies that they used to purchase the scheme pharmacies and conceal the defendants’ involvement.
After acquiring the brick-and-mortar pharmacies, the co-conspirators oversaw the installation of pharmacy management software that allowed for the remote submission of reimbursement requests by the scheme pharmacies to private insurers; they also trained and supervised a team of “billers” that remotely submitted hundreds of thousands of reimbursement requests.
Under Sutton’s direction, the defendants played various roles in the scheme, including as follows:
- Alegria oversaw development of custom software and forwarded fraudulent prescriptions to licensed physicians for approval;
- Bishoff coordinated logistics for the operations of multiple scheme pharmacies;
- Ebady coordinated the purchase and directed the day-to-day operations of multiple scheme pharmacies;
- Millett oversaw call centers in Utah, Russia and elsewhere overseas;
- Saidazim recruited licensed physicians and acted as Sutton’s personal assistant;
- Santamaria trained and managed a team of billers to input data and electronically submit fraudulent requests for reimbursement to insurers; and
- Tsikman coordinated the laundering of fraud proceeds through straw owners and shell entities.
Ultimately, the co-conspirators submitted over $1.7 billion in reimbursement requests for over 50 pharmacies. Private insurers paid over $500 million as a result of the fraudulent billing.
When sentenced, the defendants face the following sentences:
- Ebady faces a maximum sentence of 10 years’ imprisonment as well as restitution of more than $195 million and forfeiture of over $1.8 million;
- Alegria faces a maximum sentence of 30 years;
- Bishoff faces a maximum sentence of 10 years as well as forfeiture of $8 million;
- Millett faces a maximum sentence of 30 years as well as forfeiture of over $2.3 million;
- Santamaria faces a maximum sentence of 10 years as well as restitution of more than $520 million and $3.2 million in forfeiture;
- Tsikman faces a maximum sentence of 10 years; and
- Saidazim was sentenced to time served.
The charges pending against Sutton in the superseding indictment are merely allegations and he is presumed innocent unless and until proven guilty.
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace plays a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including health care fraud charges, such as the crimes that the defendants committed.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys John Vagelatos, Jessica K. Weigel, Tara B. McGrath and Jonathan P. Lax are in charge of the prosecution, with assistance from Paralegal Specialists Madison Bates and Asher Martin-Rosenthal. Claire S. Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendant:
HAFIZULLAH EBADY (also known as “Hafiz Ebady”)
Age: 45
Parsippany, New JerseyCo-Conspirators Who Previously Pleaded Guilty (Awaiting Sentencing):
JOSHUA MANUEL ALEGRIA (also known as “Jboy,” “Jaxon Asher” and “Turk Malloy”)
Age: 32
Woodland Hills, CaliforniaDAVID GARY BISHOFF (also known as “Bobby Fischer”)
Age: 39
Saint George, UtahBRYCEN KAY MILLETT (also known as “Brett Johnson” and “Tommy Wilkinson”)
Age: 33
Saint George, UtahANTHONY SANTAMARIA (also known as “Big Boy,” “Wade Watts,” “Pablo Rodriguez,” “Ryan Rusty” and “Bruce Peter”)
Age: 31
North Hollywood, CaliforniaDELA SAIDAZIM (also known as “Delila,” “Gina Payne” and “Olivia Rothstein”)
Age: 34
Moscow, RussiaHERSHEL TSIKMAN (also known as “Andrew Milner,” “Andrew M.,” “Linus Caldwell,” “Adam Schneider,” “Jonathan Martin” and “H”)
Age: 30
Studio City, CaliforniaCo-Conspirator Who Remains At Large:
BRIAN MICHAEL SUTTON (also known as “Mike Summers,” “Mike Miller” and “Ryan White”)
Age: 31
Moscow, RussiaE.D.N.Y. Docket No. 21-CR-564 (S-3) (WFK)
Seven Fields Man Sentenced to 106 Months in Prison for Cocaine and Firearm ViolationsRead the Press Release
PITTSBURGH, Pa. – A resident of Seven Fields, Pennsylvania, has been sentenced in federal court to 106 months of imprisonment on his convictions for possession with intent to distribute cocaine and possession of a firearm in furtherance of that drug trafficking crime, United States Attorney Eric G. Olshan announced today.
United States District Judge William S. Stickman IV imposed the sentence on Durrell Fortson, 45.
According to information presented to the Court, on November 16, 2022, law enforcement initiated a traffic stop of a vehicle driven by Fortson. During the stop, a drug K-9 conducted an exterior sniff of the vehicle and alerted an officer to the presence of controlled substances. Law enforcement then applied for and obtained a search warrant for the vehicle. The subsequent search resulted in the seizure of two gallon-sized bags of cocaine, two kilogram wrappers with cocaine residue, a digital scale, and a .40 caliber handgun loaded with 13 rounds of ammunition. Law enforcement searched the serial number located on the loaded handgun and determined that the firearm had been reported stolen.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Pennsylvania Office of Attorney General and Drug Enforcement Administration for the investigation leading to the successful prosecution of Fortson.
Sequoyah County Resident Sentenced for Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that Terry Joseph Dunnavent, age 39, of Sallisaw, Oklahoma, was sentenced to 76 months imprisonment for illegally possessing a firearm.
The charge arose from an investigation by the Sallisaw Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On January 4, 2024, Dunnavent pleaded guilty to one count of Felon in Possession of a Firearm. According to investigators, on January 3, 2023, Sallisaw Police discovered Dunnavent in possession of a 9mm semi-automatic pistol after Dunnavent attempted to evade a routine traffic stop, crashed his vehicle, ran from the crash site, and officers gave chase. At the time of the offense, Dunnavent knowingly possessed the firearm despite having been previously convicted of a crime punishable by imprisonment for a term exceeding one year.
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 Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the sentencing hearing. Dunnavent will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney T. Cameron McEwen represented the United States.
Sequoyah County Resident Sentenced for Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that Bobby Laymone Sanders, age 64, of Sallisaw, Oklahoma, was sentenced to 27 months imprisonment for illegal possession of a firearm and ammunition.
The charge arose from an investigation by the Cherokee Nation Marshal Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On November 1, 2023, Sanders pleaded guilty to one count of Felon in Possession of Firearm and Ammunition. According to investigators, on April 13, 2023, law enforcement discovered Sanders in possession of one .40 S&W caliber semi-automatic pistol and two rounds of ammunition during the execution of a search warrant at a home in Sallisaw. At the time of the offense, Sanders had been convicted of a crime punishable by imprisonment for a term exceeding one year and knew of such conviction.
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 Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the sentencing hearing in Muskogee, Oklahoma. Sanders will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant U.S. Attorney T. Cameron McEwen represented the United States.
Rochester Felon Pleads Guilty to Possession of Firearm and AmmunitionRead the Press Release
PITTSBURGH, Pa. – A former resident of Rochester, Pennsylvania, pleaded guilty in federal court to a firearms charge, United States Attorney Eric G. Olshan announced today.
James Gilmore, 35, pleaded guilty before United States District Judge Cathy Bissoon to one count of possession of a firearm and ammunition by a convicted felon.
In connection with the guilty plea, the Court was advised that, on June 9, 2021, law enforcement identified Gilmore operating a vehicle in New Brighton, Pennsylvania, and attempted to conduct a traffic stop of Gilmore due to an active arrest warrant related to a parole violation. Gilmore fled from the traffic stop, throwing a loaded firearm from the vehicle he was driving. Gilmore subsequently abandoned the vehicle, and officers observed him flee on foot. Officers recovered a gray sweatshirt from a yard where Gilmore ran, with forensic testing of both the sweatshirt and firearm revealing Gilmore’s DNA.
At the time Gilmore possessed the firearm and ammunition, he had been previously convicted of multiple felony offenses, including a firearm and drug trafficking crime in the Court of Common Pleas in Beaver County. Federal law prohibits possession of a firearm or ammunition by a convicted felon.
Judge Bissoon scheduled sentencing for February 11, 2025. The law provides for a maximum total sentence of up to 10 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court remanded Gilmore to the custody of the U.S. Marshals Service.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The New Brighton Area Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Gilmore.
Ringleader and Insider Each Sentenced to Prison in Bank Fraud ConspiracyRead the Press Release
ALBANY, NEW YORK – Allahson Allah, age 54, of Albany, and Caeshara Cannon, age 35, of Albany, were sentenced this week to federal prison for their roles in a bank fraud conspiracy targeting SEFCU. United States Attorney Carla B. Freedman and Erin Keegan, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
According to an indictment returned last year, court records, and statements made by prosecutors in court, between February 2022 and October 2022, Allah, together with codefendant Evan Cutler, age 25, of Queensbury, New York, managed a conspiracy targeting SEFCU in which the conspirators obtained customer personal identifying information and impersonated people to fraudulently obtain cash and credit from SEFCU. Cannon was a Member Service Representative at SEFCU and provided Allah and Cutler with customer account information to use in creating counterfeit checks that were presented for negotiation at SEFCU branches all over the Capital Region. The conspirators also applied for loans at SEFCU in the names of individuals whose identities they had stolen and withdrew the proceeds in cash. In total, the conspiracy netted the conspirators $88,800, with intended losses of over $100,000.
Yesterday, Allah was sentenced by United States District Judge Anne M. Nardacci to a total term of imprisonment of 57 months, followed by 3 years’ post-release supervision, and was ordered to pay restitution to SEFCU in the amount of $88,800. Today, Cannon was sentenced by Judge Nardacci to a term of imprisonment of 16 months, followed by 2 years’ post-release supervision. Cannon was also ordered to pay restitution to SEFCU in the amount of $77,200.
Coconspirator Davon Parson, age 20, of Albany, was sentenced earlier this year to 15 months’ incarceration followed by 2 years’ post-release supervision, with restitution in the amount of $9,000, following his plea to bank fraud conspiracy and aggravated identity theft. Coconspirators Cutler and Dnauticah Taylor-Sterman, age 21, of Albany, have also pled guilty to bank fraud conspiracy and aggravated identity theft and are scheduled to be sentenced later this year.
HSI investigated the case, with assistance from the Bethlehem Police Department. Assistant United States Attorney Benjamin S. Clark is prosecuting this case.
Repeat Sacramento-Area Sex Offender Sentenced to 27 Years in Prison for Sexual Exploitation of a MinorRead the Press Release
SACRAMENTO, Calif. — Sam Moss Kerfoot, 28, of Carmichael, was sentenced today by U.S. District Judge Dale A. Drozd to 27 years in prison for sexual exploitation of a minor, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in April 2022, Kerfoot used the online application Omegle to meet teenage girls in the Sacramento area, including Victim 1, who was a minor. On multiple occasions, Kerfoot picked up the victim from school and took her off campus to have sexual intercourse with her, and Kerfoot took a video of this sexual exploitation. Law enforcement officers searched Kerfoot’s phone and located 73 videos of child sexual abuse material. Law enforcement officers also searched Kerfoot’s SnapChat account and learned that Kerfoot had used Snapchat to send and receive child pornography. Kerfoot was previously convicted for crimes related to the sexual abuse of a minor.
This case was the product of an investigation by the Sacramento Valley Hi-Tech Crimes Task Force Internet Crimes Against Children Unit, including the Sacramento County Sheriff’s Office, with assistance from the Federal Bureau of Investigation and Homeland Security Investigations. Assistant U.S. Attorney Emily G. Sauvageau prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Prior felon pleads guilty to multiple drug and gun chargesRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Nader Ngoopos a/k/a Nike, 25, of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to possess with intent to distribute, and distribute, 500 grams or more of cocaine and 100 grams or more of heroin, possession of a firearm in furtherance of a crime of violence, and being a felon in possession of a firearm and ammunition. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life and a $5,000,000 fine.
Assistant U.S. Attorney Evan K. Glaberson, who is handling the case, stated that between 2016, and late 2018, Ngoopos agreed with others to obtain cocaine and heroin in the Buffalo area and travel to Olean, NY, to distribute the cocaine and heroin. Ngoopos personally traveled to Olean on at least a weekly basis, selling cocaine and heroin out of various locations in Olean, including North 8th Street and South 11th Street. Co-conspirators also sold cocaine and heroin as part of the conspiracy on a weekly basis.
On October 15, 2018, Ngoopos participated in an armed robbery at St. Bonaventure University in Olean, with two others. The three gained entry to a dormitory at St. Bonaventure, and broke into a dorm room where Ngoopos, who possessed a firearm, believed he and his co-conspirators would find marijuana and money. Once they gained entry, Ngoopos and his co-conspirators pointed their firearms at the heads of the two occupants of the dorm room, threatened them, and then stole about an ounce of marijuana and approximately $300 - $400.
On September 2, 2021, law enforcement officers observed Ngoopos get into a vehicle in Buffalo. Officers attempted to stop the vehicle, but it sped away leading officers on a high-speed chase. Eventually, the car came to a stop on East Amherst Street. As the car came to a stop, Ngoopos got out of the car and ran away, dropping a pistol. In June 2020, Ngoopos was convicted in Cattaraugus County Court of a felony and legally prohibited from possessing a firearm and ammunition.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the Olean Police Department, under the direction of Chief Ron Richardson, the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy Whitcomb, the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia, and the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia.
Sentencing is scheduled for February 21, 2025, at 1:00 p.m. before Judge Sinatra.
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Press Release by the United States Attorney Relating to the November 2024 General ElectionRead the Press Release
United States Attorney Jacqueline C. Romero announced today that two District Election Officers will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election. The District Election Officers (DEOs) for the Eastern District of Pennsylvania are responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” U.S. Attorney Romero said. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
“The franchise is the cornerstone of American democracy,” U.S. Attorney Romero said. “We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, the DEOs will be on duty in this District while the polls are open. The public can reach them by calling 215-861-8200 and asking for the District Election Officers.”
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public by calling 215-418-4000.
Complaints about possible violations of the federal voting rights laws can also be made directly to the Civil Rights Division in Washington, D.C., by complaint form at https://civilrights.justice.gov/ or by phone at 1-800-253-3931.
“Ensuring free and fair elections depends in large part on the assistance of the American electorate,” U.S. Attorney Romero said. “It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Please note, however, in the case of a crime of violence or intimidation, call 911 immediately before then contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
Philadelphia Man Who Made Antisemitic and Islamophobic Threats Sentenced to 16 Months in PrisonRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Yaniv Gola, 51, of Philadelphia, Pennsylvania, was sentenced today by United States District Court Judge Kai N. Scott to 16 months’ incarceration followed by three years of supervised release for interstate communication of threats.
In February of this year, Gola was charged by information with using a Voice Over Internet Protocol service to mask his phone number and make telephone calls threatening to injure, rape, and kill eight different victims between August 2, 2022, and November 5, 2023. He pleaded guilty to the eight counts against him on February 14.
On one of these calls, Gola threatened, “You f***ing Jew, now I know where you are. I’m going to kill all you Jews … You all should be shoved back into ovens. I’m going down to [victim’s business location] to kill you.” On another call, Gola said to a victim, “I want to put a bullet in your head … You f***ing Muslims.” In the most recent call, Gola threatened a victim, “You’re Jewish, I’m from Hamas. You’re animals and pigs … If you don’t leave that place, we’re going to blow you up.”
“Yaniv Gola made hundreds of these calls and texts, terrorizing his victims with incredibly vile, violent threats,” said U.S. Attorney Romero. “He learned where they lived and worked, deploying those details just to heighten their fear. My office and the FBI will continue to hold accountable anyone making such cruel and criminal threats.”
“The details of this case serve as an alarming reminder of threats members of our community face because of their beliefs,” said Wayne A. Jacobs, Special Agent in Charge of the FBI’s Philadelphia Field Office. “We thank our law enforcement partners who work alongside us every day as we work to ensure the safety and security of our communities. Let today’s sentence serve as a reminder that the FBI will continue to diligently pursue those who make violent threats against those we are charged to protect.”
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney J. Jeanette Kang. The FBI was assisted by the Philadelphia Police Department, the Media Borough Police Department, the Cinnaminson Township (N.J.) Police Department, the Newtown Township (Delaware County) Police Department, and the Haddonfield (N.J.) Police Department.
Penn State Agrees to Pay $1.25 Million to Resolve False Claims Act Allegations Relating to Non-Compliance with Contractual Cybersecurity RequirementsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that The Pennsylvania State University (Penn State) has agreed to pay $1,250,000 to resolve allegations that it violated the False Claims Act by failing to comply with cybersecurity requirements in 15 contracts or subcontracts involving the Department of Defense (DoD) or National Aeronautics and Space Administration (NASA).
The settlement resolves allegations that, between 2018 and 2023, Penn State failed to implement cybersecurity controls that were contractually required by DoD and NASA and did not adequately develop and implement plans of action to correct deficiencies it identified. DoD requires contractors to submit summary level scores reflecting the status of their compliance with applicable cybersecurity requirements on covered contracting systems used to store or access covered defense information. The United States alleged that Penn State submitted cybersecurity assessment scores to DoD that reflected it had not implemented certain controls, but misrepresented the dates by which it would implement them and did not pursue plans of action to do so. The United States also alleged that in performing certain of the contracts and subcontracts Penn State did not use an external cloud service provider that met DoD’s security requirements for covered defense information.
“Federal contractors who store or access covered defense information must take required steps to protect that sensitive information from bad actors,” said U.S. Attorney Romero. “When they fail to meet their cybersecurity obligations, we and our law enforcement partners will use every available tool to remedy the situation.”
“As our cyber adversaries become increasingly sophisticated, the importance of cybersecurity in safeguarding Department of Defense research, development and acquisitions information cannot be overstated,” said Special Agent in Charge Greg Gross, Naval Criminal Investigative Service Economic Crimes Field Office. “NCIS, along with our federal partners, are committed to investigating entities who fail to implement contractual requirements designed to protect Department of the Navy critical information.”
“Protecting the integrity of Department of Defense (DoD) procurement activities is a top priority for the DoD Office of Inspector General's Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Failing to comply with DoD contract specifications and cybersecurity requirements puts DoD information and programs at risk. We will continue to work with our law enforcement partners and the Department of Justice to investigate allegations of false claims on DoD contracts.”
“Safeguarding sensitive NASA and DoD data is crucial to ensuring that it does not fall into the hands of our adversaries or bad actors,” said Assistant Inspector General for Investigations Robert Steinau of NASA. “The University’s inability to adequately address known deficiencies not only put sensitive information at risk but also undermined the integrity of our government’s cybersecurity efforts. We remain committed to holding entities accountable when they fail to meet critical security standards, as demonstrated by this case.”
On October 6, 2021, Deputy Attorney General Lisa Monaco announced the department’s Civil Cyber-Fraud Initiative, which aims to hold accountable entities or individuals that put sensitive information at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols, or knowingly violating obligations to monitor and report cybersecurity incidents. Information on how to report cyberfraud can be found here.
The settlement resolves a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that a defendant has submitted false claims for government funds and receive a share of any recovery. The settlement in this case provides for the whistleblower, Matthew Decker, former Chief Information Officer for Penn State’s Applied Research Laboratory, to receive a $250,000 share of the settlement amount. The qui tam case is captioned U.S. ex rel. Decker v. Pennsylvania State University., No. 2:22-cv-03895 (E.D Pa.).
The resolution obtained in this matter was the result of a coordinated effort between the United States Attorney’s Office for the Eastern District of Pennsylvania and the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, with assistance from NCIS, NASA-OIG, Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Army Criminal Investigation Division, Naval Audit Service, the Defense Contract Management Agency’s Defense Industrial Base Cybersecurity Assessment Center, and the Air Force Material Command.
The matter was handled in the U.S. Attorney’s Office for the Eastern District of Pennsylvania by Assistant U.S. Attorneys Rebecca S. Melley and Peter Carr and Auditor Dawn Wiggins.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Owings Mills Woman Sentenced to Federal Prison for Wire Fraud and Receiving Stolen Cars Bound for Illegal Shipment to West AfricaRead the Press Release
Baltimore, Maryland – U.S. District Chief Judge George Levi Russell, III, sentenced Maimouna Bagayoki, age 54, of Owings Mills, Maryland, to 42 months in federal prison, followed by two years of supervised release, and $60,569.87 restitution, for Wire Fraud and Receipt of Stolen Motor Vehicles bound for illegal shipment to West Africa.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Michael McCarthy of Homeland Security Investigations (HSI) Baltimore; Port of Baltimore Director Adam Rottman of U.S. Customs and Border Protection; Baltimore Police Department Commissioner Richard Worley; and Baltimore County Police Department Chief Robert McCullough.
According to the plea agreement, in 2021, Bagayoko worked with others to bring stolen luxury vehicles into Maryland where they would be loaded onto large cargo shipping containers and taken to the Port of Baltimore. Then, using fraudulent documentation and paperwork, Bagayoko concealed the containers’ contents – Bagayoko emailed and texted the fake documents to the shipping company. The shipping containers were bound for West Africa. The value of the vehicles that were recovered was over $650,000, most of which were stolen from the homes of victims living in New Jersey and New York.
United States Attorney Erek L. Barron commended the HSI, CBP, Baltimore City Police and Baltimore County Police for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Colleen Elizabeth McGuinn, 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.
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Orlando Drug Trafficker Sentenced to Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Matias Sanchez Cardosa, Jr. (53, Orlando) to 14 years in federal prison for possession with intent to distribute 500 grams or more of cocaine. Cardosa entered a guilty plea on June 10, 2024.
According to court documents, on March 4, 2024, a confidential informant (CI) working with the Drug Enforcement Administration (DEA) was in contact with Javier Alejandro Anaya-Leal about purchasing cocaine. Anaya-Leal directed the CI to meet him at his residence in Ruskin. Anaya-Leal informed the CI that the courier was on his way with the cocaine from Orlando.
A short while later, the courier, later identified as Cardosa, arrived at the home. The CI, Anaya-Leal, and Cardosa met inside of Anya-Leal’s residence. The CI later advised that he had observed Cardosa arrive with two bags. The CI recounted that one of the bags contained approximately three kilograms of cocaine and the other bag contained approximately one and a half kilograms of cocaine.
The CI departed from the residence and informed Anaya-Leal and Cardosa that he was going to retrieve money. The pair were later arrested by DEA agents.
Agents conducted a search of Cardosa’s vehicle. During the search, agents located a multi-colored bag in the trunk that contained approximately one and a half kilograms of cocaine. Additionally, on the front passenger floorboard, there was a blue bag that contained three brick-like packages of suspected cocaine. A DEA forensic chemist tested the substances recovered from Cardosa’s vehicle and opined that the substance was cocaine and weighed more than four kilograms.
Anaya-Leal previously pleaded guilty for his role in this case. His sentencing hearing is scheduled for November 1, 2024.
This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Shauna S. Hale.
Orange County Supervisor Agrees to Plead Guilty to Bribery Conspiracy Involving $10 Million in COVID Relief FundsRead the Press Release
SANTA ANA, California – The District One Supervisor on the Orange County Board of Supervisors has agreed to plead guilty to a felony federal charge for accepting more than $550,000 in bribes for directing and voting in favor of more than $10 million in COVID funds to a charity affiliated with one of his daughters, Rhiannon Do, the Justice Department announced today.
Andrew Hoang Do, 62, agreed to plead guilty to one count of conspiracy to commit bribery concerning programs receiving federal funds. His plea agreement and information were filed today. He is expected to make his initial appearance in United States District Court in Santa Ana later this month.
Do is one of five supervisors on the Orange County Board of Supervisors, which is responsible for the county’s $9 billion annual budget. As a county supervisor, Do represents the cities of Cypress, Fountain Valley, Garden Grove, Huntington Beach, La Palma, Los Alamitos, Midway City, Rossmoor, Seal Beach, and Westminster. He has served as a county supervisor since February 2015.
As part of his plea agreement, Do admitted that in exchange for more than $550,000 in bribes, beginning in 2020, he voted in favor of and directed millions of dollars in COVID-related funds to Viet America Society (VAS), a charity affiliated with his daughter. Do directed and worked together with other county employees to approve contracts with – and payments to – VAS. Do further admitted he acted corruptly and abused his position of trust as a county supervisor.
“By putting his own interests over those of his constituents, the defendant sold his high office and betrayed the public’s trust,” said United States Attorney Martin Estrada. “Even worse, the money he misappropriated and accepted as bribe payments was taken from those most in need – older adults and disabled residents. Our community deserved much better. Corruption has no place in our politics and my office will continue to hold accountable officials who cheat the public.”
“While millions of Americans were dying from COVID-19, Orange County Supervisor Andrew Do was the fox in the hen house personified, raiding millions in federal pandemic relief funds and orchestrating the money intended to feed elderly and ailing residents to instead fill the pockets of insiders, himself and his loved ones all while portraying a public persona of a hometown hero guiding his constituents through the uncertainty and fear of a global pandemic,” said Orange County District Attorney Todd Spitzer. “No one is above the law in Orange County and these charges should serve as a powerful warning to elected officials everywhere that actions have consequences and justice will be swift and it will be decisive.”
“Elected officials have a responsibility to implement programs and policy that will benefit all the people they serve. Their role is not to squander money, solicit bribes, or to steer funds to organizations or persons, wherein a coordinated effort allows those funds to make their way to family members or friends,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Today's plea is another exclamation point to the FBI's commitment to ensuring that all local, state, or federal elected and appointed public officials perform their duties with honesty, integrity, and commitment to all the constituents they serve.”
Shortly after receiving the COVID-related public funds from the county government – funds that were intended to provide meals to the elderly – VAS from April 2021 to February 2024 paid a business identified in court documents as “Company #1” $100,000 or more per month, which totaled approximately $3,804,000. In September 2021, VAS increased its payments to Company #1 from $100,000 to $108,000 per month. Company #1 then began paying Rhiannon Do – Do’s daughter – $8,000 per month, totaling by February 2024 approximately $224,000.
In his plea agreement, Do admitted that in addition to the $8,000 monthly payments that Company #1 had made to Do’s daughter, in July 2023, Company #1 also transferred a total of $381,500 from the funds it had received from VAS to an escrow company. In July 2023, Do’s daughter used the escrow account funds to purchase a home, in her name, in Tustin for $1,035,000. As part of that transaction, a mortgage for more than $600,000 was obtained by a loan application that contained false information and with fabricated documents. In her related diversion agreement attached as an exhibit to Do’s plea agreement, Do’s daughter admitted her conduct was criminal and violated federal and state law.
Do also admitted that the $381,500 from Company #1 that his daughter had used to purchase the Tustin house in 2023 was a disguised bribe to him. He also admitted that an additional $100,000 in payments sent to his other daughter, including three $25,000 checks from Company #2 – an air conditioning company that had been paid by VAS – also were bribes to him.
Some of the bribe funds that had been funneled to his daughters were spent for his direct benefit. For example, during 2022, a total of $14,849 of funds that had been funneled to Do’s daughters was used to make property tax payments for properties in Orange County owned by Do and his wife. Approximately $15,000 was used to pay for one of Do’s credit card bills.
Do knew that VAS was not providing all the meals for which the county had paid VAS. Instead, much of the funds were used for the benefit of insiders, including to buy real estate in the name of both Do’s daughter and Company #1, bribe payments to both of Do’s daughters, payments to other conspirators, payments to other companies affiliated with VAS’s listed officers, and through hundreds of thousands of dollars in cash withdrawals.
“Mr. Do had a duty to act in the best interest of the citizens of Orange County. He neglected that duty and misused the financial system to enrich himself,” said Special Agent in Charge Ryan Korner with the Federal Deposit Insurance Corp. Office of Inspector General. “Public corruption degrades the public’s confidence in our political system, and FDIC OIG is proud to work alongside our law enforcement partners to identify and hold accountable individuals who abuse public service for private gain.”
“Andrew Do was entrusted to ensure taxpayer dollars were used responsibly and for the purposes intended,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Instead, when his constituents depended on COVID relief programs, Mr. Do exploited his position on the Orange County Board of Supervisors not only to influence channeling of funds to the Viet America Society, but also to accept bribes that were used to purchase a home, pay property taxes, and even to pay fictitious incomes to family members. Combating public corruption is one of the most important roles federal law enforcement agencies play in our local communities, and we are proud to be a partner during this investigation.”
“Today’s actions shows that this elected official used his position of trust for personal gain. He didn’t think he would get caught. He was wrong,” said Adam Shanedling, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Western Regional Office. “The OIG is proud to have been a part of the task force that investigated this matter and we’ll continue to work with our law enforcement partners to help safeguard the integrity of federal funds.”
The plea agreement requires Do to forfeit any assets connected to the bribery scheme, including the Tustin property his daughter purchased in 2023. As part of his daughter’s related diversion agreement, she also agreed to forfeit the Tustin property. The plea agreement requires Do to pay full restitution by paying back the bribe money he and his daughters received, which he has agreed to pay in full before he is sentenced. In August 2024, the government seized more than $2.4 million from VAS’s and Company #1’s bank accounts.
In a related agreement with the Orange County District Attorney’s Office (OCDA), attached as an exhibit to Do’s plea agreement, Do has agreed to immediately resign from the Orange County Board of Supervisors and to forfeit any pension credit for the time where he participated in the bribery conspiracy.
Once Do enters his guilty plea, he will face a statutory maximum sentence of five years in federal prison.
The FBI; the Orange County District Attorney’s Office Bureau of Investigation; the Federal Deposit Insurance Corp. Office of the Inspector General; IRS Criminal Investigation; and the United States Department of Education Office of the Inspector General investigated this matter.
This matter is being jointly prosecuted by the United States Attorney’s Office and OCDA. The prosecution is being led by Assistant United States Attorneys Charles E. Pell, Bradley E. Marrett, and Tara Vavere of the United States Attorney’s Office and Senior Deputy District Attorney Avery T. Harrison and Deputy District Attorneys Anthony J. Schlehner and L.J. Berger of the OCDA.
Any member of the public who has information related to this or any other public corruption matter in Orange County is encouraged to send information to the FBI’s email tip line at https://tips.fbi.gov and/or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
Operator of Tow Truck and Auto Repair Company Charged with Racketeering Conspiracy and MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging CHRISTIAN LUGO, a/k/a “Coco,” with racketeering conspiracy, murder in aid of racketeering, conspiracy to commit murder in aid of racketeering, attempted murder and assault with a deadly weapon in aid of racketeering, and related firearms charges. These charges relate to LUGO’s leadership role in a racketeering conspiracy that used fraud and violent intimidation to run a tow truck and auto repair shop known as Certified Auto. On February 7, 2022, LUGO ordered a co-conspirator who worked for him at Certified Auto to shoot at members of a rival tow truck company, which resulted in the death of Gloria Ortiz. LUGO was arrested this morning and will be presented today in Manhattan federal court before U.S. Magistrate Judge Gary Stein. The case is assigned to U.S. District Judge Dale E. Ho.
U.S. Attorney Damian Williams said: “As alleged, Christian Lugo corrupted a tow truck and auto repair business in the Bronx and ran that enterprise by engaging in rampant fraud and serious acts of violence. Lugo’s alleged rivalry with other tow truck companies culminated in him allegedly ordering another member of his enterprise to shoot at rivals, which resulted in the murder of Gloria Ortiz. We hope that these charges bring some measure of comfort to Ms. Ortiz’s family and make clear that this Office and our law enforcement partners are dedicated to prosecuting those who allegedly commit senseless violence in the name of increasing their power in a criminal enterprise.”
FBI Assistant Director in Charge James E. Dennehy said: “Christian Lugo allegedly engaged in a racketeering conspiracy using violence as part of the operation of a Bronx-based tow truck and auto repair business. As alleged, his callous actions directly led to the 2022 murder of Gloria Ortiz as well as additional crimes and fraud. FBI New York will not sit idly by and allow violent crime – let alone murder – to be used as a means to operate a business.”
As alleged in the Indictment:[1]
LUGO, along with others, corrupted the operations and activities of Certified Auto, which was a company that provided towing and auto repair services to vehicles damaged in car accidents. LUGO and his co-conspirators used Certified Auto to commit wire, mail, and insurance fraud and to assert control over the towing and auto repair industry in their territory in the Bronx, New York, using violence and threats of violence.
On February 7, 2022, LUGO ordered a co-conspirator who worked for him at Certified Auto to shoot at members of a rival tow truck company, which the co-conspirator did. The resulting gunfire caused the death of Gloria Ortiz and non-fatal injuries to two other people outside of the Certified Auto shop.
* * *
LUGO, 37, of the Bronx, New York, is charged with racketeering conspiracy, which carries a maximum term of life in prison; murder in aid of racketeering, which carries a mandatory minimum term of life in prison or death; conspiracy to commit murder in aid of racketeering, which carries a maximum term of 10 years in prison; attempted murder and assault with a deadly weapon in aid of racketeering, which carries a maximum term of 20 years in prison; and two firearms offenses, each of which carries a mandatory minimum term of 10 years in prison, which must run consecutive to any other term of imprisonment.
The mandatory minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the work of Special Agents from the FBI New York Safe Streets Task Force and the New York City Police Department. Mr. Williams also thanked Bronx County District Attorney’s Office for their assistance in the investigation. He added that the investigation is ongoing.
This case is being handled by the Office’s Violent & Organized Crime Unit. Assistant U.S. Attorneys Michael Herman, Andrew Jones, and Ni Qian are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Omaha Man Sentenced for Methamphetamine and Firearm OffensesRead the Press Release
United States Attorney Susan Lehr announced that Alfred Rogers, age 63, of Omaha, Nebraska, was sentenced October 17, 20224 in federal court in Omaha for possession with intent to distribute 50 grams or more of actual methamphetamine and possessing a firearm in furtherance of drug trafficking. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Rogers to 180 months’ imprisonment for the drug count and to 300 months, consecutive, for the firearm offense for a total of 480 months. There is no parole in the federal system. After Rogers is released from prison, he will begin a 10-year term of supervised release. Rogers’ sentence was enhanced due to a prior serious felony drug conviction for conspiracy to distribute and possession with intent to distribute a controlled substance. Rogers will also forfeit $45,906.00 in United States currency to the United States as drug proceeds.
On May 23, 2022, officers of the Omaha Police Department Narcotics and SWAT units executed a search warrant at a home in Omaha. Officers located Rogers at the home. During the search, officers located 428 grams of meth, 33 grams of cocaine, 1,968 grams of marijuana, and 95 fentanyl pills. Officers also located a 9mm handgun in the ceiling rafters and $45,906 in U.S. currency.
Rogers was found guilty by a jury on July 18, 2024.
This case was investigated by the Omaha Police Department.
Oklahoma Man Sentenced to 30 Years in Prison for Child Exploitation CrimeRead the Press Release
CHARLESTON, W.Va. – Jerrod Lee Sharp, 41, of Ponca City, Oklahoma, was sentenced on Monday, October 21, 2024, to 30 years in prison, to be followed by a lifetime of supervised release, for attempted enticement of a minor. Sharp must also register as a sex offender.
According to court documents and statements made in court, on July 17, 2022, Sharp began messaging a woman located in West Virginia whom he believed to be the mother of two minor girls. Sharp repeatedly stated in his messages to the woman that he wished to engage in sexual relations with both girls, and that he wished to travel to West Virginia to meet them.
Sharp exchanged over 1,600 messages with the woman. On July 30, 2023, Sharp flew from Oklahoma to Charleston, West Virginia, where he planned to meet the woman and the two minor girls. Upon his arrival in Charleston, Sharp was arrested by law enforcement officers.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) West Virginia Human Trafficking and Child Exploitation Task Force and the West Virginia State Police.
United States District Judge Joseph Robert Goodwin imposed the sentence. Assistant United States Attorneys Jennifer Rada Herrald and Francesca C. Rollo prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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-126.
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Muskogee Resident Sentenced for RobberyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Patrick Lamar Tims Jr., age 22, of Muskogee, Oklahoma, was sentenced to 12 months in prison for the January 2024 robbery of a Muskogee Family Dollar store.
The charges arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation.
On May 16, 2024, Tims pleaded guilty to one count of Robbery in Indian Country. According to investigators, on January 16, 2024, Tims approached a clerk at a Family Dollar store in Muskogee and demanded $50 in cash. Tims had his hand in his vest pocket and the clerk feared Tims was armed with a gun. The crime occurred in Muskogee County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Raúl M. Arias-Marxuach, Chief Judge in the United States District Court for the District of Puerto Rico, sitting by assignment, presided over the hearing in Muskogee, Oklahoma. Tims will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant U.S. Attorney Joshua Satter represented the United States.
Morris County Man Charged with Sexually Exploiting MinorRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man has been charged with producing and possessing images of child sexual abuse and enticement of a minor, U.S. Attorney Philip R. Sellinger announced today.
Carlos Xavier Urbina-Gutierrez, aka Luis Urbina-Gutierrez, 23, of Wharton, New Jersey, is charged by complaint with possessing and producing child pornography and enticing a minor to produce child pornography. Urbina-Gutierrez appeared today before U.S. Magistrate Judge Leda Dunn Wettre.
According to documents filed in this case and statements made in court:
In 2023, Urbina-Gutierrez, posing as a student at a high school in Morris County, New Jersey. Urbina-Gutierrez used a fake online female persona on social media to communicate online with minor male victims who were students at the high school. On Dec. 25, 2023, Urbina-Gutierrez used these social media accounts to solicit one of the minor victims to engage in sexually explicit behavior while participating in a video call. Urbina-Gutierrez then surreptitiously recorded the video call and saved it to his phone. A forensic search of Urbina-Gutierrez’s cell phone revealed an approximately one-minute video of the video call with the victim.
The charge of production of child pornography carries a mandatory minimum penalty of 15 years in prison and a maximum penalty of 30 years in prison. The charge of enticement of a minor carries a mandatory minimum penalty of 10 years and a maximum penalty of life in prison. The charge of possession of child pornography carries a maximum penalty of 10 years in prison. Each charge also includes a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents and members of the Child Exploitation Group of the Newark Field Office of Homeland Security Investigations, under the direction of Acting Special Agent in Charge Spiros Karabinas; the Borough of Wharton Police Department, under the direction of Chief Dave Young; and the Morris County Prosecutor’s Office, under the direction of Prosecutor Robert J. Carroll, with the investigation leading to the charges and arrest.
The government is represented by Assistant U.S. Attorney Michael A. Hardin of the U.S. Attorney’s Office Organized Crime and Gangs Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
urbinagutierrez.complaint.pdfMissoula man sentenced to 15 years in prison for meth, fentanyl traffickingRead the Press Release
MISSOULA — A Missoula man convicted by a federal jury of trafficking methamphetamine and fentanyl in the community and possessing firearms in relation to drug dealing was sentenced today to 15 years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said today.
After a two-day trial in June, the jury found Keith Andre Green, 50, guilty of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances and possession of firearms and ammunition in furtherance of a drug trafficking crimes as charged in an indictment.
U.S. District Judge Donald W. Molloy presided.
“Green flooded the Missoula area with pounds of meth and thousands of fentanyl pills, poisoning an untold number of Montanans. But he was even more dangerous because he traded drugs in exchange for firearms. It’s the kind of danger we should not have on our streets and indeed, he won’t be after today’s significant sentence. For the next 15 years, Green will no longer be able to peddle drugs and guns, and we will continue to pursue those like him to ensure they end up in federal prison, too,” U.S. Attorney Laslovich said.
In court documents and at trial, the government alleged that from about May 2022 until September 2023, Green and others trafficked methamphetamine and fentanyl in Missoula and Mineral counties and possessed firearms. Law enforcement received information that Green was a major drug distributor and that he went to Spokane, Washington, three to five days a week and received about one pound of meth and a boat of fentanyl, which is 1,000 pills, on each trip. Green also traded drugs for firearms. Law enforcement executed search warrants in February 2023 on Green’s vehicle and residence and another search warrant on his residence in September 2023. Officers seized a total of 4,205 fentanyl pills and approximately 2,204 grams, which is approximately 4.8 pounds, of meth. Officers located approximately six firearms and ammunition at his residence.
The U.S. Attorney’s Office prosecuted the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Missoula High Intensity Drug Trafficking Area Task Force, Montana Division of Criminal Investigation and Missoula County Attorney’s Office conducted the investigation.
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.
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Member of Multi-State Gas Pump Skimming Device and Fuel Theft Ring Pleads Guilty to Aggravated Identity Theft and Fraud ChargesRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Deonelky Tabares Cid (36, Tampa) has pleaded guilty to conspiracy, four counts of wire fraud, six counts of access device fraud, and one count of aggravated identity theft. Cid faces a minimum penalty of 2 years in federal prison on the count of aggravated identity theft, up to 20 years in federal prison on each count of wire fraud, up to 10 years in federal prison on each count of access device fraud, up to 5 years in federal prison on the conspiracy count, and payment of restitution to the victims he and his co-defendants defrauded. No sentencing date has been set.
According to court documents, Cid and his co-conspirators worked together to install skimmers on gas pumps to include gas stations in Alabama, Louisiana, and Northern Florida, including the Florida Panhandle. The conspirators used the skimmers to illegally obtain credit and debit card account numbers involved with the purchase of fuel by customers at the gas pump. Using the account numbers stolen by the skimmers, they subsequently made counterfeit credit and debit cards and then, used them to purchase large amount of diesel fuel.
During the conspiracy, Cid and others drove vehicles that contained a fuel bladder system. This system allowed the conspirators to fake pumping gas into the vehicle’s gas tank when in fact the diesel fuel was being pumped into the fuel bladder system. Analysis by law enforcement of fuel purchases, vehicle tracker data, gas station video surveillance, and real time surveillance of the conspirators determined that Cid and other conspirators drove to multiple case stations throughout Northern Florida. After obtaining the gas, the conspirators offloaded the stolen fuel into 9,500-gallon tanker trucks at a fuel yard. The stolen fuel was then sold to a gas station associated with one of the co-conspirators.
The co-defendants, Luis Edel Trujillo Pena (29, Miami), Deyvis Hernandez (37, Miami), Luis Ernesto Vigil Ochoa (32, Miami), and Isvaldo Guerra Perdomo (38, Jacksonville) are set for trial in January 2025.
This case was investigated by the Federal Bureau of Investigation, the Florida Department of Agriculture and Consumer Services, the Florida Highway Patrol, the Jacksonville Sheriff’s Office, the U.S. General Services Administration - Office of Inspector General, and the U.S. Secret Service – Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Media Advisory – U.S. Attorney to Announce Charges Related to 2023 Quintuple Murder in Sampson CountyRead the Press Release
RALEIGH, N.C. – United States Attorney Michael F. Easley, Jr., Sampson County Sheriff Jimmy Thornton, and other state and federal law enforcement partners, will hold a press conference tomorrow to announce indictments and arrests related to the October 2023 murder of five people in Clinton.
WHERE: U.S. Attorney’s Office – 150 Fayetteville Street, Suite 2100, Raleigh, NC 27601
WHEN: Wednesday, October 23rd at 10:30 a.m.
Media: please arrive by 10:00 a.m. for set up.
For logistical information in advance of the media availability, please contact Katie Holcomb at [email protected]. No case specific information is available until the press conference.
Man Sentenced to 5 Years in Federal Prison for Newington Gun Store BurglaryRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that TROY HARRIS, 30, was sentenced today by U.S. District Judge Victor A. Bolden in New Haven to 60 months of imprisonment, followed by three years of supervised release, for a Newington gun store burglary in September 2021.
According to court documents and statements made in court, shortly after midnight on September 5, 2021, Harris, who had absconded from state parole, approached a woman in the parking lot of a supermarket in Bristol. Pointing what appeared to be handgun at the victim, Harris demanded that she leave her car and give him the keys. After the victim complied, Harris threw her to the ground and drove and away in her car.
In the early morning hours of September 7, 2021, Harris drove the victim’s car to Hoffman’s “Guns for the Good Guys,” a federal firearms licensee located in Newington, and crashed it through the store’s front entrance. He then entered the store, kicked out a display case, and stole five handguns before fleeing the scene on foot. He was arrested the next day.
Judge Bolden ordered Harris to pay restitution of $36,166.30.
Harris has been detained since his arrest. On July 13, 2023, he pleaded guilty to theft of firearms from a licensee.
State charges against Harris relating to the carjacking are pending.
Only one of the five stolen firearms has been recovered by law enforcement.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Newington and Bristol Police Departments.
The case was prosecuted by Assistant U.S. Attorney Daniel E. Cummings through the Justice’s Department’s Project Safe Neighborhoods (PSN) program, 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.
U.S. Attorney Avery thanked the State’s Attorney’s Office for the Judicial District of New Britain for its close cooperation in investigating and prosecuting this matter.
Man Arrested for Exposing Himself on an AircraftRead the Press Release
BOSTON – A man was arrested and charged yesterday for allegedly masturbating and exposing himself within the view of two other passengers seated near him on board a flight from Abu Dhabi, United Arab Emirates to Boston, Mass. yesterday.
Krishna Kunapuli, 39, of India, was charged by criminal complaint with one count of lewd, indecent and obscene acts while in the special aircraft jurisdiction of the United States. Kunapuli was arrested yesterday and will appear in federal court in Boston later today.
According to the charging documents, Kunapuli allegedly made unwanted sexual advances toward a female passenger on board an Etihad Airlines flight, including touching her hair and taking pictures of her without her permission. After a crew member intervened, Kunapuli returned to his seat.
It is alleged that, later in the flight, two male passengers seated near Kunapuli noticed Kunapuli masturbating under a blanket and, at times, with his penis fully exposed. One of the passengers reported this conduct to a flight attendant who intervened and alerted law enforcement.
The charge of lewd, indecent and obscene acts while in the special aircraft jurisdiction of the United States provides for a sentence of up to 90 days in prison, up to one year of supervised release and a fine of up to $5,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Colonel Geoffrey D. Noble of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Elianna J. Nuzum of the Major Crimes Unit is prosecuting the case.
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.
Macon Resident Pleads Guilty to Distributing FentanylRead the Press Release
MACON, Ga. – A Macon resident with a criminal history admitted to distributing fentanyl in federal court today.
Gary Hollingshed, 31, of Macon, pleaded guilty to distribution of fentanyl before U.S. District Judge Marc Treadwell on Oct. 22. Hollingshed faces a maximum of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine. Sentencing is scheduled for Jan. 8, 2025. There is no parole in the federal system.
“Fentanyl is a killer, and fentanyl dealers in Middle Georgia will face federal prosecution and stiff penalties,” said U.S. Attorney Peter D. Leary. “Working with our law enforcement and community partners, we will continue our combined efforts to prevent fentanyl distribution and hold fentanyl traffickers accountable.”
“This career criminal is a tragic example of individuals who have no regard for the safety of our community,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “DEA will continue to bring to justice drug traffickers who drive addiction and destroy communities.”
“It is good that justice has been served concerning the illegal deeds of Gary Hollingshed,” said Bibb County Sheriff David Davis. “His prosecution was a result of diligence and dedication by the Bibb County Sheriff’s Office, the Monroe County Sheriff’s Office and our federal partners. This conviction will assure that citizens are safer from the deadly distribution of fentanyl.”
According to documents and statements made public in court, federal and local agencies began investigating Hollingshed for distributing fentanyl, heroin and methamphetamine in Macon. Using a confidential source and surveillance, agents conducted their first controlled purchase of methamphetamine from Hollingshed in the parking lot of a hotel in Macon on Feb. 10, 2022, purchasing approximately 83.9 grams of 98% pure methamphetamine from Hollingshed. A second similar controlled purchase occurred on Feb. 16, 2022, at a local store in Macon. While under surveillance, Hollingshed asked an undercover agent acting as the buyer if he wanted heroin or fentanyl; the undercover agent requested heroin. The substance thought to be heroin was actually a fentanyl mixture weighing 28.56 grams. Hollingshed also sold the undercover agent 140.1 grams of methamphetamine.
Hollingshed was taken into custody in Monroe County on March 9, 2022, after a trip to the Atlanta area to resupply. When deputies stopped the car for a malfunctioning taillight off I-75, law enforcement smelled marijuana. Three preschool-aged children were in the car. Agents found nearly a kilogram of methamphetamine in the car and 56.30 grams of fentanyl. On March 15, 2022, agents executed a search warrant at Hollingsworth’s supplier’s residence in Woodstock, Georgia, and seized more than a half-kilogram of methamphetamine, an AR-15 rifle, a shotgun, two Glock pistols, a Ruger pistol, cocaine, crack cocaine, scales and marijuana. Hollingshed has prior felony state convictions for burglary and illegal drug possession and distribution.
The case was investigated by DEA, the Bibb County Sheriff’s Office and the Monroe County Sheriff’s Office
Deputy Criminal Chief Will Keyes is prosecuting the case for the Government.
Laredo drug dealer receives three decades in prisonRead the Press Release
LAREDO, Texas – A 46-year-old man has been sentenced for possession with the intent to distribute meth, announced U.S. Attorney Alamdar S. Hamdani.
Daniel Rodriguez pleaded guilty April 2.
U.S. District Judge Marina Garcia Marmolejo has now ordered Rodriguez to serve 360 months in federal prison to be immediately followed by five years of supervised release. In handing down the sentence, the court noted Rodriguez sold poison to people and despite having multiple opportunities to stop, he continued selling drugs. During the hearing, Rodriguez remarked he was a father and the court asked if he sold these same drugs to his family. Additionally, the court questioned if he would stop selling drugs if one of his own children had overdosed.
On Jan. 3, authorities executed a search warrant at Rodriguez’s residence. While approaching the house, law enforcement saw Rodriguez flee from inside his home, during which time he attempted to discard a baggie that was later found to contain meth.
After detaining Rodriguez, authorities searched the home and found more meth inside. He later admitted that the seized drugs belonged to him.
Rodriguez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, Homeland Security Investigations, Customs and Border Protection, Border Patrol and the Laredo Police Department conducted the investigation. Assistant U.S. Attorneys Brian Bajew and Leslie Cortez prosecuted the case.
The case was prosecuted as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF is the largest anti-crime task force in the country. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Kyle Man Sentenced to 50 years in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Camela C. Theeler has sentenced a Kyle, South Dakota, man convicted of four counts of Aggravated Sexual Abuse of a Minor, one count of Abusive Sexual Contact, and one count of Witness Tampering. The sentencing took place on October 17, 2024.
Lloyd Emerson Elk, 48, was sentenced to a total of 50 years in federal prison on each count of Aggravated Sexual Abuse, followed by 10 years of supervised release, and was ordered to pay a $600 special assessment to the Federal Crime Victims Fund. He was also sentenced to five years in prison for Abusive Sexual Contact and 25 years in prison on the Witness Tampering conviction. The sentences were ordered to run concurrently.
Elk was indicted by a federal grand jury in March of 2024. He was found guilty following a two-day jury trial in July of 2024. At the sentencing hearing, Judge Theeler reflected Elk’s long pattern of violence was very concerning to her. She noted, “Crimes against children are some of the most heinous crimes . . . Adults in positions of power can abuse that position, take away the innocence of a child and hurt them.”
Elk, a former tribal law enforcement officer, sexually abused his stepdaughter multiple times when she was between the ages of five and seven years old. Elk employed years of domestic violence to control the victim and her family, including physical and emotional abuse. Elk told the victim if she ever told anyone about the sexual abuse, that he would kill her, her mother, and her brother. When the victim finally disclosed the abuse in late 2023, the investigation revealed Elk had sexually abused another seven-year-old girl in 1998—while employed as a police officer in Idaho—and made similar threats to her to keep her quiet.
“Every instance of child sexual abuse is simultaneously shocking and heartbreaking,” said U.S. Attorney Alison J. Ramsdell. “But it is unthinkable that such victimization would happen at the hands of a law enforcement officer. It took great courage for the victims in this case to come forward with the truth, and we are grateful to our partners at the FBI who expertly investigated the matter so that our prosecutors could bring this violent defendant to justice, once and for all. The U.S. Attorney’s Office will never yield in our steadfast commitment to protecting women and children from violence.”
This case was investigated by the FBI. Assistant U.S. Attorneys Anna Lindrooth and Megan Poppen prosecuted the case. Elk was immediately remanded to the custody of the U.S. Marshals Service.
Killeen Man Sentenced to 22 Years in Federal Prison for Conspiring to Import Meth through Del RioRead the Press Release
DEL RIO, Texas – A Killeen man was sentenced in a federal court in Del Rio to 264 months in prison for his participation in a conspiracy to attempt to import 7.86 kilograms of methamphetamine into the United States from Mexico.
According to court documents, Joshua Ruben Olivencia, 34, and other co-defendants were arrested at a hotel in Del Rio on Aug. 1, 2020, after an investigation revealed they were involved in a conspiracy to import methamphetamine from Mexico and distribute it in the United States. Customs and Border Protection officers discovered 16 individual multilayered packages of methamphetamine concealed inside the door panels of codefendant Bibiana Ira Ortiz’s vehicle during a port of entry inspection.
Olivencia had distributed methamphetamine in and around Austin, Killeen, Temple and Belton, and had employed a few distributors who worked in Austin and the surrounding areas. On July 31, 2020, he and codefendant David Ray Coplin traveled to Del Rio to meet Ortiz and another codefendant, Jimmie Troy Palmer III. Olivencia gave Palmer $18,500 to purchase methamphetamine in Mexico.
Ortiz pleaded guilty on June 7, 2021 to one count of conspiracy to possess with intent to distribute more than 500 grams of methamphetamine. She was sentenced to 151 months in federal prison. Palmer pleaded guilty on July 21, 2021 to one count of conspiracy to import methamphetamine and was sentenced to 300 months in federal prison. Coplin pleaded guilty on March 8, 2021 to one count of conspiracy to possess with intent to distribute methamphetamine and one count of felon in possession of a firearm. He is scheduled to be sentenced Oct. 31.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
Homeland Security Investigations investigated the case.
Assistant U.S. Attorney Rex Beasley prosecuted the case.
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Kansas Tax Preparer Pleads Guilty to Filing False Returns for ClientsRead the Press Release
A Kansas man pleaded guilty yesterday to preparing and filing false income tax returns on behalf of his clients.
According to court documents and statements made in court, Hophine Bwosinde, of Lenexa, operated Ambroseli Professional Services, a tax preparation business. From 2018 through 2022, Bwosinde prepared and filed false tax returns on behalf of his clients by either inflating legitimate business expenses or by claiming losses related to fake businesses. In addition, Bwosinde falsely reported negative income on clients’ returns. These false items caused his clients to significantly underreport their income to the IRS, which reduced the amount of taxes the clients owed and generated refunds for many to which they were not entitled.
In total, Bwosinde caused a total tax loss exceeding $1.5 million.
A sentencing hearing will take place on Feb. 18, 2025. Bwosinde faces a maximum penalty of three years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Kate E. Brubacher for the District of Kansas made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Erika V. Suhr of the Tax Division and Assistant U.S. Attorney Ryan Huschka for the District of Kansas are prosecuting the case.
Justice Department Launches Voter Assistance Resources for People Impacted by Recent Hurricanes and Severe Weather DamageRead the Press Release
The Justice Department’s Civil Rights Division launched a webpage today compiling information to help voters in states impacted by recent hurricanes Helene and Milton to have access to the ballot. The hurricanes have displaced several thousands of people from their residences; disrupted vital services; closed schools, businesses and other places; slowed postal delivery; and destroyed important personal possessions, including photos and identification documents.
In these online resources, the department focuses on the six states that were directly affected by recent hurricanes: Florida, Georgia, North Carolina, South Carolina, Tennessee and Virginia. The site identifies and provides links to various state changes made to accommodate voters who have been displaced, lost their identification documents, have had polling sites moved or who are unsure where or how they can vote. It also provides contact information so that voters can reach local voting officials who can provide the most specific and up-to-date guidance.
The Justice Department is also committed to ensuring every eligible voter can cast their ballot free from discrimination and intimidation. Federal laws protect against voter intimidation, coercion and interference at every stage of the voting process. For additional information about voting and elections, including filing federal voting rights violations or threats against election workers, visit www.justice.gov/voting. Contact the Civil Rights Division’s Voting Section through the internet reporting portal at www.civilrights.justice.gov or by calling 1-800-253-3931.
Justice Department Announces Murder-For-Hire Charges Against Islamic Revolutionary Guard Corps Brigadier General and Former Intelligence Officer and Members of an Iranian Intelligence NetworkRead the Press Release
Note: View the superseding indictment here.
The Justice Department announced today the unsealing of a superseding indictment containing murder-for-hire, money-laundering, and sanctions evasion charges against Ruhollah Bazghandi, also known as Roohollah Azimi; Fnu Lnu, also known as Haj Taher, Haj Taher; Hossein Sedighi; and Seyed Mohammad Forouzan, all of Iran.
“The Justice Department has now charged eight individuals, including an Iranian military official, for their efforts to silence and kill a U.S. citizen because of her criticism of the Iranian regime,” said Attorney General Merrick B. Garland. “We will not tolerate efforts by an authoritarian regime like Iran to undermine the fundamental rights guaranteed to every American. Three of the defendants charged in this horrific plot are now in U.S. custody, and we will never stop working to identify, find, and bring to justice all those who endanger the safety of the American people.”
“Today’s indictment exposes the full extent of Iran’s plot to silence an American journalist for criticizing the Iranian regime,” said FBI Director Christopher Wray. “According to the charges, a brigadier general in the Islamic Revolutionary Guard Corps and a former Iranian intelligence officer, working with a network of conspirators, planned to kill a dissident living in New York City. The FBI’s investigation led to the disruption of this plot as one of the conspirators was allegedly on their way to murder the victim in New York. As these charges show, the FBI will work with our partners here and abroad to hold accountable those who target Americans.”
“Today’s indictment makes plain that the Iranian regime for years has been behind a violent campaign to stalk, intimidate, and arrange the killing of an American dissident on U.S. soil for bravely speaking up for the rights of the Iranian people,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Department is committed to exposing and holding accountable those in Tehran who believe they can hide their hand in carrying out such reprehensible activities.”
“As alleged, for years, the Government of Iran has attempted to assassinate, on U.S. soil, a U.S. citizen of Iranian origin who is a prominent critic of the Iranian regime,” said U.S. Attorney Damian Williams for the Southern District of New York. “In January 2023, we unsealed charges alleging that members of an Eastern European crime group engaged in a plot to murder this victim. As we allege, that group was not acting alone. Today, we hold their Iranian masters to account, and allege that these Iran-based co-conspirators, including a Brigadier General in the Islamic Revolutionary Guard Corps, directed the murder plot. By charging these Iran-based defendants, we seek to strike another public blow at the heart of the Government of Iran’s efforts to execute the victim — as well as its lethal targeting, intimidation, and repression of other Iranian dissidents critical of the regime in the U.S. and abroad.”
As detailed in the superseding indictment, Bazghandi, Haj Taher, Sedighi, and Forouzan contracted members of an Eastern European criminal organization, including Rafat Amirov, also known as Farkhaddin Mirzoev, Pᴎᴍ, and Rome; Polad Omarov, also known as Araz Aliyev, Polad Qaqa, and Haci Qaqa; and Zialat Mamedov, also known as Ziko, to murder a U.S. citizen of Iranian origin in New York City who has publicly opposed the Iranian government and who has previously been the target of similar plots by the Iranian government. Amirov, Omarov, and Mamedov previously were arrested on charges contained in underlying indictments. Amirov and Omarov are in custody in the United States, pending trial; Mamedov was extradited from the Czech Republic to the Republic of Georgia to face charges there. Bazghandi, Haj Taher, Sedighi, and Forouzan, all of whom are based in Iran, remain at large. The case is pending before U.S. District Judge Colleen McMahon for the Southern District of New York.
According to the allegations contained in the superseding indictment, other court filings, and statements made during court proceedings, Bazghandi, who resides in Iran, is an IRGC Brigadier General and has previously served as chief of an IRGC Intelligence Organization (IRGC-IO) counterintelligence office. In April 2023, the U.S. Secretary of State designated IRGC-IO as a Specially Designated Global Terrorist under Executive Order 14078, for hostage-taking and the wrongful detention of U.S. nationals abroad. On the same date, the Treasury Department sanctioned Bazghandi in connection with his involvement with the detention of foreign prisoners held in Iran. Bazghandi was designated by the Treasury Department a second time in June 2023, this time under Executive Order 13224, for his participation in IRGC-IO’s lethal targeting operations. Haj Taher, Sedighi, and Forouzan (collectively with Bazghandi, the Bazghandi Network), each of whom resides in Iran, also have connections to the Government of Iran.
The Bazghandi Network contracted Amirov, Omarov, Mamedov, and Khalid Mehdiyev to murder, on U.S. soil, a victim residing in New York City. The victim is a journalist, author, and human rights activist who has publicized the Government of Iran’s human rights abuses and suppression of political expression, including in connection with continuing protests against the regime across Iran. As recently as 2020 and 2021, Iranian intelligence officials and assets plotted to kidnap the victim from within the United States for rendition to Iran in an effort to silence the victim’s criticism of the regime. That plot was disrupted and exposed by the FBI and led to the filing of federal kidnapping conspiracy and other charges in the Southern District of New York against several participants in the plot in United States v. Farahani, et al.
Since at least July 2022, the Bazghandi Network tasked members of the organization with assassinating the victim. The organization’s participation in the murder-for-hire plot was directed by Amirov, who resided in Iran and who was tasked with targeting the victim by individuals in Iran. On approximately July 13, 2022, Amirov forwarded targeting information — which Amirov had received from individuals in Iran — about the victim and the victim’s residence to Omarov. Omarov, in turn, together with Mamedov, directed and collaborated with Mehdiyev, who was residing in Yonkers, New York, to carry out the plot against the victim. Mehdiyev’s participation in the plot was disrupted when he was arrested near the victim’s home on or about July 28, 2022, while in possession of the assault rifle, along with 66 rounds of ammunition, approximately $1,100 in cash, and a black ski mask.
In January 2023, Amirov, Omarov, and Mamedov were arrested overseas. On Jan. 27, 2023, they were charged publicly for their roles in the plot to assassinate the victim. Nevertheless, in the months that followed, members of the Bazghandi Network continued to target the victim. For example, in or about March 2023, Haj Taher searched for information about the victim’s family members and Sedighi saved an image of the victim’s residence. As recently as on or about May 1, 2023, Bazghandi conducted an internet search, in Farsi, for, “a person in the house of [the victim] movie,” and, on the same date, watched a video with the title, “A video of the arrested gunman in front of [the victim]’s home in New York received by [the victim’s employer].”
Bazghandi, Haj Taher, Sedighi, and Forouzan, have been charged with murder-for-hire, which carries a maximum penalty of 10 years in prison; conspiracy to commit murder-for-hire, which carries a maximum penalty of 10 years in prison; conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison; and conspiring to violate the International Emergency Economic Powers Act and sanctions against the Government of Iran, which carries a maximum penalty of 20 years in prison.
Amirov, Omarov, and Mamedov have also been charged with murder-for-hire, conspiracy to commit murder-for-hire, and conspiracy to commit money laundering. In addition, Amirov, Omarov, and Mamedov were charged with attempted murder in aid of racketeering, which carries a maximum penalty of 10 years in prison and possession and use of a firearm in connection with the attempted murder, which carries a maximum penalty of life in prison and a mandatory minimum penalty of five years in prison. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case. The Justice Department’s Office of International Affairs assisted with the extradition of Mamedov.
Assistant U.S. Attorneys Michael D. Lockard, Jacob H. Gutwillig, and Matthew J.C. Hellman for the Southern District of New York, Trial Attorneys Christopher Rigali and Leslie Esbrook of the National Security Division’s Counterintelligence and Export Control Section, and Trial Attorney Dmitriy Slavin of the National Security Division’s Counterterrorism Section are prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jefferson County Man Admits to Firearms ChargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Bradley Charles Reckert, Jr., 32, of Harpers Ferry, West Virginia, has admitted to the possession of a firearm by a prohibited person.
According to court documents, Reckert possessed a privately manufactured AR-style pistol in his home. Reckert is prohibited from having firearms because of his use and abuse of drugs.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the West Virginia State Police; the Berkeley County Sheriff’s Office; and the Loudoun County, Virginia, Sheriff’s Office investigated.
Assistant U.S. Attorney Daniel Salem is prosecuting the case on behalf of the government.
U.S. Magistrate Judge Robert W. Trumble presided.
Jacksonville Woman Indicted for Credit Scheme and COVID Relief Fraud Involving the Paycheck Protection ProgramRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Carnisha Maurica Rogers (30, Jacksonville) with four counts involving conspiracy to commit wire fraud and wire fraud, and four counts of false representation of a Social Security number involving a line of credit scheme and COVID relief fraud through the Paycheck Protection Program (PPP). Rogers faces up to 20 years in federal prison on each count involving wire fraud and up to 5 years in federal prison on each count involving the false representation of a Social Security number, payment of restitution to the victims she defrauded and forfeiture of $20,832, which is traceable to proceeds of the wire fraud offense involving COVID relief fraud.
According to the indictment, Rogers and her co-conspirators fraudulently obtained the Social Security numbers (SSNs) of others. From February 2016 through September 2019, Rogers and others recruited individuals to obtain lines of credit at various businesses using the SSNs. After fraudulently obtaining the lines of credit, they obtained jewelry and other merchandise. They also attempted to obtain at least one luxury vehicle. Rogers and her co-conspirators resold some of the merchandise and lines of credit on social media platforms.
In May 2021, Rogers submitted a PPP loan application to a lender authorized by the Small Business Administration (SBA) to lend funds for approved PPP loan applications. The PPP loan application falsely claimed that Rogers operated her own business. Throughout the loan application Rogers made multiple false statements regarding her purported gross income and expenses associated with operating her business. In support of her PPP loan application, she submitted a false IRS Form 1040 - Profit or Loss From Business. It contained false statements about operating expenses, gross income, and wage expenditures for her purported business. In truth, Rogers’s business did not exist. In reliance on the false statements in her loan application, her application was approved, and she received a PPP loan totaling $20,832.
After receiving the PPP loan proceeds in her bank account, Rogers began making withdrawals and spending the funds on personal expenses. In October 2021, Rogers submitted a PPP loan forgiveness application to the SBA that included multiple false representations. In the application, she falsely claimed that she spent more than $18,000 on payroll costs and that the PPP loan proceeds were only used for eligible purposes. In reliance on her false statements the SBA forgave the entire loan, plus accrued interest.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Jacksonville Sheriff’s Office and U.S. Secret Service – Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein. The asset forfeiture is being handled by Assistant United States Attorney Jennifer M. Harrington.
Illegal export of multiple firearms sends Mexican national to prisonRead the Press Release
McALLEN, Texas – A 54-year-old man has been sentenced for illegally exporting firearms from the United States into Mexico, announced U.S. Attorney Alamdar S. Hamdani.
Elmer Espinoza-Ortega pleaded guilty July 11.
U.S. District Judge Drew B. Tipton has now ordered Espinoza-Ortega to serve 36 months in federal prison to be immediately followed by two years of supervised release.
“Many guns exported from the United States into Mexico are used for criminal activity or end up in the hands of the cartels,” said Hamdani. “My office is committed to preventing transnational gun violence by stopping the export of firearms from the United States.”
On May 26, Espinoza-Ortega attempted to exit the United States through the Anzalduas Port of Entry. Upon further inspection, law enforcement discovered a firearm magazine in Espinoza-Ortega’s pocket.
A subsequent search of his vehicle revealed four firearms and five firearm magazines concealed in the bumper of the vehicle.
At the time of his plea, Espinoza-Ortega admitted he did not possess a license to export firearms or ammunition, he knew the firearms were in his vehicle and he intended to transport the firearms into Mexico.
Espinoza-Ortega will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection and Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Amanda McColgan prosecuted the case.
This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Idabel Resident Sentenced for Involuntary ManslaughterRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Justin Lee Williston, age 33, of Idabel, Oklahoma, was sentenced to 37 months in prison for one count of Involuntary Manslaughter in Indian Country.
The charges arose from an investigation by the Oklahoma Highway Patrol and the Federal Bureau of Investigation.
On January 4, 2024, Williston pleaded guilty to the charge. According to investigators, on July 1, 2022, Williston was driving a pickup truck eastbound on State Highway 3 with a suspended driver’s license. Williston crossed into the oncoming lane of traffic and struck an oncoming vehicle which rolled on impact, killing the passenger. Law enforcement investigating the crash discovered open beer cans in Williston’s vehicle and Williston admitted drinking approximately “eight or nine beers” before the collision. Investigators obtained blood samples which tested positive for marijuana and a blood alcohol content of .19 g/100ml. The crime occurred in McCurtain County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Raúl M. Arias-Marxuach, Chief U.S. District Judge in the United States District Court for Puerto Rico, sitting by assignment, presided over the hearing in Muskogee, Oklahoma. Williston will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant U.S. Attorney Patrick Flanigan represented the United States.
Hanford Site Subcontractor Pleads Guilty to Stealing COVID-19 Relief Funding, Owner Agrees to Pay $1.1 Million in Restitution and PenaltiesRead the Press Release
Richland, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that BNL Technical Services, LLC (BNL), pleaded guilty to fraudulently obtaining $493,865 as part of a scheme to obtain COVID-19 relief funding. Chief United States District Judge Stanley A. Bastian accepted BNL’s guilty plea, and set sentencing for March 11, 2025, at 1:30 p.m., in Yakima, Washington. U.S. Attorney Waldref further announced that BNL’s owner, Wilson Pershing Stevenson III, of Nashville, Tennessee, agreed to pay $1,105,498 as part of a civil settlement in the case to resolve his individual liability arising from BNL’s receipt of COVID relief funding.
In the plea agreement accepted by the court and in information disclosed during court proceedings, between 2020 and 2021, BNL provided contract labor services to Hanford Site prime contractors. BNL’s labor costs and payroll continued to be paid by DOE throughout the pandemic, including when BNL employees were not able to physically work at the site and instead were teleworking or simply home in “ready” status.
In April of 2020, BNL applied for and received a $493,865 loan as part of the Paycheck Protection Program (PPP). Congress created the PPP in March 2020 as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide funding to small businesses in order to mitigate the economic impacts of the COVID-19 pandemic for small and local businesses. PPP loans were fully guaranteed by the United States, and the U.S. Small Business Administration (SBA) may grant a small business borrower forgiveness so long as the loan proceeds have been used for payroll and other eligible expenses.
BNL fraudulently sought and obtained PPP funding for BNL employees despite their pay and benefits already being covered by DOE contract funds and other federal sources including the Veterans Administration. Shortly after receiving the funds, BNL transferred and used more than $424,230 of the PPP proceeds on unauthorized expenditures.
In August of 2021, BNL, through its sole owner Wilson Pershing Stevenson III, requested and was granted forgiveness of the $493,865 PPP loan, by falsely and fraudulently certifying the loan proceeds had been used for eligible uses and business expenses between April and October of 2020.
“These critical and limited COVID-19 funds were set aside to help small businesses stay afloat during a deadly pandemic. BNL fraudulently obtained these funds and then illegally used the money for their own purpose,” stated U.S. Attorney Waldref. “I’m proud of the work done by my Office’s COVID-19 Fraud Strike Force in this case. By holding fraudsters accountable, we are protecting small and local businesses that are so important to our community and economy.”
“Today’s guilty plea should send a message that the VA Office of Inspector General will diligently pursue those who would illegally line their pockets at the expense of the taxpayer,” said Special Agent in Charge Dimitriana Nikolov with the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “The VA OIG will continue to work with our law enforcement partners as part of the COVID-19 Strike Force to investigate fraud against relief programs intended to support bona fide recipients.”
“The misuse of pandemic relief funds intended to support struggling small businesses is a serious offense that undermines the integrity of critical assistance programs,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Our office will remain steadfast in pursuing those who use such vital resources for personal gain. I want to thank the U.S. Attorney’s office and our law enforcement partners for their collaboration and dedication to justice in this case.”
This case was investigated as part of the U.S. Attorney’s Office COVID-19 Fraud Strike Force, an interagency team of federal law enforcement agencies dedicated to combatting COVID relief fraud in Eastern Washington. The BNL case was investigated by the Department of Energy, Office of Inspector General, Richland Field Office, the Small Business Administration, Office of Inspector General, and the VA Office of Inspector General. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene are prosecuting the case on behalf of the United States.
Half-Brothers Sentenced for Murdering their Sister and her Family, Including Three Children, in their Tijuana HomeRead the Press Release
SAN DIEGO – Half-brothers Christopher Baltezar Hernandez and Victor Armondo Aguilar were sentenced in federal court today to six consecutive life terms and 45 years, respectively, for the premeditated execution of their sister, her three children – ages 9, 8 and 4 – and her significant other in their Tijuana home. The siblings had been involved in a bitter dispute over property prior to the murder.
“I cannot understand how one can point a gun in front of a child’s face and pull the trigger,” U.S. District Judge Linda Lopez told the defendants during the sentencing hearing. She described the murders as “horrific,” “completely incomprehensible,” and “cold, intentional, planned, calculated, and callous.”
Aguilar, of Tijuana, pleaded guilty in October 2023 and Hernandez, of Fresno, California, pleaded guilty in December 2023, each to a single count of conspiring to murder a U.S. citizen in a foreign country and five counts of stalking resulting in death. The half-brothers are U.S. citizens. The sister and her children were also U.S. citizens; the significant other was a Mexican national.
According to their plea agreements, on December 3, 2021, the day of the murders, Hernandez traveled from Fresno to Tijuana through San Diego, armed with an assault rifle, .223 caliber ammunition, and two revolver speed loaders. Hernandez met up with Aguilar in Tijuana, where they acquired a revolver.
The half-brothers, armed with the firearms and wearing dark clothes and gloves, went to the victims’ residence in Tijuana. According to the plea agreements, which identified the victims by their initials, the defendants first shot and killed the sister, J.H., and her eight-year-old daughter, A.M.M., in the kitchen. The significant other, G.M.V., was shot and killed in a bedroom while he attempted to shield the other two children. The bedroom door was forced open and nine-year-old A.M. and four-year-old S.M. were each shot in the head.
“Borders do not shield criminals from justice when Americans are victimized abroad,” said U.S. Attorney Tara McGrath. “These executioners were charged, convicted, and held to account in a U.S. court. The Department of Justice will continue to use every available tool to protect Americans from harm at home and abroad.”
“Jealousy and greed led to one family's devastating loss of five loved ones,” said FBI San Diego Special Agent in Charge Stacey Moy. “Hernandez’s and Aguilar’s well-deserved prison sentences reflect their total disregard for human life. While their imprisonment will never bring back these lives, we hope it offers some peace to the victims’ family. The FBI, alongside our local and international law enforcement partners, remains dedicated to seeking justice and will not hesitate to hold accountable those involved in violent crimes, whether in the United States or abroad.”
While there were likely multiple motivations for the murders, the primary reason was a dispute over the ownership of numerous properties in Mexico. According to court documents, in the months leading up to the murders, the sister retained an attorney to help in the property dispute, which prompted Hernandez to text her: “We already know about the lawyer.” Hernandez asked, “You think you can just fuck us over and nothing will happen?” Hernandez then mentioned J.H.’s attorney’s name and that he had the attorney “in are[sic] hands.” Hernandez continued to say, “Fuck you and all your family” and, “The truth is I’m not fucking around. You thought you were going to make a dumbass out of me but no. You’re not going to have anything.” Hernandez then challenged J.H. to “…try me and see how much you can handle because with me you’re not going to be able to finish it.”
Hernandez had a long history of threats against his sister and her children. In May 2019, J.H. called 911 stating Hernandez was threatening to shoot her and her kids in the head. Hernandez and J.H. had the same parents; Aguilar and J.H. were half-siblings. It’s unclear if J.H. and her significant other were married.
According to the plea agreements, the murders occurred after months of meticulous and obsessive planning and premeditation. Hernandez and Aguilar had researched the victims’ address and the surrounding area online more than 200 times. Hernandez also bought the parts and built a fully functional .223 caliber assault rifle. The week before, Hernandez researched “ar15 jam clearing” and “ar15 room clearing” and watched ten different videos related to tactical firearms training. Hernandez also researched how to build a hidden compartment in his Toyota Corolla and discussed contingency plans with others, among other preparatory steps. The day before the murders, Hernandez bought a pair of revolver speed loaders, and on the day of the murders, Hernandez and Aguilar acquired a revolver in Tijuana, Mexico.
Aguilar searched for and listened to a podcast related to homicide investigations just hours before the murders. Minutes before the murders, Hernandez removed the SIM card from his phone, and returned it about a half-hour after the murders.
Following the murders, Hernandez researched numerous news articles about the killings and searched, “does the fbi investigate murders.” Hernandez and Aguilar also deleted their location and messaging history.
This case is being prosecuted by Assistant U.S. Attorneys Mario Peia, Matthew Brehm and Fred Sheppard.
DEFENDANTS Case Number 22cr778-LL
Christopher Baltezar Hernandez Age: 27 Fresno, CA
Victor Armondo Aguilar Age: 22 Tijuana, MX
SUMMARY OF CHARGES
Conspiracy to Murder – Title 18, U.S.C., Section 1117
Maximum penalty: Life in prison
Stalking Resulting in Death – Title 18, U.S.C., Section 2261A
Maximum penalty: Life in prison
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego County Sheriff’s Department
Great Falls man admits meth trafficking, money laundering crimesRead the Press Release
GREAT FALLS — A Great Falls man suspected of supplying methamphetamine to local dealers, laundering the proceeds and storing more than 100 pounds of the drug and a firearm in an Arizona storage unit admitted to charges today, U.S. Attorney Jesse Laslovich said.
The defendant, Daniel Allen Wakeford, 60, pleaded guilty to a superseding information charging him with conspiracy to distribute and to possess with intent to distribute meth and to money laundering. Wakeford faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised released on the drug charge. He also faces a maximum of 20 years in prison, a fine of not more than the greater of the value of the property, funds or monetary instruments involved in the transactions or $250,000 and three years of supervised release on the money laundering charge.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Feb. 19. Wakeford was detained pending further proceedings.
“The staggering amount of meth we seized was enough for approximately one-third of Montanans to use. This case shows we will go anywhere and pursue anyone for the harm they’re causing Montanans. Wakeford’s guilty plea is validation of these efforts,” U.S. Attorney Laslovich said.
The government alleged in court documents that law enforcement learned that Wakeford was involved in distributing meth in the Great Falls area and elsewhere and that numerous individuals had received meth from him for resale from approximately 2020 to 2024. In February 2024, law enforcement apprehended in Billings an individual who possessed meth. The individual outlined how he assisted Wakeford in packaging several hundred thousand dollars in cash, had received meth from Wakeford in Great Falls and that Wakeford indicated he was conspiring to distribute a significant amount of meth.
The investigation determined that Wakeford did not have a significant source of legitimate income, however, in November 2022, Wakeford paid approximately $16,534 for a new snowmobile in Great Falls. After Wakeford was indicted in the case, law enforcement searched his Great Falls home and located documents for a storage unit he leased in Phoenix, Arizona. Law enforcement arrested Wakeford in Utah on a federal warrant while he was driving a motorhome valued at more than $40,000. Inside the motorhome, law enforcement located more than $60,000 in cash and additional documents related the storage unit. Federal agents in Arizona served a search warrant on the storage unit and located more than 100 pounds of meth, which is the equivalent of approximately 362,400 doses, and a firearm. The items are pictured here:
The U.S. Attorney’s Office is prosecuting the case. The FBI, Drug Enforcement Administration, IRS, Great Falls Police Department and Russell Country Drug Task Force conducted the investigation.
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.
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Giám Sát Viên Quận Cam đồng ý Nhận Tội âm Mưu Hối Lộ Liên Quan đến 10 Triệu đô La Trong Quỹ Cứu Trợ COVIDRead the Press Release
SANTA ANA, California – Giám Sát Viên Quận Một trong Hội Đồng Giám Sát Quận Cam đã đồng ý nhận tội với một cáo buộc liên bang trọng tội vì đã nhận hối lộ hơn $550,000 để chỉ đạo và bỏ phiếu ủng hộ hơn $10 triệu trong quỹ COVID cho một tổ chức từ thiện liên kết với một trong những cô con gái của ông, Rhiannon Đỗ, Bộ Tư pháp thông báo hôm nay.
Andrew Hoàng Đỗ , 62 tuổi, đã đồng ý nhận tội với một tội danh âm mưu hối lộ liên quan đến các chương trình nhận tài trợ liên bang. Thỏa thuận nhận tội và thông tin của ông ta đã được đệ trình ngày hôm nay. Ông dự kiến sẽ xuất hiện lần đầu tiên tại Tòa án Quận Hoa Kỳ ở Santa Ana vào cuối tháng này.
Đỗ là một trong năm giám sát viên trong Hội đồng Giám sát Quận Cam, chịu trách nhiệm về ngân sách hàng năm 9 tỷ USD của quận. Là giám sát viên quận, Đỗ đại diện cho các thành phố Cypress, Fountain Valley, Garden Grove, Huntington Beach, La Palma, Los Alamitos, Midway City, Rossmoor, Seal Beach và Westminster. Ông đã từng là giám sát viên của quận kể từ tháng 2 năm 2015.
Là một phần của thỏa thuận nhận tội của mình, ông Đỗ thừa nhận rằng để đổi lấy hơn 550.000 USD tiền hối lộ, bắt đầu từ năm 2020, ông đã bỏ phiếu ủng hộ và chuyển hàng triệu đô la trong các quỹ liên quan đến COVID cho Hiệp hội Việt Mỹ (VAS), một tổ chức từ thiện liên kết với con gái ông. Đỗ đã chỉ đạo và làm việc cùng với các nhân viên khác của quận để phê duyệt hợp đồng với - và thanh toán cho - VAS. Đỗ tiếp tục thừa nhận ông ta đã hành động tham nhũng và lạm dụng vị trí tín nhiệm của mình với tư cách là giám sát viên quận.
"Bằng cách đặt lợi ích của mình lên trên lợi ích của các cử tri, bị cáo đã bán chức vụ cao của mình và phản bội lòng tin của công chúng", Bộ Công Tố Hoa Kỳ luật sư Martin Estrada nói. "Tệ hơn nữa, số tiền mà ông ta chiếm đoạt và nhận hối lộ đã bị lấy từ những người cần nhất - người già và người khuyết tật. Cộng đồng của chúng ta xứng đáng được tốt hơn nhiều. Tham nhũng không có chỗ đứng trong nền chính trị của chúng ta và văn phòng của tôi sẽ tiếp tục buộc các quan chức phải chịu trách nhiệm, những người lừa dối công chúng."
"Trong khi hàng triệu người Mỹ đang chết vì COVID-19, Giám sát viên Quận Cam Andrew Đỗ là con cáo trong chuồng gà mái được nhân cách hóa, đột kích hàng triệu đô la trong quỹ cứu trợ đại dịch liên bang và dàn xếp số tiền nhằm nuôi sống những người già và người dân ốm yếu để thay vào đó lấp đầy túi của những người trong cuộc, bản thân và những người thân yêu của ông ta trong khi miêu tả một nhân vật công khai của một anh hùng quê hương hướng dẫn các cử tri của mình vượt qua sự không chắc chắn và sợ hãi của một đại dịch toàn cầu, " Chánh Biện Lý Quận Cam Todd Spitzer nói. " . "Không ai đứng trên luật pháp ở Quận Cam và những cáo buộc này sẽ đóng vai trò như một lời cảnh báo mạnh mẽ cho các quan chức dân cử ở khắp mọi nơi rằng các hành động mang lại hậu quả và công lý sẽ nhanh chóng và nó sẽ mang tính quyết định."
"Các quan chức được bầu có trách nhiệm thực hiện các chương trình và chính sách sẽ mang lại lợi ích cho tất cả những người mà họ phục vụ. Vai trò của họ không phải là phung phí tiền bạc, nhận hối lộ hoặc chuyển tiền cho các tổ chức hoặc cá nhân, trong đó một nỗ lực phối hợp cho phép các quỹ đó đến tay các thành viên gia đình hoặc bạn bè," Akil Davis, Trợ lý Giám đốc phụ trách Văn phòng Los Angeles của FBI cho biết. "Lời kêu gọi hôm nay là một dấu chấm than khác cho cam kết của FBI trong việc đảm bảo rằng tất cả các quan chức địa phương, tiểu bang hoặc liên bang được bầu và bổ nhiệm thực hiện nhiệm vụ của họ với sự trung thực, liêm chính và cam kết với tất cả các cử tri mà họ phục vụ."
Ngay sau khi nhận được các quỹ công liên quan đến COVID từ chính quyền quận - quỹ nhằm cung cấp bữa ăn cho người cao tuổi - VAS từ tháng 4/2021 đến tháng 2/2024 đã trả cho một doanh nghiệp được xác định trong các tài liệu của tòa án là "Công ty # 1" $ 100,000 trở lên mỗi tháng, tổng cộng khoảng $ 3,804,000 USD. Vào tháng 9/2021, VAS đã tăng các khoản thanh toán cho Công ty #1 từ 100.000 USD lên 108.000 USD mỗi tháng. Công ty #1 sau đó bắt đầu trả cho Rhiannon Đỗ - con gái của Đỗ - 8.000 USD mỗi tháng, tổng cộng đến tháng 2/2024 là khoảng 224.000 USD.
Trong thỏa thuận nhận tội của mình, Đỗ thừa nhận rằng ngoài khoản thanh toán hàng tháng 8.000 đô la mà Công ty #1 đã thực hiện cho con gái của Đỗ, vào tháng 7 năm 2023, Công ty #1 cũng đã chuyển tổng cộng 381.500 USD từ số tiền mà họ đã nhận được từ VAS cho một công ty ký quỹ. Vào tháng 7/2023, con gái của ông Đỗ đã sử dụng tiền tài khoản ký quỹ để mua một ngôi nhà đứng tên cô ở Tustin với giá 1.035.000 USD. Trong một phần của giao dịch đó, một khoản thế chấp trị giá hơn 600.000 USD đã được thu thập bởi một ứng dụng cho vay có chứa thông tin sai lệch và với các tài liệu bịa đặt. Trong thỏa thuận chuyển hướng liên quan của mình kèm theo như một vật chứng cho thỏa thuận nhận tội của Đỗ, con gái của Đỗ thừa nhận hành vi của mình là phạm tội và vi phạm luật liên bang và tiểu bang
Ông Đỗ cũng thừa nhận rằng 381.500 USD từ Công ty #1 mà con gái ông đã sử dụng để mua ngôi nhà Tustin vào năm 2023 là một khoản hối lộ trá hình đối với ông. Ông cũng thừa nhận rằng thêm 100.000 USD tiền thanh toán được gửi cho con gái khác của ông, bao gồm ba tấm séc trị giá 25.000 USD từ Công ty # 2 - một công ty điều hòa không khí đã được VAS trả - cũng là hối lộ cho ông.
Một số tiền hối lộ đã được chuyển cho các con gái của ông đã được chi tiêu cho lợi ích trực tiếp của ông. Ví dụ, trong năm 2022, tổng cộng 14.849 USD tiền đã được chuyển cho các con gái của ông Đỗ đã được sử dụng để thanh toán thuế bất động sản cho các tài sản ở Quận Cam thuộc sở hữu của ông Đỗ và vợ. Khoảng 15.000 USD đã được sử dụng để thanh toán cho một trong những hóa đơn thẻ tín dụng của ông Đỗ.
Đỗ biết rằng VAS không cung cấp tất cả các bữa ăn mà quận đã trả cho VAS. Thay vào đó, phần lớn số tiền được sử dụng vì lợi ích của những người trong cuộc, bao gồm mua bất động sản dưới tên của cả con gái Đỗ và Công ty #1, thanh toán hối lộ cho cả hai con gái của Đỗ , thanh toán cho những kẻ âm mưu khác, thanh toán cho các công ty khác liên kết với các cán bộ niêm yết của VAS và qua hàng trăm ngàn đô la bằng cách rút tiền mặt.
"Ông Đỗ có nhiệm vụ hành động vì lợi ích tốt nhất của công dân Quận Cam. Ông ấy đã bỏ bê nhiệm vụ đó và lạm dụng hệ thống tài chính để làm giàu cho bản thân", Đặc vụ phụ trách Ryan Korner thuộc Văn phòng Tổng thanh tra Tập đoàn Bảo hiểm Tiền gửi Liên bang cho biết. "Tham nhũng công cộng làm suy giảm niềm tin của công chúng vào hệ thống chính trị của chúng ta và FDIC OIG tự hào làm việc cùng với các đối tác thực thi pháp luật của chúng tôi để xác định và buộc các cá nhân phải chịu trách nhiệm lạm dụng dịch vụ công vì lợi ích cá nhân."
"Andrew Đỗ được giao nhiệm vụ đảm bảo tiền thuế của người dân được sử dụng một cách có trách nhiệm và đúng mục đích đã định," Đặc vụ phụ trách Tyler Hatcher, Điều tra Hình sự IRS, Văn phòng Los Angeles cho biết. "Thay vào đó, khi các cử tri của ông phụ thuộc vào các chương trình cứu trợ COVID, ông Đỗ đã lợi dụng vị trí của mình trong Hội đồng Giám sát Quận Cam không chỉ để gây ảnh hưởng đến việc chuyển tiền cho Hội Việt Mỹ, mà còn nhận hối lộ được sử dụng để mua nhà, nộp thuế tài sản và thậm chí trả thu nhập hư cấu cho các thành viên gia đình. Chống tham nhũng công cộng là một trong những vai trò quan trọng nhất của các cơ quan thực thi pháp luật liên bang trong cộng đồng địa phương của chúng tôi và chúng tôi tự hào là đối tác trong cuộc điều tra này.
"Hành động hôm nay cho thấy quan chức dân cử này đã sử dụng vị trí tín nhiệm của mình cho lợi ích cá nhân. Ông ta không nghĩ rằng mình sẽ bị bắt. Ông ấy đã sai", Adam Shanedling, Đặc vụ phụ trách Văn phòng khu vực phía Tây của Bộ Giáo dục Mỹ cho biết. OIG tự hào là một phần của lực lượng đặc nhiệm điều tra vấn đề này và chúng tôi sẽ tiếp tục làm việc với các đối tác thực thi pháp luật của mình để giúp bảo vệ tính toàn vẹn của các quỹ liên bang.
Theo sự thỏa thuận nhận tội ông Đỗ sẽ bị tịch thu bất kỳ tài sản nào liên quan đến kế hoạch hối lộ, bao gồm cả tài sản ở Tustin mà con gái ông đã mua vào năm 2023. Là một phần của thỏa thuận chuyển hướng liên quan đến con gái ông, bà cũng đồng ý sự việc tịch thu tài sản ở Tustin. Thỏa thuận nhận tội yêu cầu ông Đỗ phải trả toàn bộ tiền bồi thường bằng cách trả lại số tiền hối lộ mà ông và các con gái đã nhận, và ông đã đồng ý trả đầy đủ trước khi bị kết án. Vào tháng 8/2022, chính phủ đã tịch thu hơn 2.4 triệu USD từ VAS và Công ty #1.
Trong một thỏa thuận liên quan với Văn phòng Biện lý Quận Cam (OCDA), đính kèm như một vật trưng bày cho thỏa thuận nhận tội của Đỗ, Đỗ đã đồng ý từ chức ngay lập tức khỏi Hội đồng Giám sát Quận Cam và tịch thu bất kỳ khoản tín dụng hưu trí nào trong thời gian ông tham gia vào âm mưu hối lộ.
Một khi Đỗ nhận tội, ông ta sẽ phải đối mặt với bản án tối đa theo luật định là năm năm trong nhà tù liên bang.
The FBI; Cục Điều Tra của Văn Phòng Biện Lý Quận Cam; Văn phòng Tổng Thanh tra Tập đoàn Bảo hiểm Tiền gửi Liên bang; Điều tra Hình sự IRS; và Văn phòng Tổng Thanh tra Bộ Giáo dục Hoa Kỳ đã điều tra vấn đề này.
Vấn đề này đang được Bộ Công Tố Hoa Kỳ và Văn phòng Biện Lý Quận Cam cùng truy tố. Việc truy tố đang được dẫn dắt bởi Trợ lý Công Tố Hoa Kỳ Charles E. Pell, Bradley E. Marrett và Tara Vavere của Văn phòng Bộ Công Tố Hoa Kỳ và Phó Biện lý Quận Avery T. Harrison và Phó Biện lý Quận Anthony J. Schlehner và LJ Berger của Văn phòng Biện Lý Quận Cam.
Bất kỳ thành viên nào của công chúng có thông tin liên quan đến vấn đề này hoặc bất kỳ vấn đề tham nhũng công cộng nào khác trong Quận Cam được khuyến khích gửi thông tin đến đường dây email của FBI tại https://tips.fbi.gov và / hoặc liên hệ với Văn phòng Los Angeles của FBI theo số (310) 477-6565.
Genesee County man charged with possession of machinegunsRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Peter Celentano, of Bergen, NY, was arrested and charged by criminal complaint with illegal possession of machineguns, which carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Jeffrey E. Intravatola, who is handling the case, stated that according to the complaint, on September 29, 2024, the New York State Police, Genesee County Sheriff’s Office, and ATF, executed a search warrant at Celentano’s Rochester Street residence. During the search, investigators recovered two 3D printed pistol frames, firearm parts and accessories, ammunition reloading equipment, an AR 80% style Jig and drill, a drill press, and various other tools related to the manufacturing of firearms. In addition, investigators also searched two properties associated with Celentano in Lyndonville, NY, and an apartment on East Avenue in Medina, NY, recovering numerous AR-style lower receivers, 3D printed handguns, and additional firearm parts and accessories. Approximately 59 of the AR-style receivers contained a “third pin hole,” qualifying them as machine guns.
On October 9, 2024, a dive team searched the Erie Canal beneath the Beals Road bridge in Medina. A cardboard box was located and retrieved from the bottom of the canal. Inside were 10 AR-style receivers, an unmarked handgun, magazines, and additional firearm parts.
The complaint is the result of an investigation by the New York State Police, under the direction of Major Stanley Edwards, the Genesee County Sheriff’s Office, under the direction of Sheriff William A. Sheron, Jr., and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Bryan Miller, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Franklin County Man Trafficking Kilograms of Methamphetamine Sentenced to 25 YearsRead the Press Release
WILMINGTON, N.C. – Olegario Pineda-Palacios, age 35, was sentenced to 300 months in prison for importing multi-kilograms of methamphetamine into North Carolina. On March 12, 2024, Pineda-Palacios pled guilty to conspiracy to possess with intent to distribute 500 grams or more of a substance containing methamphetamine, possession with the intent to distribute 500 grams or more of a substance containing methamphetamine, and possession of a firearm by a convicted felon.
“This sentence underscores the destructive impact that drugs, like the methamphetamine Pineda was distributing, has on the community,” said Cardell T. Morant, Special Agent in Charge of U.S. Homeland Security Investigations Charlotte that covers North and South Carolina. “HSI and our law enforcement partners have an unwavering commitment to find, arrest and prosecute those involved in trafficking these dangerous drugs in our communities.”
According to court documents and other information presented in court, Pineda-Palacios was coordinating with individuals in Mexico to receive shipments of methamphetamine in Franklin County. After locating a shipment containing approximately four kilograms of methamphetamine, in September 2022, Homeland Security Investigations (HSI), the Franklin County Sheriff’s Office (FCSO), and the State Bureau of Investigations (SBI) executed a search warrant at Pineda-Palacios’ residence. On the property behind the residence, law enforcement discovered a clandestine conversion methamphetamine lab – in which Pineda-Palacios would convert powder methamphetamine into crystal methamphetamine (“Ice”). Law enforcement also recovered a 9mm firearm and additional methamphetamine from inside of the residence.
Pineda-Palacios has prior felony convictions for conspiracy to traffic cocaine, conspiracy to traffic methamphetamine, operating a vehicle containing a secret compartment, possession of methamphetamine with the intent to distribute, and illegal reentry of a previously deported alien. Pineda-Palacios is in the country illegally and faces deportation after serving his sentence.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. HSI, the FCSO, and the SBI investigated the case and Assistant U.S. Attorney Casey Peaden prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-0041.
Fourth Hells Angels Motorcycle Club Member Pleads Guilty to Being a Felon in Possession of AmmunitionRead the Press Release
SACRAMENTO, Calif. — Kenneth Caspers Jr., 57, of Vacaville, pleaded guilty today to unlawfully possessing ammunition after being convicted of a felony crime, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in October 2021, two different victims—both of whom were members of a different motorcycle club that is considered a “puppet” (or subordinate) club of the Hells Angels—were beaten by Caspers, Michael Mahoney, Jaime Alvarez, Dennis Killough, and other club members based on perceived infractions of the Hells Angels’ rules.
According to court documents, on Dec. 8, 2021, law enforcement officers executed a search warrant at Caspers’ Vacaville home and found several firearms and ammunition, including 18 rounds of .22‑caliber, .25‑caliber, and/or .38-caliber ammunition in Caspers’ master bedroom and bathroom. Caspers has previously been convicted of several felony crimes—including a previous felony conviction for being a felon in possession of a firearm—that prevent him from possessing firearms or ammunition.
This case is the product of an investigation by the Solano County District Attorney’s Office, the Solano County Sheriff’s Office, the Vacaville Police Department, the Vallejo Police Department, the Fairfield Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Jason Hitt, Alsytn Bennet, and Adrian T. Kinsella are prosecuting the case.
Caspers is scheduled to be sentenced on Feb. 11, 2025, by U.S. District Judge John A. Mendez. Caspers faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The three other defendants have previously pleaded guilty and were sentenced as follows: Alvarez was sentenced to 21 months in prison on March 21, 2023, Killough was sentenced to 46 months in prison on June 26, 2023, and Mahoney was sentenced to 37 months in prison on May 2, 2023.
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 U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Former Taylor Mayor Sentenced to Nearly 6 Years in Prison for Bribery ConspiracyRead the Press Release
DETROIT –Richard Sollars was sentenced to 71 months in prison for conspiring to accept bribes and engaging in wire fraud while he was the Mayor of the City of Taylor, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent-in-Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Between 2016 and 2018, Sollars, 50, exercised his authority and influence as Mayor and recommended to the Taylor City Council that Realty Transition, a company owned by his co-defendant, Shady Awad, be awarded the vast majority of the tax-foreclosed properties that the City had or would acquire under its Right of First Refusal (ROFR) program. This was a program designed to allow Taylor to acquire tax-foreclosed properties from Wayne County for redevelopment. Sollars recommended Realty Transition for the ROFR program, intending to be influenced and rewarded by the free home renovations and other items of value that Awad provided to Sollars for his personal residence, office, and lake house. After an evidentiary hearing, the Court found that Sollars received bribes from Awad totaling $85,011.73 as part of this bribery scheme. The bribes included items such as home renovations, a humidor, kitchen appliances, a washer and dryer, a Dyson vacuum cleaner, a camera, and cash.
In addition, as part of his election efforts, Sollars established a campaign account entitled, “Committee to Elect Richard Sollars, Jr.” Sollars engaged in a scheme to defraud his donors by fraudulently using donated funds for his personal benefit rather than for his political campaign. In furtherance of the fraudulent scheme, Sollars directed his campaign treasurer to provide him with signed blank checks from his campaign account. Sollars then made those checks payable to Dominick’s Market in various amounts, each purporting to represent payment for catering services provided to the campaign. As known to Sollars, the owner of Dominick’s Market, Hadir Altoon, prepared false invoices for catering services that were not actually provided. Instead, Altoon would provide Sollars with some or all of the proceeds from the cashed fraudulent checks for Sollars’s personal use. After an evidentiary hearing, the Court found that Sollars received $70,362.98 from this, and other, wire fraud schemes related to his campaign account.
“Sollars, as the Mayor of the City of Taylor, pledged to represent the best interests of the citizens he represented and the voters who supported him. Instead, he used his elected office to award city contracts and spend campaign funds for his own personal financial enrichment,” stated U.S. Attorney Ison. “Sollars’s conviction and sentence demonstrate my office’s commitment to ensuring that those elected officials who place their own greed above their duties to the citizens in the community will be held to answer for their breach of trust.”
"The diligent work of the FBI's Detroit Area Corruption Task Force, working in collaboration with the United States Attorney's Office for the Eastern District of Michigan, resulted in the conviction of Richard Sollars, the former mayor of the City of Taylor," said FBI Special Agent in Charge Gibson. "This betrayal of public trust is a stark reminder of the importance of integrity and accountability in public office. We remain committed to upholding the principles of justice and transparency, ensuring that such actions do not go unpunished. Today's sentencing of Mr. Sollars brings closure to a lengthy and thorough investigation of the former mayor's administration."
The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Frances Carlson and Robert Moran.
Former Montgomery County Restaurant Owner Sentenced to 21 Months’ Imprisonment for PPP and RRF Loan FraudRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Giuseppina “Josephine” Leone, 62, of North Wales, Pennsylvania, was sentenced today by United States District Court Judge Gerald A. McHugh to 21 months in prison, one year of supervised release, a $50,000 fine and $300 special assessment for pandemic program fraud. The Court denied the defendant’s request for a non-custodial sentence. The defendant has also paid full restitution in the amount of $972,861.75.
Leone was charged by indictment on May 16, 2024, with three counts of wire fraud for making false representations in documents relating to the Paycheck Protection Program (“PPP”) and Restaurant Revitalization Fund (“RRF”) program, which provided emergency financial assistance to business owners suffering the economic effects of the COVID-19 pandemic. She pleaded guilty to those charges on May 23.
Leone and her husband were owners of Ristorante San Marco (“RSM”), an Italian restaurant located in Ambler, Pa. Leone and her husband executed an Agreement for Sale of Real Property dated October 20, 2019, listing themselves as the “Sellers” of the RSM property and a third party as the “Buyer” for a purchase price of $1,575,000. Subsequently, on or about March 18, 2020, Leone posted on the restaurant’s Facebook page informing the public that RSM would be temporarily closed due to the COVID-19 pandemic. RSM remained closed and never reopened.
Despite the restaurant not being in operation in April 2020, Leone submitted a fraudulent application for a PPP loan in the amount of $138,000. This application misrepresented that RSM, which had been closed for approximately a month, had 17 employees, and would use the loan for payroll and other operating expenses. The fraudulent application was approved, and the loan funds were deposited into RSM’s bank account later that month. The loan was subsequently forgiven based on further misrepresentations by Leone.
In January 2021, while the restaurant was still not in operation, Leone submitted another fraudulent application for a PPP loan, this time seeking $120,000. The application made similar misrepresentations and was approved, resulting in the requested funds being deposited into RSM’s bank account in February 2021. Again, the PPP loan was forgiven due to misrepresentations by Leone.
Finally, Leone defrauded another COVID-19 relief program. While RSM was still not in operation in May 2021, Leone submitted a fraudulent application for a grant under the RRF program, requesting $699,196 for restaurant operations. This RRF application mispresented that RSM, which had not been operating since March 2020, was in operation and that the money would be used to pay employee wages. As a result of this deception, the request was approved, and the funds were deposited into RSM’s bank account later in May 2021. One month later, in June 2021, Leone closed on the sale of RSM. Nonetheless, over a year later, Leone misrepresented to the federal government that the RRF funds had been used for eligible purposes, even though RSM was never reopened by Leone.
“PPP and the other covid relief programs were meant to provide emergency aid to businesses and employees financially flattened by the pandemic,” said U.S. Attorney Romero. “My office and our partners won’t stand for opportunists like Mrs. Leone thinking they can defraud the federal government, pocket taxpayers’ money, and get away with it. We’ll continue to aggressively pursue and prosecute anyone foolish enough to do so.”
The case was investigated by the Small Business Administration Office of Inspector General, the FBI, and Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Angella Middleton.
Former Correctional Officers Sentenced to Three Years in Federal Prison for Using Inmates’ Stolen Identities in International Fraud SchemeRead the Press Release
INDIANAPOLIS—Martins Tochukwu Chidiobi, 34, and Lawrence Onyesonwu, 38, of Muncie, have each been sentenced to three years in federal prison, followed by two years of supervised release and payment of a $5,000 fine, after pleading guilty to aggravated identity theft and making false statements to a financial institution.
According to court documents, between on or about 2015 and their arrest date in January 2019, Chidiobi and Onyesonwu worked as Correctional Officers at the New Castle Correctional Facility, a privately managed prison within the Indiana Department of Corrections. During that time, Chidiobi and Onyesonwu stole at least five inmates’ personally identifiable information, including names, dates of birth, and social security numbers. The defendants used the stolen identities of the victim inmates to open at least nine accounts at various Indiana banks using fraudulent passports. The fraudulent passports were purportedly issued by Nigeria, Liberia, and Ghana, and included pictures of the defendants, but the names and other information of the identity theft victims.
The accounts opened by the defendants with the stolen identities were then used to receive the proceeds of broader fraud schemes. A total of at least $331,282 was deposited into the defendants’ fraudulent bank accounts from at least 11 sources. Investigators worked to identify and contact individuals who deposited funds into fraudulent accounts. Of the eleven depositors able to be identified, each was themselves the victim of a “romance scam” or other fraud scheme. Further investigation revealed that the defendants also received deposits of apparent fraud proceeds into their own personal bank accounts.
The vast majority of the over $331,282 in apparent fraud proceeds received by the defendants was withdrawn as cash. A large portion of the money was transferred into Nigerian bank accounts.
“It is simply reprehensible for correctional officers to exploit their positions to steal inmates’ identities and further the financial exploitation of scam victims,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Transnational fraud schemes have lasting repercussions for victims all over the country, and everyone who commits these crimes must be held accountable. The federal prison sentences imposed here should serve as a warning that the FBI and U.S. Attorney’s Office are committed to pursuing financial criminals and holding them accountable.”
“This sentence highlights the FBI’s resolve to investigate and prosecute those who exploit their authority for personal gain. The men and women of the FBI are committed to showing respect for the dignity of all those we protect including victims who are incarcerated,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “I am extremely proud of the work we do to protect the rights of all Americans.”
The FBI investigated this case. The sentences were imposed by U.S. District Judge James P. Hanlon.
U.S. Attorney Myers thanked Assistant U.S. Attorneys Tiffany J. Preston and Corbin D. Houston, who prosecuted this case.
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Former CEO of Abercrombie & Fitch and Two Other Individuals Charged with Sex Trafficking and Interstate ProstitutionRead the Press Release
A 16-count indictment was unsealed today in federal court in Central Islip charging former Abercrombie & Fitch Co. (Abercrombie) Chief Executive Officer Michael Jeffries, along with Matthew Smith and James Jacobson, with sex trafficking and engaging in interstate prostitution. The indictment alleges that between December 2008 and March 2015, Jeffries, Smith and Jacobson used a combination of force, fraud and coercion to traffic men while operating a prostitution enterprise. All three defendants were arrested this morning. Jeffries and Smith are scheduled to make their initial appearances this afternoon in federal court in the Southern District of Florida, and Jacobson is scheduled to make his initial appearance this afternoon in federal court in St. Paul, Minnesota. They will be arraigned in the Eastern District of New York at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, New York Field Office (FBI) and Thomas G. Donlon, Interim Commissioner, New York City Police Department (NYPD), announced the arrests and charges.
“As alleged in the indictment, former CEO of Abercrombie Michael Jeffries, his partner Matthew Smith and their recruiter James Jacobson used their money and influence to prey on vulnerable men for their own sexual gratification,” stated United States Attorney Peace. “Today’s arrests show that my Office and our law enforcement partners will not rest until anyone who engages in sex trafficking or interstate prostitution, regardless of their wealth or power, is brought to justice.”
Mr. Peace expressed his thanks to the FBI Miami Field Office, West Palm Beach Resident Agency; the FBI Milwaukee Field Office, Eau Clair Resident Agency; the Barron County, Wisconsin, Sheriff’s Office; and the United States Attorney’s Offices for the Southern District of Florida and the District of Minnesota, for their assistance with the case.
“Today’s indictment highlights the alleged abhorrent behavior of Michael Jeffries, Matthew Smith, and James Jacobson. The defendants allegedly preyed on the hopes and dreams of their victims by exploiting, abusing, and silencing them to fulfill their own desires, with insidious secret intentions. This case is yet another example of individuals using their wealth, power, or reputation to manipulate and control others for their personal gratification. The FBI and our partners won’t allow these criminal acts to go unchecked, we remain committed to investigating and bringing these cases forward to prosecution,” stated FBI Assistant Director in Charge Dennehy.
“Sex trafficking remains a pressing issue nationwide and New York City is no exception,” stated NYPD Interim Commissioner Donlon. “Through our continued partnership with the FBI and the U.S. Attorney for the Eastern District of New York, the NYPD is able to enhance our investigations and secure convictions. Importantly, our close collaboration also allows us to connect survivors of this abhorrent crime with the necessary support and services they deserve.”
From approximately 1992 to 2014, Jeffries was the CEO of Abercrombie, a fashion clothing retailer that owned and operated retail stores around the world. Smith was Jeffries’ life partner. The indictment alleges that Jacobson was employed by Jeffries and Smith to recruit, interview and hire men to perform commercial sex acts for Jeffries and Smith.
As set forth in the indictment, from approximately 2008 to 2015, Jeffries, Smith and Jacobson, together with others, operated an international sex trafficking and prostitution enterprise. Jeffries and Smith not only relied on their financial resources and Jeffries’ power as the CEO of Abercrombie, but also on numerous others, including Jacobson and a network of employees, contractors and security professionals, to operate this venture, which was dedicated to fulfilling their sexual desires.
As further alleged in the indictment, Jeffries and Smith paid for dozens of men to travel within the United States and internationally to various locations, including the Hamptons on Long Island, New York City and hotels in England, France, Italy, Morocco and Saint Barthélémy, for the purpose of engaging in commercial sex acts with Jeffries, Smith and others (the “Sex Events”). Jacobson allegedly traveled throughout the United States and internationally to recruit and interview men for the Sex Events. During “tryouts” of potential candidates, Jacobson typically required that the candidates first engage in commercial sex acts with him.
The indictment alleges that Jeffries, Smith and Jacobson used coercive, fraudulent and deceptive tactics in connection with their sex trafficking and prostitution venture. For example, among other things, Jeffries, Smith, Jacobson and others acting at their direction:
- Employed a referral system and interview process that did not inform men of the details of the Sex Events before they attended, including the full extent and nature of the sexual activity that would be required of the men at the Sex Events;
- Caused men to believe that attending the Sex Events could yield modeling opportunities with Abercrombie or otherwise benefit their careers;
- Caused men to believe that not complying with requests for certain acts during the Sex Events could harm their careers;
- Required men to relinquish their personal items, including clothing, wallets and cellular phones, and store them in an inaccessible location during the Sex Events;
- Required men to sign non-disclosure agreements;
- On more than one occasion when men did not or could not consent, Jeffries and Smith violated the bodily integrity of the men by subjecting them, or continuing to subject them, to invasive sexual and violent contact by body parts and other objects;
- On more than one occasion, Jeffries and Smith directed others to inject, or personally injected, men with an erection-inducing substance for the purpose of causing the men to engage in sex acts the men were incapable or unwilling to engage in.
Many of the victims, at least one of whom was as young as 19 years old, were financially vulnerable and aspired to become models in the fashion industry. Some victims recruited by the defendants had previously worked at Abercrombie stores or had modeled for Abercrombie.
If convicted of the sex trafficking charge, the defendants each face a maximum sentence of life imprisonment and a mandatory minimum sentence of 15 years’ imprisonment. If convicted of the interstate prostitution charges, the defendants face a maximum sentence of 20 years’ imprisonment.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
If you believe you are victim of a crime perpetrated by Michael Jeffries, Matthew Smith or James Jacobson, please contact the FBI at 1-800-CALL-FBI.
The government’s case is being handled by the Office’s Civil Rights Section and the Criminal Section of the Office’s Long Island Division. Assistant United States Attorneys Megan Farrell, Erin Reid and Philip Pilmar are in charge of the prosecution with the assistance of Bilingual Victim Witness Specialist Stephanie Marroquin and Fact Witness Services Unit Supervisor/Victim Witness Coordinator Huda Abouchaer.
The Defendants:
MICHAEL JEFFRIES
Age: 80
West Palm Beach, FLMATTHEW SMITH
Age: 61
West Palm Beach, FLJAMES JACOBSON
Age: 71
Rice Lake, WIE.D.N.Y. Docket No. 24-CR-423 (NJC)
af_1_-_indictment.pdfFormer CBP IT employee pleads guilty to stealing and attempting to sell 27 government computersRead the Press Release
ALEXANDRIA, Va. – A Bristow man pled guilty today to theft of government property.
According to court documents, from at least Nov. 6, 2023, to Aug. 1, 2024, Xavier Mittakarin, 38, was an employee for U.S. Customs and Border Protection (CBP), assigned to a CBP facility in Lorton where 27 U.S. government laptop computers were stored.
On Dec. 13, 2023, Mittakarin removed the 27 laptops, valued at a total of over $67,000, from the facility, intending to sell them. On March 22, 2024, Mittakarin sold one of the laptops via eBay to a purchaser in California, who paid $2,803.26. On May 22 and May 27, Mittakarin sold eight more laptops via eBay to another purchaser in California, who paid a total of $16,706.76.
On Aug. 1, Mittakarin attempted to sell 18 laptops to another purchaser, who was actually an undercover officer, for approximately $28,000. Mittakarin brought the laptops to a prearranged meeting place and time, where he was arrested and the laptops were recovered from his vehicle.
Mittakarin is scheduled to be sentenced on Feb. 27, 2025. He faces up to 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Kris Cline, Director of the Federal Protective Service; Joseph V. Cuffari, Inspector General for the Department of Homeland Security; and Mattew Klein, Assistant Commissioner, U.S. Customs and Border Protection, Office of Professional Responsibility, made the announcement after U.S. District Judge Patricia Tolliver Giles accepted the plea.
Special Assistant U.S. Attorney David J. Ryan is prosecuting the case. Former Special Assistant U.S. Attorney Antara Saikat Joardar provided substantial assistance in the prosecution of the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-191.
Florida Woman Sentenced to Prison for Filing False Refund ClaimsRead the Press Release
Defendant Fraudulently Received Almost $500,000 of $2M Sought from IRS
MIAMI – A Florida woman was sentenced today to one year and one day in prison, one year of supervised release, and ordered to pay approximately $485,290.03 in restitution to the United States for filing false tax returns with the IRS to obtain tax refunds.
According to court documents and statements made in court, between 2018 and 2020, Yolanda Dewar filed four false tax returns seeking a total of almost $2 million in tax refunds from the IRS on behalf of a trust she created. These returns falsely reported that the trust had earned significant income, made payments to the IRS, and had federal income taxes withheld on its behalf. Dewar continued filing false returns even after the IRS notified her that her claims were frivolous and had no basis in law. In total, the IRS issued nearly $500,000 to the trust in response to Dewar’s false claims. Dewar used a portion of the funds to purchase a car for a family member, get plastic surgery and renovate her home.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation investigated the case.
Assistant U.S. Attorney Deric Zacca for the Southern District of Florida and Trial Attorneys Melissa S. Siskind and Kavitha Bondada of the Justice Department’s Tax Division prosecuted the case.
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-60051.
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Florida Woman Sentenced for Filing False Refund ClaimsRead the Press Release
A Florida woman was sentenced today to one year and one day in prison, one year of supervised release and ordered to pay $485,290.03 in restitution to the United States for filing false tax returns with the IRS to obtain tax refunds.
According to court documents and statements made in court, between 2018 and 2020, Yolanda Dewar filed four false tax returns seeking a total of almost $2 million in tax refunds from the IRS on behalf of a trust she created. These returns falsely reported that the trust had earned significant income, made payments to the IRS and had federal income taxes withheld on its behalf. Dewar continued filing false returns even after the IRS notified her that her claims were frivolous and had no basis in law. In total, the IRS issued nearly $500,000 to the trust in response to Dewar’s false claims. Dewar used a portion of the funds to purchase a car for a family member, get plastic surgery and renovate her home.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Markenzy Lapointe for the Southern District of Florida made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Melissa S. Siskind and Kavitha Bondada of the Justice Department’s Tax Division and Assistant U.S. Attorney Deric Zacca for the Southern District of Florida prosecuted the case.
Florida Man Pleads Guilty to Tax EvasionRead the Press Release
A Florida man pleaded guilty today to evading the payment of more than $1.7 million he owed for tax years 2004 through 2014.
According to court documents and statements made in court, David Albert Fletcher, of Deltona, owned and operated several furniture liquidations businesses in Florida, including Century Liquidators. For tax years 2004 through 2013, Fletcher did not timely file his federal income tax returns or pay taxes. After an audit, the IRS assessed a total of $1.7 million in taxes, interest and penalties against him.
To evade collection of these taxes, Fletcher concealed his income and assets from the IRS. For example, Fletcher used nominees to hide his purchases of luxury vehicles, including Rolls Royces. Fletcher also filed false income tax returns that understated his income and when interviewed by an IRS special agent, falsely represented the amount of income he earned.
A sentencing hearing will be set at a later date. Fletcher faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Zachary A. Cobb and Charles A. O’Reilly of the Justice Department’s Tax Division and Assistant U.S. Attorney Sarah Megan Testerman for the Middle District of Florida are prosecuting the case.