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Thursday 5 September 2024
Robert Hunter Biden Convicted on Three Felony Tax Offenses and Six Misdemeanor Tax OffensesRead the Press Release
Robert Hunter Biden (Hunter Biden) pleaded guilty in federal court in Los Angeles this afternoon to all counts in a nine-count indictment, including three felony tax offenses and six misdemeanor tax offenses. There was no plea agreement.
Judge Scarsi accepted the defendant’s guilty plea and scheduled sentencing for December 16, 2024.
According to the indictment, Hunter Biden engaged in a four-year scheme in which he chose not to pay at least $1.4 million in self-assessed federal taxes he owed for tax years 2016 through 2019 and to evade the assessment of taxes for tax year 2018 when he filed false returns. As alleged in the indictment, to further this scheme, Hunter Biden:
- subverted the payroll and tax withholding process of his own company by withdrawing millions outside of the payroll and tax withholding process;
- spent millions of dollars on an extravagant lifestyle rather than paying his tax bills;
- in 2018, stopped paying his outstanding and overdue taxes for tax year 2015;
- willfully failed to pay his 2016, 2017, 2018 and 2019 taxes on time, despite having access to funds to pay some or all of these taxes;
- willfully failed to file his 2017 and 2018 tax returns, on time; and
- when he did finally file his 2018 returns, included false business deductions in order to reduce the very substantial tax liability he faced as of February 2020.
At sentencing, Hunter Biden faces a maximum penalty of 17 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 taking into account the U.S. Sentencing Guidelines and other statutory factors.
Court documents and information for this case is located on the website of the District Court for the Central District of California or on PACER by searching for Case No. 2:23-cr-00599.
Ridgefield Man Sentenced to 3 Years in Prison for Child Exploitation OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that NICHOLAS SKIRKANICH, 45, of Ridgefield, was sentenced today by U.S. District Judge Vernon D. Oliver in Hartford to 36 months of imprisonment, followed by 10 years of supervised release, for a child exploitation offense. Judge Oliver also ordered Skirkanich to pay a fine and assessments totaling $25,000, and restitution of $4,000.
According to court documents and statements made in court, in October 2022, an online service provider submitted a CyberTip to the National Center for Missing and Exploited Children (“NCMEC”) indicating that a TikTok video containing child sex abuse imagery was sent from Skirkanich’s email account to another email account. Subsequent investigation revealed that Skirkanich had emailed the TikTok video to another email account he controlled, that he had also uploaded to TikTok another video of child sex imagery, and that he possessed numerous other child sex abuse images on his phone.
Skirkanich was arrested on December 15, 2022. On February 21, 2023, he pleaded guilty to accessing with intent to view and possessing child pornography.
Skirkanich, who is released on a $150,000 bond, is required to report to prison on October 19.
This matter was investigated by Homeland Security Investigations (HSI) with the assistance of the Ridgefield Police Department. The case was prosecuted by Assistant U.S. Attorney Shan Patel, with the assistance of the Danbury State’s Attorney’s Office.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Registered Sex Offender Sentenced to 45 Years' Imprisonment for Attempting to Sexually Exploit Minors and Distributing Child PornographyRead the Press Release
Earlier today, in federal court in Brooklyn, Davis Burgos-Collazo was sentenced by United States District Judge Pamela K. Chen to 45 years in prison for five counts of attempted sexual exploitation of a minor, two counts of distributing child pornography, one count of accessing child pornography with intent to view it and one count of committing a felony sexual offense involving minors while being a registered sex offender. As part of the sentence, the Court ordered Burgos-Collazo to pay restitution of $33,000. Burgos-Collazo was convicted by a federal jury in July 2022 following a one-week trial.
Breon Peace, United States Attorney for the Eastern District of New York and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“It has been proven that the defendant is an extremely dangerous predator, who, while being a registered sex offender, coerced a 10 year old child to perform sex acts for him on Instagram and threatened the child when she pleaded that he leave her alone. And sadly, she was not the only vulnerable victim,” stated United States Attorney Peace. “With today’s sentence, the goal of incapacitating this master manipulator and sextortionist has been achieved. We are dedicated to protecting our children from those who weaponize social media in order to sexually exploit and harm them.”
As set forth in the government’s sentencing memorandum and related court proceedings, in 2020, Burgos-Collazo used at least 26 Instagram accounts to attempt to sexually exploit children as young as nine years old. The defendant enticed the victims by pretending to be a modeling scout and by using accounts with names like “future models” and “preteen beauty pics.” After the defendant coerced a 10 year old victim into performing live sex acts for him on Instagram and she pleaded with him to leave her alone, he threatened to post a naked picture of her online for her friends to see if she refused to provide him with additional sexually explicit materials. The FBI recovered over 100 photos and videos of child pornography on the defendant’s phone. Burgos-Collazo committed these crimes while he was a registered sex offender. In March 2006, he was convicted of sexually abusing and attempting to sexually abuse multiple minors, all of whom were under the age of eleven, and one as young as seven.
This prosecution is 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 United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Rachel A. Bennek and John O. Enright are in charge of the prosecution, with the assistance of Paralegal Specialist Anna November.
The Defendant:
DAVIS BURGOS-COLLAZO
Age: 45
Queens, New YorkE.D.N.Y. Docket No.: 20-CR-492 (PKC)
Peruvian Citizen Extradited to United States on Narcotics Importation Conspiracy and Attempt ChargesRead the Press Release
NEWARK, N.J. – A citizen of Peru who was extradited to the United States on narcotics importation conspiracy and attempt charges had his initial appearance today in Newark federal court, U.S. Attorney Philip R. Sellinger announced today.
Roque Rafael Martinez Cubas, aka “Ever Arteaga,” 51, is charged by indictment with one count of conspiracy to distribute five kilograms or more of cocaine for unlawful importation and with one count of attempt to distribute five kilograms or more of cocaine for unlawful importation into the United States.
According to documents filed in this case and statements made in court:
Cubas was part of an international drug trafficking organization that manufactures and transports large quantities of cocaine from Peru to various countries, including the United States. From May 2022 through April 2023, Cubas and others conspired and attempted to import 662 kilograms of cocaine into the United States. Cubas was arrested in Peru in December 2023, and extradited at the request of the United States. He had his initial appearance today, before U.S. Magistrate Judge André M. Espinsoa in Newark federal court, pleaded not guilty, and was detained.
The narcotics charges each carry a maximum potential penalty of life imprisonment and a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents and task force officers of the FBI, under the direction of Special Agent in Charge James E. Dennehy; the U.S. Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Cheryl Ortiz; and the U.S. Drug Enforcement Administration in Lima, Peru, with the investigation leading to the charges. He also thanked the Peruvian National Police Special Investigations Unit; the Peruvian National Prosecutor General’s Office; the U.S. Department of State’s Diplomatic Security Service; Homeland Security Investigations Newark; U.S. Customs and Border Protection; Immigration and Customs Enforcement – Enforcement and Removal Operations Newark Field Office; the Mercer County Prosecutor’s Office; the Morris County Prosecutor’s Office; the Town of Dover Police Department; and the New Jersey National Guard Counterdrug Unit. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest of Cubas and his extradition to the United States. U.S. Attorney Sellinger thanked officials in Peru for their assistance.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
The government is represented by Assistant U.S. Attorney Jenny Chung of the Opioid Abuse Prevention and Enforcement Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
cubas.indictment.pdfPennsylvania Business Owner Sentenced to Prison for Tax EvasionRead the Press Release
HARRISBURG – A Pennsylvania man was sentenced today to 24 months in prison for evading his personal and employment taxes.
According to court documents and evidence presented at trial, Brandon Aumiller, of Milroy, owned an insurance sales business. For tax years 2007, and 2009 through 2011, Aumiller filed personal income tax returns reporting that he owed taxes, but did not pay them. He also filed employment tax returns for his business reporting that it owed taxes for the third quarter of 2013 and the first two quarters of 2014, but did not pay those taxes either.
When the IRS sought to collect the taxes Aumiller admitted he owed, Aumiller engaged in a multi-year scheme to thwart the IRS’ efforts by concealing his assets in nominee bank accounts, structuring multiple real estate deals to conceal the transactions from the IRS, and submitting false financial disclosure forms to the IRS that did not fully disclose his bank accounts and his real estate assets.
In total, Aumiller caused a tax loss to the IRS of $478,270.
“Taxpayers thinking about committing tax evasion should stop and consider the consequences,” stated Amy MacNeely, IRS Criminal Investigation Acting Special Agent in Charge, Philadelphia Field Office. “Those consequences include possible incarceration, being branded a convicted felon for the rest of their lives, and paying back all the taxes owed plus steep penalties and interest. Mr. Aumiller’s conviction and sentencing ensures that he will face those consequences, while reinforcing our commitment to identify and prosecute those who evade their taxes.”
In addition to the term of imprisonment, U.S. District Judge Christopher C. Conner ordered Aumiller to serve 3 years of supervised release and to pay approximately $180,000 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Matthew L. Cofer of the Tax Division and Assistant U.S. Attorney Geoffrey W. MacArthur of the Middle District of Pennsylvania prosecuted the case.
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Pennsylvania Business Owner Sentenced to Prison for Tax EvasionRead the Press Release
HARRISBURG – A Pennsylvania man was sentenced today to 24 months in prison for evading his personal and employment taxes.
According to court documents and evidence presented at trial, Brandon Aumiller, of Milroy, owned an insurance sales business. For tax years 2007, and 2009 through 2011, Aumiller filed personal income tax returns reporting that he owed taxes, but did not pay them. He also filed employment tax returns for his business reporting that it owed taxes for the third quarter of 2013 and the first two quarters of 2014, but did not pay those taxes either.
When the IRS sought to collect the taxes Aumiller admitted he owed, Aumiller engaged in a multi-year scheme to thwart the IRS’ efforts by concealing his assets in nominee bank accounts, structuring multiple real estate deals to conceal the transactions from the IRS, and submitting false financial disclosure forms to the IRS that did not fully disclose his bank accounts and his real estate assets.
In total, Aumiller caused a tax loss to the IRS of $478,270.
“Taxpayers thinking about committing tax evasion should stop and consider the consequences,” stated Amy MacNeely, IRS Criminal Investigation Acting Special Agent in Charge, Philadelphia Field Office. “Those consequences include possible incarceration, being branded a convicted felon for the rest of their lives, and paying back all the taxes owed plus steep penalties and interest. Mr. Aumiller’s conviction and sentencing ensures that he will face those consequences, while reinforcing our commitment to identify and prosecute those who evade their taxes.”
In addition to the term of imprisonment, U.S. District Judge Christopher C. Conner ordered Aumiller to serve 3 years of supervised release and to pay approximately $180,000 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Matthew L. Cofer of the Tax Division and Assistant U.S. Attorney Geoffrey W. MacArthur of the Middle District of Pennsylvania prosecuted the case.
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Pennsylvania Business Owner Sentenced for Tax EvasionRead the Press Release
A Pennsylvania man was sentenced today to 24 months in prison for evading his personal and employment taxes.
According to court documents and evidence presented at trial, Brandon Aumiller, of Milroy, owned an insurance sales business. For tax years 2007 and 2009 through 2011, Aumiller filed personal income tax returns reporting that he owed taxes, but did not pay them. He also filed employment tax returns for his business reporting that it owed taxes for the third quarter of 2013 and the first two quarters of 2014, but did not pay those taxes either.
When the IRS sought to collect the taxes Aumiller admitted he owed, Aumiller engaged in a multi-year scheme to thwart the IRS’ efforts by concealing his assets in nominee bank accounts, structuring multiple real estate deals to conceal the transactions from the IRS and submitting false financial disclosure forms to the IRS that did not fully disclose his bank accounts and his real estate assets.
In total, Aumiller caused a tax loss to the IRS of $478,270.
In addition to the term of imprisonment, U.S. District Judge Christopher C. Conner ordered Aumiller to serve three years of supervised release and to pay approximately $180,000 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Matthew L. Cofer of the Tax Division and Assistant U.S. Attorney Geoffrey W. MacArthur for the Middle District of Pennsylvania prosecuted the case.
Palm Springs Man Pleads Guilty to $2.1 Million Tax Refund Scheme and to Fraudulently Obtaining Nearly $1 Million in COVID-19 LoansRead the Press Release
RIVERSIDE, California – A Riverside County man pleaded guilty today to scheming to defraud the IRS out of more than $2.1 million via the issuing of fake W-2 forms and to fraudulently obtaining nearly $1 million of COVID-19 economic-relief loans.
William Mandel Musgrow, 48, of Palm Springs, pleaded guilty to one count of wire fraud and one count of aiding and assisting in the preparation of a false tax return.
According to his plea agreement, Musgrow used one of his business entities to issue fraudulent IRS Forms W-2. These forms false represented to the IRS that the recipients were employed by defendant’s various businesses, received wages, and had federal tax withheld from their paychecks when, in fact, the Forms W-2 either overstated the recipient’s income, or were wholly fraudulent as the recipient either did not work for the business at all or had no federal income tax withheld from their paychecks.
Musgrow then would help the recipient file fraudulent federal income tax returns that utilized the bogus Forms W-2 to generate a tax refund to which the recipient was not entitled.
In total, Musgrow issued at least 87 fraudulent IRS Forms W-2 and assisted in the filing of at least 87 false income tax returns. These returns requested a total of $2,769,600 in tax refunds, and the IRS paid out $2,136,630 of the requested refunds.
Separately, during the spring of 2020, Congress created federal programs to provide financial assistance to Americans suffering economic harm because of the COVID-19 pandemic.
From March 2020 to August 2020, Musgrow submitted 14 false and fraudulent applications to the United States Small Business Administration (SBA) and banks for Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL).
In these applications, Musgrow made false statements including the number of employees to whom were paid wages, falsely certifying that the loan proceeds would be used for permissible business purposes, and in some cases, that the businesses were legitimate business when, in fact, they were not operating in any fashion and had no employees whatsoever.
In total, Musgrow submitted 14 fraudulent loan applications which requested more than $1.9 million. Relying on Musgrow’s false information, the SBA and lenders approved and funded many of the loans. Musgrow obtained approximately $970,000 in fraudulent proceeds.
United States District Judge Kenly Kiya Kato scheduled a January 16, 2025, sentencing hearing, at which time Musgrow will face a statutory maximum sentence of 20 years in federal prison for the wire fraud count and three years in federal prison for the tax fraud count.
IRS Criminal Investigation is investigating this matter.
Assistant United States Attorney Benjamin J. Weir of the Riverside Branch Office is prosecuting this case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the U.S. Attorney’s Offices for the Central and Eastern Districts of California to jointly head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Owner of Orange County Staffing Companies Pleads Guilty to Tax Crimes, Admits to Cheating IRS Out of Nearly $60 MillionRead the Press Release
RIVERSIDE, California – The owner of Orange County-based temporary staffing companies pleaded guilty today to two federal criminal charges for willfully evading the payment of nearly $30 million in taxes, penalties and interest, assessed against him to the IRS as well as causing a false tax return to be filed with the IRS as part of defendant’s efforts to conceal nearly $30 million in additional tax liabilities incurred by his staffing companies.
Luis E. Perez, 55, who has maintained residences in Anaheim Hills, Yorba Linda, and Dove Canyon, pleaded guilty to one count of tax evasion and one count of aiding and assisting in the preparation of a false tax return.
“This defendant’s greed and lies lasted over a decade and caused tens of millions of dollars in unpaid taxes to the IRS so he could live a lavish lifestyle,” said United States Attorney Martin Estrada. “Today’s guilty plea shows my office will continue to aggressively prosecute tax offenders who fail to pay their fair share to the federal fisc and hold corporate executives accountable for violating their obligations.”
“For nearly a decade, Mr. Perez committed tax evasion by withholding millions of dollars in payroll taxes from employee paychecks and using that money to purchase luxury items for himself,” said Acting Special Agent in Charge Jose Gonzalez, IRS Criminal Investigation, Los Angeles Field Office. “As a business owner, he had a duty to his employees and to the IRS, yet despite attempts by the IRS to work with Mr. Perez, he lied and continued to report false information. IRS Criminal Investigation will exhaust all avenues to pursue tax criminals, all of whom place additional burden on honest taxpaying Americans.”
According to his plea agreement, Perez’s companies – which include Checkmates Staffing Inc.; Staffaide Inc.; BaronHR, LLC; BaronHR West Inc.; and Fortress Holding Group LLC – were required to withhold taxes from employee wages and to pay the withheld amounts to the IRS on a periodic basis. These withheld taxes, sometimes known as “trust fund taxes,” include income taxes and Federal Insurance Contributions Act (FICA) taxes that fund Social Security and Medicare.
From May 2009 to January 2017, Perez’s companies failed to pay the IRS the payroll taxes for the tax years 2001, 2002, 2003, 2006, 2007, 2008 and 2010, including trust fund taxes that Perez’s companies withheld from employees’ paychecks. Beginning in June 2007, the IRS attempted to collect Perez’s outstanding tax liability, including penalties and interest. By February 2017, the outstanding balance had grown to $29,593,378, which included the unpaid taxes, interest and the “Trust Fund Recovery Penalty.”
Perez attempted to thwart the IRS’s collection efforts by purchasing luxury items from his business bank accounts – including numerous cars and a boat – and concealing his ownership by placing the titles of these items in the names of his businesses and other individuals. Those luxury items included a Ferrari 360 Spider F, a Rolls Royce Phantom, a Duffy D 22 Bay Island boat, a Mercedes-Benz SLS, a Mercedes-Benz G-Class, and a Lamborghini Aventador. Perez also evaded the IRS’s collection efforts by obtaining a Visa Black credit card in the name of another person (now his wife) to make personal purchases and paid off the credit card using funds from his business bank accounts.
As part of his efforts to impede the IRS, Perez lied to IRS revenue officers during interviews and failed to include material information in documents submitted to the IRS. For example, Perez falsely claimed that he received a salary of only $1,000 per week from BaronHR and he did not receive any other funds from the company, when in fact Perez distributed money to himself from his businesses by making payments to his now wife for Perez’s benefit.
While on pretrial release for the abovementioned criminal conduct, Perez engaged in additional criminal tax violations. From October 2018 to August 2019, Perez willfully aided and assisted in the preparation of false tax returns that substantially understated the wages paid to the employees of Anaheim-based temporary staffing company BaronHR West from January 2018 through June 2019. Specifically, Perez admitted in his plea agreement that he caused BaronHR West to underreport employee wages and other compensation paid by the company by approximately $130,879,521, which resulted in the company’s failure to pay approximately $29,633,516 in federal employment taxes.
United States District Judge Kenly Kiya Kato scheduled a January 16, 2025, sentencing hearing, at which time he will face a statutory maximum sentence of eight years in federal prison.
Perez has been in federal custody since August 15, when a federal magistrate judge revoked his bond after a two-day evidentiary hearing finding probable cause to believe that Perez had violated the terms of his pretrial release by committing still more criminal tax violations between 2021 and 2023. In a motion to revoke Perez’s bond filed with the court on August 2, the government alleged that Perez had willfully caused his staffing companies to fail to pay over $25 million in federal payroll taxes (including over $13 million in federal trust fund taxes withheld from employee wages) since March 2021.
IRS Criminal Investigation investigated this matter.
Assistant United States Attorneys Brett A. Sagel of the Corporate and Securities Fraud Strike Force, James C. Hughes of the Major Frauds Section, and Robert A. Kemins of the Department of Justice Tax Division are prosecuting this case.
Omaha Man Sentenced for Accessing with Intent to View Child PornographyRead the Press Release
United States Attorney Susan Lehr announced that Logan M. Schwenk, age 23, of Omaha, Nebraska, was sentenced on September 5, 2024, in federal court in Omaha for access with intent to view visual depictions of minors engaging in sexually explicit conduct. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Schwenk to 24 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release. Schwenk was ordered to pay a $2,500 special assessment to the Child Pornography Victims Reserve Fund.
On October 25, 2022, a Federal Bureau of Investigation agent working covertly online visited an open internet page that hosted and advertised the sale of child pornography. On the internet page, packages of child pornographic files were advertised for sale in U.S. currency. The agent made a covert purchase of the files, and the money was directed to a money mule located in the United States. After the purchase, the agent was sent a Mega link which contained terabytes of child pornographic material. Mega is a file hosting service.
During investigation of the money mule, the agent identified others who made similar purchases for child pornography, which included Schwenk. Schwenk’s purchase history and communications with the money mule showed multiple financial transactions for similar links from October 2022 through February 2023. In the transaction line for the payments, Schwenk indicated “mega” or “cp.”
On June 7, 2023, a search warrant was issued for Schwenk’s residence in Omaha. The warrant was executed, and numerous devices were seized, including his phone and laptop. During a forensic review of Schwenk’s phone, the FBI found a Mega link to child pornography and at least one image of child pornography.
This case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force.
Ohio Man Sentenced to More than 11 Years in Prison for Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Timothy Edwin Payne Jr., 43, of Belpre, Ohio, was sentenced today to 11 years and eight months in prison, to be followed by five years of supervised release, for conspiracy to possess with intent to distribute 100 grams or more of a fentanyl analogue.
According to court documents and statements made in court, on April 4, 2022, Payne arranged for a package containing approximately 1 kilogram of a fentanyl analogue to be shipped through the United States Mail from California to an apartment in Parkersburg, West Virginia. Payne paid the apartment’s resident $1,000 to receive and hold the package for Payne.
Law enforcement officers intercepted the package before it arrived at the apartment, and replaced the fentanyl with a sham substance and a tracking device before the package was delivered to the apartment. Payne tracked the package’s delivery using his mobile phone, and went to the apartment when the package arrived there on April 8, 2022. When Payne opened the package, law enforcement officers knocked on the apartment door. Payne attempted to flee but was arrested. The intercepted package was part of a series of packages that had been shipped from California to the same apartment in Parkersburg, and those packages were also suspected to contain controlled substances.
Payne has a long criminal history that includes three prior felony convictions, including for a drug offense, and 11 misdemeanor convictions.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Postal Inspection Service, the Drug Enforcement Administration (DEA), the Parkersburg Narcotics Task Force, and the Parkersburg Police Department.
United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorneys Jeremy B. Wolfe and Andrew D. Isabell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-108.
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Ohio Man Admits to Methamphetamine TraffickingRead the Press Release
WHEELING, WEST VIRGINIA – Stephan G. Ward, 32, of Akron, Ohio, has admitted to the distribution of methamphetamine.
According to court documents, Ward, also known as “YG,” was delivering methamphetamine to others for distribution in Marshall County.
Ward faces up to 20 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Clayton Reid is prosecuting the case on behalf of the government.
The Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
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Ohio County Man Admits to Role in Drug Trafficking OperationRead the Press Release
WHEELING, WEST VIRGINIA – Daryl Smith, 50, of Wheeling, West Virginia, has admitted to the distribution of cocaine base.
According to court documents, Smith was selling cocaine base in Ohio County. Smith is one of 12 defendants involved in a drug trafficking operation that spanned from Las Vegas, Nevada to the Ohio Valley.
Smith faces up to 20 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Carly Nogay and United States Attorney William Ihlenfeld are prosecuting the case on behalf of the government.
The Ohio Valley Drug Task Force, Marshall County Drug Task Force, and the Hancock-Brooke-Weirton Drug Task Force, all HIDTA-funded initiatives; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, and Firearms; West Virginia State Police; Wheeling Police Department; Ohio County Sheriff’s Office; and the Belmont County Sheriff’s Office investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Press release on the associated case: www.justice.gov/usao-ndwv/pr/federal-grand-jury-indicts-twenty-six-drug-trafficking
Ogoshi Brothers Sentenced to Lengthy Prison Terms in Sextortion Scheme That Resulted in Death of TeenRead the Press Release
U.S. Attorney Mark Totten Says Vigilance Needed as Multiple Other Deaths Tied to Sextortion Under Investigation in District
MARQUETTE, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Samuel Ogoshi, age 24, and Samson Ogoshi, age 21, both of Lagos, Nigeria, were sentenced to 210 months in prison followed by 5 years of supervised release for the crime of Conspiracy to Sexually Exploit Minors. On March 25, 2022, 17-year-old high school student, Jordan DeMay, from Marquette, Michigan, died as a result of this sextortion scheme, which targeted over 100 other victims, as well.
“Today’s sentencing of Samuel and Samson Ogoshi sends a thundering message,” said U.S. Attorney Mark Totten. “To criminals who commit these schemes: you are not immune from justice. We will track you down and hold you accountable, even if we have to go half-way around the world to do so. The day when you could commit these crimes, rake in easy cash, destroy lives, and escape justice is gone.” Totten continued: “And to parents, teenagers, and everyone who uses a cell phone: please, please be careful. These devices can connect you to criminal networks around the world. Don’t assume people are who they say they are. Don’t share compromising images. And if you’re a victim, please reach out. There’s help, and law enforcement stands ready.”
“These defendants sexually exploited and extorted more than 100 victims, including at least eleven minors, resulting in the tragic death of a 17- year-old high school student,” said Attorney General Merrick B. Garland. “These sentences should serve as a warning that the perpetrators of online sexual exploitation and extortion cannot escape accountability for their heinous crimes by hiding behind their phones and computers. The Justice Department will find them, no matter where they are, and we will bring them to justice in the United States.”
At a press conference today, U.S. Attorney Totten emphasized the scope of this threat and the need for vigilance by sharing that multiple other deaths tied to sextortion schemes are under investigation in the Western District of Michigan.
As detailed in their plea agreements (here and here), Samuel and Samson Ogoshi engaged in a scheme while living in Nigeria to sexually exploit more than 100 victims, including at least 11 identified minor victims. They purchased hacked social media accounts and used them to pose as young women, making fake profiles and using the messaging feature on the social media accounts to contact victims. They conducted online research about their victims to learn where they lived, attended school, worked, and the identities of their family and friends. They then solicited their minor victims to produce sexually explicit images of themselves. Once they received the images, they created a collage of pictures that included the sexually explicit image with other images of the victim and their school, family, and friends. The Ogoshi brothers threatened to disclose the collages to the family, friends, and classmates of the victim unless the victim agreed to pay money using online cash applications.
In November 2022, the U.S. Attorney’s Office for the Western District of Michigan charged Samuel Ogoshi, Samson Ogoshi, and Ezekiel Robert, all Nigerian nationals, in the sextortion scheme that resulted in the death of Jordan DeMay. The Ogoshi Brothers were extradited to the United States in August 2023 and pled guilty in April 2024. On March 21, 2024, a Nigerian court ordered the third defendant, Ezekiel Robert, to be extradited to the United States. He has appealed that decision and the matter is before the Nigerian High Court. In addition, on August 2, 2024, U.S. Attorney Totten announced the unsealing of a federal indictment in a separate case charging five U.S.-based defendants with conspiring to commit money laundering that facilitated the sextortion scheme. The charges against defendant Ezekiel Robert and the five U.S.-based defendants are merely accusations and these defendants are presumed innocent until and unless proven guilty in a court of law.
“The sentencing of sextortionists Samuel and Samson Ogoshi ensures both international criminals will no longer victimize minors in the United States or throughout the world,” said Cheyvoryea Gibson, Special Agent in Charge of FBI in Michigan. “Spreading awareness on sextortion is a top priority of the FBI here in Michigan. Our hearts and prayers are with the loved ones of Jordan DeMay and those affected by the criminal acts of these individuals.”
Safety Tips and Resources for Victims, Teens, and Parents
The FBI provides the following tips on how people can protect themselves from sextortion schemes:
- Be selective about what you share online. If your social media accounts are open to everyone, a predator may be able to figure out a lot of information about you.
- Be wary of anyone you encounter for the first time online. Block or ignore messages from strangers.
- Be aware that people can pretend to be anything or anyone online. Videos and photos are not proof that people are who they claim to be. Images can be altered or stolen. In some cases, predators have even taken over the social media accounts of their victims.
- Be suspicious if you meet someone on one game or app and that person asks you to start talking on a different platform.
- Be in the know. Any content you create online—whether it is a text message, photo, or video—can be made public. And nothing actually “disappears” online. Once you send something, you don’t have any control over where it goes next.
- Be willing to ask for help. If you are getting messages or requests online that don’t seem right, block the sender, report the behavior to the site administrator, or go to an adult. If you have been victimized online, tell someone. Being a victim of sextortion is not your fault. You can get through this challenge, even if it seems scary and overwhelming. There are people who want to help.
If you have information about or believe you are a victim of sextortion, contact your local FBI field office, call 1-800-CALL-FBI, or report it online at http://tips.fbi.gov. This FBI PSA and National Center for Missing and Exploited Children PSA share survivor stories and resources for individuals to get help. More FBI sextortion resources are available here.
This case is being prosecuted by Assistant U.S. Attorneys Daniel Mekaru and Davin Reust, and investigated by the FBI, the Marquette Sheriff’s Department, and the Michigan State Police Cybercrimes Unit in Marquette with the cooperation and assistance of the Economic and Financial Crimes Commission of Nigeria. The U.S. Department of Justice’s Office of International Affairs, the U.S. Department of State, and the Nigerian Attorney General’s Office – Ministry of Justice provided critical assistance securing the arrest and extradition of the defendants.
The U.S. Attorney’s Office for the Western District of Michigan issued the previous press releases in this case and a related case:
- May 3, 2023 – Three Nigerian Men Awaiting Extradition for Committing Sexual Extortion. The indictment is available here.
- August 13, 2023 – Two Nigerian Men Extradited to the United States after Being Indicted for International Sexual Extortion Ring.
- August 17, 2023 – Ogoshi Brothers Plead Not Guilty during Arraignment. The plea agreements are available here and here.
- April 10, 2024 – Two Nigerian Defendants Plead Guilty to Sextortion.
- August 2, 2024 – Five U.S.-Based Defendants Charged with Money-Laundering Conspiracy that Facilitated Foreign Sextortion Scheme. The indictment is available here.
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- Be selective about what you share online. If your social media accounts are open to everyone, a predator may be able to figure out a lot of information about you.
Ocean Springs Man Pleads Guilty to Illegally Taking Smalltooth Sawfish, an Endangered SpeciesRead the Press Release
Gulfport, Miss. – An Ocean Springs man pled guilty to violating the Endangered Species Act by severing the rostrum of a smalltooth sawfish, an endangered species, while on board a shrimp boat off the Florida Keys.
Hong Thanh Nguyen, 62, pled guilty in U.S. District Court in Gulfport and was sentenced to one year of probation. Nguyen’s guilty plea followed the transfer of the charge filed in the Southern District of Florida to the Southern District of Mississippi.
According to court documents, in February 2022, Nguyen was aboard a commercial vessel, the Miss Theresa, near Key West in Monroe County, Florida, when the smalltooth sawfish became entangled in the boat’s fishing net. Nguyen severed the rostrum of the sawfish from its body with a knife, which he knew to be unlawful.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi made the announcement.
The case was investigated by the National Oceanic and Atmospheric Administration (NOAA) Office of Law Enforcement, which is part of NOAA’s National Marine Fisheries Service.
Assistant U.S. Attorney Gaines Cleveland prosecuted the case in the Southern District of Mississippi.
North Platte Man Sentenced to 10 Years for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Susan Lehr announced that Luke H. Schwartz, age 44, of North Platte, was sentenced on September 5, 2024, in federal court in Lincoln, Nebraska for one count of conspiracy to distribute 50 grams or more of actual methamphetamine. United States District Judge Susan M. Bazis sentenced Schwartz to a total of 120 months’ imprisonment. There is no parole in the federal system. After Schwartz’s release from prison, he will begin a 5-year term of supervised release.
Between July 2022 and February 2023, Schwartz and others conspired to sell meth around North Platte. The group was responsible for the distribution of pounds of meth. During January 2023, Schwartz and other co-defendants were responsible for the sales of a minimum of 106 grams of meth actual to a confidential informant (CI) working with law enforcement.
Schwartz was directly involved in two sales in January 2023, which involved at least 70 grams of actual meth. During the first sale, the CI set up the controlled buy with Schwartz. Law enforcement provided the CI with $600 to purchase an ounce of meth. The CI went to the pre-arranged buy location and provided Schwartz the money in exchange for a baggie containing a white crystalline substance. The State Crime Lab confirmed the substance to be at least 22 grams of actual meth.
The same CI set up a second buy from Schwartz. Law enforcement provided the CI with $1,200 to purchase two ounces of meth. The CI met up with Schwartz at a pre-determined location for buy to occur. The CI gave Schwartz the money and Schwartz gave the CI a baggie containing a white crystalline substance. The State Crime Lab confirmed the substance to be at least 48 grams of meth actual.
This case was investigated by the Tri-City Drug Enforcement Team (TRIDENT). TRIDENT is a task force with law enforcement personnel from the Adams County Sheriff’s Office, Buffalo County Sheriff’s Office, Federal Bureau of Investigation, Grand Island Police Department, Hall County Sheriff’s Office, Hastings Police Department, Homeland Security Investigations, Kearney Police Department, and the Nebraska State Patrol.
North Mississippi Woman Sentenced in Unemployment Benefits Fraud CaseRead the Press Release
Oxford, MS – A Plantersville woman was sentenced today to more than two years in prison for submitting a fraudulent unemployment benefits application to the Mississippi Department of Employment Security (MDES) in the name of a relative who was incarcerated in the Mississippi Department of Corrections.
According to court documents, Misty Burgess, 49, received more than $15,000 of unemployment benefits that she was not entitled to as a result of her fraudulent unemployment claims. Burgess, who was originally charged with theft of government property and wire fraud, pled guilty to theft of government property on May 16, 2024.
On Thursday, U.S. District Judge Michael P. Mills sentenced Burgess to 27 months in prison followed by three years of supervised release and ordered her to pay restitution in the amount of $15,604.00 to the State of Mississippi. The unemployment benefits fraudulently received by Burgess were a part of those benefits issued under the CARES Act from the State of Mississippi and the federal government as a result of the Covid-19 pandemic.
“Today’s sentence is an important step in ensuring that individuals who make fraudulent claims to government funds that they are not entitled to will be held accountable for their actions,” remarked U.S. Attorney Clay Joyner.
Following the sentencing, Mississippi State Auditor Shad White commented “We will continue working with our federal partners, as we’ve done since the beginning of my time in office, to get results for the people of Mississippi.”
Investigator Chris Watkins from the Mississippi State Auditor’s Office investigated the case. Assistant U.S. Attorney Feleica Wilson prosecuted the case.
Nigerian Brothers Sentenced in Sextortion Scheme that Resulted in Death of TeenRead the Press Release
The Justice Department today announced that Samuel Ogoshi, 24, and Samson Ogoshi, 21, both of Lagos, Nigeria, were each sentenced to 210 months in prison and five years of supervised release for conspiracy to sexually exploit minors. On March 25, 2022, 17-year-old high school student, Jordan DeMay, of Marquette, Michigan, died as a result of this sextortion scheme, which targeted over 100 other victims.
“These defendants sexually exploited and extorted more than 100 victims, including at least eleven minors, resulting in the tragic death of a 17- year-old high school student,” said Attorney General Merrick B. Garland. “These sentences should serve as a warning that the perpetrators of online sexual exploitation and extortion cannot escape accountability for their heinous crimes by hiding behind their phones and computers. The Justice Department will find them, no matter where they are, and we will bring them to justice in the United States.”
“Today’s sentencing of Samuel and Samson Ogoshi sends a thundering message,” said U.S. Attorney Mark Totten for the Western District of Michigan. “To criminals who commit these schemes: you are not immune from justice. We will track you down and hold you accountable, even if we have to go half-way around the world to do so. The day when you could commit these crimes, rake in easy cash, destroy lives, and escape justice is gone. And to parents, teenagers, and everyone who uses a cell phone: please, please be careful. These devices can connect you to criminal networks around the world. Don’t assume people are who they say they are. Don’t share compromising images. And if you’re a victim, please reach out. There’s help, and law enforcement stands ready.”
“The sentencing of sextortionists Samuel and Samson Ogoshi ensures both international criminals will no longer victimize minors in the United States or throughout the world,” said Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office. “Spreading awareness on sextortion is a top priority of the FBI here in Michigan. Our hearts and prayers are with the loved ones of Jordan DeMay and those affected by the criminal acts of these individuals.”
At a press conference today, U.S. Attorney Totten emphasized the scope of this threat and the need for vigilance by sharing that multiple other deaths tied to sextortion schemes are under investigation in the Western District of Michigan.
As detailed in their plea agreements (here and here), Samuel and Samson Ogoshi engaged in a scheme while living in Nigeria to sexually exploit more than 100 victims, including at least 11 identified minor victims. They purchased hacked social media accounts and used them to pose as young women, making fake profiles and using the messaging feature on the social media accounts to contact victims. They conducted online research about their victims to learn where they lived, attended school, worked, and the identities of their family and friends. They then solicited their minor victims to produce sexually explicit images of themselves. Once they received the images, they created a collage of pictures that included the sexually explicit image with other images of the victim and their school, family, and friends. The Ogoshi brothers threatened to disclose the collages to the family, friends, and classmates of the victim unless the victim agreed to pay money using online cash applications.
In November 2022, the U.S. Attorney’s Office for the Western District of Michigan charged Samuel Ogoshi, Samson Ogoshi, and Ezekiel Robert, all Nigerian nationals, in the sextortion scheme that resulted in the death of Jordan DeMay. The Ogoshi Brothers were extradited to the United States in August 2023 and pleaded guilty in April. On March 21, a Nigerian court ordered Robert to be extradited to the United States. He has appealed that decision, and the matter is before the Nigerian High Court.
In addition, on Aug. 2, U.S. Attorney Totten announced the unsealing of a federal indictment in a separate case charging five U.S.-based defendants with conspiring to commit money laundering that facilitated the sextortion scheme.
The FBI, Marquette Sheriff’s Department, and Michigan State Police Cybercrimes Unit in Marquette are investigating the case, with the cooperation and assistance of the Economic and Financial Crimes Commission of Nigeria. The Department of Justice’s Office of International Affairs, Department of State, and Nigerian Attorney General’s Office – Ministry of Justice provided critical assistance securing the arrest and extradition of the defendants.
Assistant U.S. Attorneys Daniel Mekaru and Davin Reust for the Western District of Michigan are prosecuting the case.
Safety Tips and Resources for Victims, Teens, and Parents
The FBI provides the following tips on how people can protect themselves from sextortion schemes:
- Be selective about what you share online. If your social media accounts are open to everyone, a predator may be able to figure out a lot of information about you.
- Be wary of anyone you encounter for the first time online. Block or ignore messages from strangers.
- Be aware that people can pretend to be anything or anyone online. Videos and photos are not proof that people are who they claim to be. Images can be altered or stolen. In some cases, predators have even taken over the social media accounts of their victims.
- Be suspicious if you meet someone on one game or app and that person asks you to start talking on a different platform.
- Be in the know. Any content you create online — whether it is a text message, photo, or video — can be made public. And nothing actually “disappears” online. Once you send something, you don’t have any control over where it goes next.
- Be willing to ask for help. If you are getting messages or requests online that don’t seem right, block the sender, report the behavior to the site administrator, or go to an adult. If you have been victimized online, tell someone. Being a victim of sextortion is not your fault. You can get through this challenge, even if it seems scary and overwhelming. There are people who want to help.
If you have information about or believe you are a victim of sextortion, contact your local FBI field office, call 1-800-CALL-FBI, or report it online at tips.fbi.gov. This FBI PSA and National Center for Missing and Exploited Children PSA share survivor stories and resources for individuals to get help. More FBI sextortion resources are available here.
New York Man Pleads Guilty to Hacking, Credit Card Trafficking and Money Laundering ConspiraciesRead the Press Release
BOSTON – A New York City man pleaded guilty today to conspiracies to engage in computer hacking, trafficking in stolen payment card numbers and money laundering.
Vitalii Antonenko, 32, pleaded guilty before United States District Judge William G. Young to one count of conspiracy to gain unauthorized access to computer networks and to traffic in unauthorized access devices, and one count of money laundering conspiracy. Antonenko was arrested and detained in March 2019 on money laundering charges at New York’s John F. Kennedy International Airport after he arrived there from Ukraine carrying computers and other digital media that held hundreds of thousands of stolen payment card numbers. He was indicted by a federal grand jury in May 2020. Judge Young scheduled sentencing for Dec. 10, 2024.
Antonenko and co-conspirators scoured the internet for computer networks with security vulnerabilities that were likely to contain credit and debit card account numbers, expiration dates, and card verification values (Payment Card Data) and other personally identifiable information (PII). They used a hacking technique known as a “SQL injection attack” to access those networks without authorization, extracted Payment Card Data and other PII, and transferred it for sale on online criminal marketplaces. Once a co-conspirator sold the data, Antonenko and others used Bitcoin as well as traditional bank and cash transactions to launder the proceeds in order to disguise their nature, location, source, ownership and control. The conspiracy’s victims included a hospitality business and non-profit scientific research institution, both located in eastern Massachusetts.
The charge of conspiracy to gain unauthorized access and to traffic in access devices provides for a sentence of up to five years in prison, three years of supervised release, a $250,000 fine, restitution and forfeiture. The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, a $500,000 fine, restitution and forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Joshua S. Levy and Andrew Murphy, Special Agent in Charge of the U.S. Secret Service, Boston Field Office and made the announcement today. Assistant U.S. Attorney Seth B. Kosto Deputy Chief of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Nearly $8 million in U.S. Department of Justice grants coming to Western Washington to improve public safetyRead the Press Release
Seattle – The U.S. Department of Justice Office of Justice programs has awarded nearly $8 million to cities, counties, and non-profits in Western Washington to enhance public safety, announced U.S. Attorney Tessa M. Gorman. The grants fall into two broad categories: support of programs that reduce crime and technological improvements to better serve the public.
“It is a competitive process to get these federal dollars, and I congratulate the departments and organizations on the success of their applications,” said U.S. Attorney Gorman. “Whether it is personnel on the street to assist people in crisis or DNA processing machines to better identify those responsible for criminal conduct, these dollars will make a difference in our community.”
The largest grant, in the amount of $1,926,000 was awarded to the City of Seattle to support the Community Assisted Response and Engagement (CARE) Department. The funds will allow the CARE team to expand citywide with 18 additional staffers and three more supervisors to respond to community members facing behavioral health or related needs.
Similarly, the City of Tacoma was awarded $963,000 to create a program of Community Service Officers. These would be civilians who can respond to calls concerning mental health crisis and homelessness related issues. The program is designed to take some of the burden from Tacoma Police officers who have historic staffing shortages.
The King County Sheriff’s Office was also awarded $963,000 for hiring mental health professionals to join the Crisis Intervention Team. The mental health professionals will assist with public safety calls involving the need for mental health services.
Tacoma Municipal Court and the non-profit Choose 180 both received program support as well. The Municipal Court will use $500,000 to enhance two court programs: mental health court for those with serious and persistent mental health issues; and Community Court which assists a broader range of defendants dealing with homelessness, substance use disorder and minor mental health issues. The funding will go for staff training, case management services and a research project with a university to evaluate the program and make risk assessments.
Choose 180 is receiving $552,000 to support two of its programs aimed at reducing youth gun violence. The school-based diversion program works with students at risk of suspension and expulsion to keep them in an educational program and disrupt the school-to-prison pipeline. The second program, CHOOSE Freedom offers services to youth and young adults at risk of gun violence engagement.
Three government entities and one non-profit received funding for technological improvements. The city of Bellevue received $963,000 for its body-worn camera program. Both King County ($811,000) and Whatcom County ($440,000) received funding for rapid DNA machines and technology for better and quicker processing of crime scenes. Finally, the King County Sexual Assault Center (KSARC) received $790,000 to modernize the non-profit’s database which will allow staff to spend more time with sexual assault survivors and less time working with out-of-date software and data systems.
The grants are all part of the 2024 Office of Justice Programs Byrne Discretionary Community Project Grants. The Byrne Grants are named in honor of New York City Police Officer Edward R. Byrne, who was killed in the line of duty on February 26, 1988. Officer Byrne was just 22 years old.
Muskogee Resident Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jack Dewayne Neugin, age 55, of Muskogee, Oklahoma, entered a guilty plea to one count of Possession with Intent to Distribute Methamphetamine.
The Indictment alleged that on January 27, 2024, Neugin possessed methamphetamine, a Schedule II controlled substance, with the intent to distribute it.
The charges arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Cherokee County Sheriff’s Office.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea, and ordered the completion of a presentence investigation report. Neugin will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Jonathan E. Soverly represented the United States.
Motocross Coach Sentenced for Child Exploitation CrimesRead the Press Release
ATLANTA - Ryan Meyung, a motocross instructor who traveled the country building motocross tracks and mentoring children, has been sentenced for multiple child exploitation offenses.
“Meyung is a predator who sexually abused numerous children while working as a motocross coach,” said U.S. Attorney Ryan K. Buchanan. “This office remains steadfast in our determination to closely coordinate with our law enforcement partners across state lines to ensure justice is served to those who commit these heinous crimes against children.”
“This coach violated his position of trust and profound responsibility to protect and mentor those in his care,” said Homeland Security Investigations Nashville Special Agent in Charge Rana Saoud. “HSI, alongside our partners at the Hamilton County Sheriff’s Office and the Chattanooga Police Department, is fully committed to investigating and removing people who seek to harm our children. Our primary concern is ensuring justice for the victims and supporting their needs.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Between July 2019 and December 2021, Ryan Meyung caused six minor victims to engage in sexually explicit conduct to produce images and videos of child sexual abuse. At the time, the victims were between six and 13 years old. Meyung also possessed and transported images and videos of child sexual abuse produced by other sex offenders. Additionally, he sexually abused and recorded other children engaged in sexually explicit conduct.
Ryan Meyung, 33, of no fixed address, was sentenced to 40 years in prison to be followed by supervised release for life. He was also ordered to pay restitution in the amount of $193,500. Meyung was convicted of six counts of producing child pornography on April 26, 2024, after he pleaded guilty.
This case was investigated by Homeland Security Investigation - Chattanooga (Tennessee) with joint assistance from Homeland Security Investigation – Dalton (Georgia), the Hamilton County Sheriff’s Office (Tennessee), the Chattanooga (Tennessee) Police Department, and Homeland Security Investigation field offices throughout the country.
Assistant U.S. Attorney Erin N. Spritzer and Trial Attorneys Jessica L. Urban and James E. Burke IV of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Montgomery Man Sentenced to 13 Years in Prison for Committing Armed Robbery and Discharging a Firearm During the CrimeRead the Press Release
Montgomery, Alabama – Today, Acting United States Attorney Kevin P. Davidson announced that a federal judge sentenced 33-year-old Roddrecius Lavelle Goldsmith, a resident of Montgomery, Alabama, to 157 months in prison for his role in a 2023-armed robbery. During the September 4, 2024, sentencing hearing, the judge also ordered that Goldsmith remain on supervised release for five years following his prison term. There is no parole in the federal system.
According to court records and statements made in open court, on January 20, 2023, Goldsmith entered a gas station on U.S. Highway 231 in Wetumpka, Alabama and walked to the counter. Goldsmith asked the clerk about the location of the store’s bathroom, then pulled out a handgun. Goldsmith forced the clerk to go with him into the restroom where he struck her in the head with the firearm multiple times. Goldsmith then forced the clerk back to the counter and demanded money from the cash register. After retrieving approximately $79 from the register’s drawer, Goldsmith exited the store. The clerk hit a panic button that magnetically locked the doors. When Goldsmith got to his vehicle, he realized he had left his car keys inside the store. Goldsmith returned to the locked gas station doors and fired a round through the glass. Goldsmith reentered the store through the shattered glass door and retrieved his keys. He then fled the scene.
On May 23, 2024, Goldsmith pleaded guilty to interference with interstate commerce by robbery and discharging a firearm during a crime of violence.
The FBI and the Wetumpka Police Department investigated this case, with assistance from the Montgomery Police Department, the United States Marshals Service, and the Alabama Department of Forensic Sciences. Assistant United States Attorney Brandon W. Bates prosecuted the case.
Monongalia County Man Sentenced for Child Pornography ChargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – James Mansfield Davis, 67, of Morgantown, West Virginia, was sentenced today to 82 months in federal prison for the possession of child pornography.
According to court documents and statements made in court, a cyber tip about child pornography shared online was traced to Davis. Officers seized several devices and flash drives from Davis’s home. Investigators found 67 videos and 460 images of child pornography involving young boys. During the investigation, Davis fled to Florida, where he was apprehended.
Davis will be on 20 years of supervised release following his prison sentence.
Assistant U.S. Attorney Jennifer Conklin prosecuted the case on behalf of the government.
The Morgantown Police Department and the Bridgeport Police Department investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Minneapolis Felon Pleads Guilty to Fentanyl Trafficking in Saint Paul and Southern MinnesotaRead the Press Release
MINNEAPOLIS – A Minneapolis felon has pleaded guilty to possession with intent to distribute thousands of fentanyl pills, announced United States Attorney Andrew M. Luger.
According to court documents, on January 8, 2023, Giorgio Javon d’Larente Baymon, 37, sold 860 M-30 fentanyl pills to an individual in Mankato for distribution in the area. On January, 21, 2023, he sold an additional 600 M-30 fentanyl pills to a second individual.
On May 2, 2023, Baymon rented a room at the Intercontinental Hotel in Saint Paul, where he hid a bag containing 8,500 M-30 fentanyl pills. Hotel staff found the bag of fentanyl pills while Baymon was away and alerted law enforcement. Officers waited at the hotel and attempted to arrest Baymon when he returned, however, he fled from law enforcement, pulled a fire alarm, and was eventually apprehended in the hotel basement.
Baymon pleaded guilty yesterday in U.S. District Court before Judge Ann D. Montgomery to one count of possession with intent to distribute fentanyl. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by the Minnesota River Valley Drug Task Force, the St. Paul Police Department, the Drug Enforcement Administration, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorneys William C. Mattessich and Matthew D. Forbes are prosecuting the case.
Minneapolis Felon Charged with Possession with Intent to Distribute Fentanyl, Possession of a Machine Gun and Other Firearms ViolationsRead the Press Release
MINNEAPOLIS – A Minneapolis man has been charged in a four-count indictment with possession with intent to distribute fentanyl, possession of a firearm as a felon, possession of a machine gun, and carrying a firearm during and in relation to a drug trafficking crime, announced U.S. Attorney Andrew M. Luger.
According to court documents, on July 29, 2024, law enforcement obtained a search warrant for a white Nissan Rogue known to be driven by Tyrone Antwan Carter, Jr., 28. Law enforcement observed Carter’s vehicle in the parking lot of a business in north Minneapolis. Officers activated their emergency lights and moved their police vehicle to block Carter’s vehicle. Officers ordered Carter out of his vehicle, but Carter did not comply and accelerated past the police vehicle. Officers pursued and used a pursuit intervention technique (PIT) maneuver to stop the vehicle and prevent Carter from endangering pedestrians, law enforcement officers, and himself. After a brief struggle, officers removed Carter from the vehicle and placed him under arrest.
According to court documents, on the floorboard of the driver’s seat, officers recovered a fully loaded Glock 26 9mm pistol with an attached “switch” or “auto sear” and an extended magazine. In the trunk of the vehicle inside a black baby bag, officers found purple powder that had been pressed into a brick, along with hundreds of small plastic baggies and rubber gloves. Subsequent testing indicated that the powdered substance was fentanyl.
The indictment charges Carter with possession with intent to distribute fentanyl, possession of a firearm as a felon, possession of a machine gun, and carrying a firearm during and in relation to a drug trafficking crime. Carter has been ordered to remain in custody pending further proceedings.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hennepin County Violent Offender Task Force, and the Minneapolis Police Department.
Assistant U.S. Attorney David Classen is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Middleton Fentanyl Dealer Sentenced to Seven Years in Federal Prison After Causing A DeathRead the Press Release
BOISE – Nathaniel Erik Walsh, 29, of Middleton, was sentenced to seven years in federal prison for distributing fentanyl that resulted in the death of an individual, U.S. Attorney Josh Hurwit announced today.
According to court records, Walsh distributed six fentanyl pills to an individual on April 29, 2023. Walsh drove from Caldwell to Boise to provide the fentanyl pills to the victim, placing them in her mailbox. The victim smoked the pills and died of a fentanyl overdose.
U.S. District Judge Amanda K. Brailsford, also ordered Walsh to serve three years of supervised release following his prison term and required Walsh to pay for the victim’s funeral expenses. Walsh pleaded guilty to the offense on July 12, 2024.
“We mourn the loss of life in this case. Everyone should know that a single use of fentanyl can be fatal,” said U.S. Attorney Hurwit. “And anyone dealing or using fentanyl should know that if you sell or share even a small amount of fentanyl to another person, you are risking that person’s life and setting yourself up for a lengthy prison sentence.”
“Fentanyl distributors like Mr. Walsh peddle a deadly substance to vulnerable people for their own gain,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “The sentence in this case provides a small measure of justice for the pain Mr. Walsh caused and shows the resolve of the DEA and the Boise Police to hold drug traffickers accountable for their crimes.”
U.S. Attorney Hurwit commended the Boise Police Department and the Drug Enforcement Administration for their investigation in the case, which led to the charge. Assistant U.S. Attorney Christian S. Nafzger prosecuted the case.
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Man Who Tried to Smuggle More Than Four Kilograms of Cocaine from Puerto Rico to Philadelphia Sentenced to Two Years in PrisonRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jose Alberto Cruz-Garcia, 31, of Las Pedras, Puerto Rico, was sentenced by United States District Court Judge Timothy J. Savage to two years in prison and three years of supervised release for attempting to smuggle a significant amount of cocaine into Philadelphia.
On July 21, 2023, Cruz-Garcia departed San Juan, Puerto Rico, on a commercial flight to Philadelphia, carrying over four kilograms of cocaine in his luggage. Upon arrival, Cruz-Garcia met with codefendant Josue Benito Ascencio-Vega outside a motel near the airport to deliver the drugs, at which time both men were arrested by federal authorities.
The defendant pleaded guilty in May. In July, codefendant Ascencio-Vega was sentenced to five years in prison.
“Whether you’re coming by plane, train, or automobile, if you bring a large quantity of illegal narcotics into the Eastern District of Pennsylvania, be prepared to lose more than your luggage,” said U.S. Attorney Romero. “My office will continue to work with our law enforcement partners on the community’s behalf, to get dangerous drugs and criminals off the street.”
“The sentencing of Alberto Cruz-Garcia and Josue Benito Ascencio-Vega is the culmination of excellent investigations and prosecutions by HSI and the U.S. Attorney’s Office for the Eastern District of Pennsylvania,” said Acting Special Agent in Charge of HSI Philadelphia Sara Bay. “Our partnership continues to provide incredible results for the citizens of Pennsylvania.”
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Everett Witherell.
Madison County Man Sentenced for Firearms Thefts and Illegal Possesion of a FirearmRead the Press Release
LEXINGTON, Ky. – A Richmond, Ky., man, Christopher David Taylor, 39, was sentenced to 94 months on Wednesday, by U.S. District Judge Gregory Van Tatenhove, following his convictions for two counts of theft from a federally licensed firearms dealer and one count of possession of a firearm by a convicted felon.
According to his plea agreement, on January 4, 2023, law enforcement responded to a burglary at Dan’s Discount Jewelry and Pawn, a federally licensed firearms dealer. Taylor and an accompanying juvenile unlawfully entered the store and stole 60 firearms from the business. As law enforcement arrived, Taylor and the juvenile escaped through the back of the business, dropping a duffel bag containing 57 of the 60 firearms. An additional firearm that was stolen was recovered from the field behind the business.
Later, on February 8, 2023, law enforcement responded to another burglary, this time in Clark County, at Bypass Gold and Pawn LLC, another federally licensed firearms dealer. Taylor was observed on surveillance unlawfully entering the building and stealing a total of nine firearms from the business.
Then, on February 10, 2023, after identifying Taylor on surveillance, law enforcement searched Taylor’s residence, finding him hiding in the attic. Law enforcement also found five firearms, three of which had been stolen by Taylor, from Bypass Gold and Pawn. Taylor later admitted to committing both burglaries.
As part of his plea, Taylor admitted that he knew he was prohibited from possessing firearms due to several prior state felony convictions, which include multiple burglaries in Anderson Circuit Court, a bail jumping in Madison Circuit Court, and a possession of a controlled substance in Madison Circuit Court, all in 2022.
Under federal law, Taylor must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Chief Rodney Richardson, Richmond Police Department, jointly announced the sentence.
The case was investigated by ATF and Richmond Police Department. Assistant U.S. Attorney Paco Villalobos prosecuted the case on behalf of the United States.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Macon Resident Sentenced for Obstructing Justice in Civil InvestigationRead the Press Release
MACON, Ga. – The owner of Middle Georgia Family Rehab who directed two employees to illegally alter documents during a federal civil investigation into alleged improper healthcare billing by the business has been sentenced to prison and ordered to pay restitution.
Brenda Hicks, 59, of Lizella, Georgia, was sentenced to serve 12 months and one day in prison to be followed by three years of supervised release by U.S. District Judge Marc Treadwell on Sept. 5. Hicks previously pleaded guilty to one count of conspiracy to obstruct justice. In addition, Hicks was ordered to pay $191,645.20 in restitution to TRICARE, Medicare, Blue Cross Blue Shield, Medicaid and the U.S. Department of Veterans Affairs (VA). There is no parole in the federal system.
“Tampering with documents in a federal investigation is a serious offense that will not be ignored by our office,” said U.S. Attorney Peter D. Leary. “Protecting the integrity of an investigation is paramount and all those who attempt to obstruct justice will be held accountable.”
According to court documents and statements referenced in court, an outpatient rehabilitation facility owned by Hicks—Middle Georgia Family Rehab, LLC (MGFR)—was served with a Civil Investigative Demand (CID) requesting various patient records on Oct. 7, 2019. After its receipt, Hicks set up a meeting about the CID with two MGFR employees. Hicks told the employees it was an “audit” and explained that MGFR did not have the records that were requested. She then instructed them to go into the system and pull any portions of the requested files, looking for hard copies of the records in MGFR’s storage unit if needed.
Many of the requested records were either blank or missing. Hicks explained that if the records were not there or had not been signed, the employees were supposed to create or sign the records. For example, if the records were missing progress notes, Hicks instructed the employees to make them up by copying and pasting the narrative language from other progress notes to fill in the missing information. These narrative sections were supposed to contain unique information from each session, such as the patient’s pain level and what exercises were performed at the visit.
One employee expressed concern to the other employee that what they were doing was illegal and quit. The other employee complied with Hicks’ instructions and added notes and signatures to patient records as needed. These doctored patient records were then produced to the Civil Division of the U.S. Attorney’s Office on Dec. 2, 2019, in response to the CID. Hicks now admits that she conspired to corruptly alter patient records with the intent to impair the integrity of those records and their availability for use in a civil action. For more information about the civil action, please visit https://www.justice.gov/usao-mdga/pr/judge-orders-middle-georgia-family-rehab-pay-96-million-damages-submitting-hundreds.
The case was investigated by the Department of Defense, Defense Criminal Investigative Service (DOD-DCIS); the Department of Health & Human Services, Office of Inspector General (HHS-OIG); the Georgia Medicaid Fraud Control Unit (MFCU); and the Veterans Affairs, Office of Inspector General (VA-OIG); with substantial assistance from the U.S. Department of Labor, Office of Inspector General (DOL-OIG).
Assistant U.S. Attorney Elizabeth Howard prosecuted the case for the Government.
Long Island Contractor Pleads Guilty to Fraud in Connection with Hurricane Sandy Recovery FundsRead the Press Release
Alexander Almaraz, the owner of Design Concepts Group LLC (DCG) in Freeport, New York, pleaded guilty today in federal court in Central Islip to conspiracy to commit wire fraud in connection with a scheme to induce individuals to hire him and pay DCG to repair their Hurricane Sandy-damaged homes. The proceeding was held before United States District Judge Joan M. Azrack. When sentenced, Almaraz faces a maximum penalty of 30 years in prison and mandatory restitution to his victims.
Breon Peace, United States Attorney for the Eastern District of New York, Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Anne T. Donnelly, Nassau County District Attorney, announced the guilty plea.
“After Hurricane Sandy turned their lives upside down, the individuals who hired Almaraz to repair their homes were further harmed by the defendant’s unconscionable fraudulent scheme, which extended the time they were deprived of a livable home,” stated United States Attorney Peace. “With his guilty plea today, Almaraz is no longer outrunning the damage that his personal greed inflicted on a shattered Long Island community and it is my hope that the victims will find some solace in the defendant being held accountable and making full restitution.”
“This defendant took advantage of vulnerable Long Island homeowners at a time of unimaginable loss, purchasing luxury cars and paying off credit cards with funds meant to repair their storm-damaged homes after Hurricane Sandy battered our shores,” stated Nassau District Attorney Donnelly. “Today’s plea holds Almaraz accountable for his greedy scheme, and the restitution he will be ordered to pay is a necessary step towards making his victims whole. I thank our federal partners at the U.S. Attorney’s Office for the Eastern District of New York and the FBI for their continued dedication to investigating and prosecuting fraudsters who exploited Long Island residents in the aftermath of this devastating storm.”
On October 29, 2012, Hurricane Sandy struck New York and New Jersey, causing catastrophic damage to low-lying and coastal areas, including many neighborhoods in the Eastern District of New York. New York residents whose homes were damaged were eligible to receive funding from the Governor’s Office of Storm Recovery through the New York Rising (NYR) program.
According to court documents and Almaraz’s own admissions today, Almaraz entered contracts with homeowners who qualified to receive funds from NYR. As part of these contracts, Almaraz agreed to lift the victims’ homes and set them down on temporary support structures which would permit the foundations of the damaged homes to be removed and new foundations to be installed. After the new foundations were installed, Almaraz was supposed to lower the homes and reconnect the homes’ appliances. Between October 2015 and June 2019, Almaraz agreed to lift the homes of at least 20 customers who had received NYR funding and who collectively paid him approximately $2.5 million. Almaraz convinced many of these victims to move out of their homes and pay him rent to live elsewhere, all the while neglecting their projects and causing greater loss. Additionally, instead of performing the agreed-upon work, Almaraz used the victims’ monies to pay for personal expenses, including credit card bills, land purchased in Kansas City, Missouri, and luxury automobiles, including a Lamborghini, a Porsche and a Jaguar. The defendant’s fraudulent scheme caused more than $1.5 million in losses to NYR and the defendant’s individual victims.
The government’s case is being handled by the Office’s Long Island Criminal Section. Assistant United States Attorney Megan E. Farrell is in charge of the prosecution.
The Defendant:
ALEXANDER ALMARAZ
Age: 56
San Antonio, Texas; formerly of Freeport, Long IslandE.D.N.Y. Docket No. 23-CR-17 (JMA)
Kansas Woman Sentenced for Witness Retaliation PlotRead the Press Release
United States Attorney Susan Lehr announced that Kate Ruth, age 36, of Wichita, Kansas, was sentenced on September 5, 2024, in federal Court in Omaha, Nebraska, for conspiracy to assault a witness and attempted assault of a witness. Chief United States District Judge Robert F. Rossiter, Jr sentenced Ruth to 24 months’ imprisonment. There is no parole in the federal system. After Ruth’s release from prison, she will begin a 3-year term of supervised release.
In the fall of 2021, Johnny Dolph (hereinafter “Dolph”) was being investigated by the United States Secret Service for financial crimes to include crimes involving counterfeit currency and checks. Dolph claims to be a “shot caller” in the Irish Mob Gang, a street gang that originated in Oklahoma. In September 2021, Victim 1’s husband was arrested in Nebraska for forgery counts. Victim 1’s husband was coming to Nebraska to assist Dolph in his forgery activities. Following Victim 1’s husband’s arrest, Dolph and Jennifer Norwood A/K/A Jennifer Dolph (hereinafter “Norwood”) began contacting Victim 1 in attempts to prevent her from cooperating with law enforcement. Dolph believed Victim 1 and Victim 1’s husband were cooperating with law enforcement. As a result, Dolph put a “green light” on Victim 1 and her husband.
In October 2021, a search warrant was obtained through the United States District Court for the District of Nebraska for Dolph’s apartment in Omaha. This search warrant was signed by Magistrate Judge Susan Bazis and the affiant for the warrant was a Special Agent with the United States Secret Service.
Following the execution of the search warrant, Dolph and Norwood began researching the affiant agent and magistrate judge listed on the search warrant. Dolph and Norwood also reached out to individuals outside of Nebraska providing information about Victim 1, where Victim 1 resides, and where family members of Victim 1 lived.
On November 19, 2021, Dolph contacted Ruth and requested that she travel from Kansas to Omaha, Nebraska to attempt to carry out his “green light” on Victim 1. Dolph instructed Ruth to go to Greyhound and attempt to pick up a ticket that had been purchased in a third party’s name. Ruth was instead driven to Nebraska from Kansas by Juanita Gibson (hereinafter “Gibson”). Gibson obtained a red pickup truck to drive she and Ruth to Omaha. During the drive to Nebraska, Dolph sent Gibson and Ruth money for gas over CashApp, inquired to the status of their travel, and provided directions on where to park once they arrived at his apartment.
Dolph and Norwood let Gibson and Ruth stay at their apartment in Omaha. While there, Dolph, Norwood, Gibson, and Ruth researched Victim 1.
Victim 1’s husband was sentenced in 2022 to time-served after serving a nine-month sentence for possession of counterfeit currency and possession of a document making implement or authentication feature and is currently serving a five-year term of supervised release. On August 17, 2023, Dolph was sentenced to a total of 150 months’ imprisonment for felon in possession of a firearm; possession of a firearm following a misdemeanor crime of domestic violence; 2 counts of false statement during the purchase of a firearm; conspiracy to tamper with documents or proceedings; tampering with documents or proceedings; 2 counts of conspiracy to assault a witness; and 2 counts for attempted assault of a witness. On November 21, 2023, Gibson was sentenced to 24 months’ imprisonment for conspiracy to assault a witness and attempted assault of a witness. On February 9, 2024, Norwood was sentenced to 37 months’ imprisonment for conspiracy to tamper with a document or proceedings, conspiracy to assault a witness, and making a false statement during the purchase of a firearm.
This case was investigated by the Federal Bureau of Investigation, the United States Secret Service, the Omaha Police Department, and the Richardson County Sheriff’s Office with assistance from the Kansas Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
KC Chiefs ‘Superfan’ Sentenced to 17 Years for Bank Robberies, Money LaunderingRead the Press Release
NOTE: A video statement from U.S. Attorney Teresa Moore is available at https://youtu.be/ejVWEofiHBI?si=KxKFsaadvxOaQBcB
KANSAS CITY, Mo. – A man popularly known as Kansas City Chiefs superfan “ChiefsAholic” was sentenced in federal court today on charges related to a string of 11 robberies, or attempted robberies, in which he stole $847,725 from financial institutions in seven states.
“While parading as a social media celebrity, the defendant secretly engaged in a violent crime spree of armed robberies and attempted robberies across seven states,” said U.S. Attorney Teresa Moore. “Babudar’s robbery spree bankrolled the expensive tickets and travel across the country to attend Kansas City Chiefs games while he cultivated a large fan base online. However, the bank and credit union employees whom he terrorized at gunpoint suffered the brunt of his true nature. He tried to flee from justice, but law enforcement caught up with him and now he will spend a significant portion of his life in prison.”
Xaviar Michael Babudar, 30, was sentenced by U.S. District Judge Howard F. Sachs to 17 years and six months in federal prison without parole. The court also ordered Babudar to pay $532,675 in restitution to the victim financial institutions. Some of the stolen money was recovered, but most of it was not.
The court ordered Babudar to forfeit to the government any property involved in his money laundering activity, including an autographed painting of Kansas City Chiefs quarterback Patrick L. Mahomes II that has been recovered by the FBI.
“The actions of Babudar were brazen and traumatic for the bank employees robbed in Bixby, Oklahoma,” said U.S. Attorney Clint Johnson of the Northern District of Oklahoma. “A big thank you to the Bixby Police Department for their hard work in collaboration with the FBI Tulsa field office, who helped detain Babudar in Oklahoma.”
“The bank was not the only victim of these crimes,” stated Special Agent in Charge Stephen Cyrus of the FBI Kansas City Field Office. “Babudar terrorized bank employees throughout his multi-state crime spree, while relishing his celebrity status. Today’s sentencing speaks to the severity of his actions and the significant law enforcement assistance and resources utilized across multiple states to hold him accountable for his violent and criminal behavior.”
On Feb. 28, 2024, Babudar pleaded guilty to one count of money laundering and one count of transporting stolen property across state lines. Babudar also pleaded guilty to one count of bank robbery, which is contained in a separate case filed in the Northern District of Oklahoma. The court today sentenced Babudar to 17 years and six months in federal prison in the Western District of Missouri case and 17 years and six months in prison in the Northern District of Oklahoma case, to be served concurrently.
Babudar also admitted that he engaged in a string of nine bank and credit union robberies (or attempted robberies) in 2022 followed by two bank robberies committed while he was a fugitive from justice. Babudar laundered much of the stolen money through area casinos and online gambling.
Babudar, who lived a nomadic existence at various locations around the Kansas City metropolitan area, enjoyed a robust social media presence as Kansas City Chiefs superfan Twitter user @ChiefsAholic, attending most games dressed as a wolf in Chiefs clothing.
Babudar pleaded guilty to stealing $70,000 from the Clive, Iowa, branch of Great Western Bank on March 2, 2022. Babudar admitted that he entered the bank wearing a ski mask and handed the bank teller a note demanding money and indicating he had a firearm. As he fled on foot, Babudar left behind a black glove and approximately $1,420 in $20 bills in a wooded area near the bank. Investigators later recovered Babudar’s DNA from the black glove. Babudar then carried this money to Missouri, depositing it in two separate transactions into his personal savings account in an attempt to conceal the criminal nature of the proceeds.
Babudar also pleaded guilty to stealing $139,500 from Tulsa Teachers Federal Credit Union in Bixby, Okla., on Dec. 16, 2022. Babudar admitted that he entered the credit union armed with what appeared to be a black handgun, jumped the teller counter, and ordered a bank employee at gunpoint to go to the credit union’s vault. Once at the vault, Babudar demanded that bank employees open the vault and put the money from the vault into a plastic bag. During this robbery, Babudar told credit union employees that if they did not comply he would shoot them.
When Babudar was arrested shortly after the robbery, he had a large bag in his possession that contained $139,500 in $100 bills plus $10,750 in $50 bills, totaling $150,250 in cash. When investigators searched his 2019 Mazda 3, they found numerous pairs of goggles and gloves, which Babudar wore during a series of bank robberies. Investigators also found a Barstool Sportsbook Betslip for $20,000, dated Nov. 19, 2022; a FanDuel Betslip for $4,000, dated Dec. 1, 2022; and letters from Community America Credit Union related to his deposits of $20,000 and $50,000 on May 2, 2022.
Babudar also admitted that he committed, or attempted to commit, nine robberies of banks and credit unions in addition to the two to which he pleaded guilty. Those crimes, including two bank robberies committed while Babudar was a fugitive from justice, were considered as relevant conduct for sentencing.
Babudar admitted that he stole $170,860 from the Omaha, Nebraska, branch of First National Bank of Omaha on April 28, 2022. Babudar entered the bank armed with what appeared to be a firearm and ordered bank employees to open their vault. Omaha police officers recovered $163,560 following the theft.
Babudar admitted that he stole $303,845 from the West Des Moines, Iowa, branch of First Class Community Credit Union on July 13, 2022. Babudar brandished what appeared to be a silver and black firearm, jumped over the teller counter, and demanded that the bank employees open the bank vault. After carrying the stolen money back to Missouri, Babudar began laundering this money through area casinos, depositing the cash he received from these casinos into his personal bank account.
Babudar admitted that he stole $125,900 from the Nashville, Tennessee, branch of The Tennessee Credit Union on Nov. 17, 2022. Babudar, armed with what appeared to be a black and silver firearm, climbed over the bank teller counter. He pressed the firearm against the teller’s body and demanded that credit union employees take him to the vault. Employees complied with Babudar’s demands, provided him with cash from the teller drawers, and took him to the vault. Babudar told credit union employees that if he was given a dye pack he would “come back and put a bullet in your head.” After Babudar fled on foot, a hat was recovered; investigators extracted DNA from the hat that matched the DNA extracted from Babudar’s glove in the March 2, 2022, robbery. A few days later, Babudar used some of the stolen money to purchase $20,000 in casino chips in multiple transactions from a local casino.
Babudar admitted that he attempted to rob Wings Financial Credit Union in Savage, Minnesota, on Nov. 29, 2022. Babudar entered this credit union with what appeared to be a firearm and demanded that credit union employees open the vault. Babudar fled from the credit union, however, after seeing the vault only held small bills.
Babudar admitted that he attempted to rob Royal Credit Union in Apple Valley, Minn., on Nov. 29, 2022. Babudar entered the credit union with what appeared to be a firearm and demanded that credit union employees open the vault. When he saw the vault only contained small bills, Babudar demanded $100 bills. Credit union employees told him they didn’t keep $100 bills in the vault, and Babudar fled on foot.
Babudar admitted that he stole $25,000 from the Clive, Iowa, branch of First Interstate Bank on Nov. 30, 2022. Following the two unsuccessful robberies the previous day, Babudar returned to the same facility he had robbed on March 2, 2022, which had since then become a branch of First Interstate Bank. Babudar entered the bank carrying what appeared to be a firearm and jumped over the teller counter. He ordered the bank employees, at gunpoint, to open the vault. He fled on foot after the bank employees gave him the cash in the vault. Babudar then carried the stolen money back to Missouri, where he deposited a portion of it into his personal bank account.
Babudar admitted that he attempted to rob Pinnacle Bank in Papillon, Nebraska, on Dec. 15, 2022. At approximately 1:55 p.m., Babudar entered the vestibule area of Pinnacle Bank and pulled on the doors, but was unable to open them. He then left the area. The next day, he robbed the Tulsa Teachers Federal Credit Union and was arrested.
Babudar, after being arrested in Oklahoma in December 2022, was released on bond in the state case in February 2023.
Months earlier, Babudar had placed two winning bets at the Argosy Casino in Alton, Ill. On June 10, 2022, Babudar bet $5,000 that Kansas City Chiefs’ quarterback Patrick Mahomes II would win the Most Valuable Player at Super Bowl LVII, which would pay out $45,000 should that occur. Babudar also bet $5,000 that the Kansas City Chiefs would win Super Bowl LVII, which would pay out $55,000 should that occur. When the Kansas City Chiefs won the Super Bowl on Feb. 12, 2023, and Mahomes won the Most Valuable Player award, Babudar won $100,000. Argosy Casino mailed Babudar a $100,000 check in early March 2023.
Days later, Babudar cut his ankle monitor and fled from Oklahoma. According to court documents, Babudar used his gambling winnings to purchase a vehicle in Henderson, Nevada, and evade law enforcement until his arrest in Sacramento on July 7, 2023.
Babudar admitted that he robbed two additional banks while he was a fugitive from justice.
Babudar admitted that he stole $1,100 from Heritage Bank in Sparks, Nevada, on June 8, 2023. Babudar entered the bank wearing a beanie, a Covid-19 mask, a blue long-sleeved shirt, khaki pants, and a fanny pack. Babudar showed a note to the Heritage Bank teller that was composed on his cell phone, which demanded money from the teller.
Babudar admitted that he stole $950 from U.S. Bank in El Dorado Hills, California, on July 3, 2023. Babudar entered the bank wearing a grey hooded sweatshirt, a Covid-19 mask, and a yellow reflective vest. Babudar showed a note to the U.S. Bank teller that was composed on his cell phone, which demanded money from the teller.
Babudar has been detained in federal custody without bond since his arrest on July 7, 2023.
This case was prosecuted by Senior Litigation Counsel Patrick D. Daly and Assistant U.S. Attorney Stephanie C. Bradshaw in the Western District of Missouri, and U.S. Attorney Clinton J. Johnson and Assistant U.S. Attorney Eric O. Johnston in the Northern District of Oklahoma. It was investigated by the FBI and the Bixby, Okla., Police Department. The Bixby, Okla., Police Department arrested Babudar in December 2022, and the Placer County, Calif., Sheriff’s Department and the Lincoln, Calif., Police Department assisted the FBI in the July 2023 arrest.
Jamestown woman sentenced for her role in drug conspiracyRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Stacey Beardsley aka Stacey J. Peterson, 38, of Jamestown, NY, who was convicted of misprision of felony, was sentenced to serve two years’ probation and 50 hours community service by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joshua A. Violanti, who handled the case, stated that between late 2018, and March 2020, Beardsley’s husband, Rocco Beardsley, was involved in a drug trafficking conspiracy. Rocco Beardsley purchased and distributed large quantities of heroin, fentanyl, methamphetamine, and other controlled substances in the Jamestown area. Stacey Beardsley knew of these drug trafficking activities, financially benefited from his activities, and actively concealed and assisted in his drug trafficking activities. Following an arrest in May 2019, Rocco Beardsley called Stacey Beardsley from jail and asked her to go to Erie, PA, to get his “stuff.” She failed to notify any authority about the request, and instead drove to Erie, PA, as requested to pick up Rocco Beardsley’s stuff, including drugs. On her way back to Jamestown, Stacey Beardsley was stopped by law enforcement and a search of her vehicle recovered quantities of methamphetamine and heroin. In January 2020, two controlled purchases of drugs from Rocco Beardsley took place at the residence he shared with Stacey Beardsley, who failed to notify any authority of the federal felony conduct. Rocco Beardsley was previously convicted and is awaiting sentencing.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The sentencing is the result of an investigation by the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone, the Jamestown Police Department, under the direction of Jamestown Police Chief Timothy Jackson, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division.
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Jacksonville Man Pleads Guilty in Bank Fraud Conspiracy Involving Stolen MailRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Jonathan Benavide Hidalgo (27, Jacksonville) has pleaded guilty to one count of conspiracy to commit bank fraud, eight counts of bank fraud, one count of conspiracy to commit theft of mail, and one count of theft of mail. Hidalgo faces up to 30 years in federal prison for each count of bank fraud and conspiracy to commit bank fraud, and up to 5 years’ imprisonment for theft of mail and conspiracy to commit theft of mail. In addition, he faces payment of restitution to the victims he and his co-defendant, Frank Anthony Acanda (27, Jacksonville), defrauded. Acanda entered a guilty plea on June 12, 2024. His sentencing hearing is set for September 30, 2024.
According to court documents, Hidalgo, Acanda, and others drove around areas of Fleming Island, Jacksonville, and St. Augustine and stole large volumes of mail from residential and business mailboxes over a period of several months. After opening the mail and stealing checks and money orders, Hidalgo, Acanda, and others acting on their behalf, deposited the items into bank accounts controlled by them. They then used ATMs to immediately withdraw cash. In some instances, Hidalgo and Acanda altered the stolen checks by increasing the amount to maximize the amount of money they could withdraw from ATMs.
This case was investigated by the Clay County Sheriff’s Office, the Florida Department of Law Enforcement, and the U.S. Postal Inspection Service - Jacksonville 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.
Indianapolis, IN, Man Sentenced to Federal Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
BISMARCK – United States Attorney Mac Schneider announced that on September 5, 2024, United States District Court Judge Daniel L. Hovland sentenced Anthony Lee Davis, age 32, of Indianapolis, IN, to serve 110 months in federal prison and serve three years supervised release for the offense of Possession of a Firearm by a Convicted Felon.
On April 16, 2024, Davis pleaded guilty to Count One of an Indictment charging him with the offense of Possession of a Firearm by a Convicted Felon. Evidence introduced during a July 23, 2024, evidentiary hearing established that, on October 23, 2021, Davis possessed a 9mm pistol and discharged this firearm at people and property while driving a vehicle erratically around Minot, ND. Additionally, unprovoked, Davis fired this pistol at an individual who was driving in a nearby vehicle, with two bullets from Davis’s firearm hitting the driver’s side door of the vehicle and one bullet striking the individual who was driving the vehicle in the left elbow. After Davis shot this individual, he crashed the vehicle that he was driving, fled the vehicle on foot, and continued possessing the firearm until he was arrested by members of the Minot Police Department. When law enforcement searched the crashed vehicle, they located multiple spent shell casings and at least one live round of ammunition.
“This strong sentence is a fair one considering the defendant’s reckless violence and actions putting the public in harm’s way,” Schneider said. “We are grateful to our partners at the Minot Police Department and in federal law enforcement for bringing this defendant to justice. As this case shows, the United States Attorney’s Office will be absolutely unsparing when it comes to making federal defendants out of felons who illegally possess firearms.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Marshals Service and the Minot Police Department and prosecuted by Assistant United States Attorney Jonathan J. O’Konek.
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Honduran National Sentenced for Maintaining a Stash House for a District Cocaine TraffickerRead the Press Release
WASHINGTON – Rodger Bonilla Vargas, 39, of Washington, D.C., was sentenced today to 32 months in prison for maintaining a stash house for a cocaine trafficker, facilitating the distribution of large quantities of cocaine throughout the District of Columbia and Maryland.
The sentence was announced by U.S. Attorney Matthew M. Graves, FBI Acting Special Agent in Charge David Geist of the Washington Field Office Criminal and Cyber Division, Special Agent in Charge Jarod Forget of the Drug Enforcement Administration (DEA) Washington Division, Special Agent in Charge Derek W. Gordon of Homeland Security Investigations (HSI) - Washington, D.C., and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Bonilla Vargas, aka “Paki,” pleaded guilty to involvement in a conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine. As part of the plea agreement, Bonilla Vargas – who is a Honduran national and is in the U.S. unlawfully – admitted he was accountable for conspiring to distribute 500 grams or more of cocaine. In addition to the 32-month prison term, U.S. District Court Judge ordered Bonilla Vargas to serve three years of supervised release. He is also facing deportation proceedings upon completion of his prison sentence.
According to court documents, beginning in March 2023 and continuing until August 2023, Bonilla Vargas’ co-conspirators -- Jorge Cruz Maldonado, Vladimir Roque Ceron, Francisco Rosales Diaz, Cila Melgar Rodriguez, and others -- conspired to sell approximately 771 grams of cocaine and 11.62 grams of fentanyl (111 pills) to a DEA confidential source. On multiple occasions between March 2023 and August 2023, in the District of Columbia, Bonilla Vargas agreed to store significant quantities of controlled substances, including cocaine, at his residence on behalf of one of his co-conspirators. Bonilla Vargas was aware that the substances he was storing were illegal controlled substances, and that Melgar Rodriguez intended to distribute these controlled substances.
Specifically, on August 18, 2023, Bonilla Vargas knowingly stored cocaine weighing approximately 3.6 kilograms at his residence in service of Melgar Rodriguez’s drug trafficking operation. When Melgar Rodriguez arrived at the Bonilla Vargas residence to retrieve the cocaine, Bonilla Vargas provided the package to Melgar Rodriguez so that Melgar Rodriguez could give the narcotics to Cruz Maldonado and others to sell to the confidential source.
Prior to his involvement in the narcotics conspiracy, Bonilla Vargas was arrested on November 30, 2023, by ICE in Chantilly, Va., on a charge of alien present without admission. He currently is under removal proceedings.
Two of Bonilla-Vargas’s co-conspirators have been sentenced as part of this case. Vladimir Roque Cerone pleaded guilty on March 5, 2024, to conspiracy to distribute fentanyl and cocaine and was sentenced on July 11, 2024, to 14 months in prison followed by three years of supervised release. Erik Rivera Garcia pleaded guilty on March 13, 2024, to conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine. Rivera Garcia was sentenced Wednesday to 62 months in prison followed by four years of supervised release.
This case was investigated and prosecuted under the auspices of the Violence Reduction and Trafficking Offenses Section (VRTO). The VRTO’s mission is to disrupt and dismantle the District's most serious drivers of violence and large-scale firearms and drug trafficking. VRTO places an emphasis on proactive, intelligence-driven, long- and medium-term criminal investigations, and its prosecutions focus on violent and armed crews and conspiracies, collective conduct, and repeat offenders.
This case was investigated by the DEA, FBI, HSI, and ICE. It is being prosecuted by Special Assistant U.S. Attorneys Ernesto J. Alvarado, Timothy J. Coley, and Adam Stempel.
23cr302
Home Health Care Company Operators Sentenced to Prison in $5.5 Million Kickback Scheme and Tax EvasionRead the Press Release
DETROIT - A married Macomb County couple, Noli and Isabel Tcruz, both 68, were sentenced today to 6 years in prison and 38 months in prison, respectively, on health care fraud kickback conspiracy, tax evasion, and fraud charges, announced U.S. Attorney Dawn N. Ison. This follows the sentencings earlier this year of two doctors who had pled guilty to receiving kickbacks and bribes from the Tcruzes.
Joining Ison in the announcement were Special Agent in Charge Charles Miller, IRS Criminal Investigation, Detroit Field Office, and Special Agent in Charge Mario Pinto of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office.
The Tcruzes were convicted and sentenced for schemes related to their operation of several Macomb County home health care companies that purported to provide legitimate medical care to homebound Medicare beneficiaries, but in fact engaged in fraud.
The Tcruzes engaged in an approximately $5 million conspiracy to illegally pay kickbacks and bribes to acquire referrals for home health care for Medicare beneficiaries and refused to pay their income tax obligations for both -personal and business taxes. After their last home health company was shut down in February 2020, Noli Tcruz began engaging in Covid-19 program fraud, and used a family member’s identity and company to steal from and defraud the Small Business Administration and Health and Human Services out of more than $250,000 from pandemic assistance funds.
Two physicians, Dr. Terry Baul and Dr. David Calderone pleaded guilty to accepting kickbacks and bribes for referring Medicare beneficiaries to the Tcruzes. Under their respective plea agreements, the two physicians were required to pay more than three million in restitution and forfeiture judgments and are excluded from Medicare and other federal health care programs.
“My office will diligently investigate and prosecute all types of fraud, which is driven by greed. Noli and Isabel Tcruz’s fraud harmed taxpayers and the government programs our tax dollars fund, including Medicare and Covid-19 programs,” stated U.S. Attorney Ison. “Health care professionals and providers have both an opportunity and a duty to lawfully help people, but we will not hesitate to pursue individuals like these defendants who breach those duties to line their own pockets.”
"Today's sentencing of Noli and Isabel Tcruz broadcasts that IRS Criminal Investigation and the U.S. Attorney’s office will continue their aggressive pursuit of those who use fraudulent scams in an attempt to steal from the hard-working taxpayers of America,” said Charles Miller, IRS Criminal Investigation Special Agent in Charge, Detroit Field Office. "Not only was blatant stealing of funds, allotted for the healthcare of Americans, committed; but US Citizens were stolen from again when no tax was paid on any of the couple’s income.”
"Paying kickbacks to induce referrals for medical services in federal health care programs is illegal and can lead to the delivery of unnecessary services, wasting valuable taxpayer funds," said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). "HHS-OIG will continue collaborating with our law enforcement partners to ensure that those who engage in unlawful kickback schemes in our federal health care programs are held accountable."
This case was prosecuted by Assistant United States Attorney Andrew J. Lievense. The case was investigated by special agents of the Internal Revenue Service-Criminal Investigations Division and the Department of Health and Human Services-Office of the Inspector General.
Grand Island Woman Sentenced for Methamphetamine PossessionRead the Press Release
United States Attorney Susan Lehr announced that Hung Thuc Pham, age 38, of Grand Island, Nebraska, was sentenced on September 5, 2024, in federal court in Lincoln, Nebraska for possession with intent to distribute 50 grams or more of actual methamphetamine and 500 grams or more of a meth mixture. United States District Judge Susan M. Bazis sentenced Pham to 135 months’ imprisonment. There is no parole in the federal system. After Pham’s release from prison, she will begin a 5-year term of supervised release. Pham also agreed to the forfeiture of $5,110 in cash to the United States of America.
On September 12, 2023, Pham was stopped on Interstate 80 for numerous traffic violations by a Lancaster County Sheriff’s Deputy. She was the sole occupant of the car. The deputy saw a duffel bag on the front passenger seat which was partially open, and heat-sealed bags containing meth were visible inside. As a result, Pham’s car was searched. During the search, at total of more than 1.7 kilograms (approximately 3 ¾ pounds) of a meth mixture was found in the duffel bag. Purity testing on one of the heat-sealed bags showed at least 340 grams of actual methamphetamine. An additional bag containing a small amount of meth, a pipe and $5110 in cash was also found in the car.
Pham told investigators that at the time she was stopped, she was on her way to Lincoln to deliver the meth to another person. Pham said the meth found in her car was what remained of 20 pounds she transported to Nebraska from California about three weeks earlier. Pham said she made six other trips to California between late 2021 and August of 2023, and obtained a total of over 40 pounds of meth which she sold to persons in Lincoln and Grand Island.
This case was investigated by the Lincoln/Lancaster County Drug Task Force with assistance from the Lancaster County Sheriff’s Department.
Goodell, Iowa Man Sentenced to Federal Prison for Possessing a Gun and Ammunition While Being an Illegal User of MarijuanaRead the Press Release
A man who possessed a firearm while being an illegal drug user was sentenced today to 6 months in federal prison.
Larry Wayne Robbins, age 67, from Goodell, Iowa, received the prison term after an April 11, 2024, guilty plea to one count of possession of a firearm by an unlawful drug user, marijuana, in violation of 18 U.S.C. § 922(g)(3), and 18 U.S.C. § 924(a)(8).
In a plea agreement, Robbins admitted he waived a gun at a neighbor in Hancock County while that individual was mowing a ditch approximately 300 yards east of Robbins’s house. A search warrant later executed at Robbins’ home located guns, ammunition, and marijuana.
Robbins was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Robbins was sentenced to 6 months’ imprisonment less 46 days credit for time served on his sentence in Hancock County. He must also serve a 2-year term of supervised release after the prison term. There is no parole in the federal system.
Robbins will remain on supervision by United States Probation until he can self- surrender to a federal prison.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and was investigated by the Hancock County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Hancock County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-03031.
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Georgia Man Arrested on Federal Dog Fighting, Firearms and Drug Trafficking ChargesRead the Press Release
A federal grand jury indicted Dun Terrius Bradford, 53, of Sale City, Georgia, on charges of illegally possessing 67 dogs for fighting purposes, manufacturing and possessing with intent to distribute cocaine base and possessing five firearms in furtherance of those offenses. The U.S. District Court for the Middle District of Georgia unsealed the indictment in conjunction with Bradford’s arrest today.
According to court documents, the defendant maintained a stock of 67 fighting dogs at his Sale City home. Following the execution of a search warrant, the dogs were seized and will be cared for by a program administered by the U.S. Marshals Service. Agents also recovered tools and supplies used in the training and keeping of dogs used for fighting, including modified treadmills to hold dogs in place for dog fight conditioning, injectable veterinary steroids, a home-made “breeding stand” used to immobilize female dogs who are too dog-aggressive to mate naturally and a “break stick” device used to break the bite hold of a dog during specified intervals in a dog fight. Officers also recovered cocaine base and five firearms.
If convicted, Bradford faces a maximum penalty of five years in prison per count of animal fighting charges, a maximum penalty of 20 years in prison and a fine of $1 million on the cocaine charge, a maximum penalty of 10 years in prison on the firearms charge to be served consecutively to other counts of conviction and a $250,000 fine for each dog fighting and firearms count. Under federal law, it is illegal not only to fight animals, but also to possess, train, transport, deliver, receive, buy or sell animals intended for use in fighting. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD) and U.S. Attorney Peter Leary for the Middle District of Georgia made the announcement.
The Department of Agriculture’s Office of the Inspector General and detectives with the Mitchell County, Georgia, Sheriff’s Office are investigating the case.
Senior Trial Attorney Ethan Eddy of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Elicia Hargrove for the Middle District of Georgia are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Four Plead Guilty in Two St. Louis Area CarjackingsRead the Press Release
ST. LOUIS – Three men have admitted participating in one carjacking and a second has admitted involvement in two St. Louis area carjackings.
Jaymond Johnson, 20, pleaded guilty in U.S. District Court in St. Louis Thursday to one count of carjacking and one count of brandishing a firearm in furtherance of a crime of violence.
Ramon D. Davis, 20, pleaded guilty in July to two counts of brandishing a firearm in furtherance of a crime of violence and two counts of carjacking. Tristan T. Davis, 20, and Montrell M. Jackson, 21, of Northwoods, each pleaded guilty to one count of carjacking and one count of brandishing a firearm in furtherance of a crime of violence. Tristan Davis pleaded guilty in June and Jackson pleaded guilty in December.
On Nov. 7, 2021, Ramon Davis, Montrell Jackson and a juvenile were walking past an alley near Grand Avenue and Bates Street in south St. Louis when they spotted an older man and decided to steal his car, the plea agreements say. Davis was armed with a Canik TP9 handgun that he had stolen the prior month and Jackson had a Ruger MAX-9 handgun. Davis brandished the Canik and the assailants demanded the victim’s 2006 Mazda3. The next day, the Saint Louis Metropolitan Police Department’s Real Time Crime Center license plate recognition system located the stolen car. When St. Louis police caught up, Hazelwood police were pursuing the car, which was being driven by Ramon Davis. After nearly hitting a police car, Davis lost control and spun out in the middle of an intersection, but regained control and continued fleeing for more than two miles. Eventually, the Mazda struck a metal storage container at North Florissant Avenue and Branch Street and was heavily damaged. Both Davis and Jackson fled from the crash but were later arrested. Officers found a black satchel inside the Mazda that held both guns used in the carjacking.
On Nov. 11, 2022, Ramon Davis, Tristan Davis and Jaymond Johnson were in a stolen BMW when Tristan Davis spotted a 2017 Mercedes GLS550 SUV parked in front of a CVS located on Watson Road in Webster Groves. Ramon Davis had a red/burgundy AR-style pistol and confronted an occupant of the Mercedes with it before pushing her to the ground, breaking her finger. Ramon and Tristan Davis drove away in the carjacked Mercedes, their plea agreements say.
Johnson is scheduled to be sentenced December 12. The carjacking charges carry a penalty of up to 15 years in prison and the brandishing charges carry a mandatory minimum term of imprisonment of seven years consecutive to any other sentence.
The St. Louis County Police Department, the St. Louis Metropolitan Police Department, the FBI, the Webster Groves Police Department, the Hazelwood Police Department and the Normandy police Department investigated the case. Assistant U.S. Attorneys Zachary Bluestone and Cassandra Wiemken prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Four Indicted for Conspiracy to Distribute CocaineRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Eber Alexander Lopez (49, Tampa), Eduardo Ponce Tondee (44, Tampa), Jaime Ayala Rivera (41, Tampa), and John Hernandez Martin (44, Tampa) with conspiracy and distribution of more than 5 kilograms of cocaine. If convicted on all counts, each faces a minimum mandatory penalty of 10 years, up to life, in federal prison.
According to the indictment, between December 2023 and August 2024, Alexander Lopez, Ponce Tondee, Ayala Rivera, and Hernandez Martin were part of a conspiracy that used the U.S. mail to ship kilograms of cocaine from Puerto Rico to the Middle District of Florida for distribution. In total, FBI agents seized more than 8 kilograms of cocaine that were destined for the Tampa Bay area, and approximately $87,000 in drug proceeds.
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 Federal Bureau of Investigation, with assistance from the U.S. Postal Inspection Service and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Diego F. Novaes.
Fort Myers Woman Indicted for Defrauding Department of Veterans Affairs of More Than $300,000Read the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Laurie Ann Roszelle (65, Fort Myers) with one count of wire fraud. If convicted, Roszelle faces a maximum penalty of 20 years in federal prison. The indictment also notifies Roszelle that the United States is seeking an order of forfeiture in the amount of $338,364.66, the proceeds of the charged criminal conduct.
According to the indictment, for nearly 19 years after her mother’s death in 2005, Roszelle schemed to wrongfully receive United States Department of Veterans Affairs (VA) benefits intended for her mother. To effectuate the scheme, Roszelle falsified her mother’s signature in responding to VA correspondence and represented, in telephone and in-person interviews with the VA, that her mother was still alive years after her mother’s death.
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 Department of Veterans Affairs - Office of Inspector General. It will be prosecuted by Assistant United States Attorney Benjamin S. Winter.
Former University City High School Teacher Sentenced to 120 Months for Trying to Buy Sex Acts from a 16-Year-OldRead the Press Release
NEWS RELEASE SUMMARY – September 5, 2024
SAN DIEGO – Sean Stevenson, a former high school science teacher at University City High School, was sentenced in federal court today to 120 months in prison for attempting to purchase oral sex from a 16-year-old. Stephenson was still a high school teacher at the time of the offense.
The defendant pleaded guilty on June 13, 2024, to one count of Attempted Enticement of a Minor.
According to the publicly-filed documents in the case, between April 9, 2023, and April 16, 2023, Stevenson used a voice over internet protocol (VOIP) line to negotiate by text message for commercial sex with an individual that went by the name of Kash and who represented to Stevenson that she was 20 years old. From April 15, 2023, through April 16, 2023, Stevenson offered Kash a fee to find a female under the age of 18 for Stevenson. In pertinent part, Stevenson stated to Kash the following:
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- “And I don’t suppose you know in[sic] younger girls I could pay u a premium for?”
- “I pay u a finders fee and I pay her”
- “The younger the better.”
- “Just keep it in mind if you come across any high school age girls”
- “Not young enough” (in response to Kash suggesting an 18 year old).
Between October 2, 2023, and October 24, 2023, Stevenson continued to negotiate by text message for commercial sex with an individual he believed to be Kash, but who was actually an undercover officer (UC). When the UC referenced a 16-year-old cousin as being available for commercial sex with Stevenson, he responded “Oh … yes!” and negotiated for the following:
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- $150 for a “bbbj” (oral copulation without a condom)
- $100 for manual genital stimulation
- A “car date” (a commercial sex encounter that occurs inside a vehicle)
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On October 17, 2023, Stevenson messaged the UC “Do you still have a younger girl?” and again negotiated the exchange of $150 for “bbbj” with the 16-year-old cousin.
On October 23, 2023, Stevenson re-engaged with the UC to confirm he still wanted to meet with the 16-year-old cousin for a commercial sex date. In pertinent part, Stevenson stated the following to the UC:
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- “Ok, and $150 for a cardate bbbj. No condom.”
- “Also, can you send a pic of your cousin please?” (lips emoji)
- “Sexy pic”
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On October 24, 2023, Stevenson agreed to meet with the 16-year-old cousin for the commercial sex date. The UC provided an address in San Diego, to which Stevenson asked, “what is she wearing?” (in reference to the 16-year-old cousin). Stevenson also renegotiated a fee of $140 for oral sex.
On October 24, 2023, at approximately 7:00 a.m., Stevenson arrived at the provided location. Stevenson drove to a parking lot where he had a full, unobstructed view of the meeting location and then drove laps near the location where Stevenson was told the 16-year-old cousin would be arriving. Stevenson was stopped and placed under arrest. During the arrest, $140 cash was located in the driver’s side door storage area of Stevenson’s sports car.
“Mr. Stevenson’s determination to purchase sex acts from a minor is appalling,” said U.S. Attorney Tara McGrath. “Thankfully he was caught before harming an actual child. The sentence imposed today reflects the magnitude of our commitment to protecting the vulnerable from exploitation.”
“I have a simple message for all those who target children for sex online: If you go after children in California, we’ll go after you,” said Attorney General Bonta. “Today’s announcement makes it clear that child sexual exploitation will not be tolerated. I’m extremely grateful to our San Diego Human Trafficking Task Force and our federal partners for their dedication and commitment to keeping our communities safe. My office always stands ready to work with our partners across California to fight for our children and for public safety.”
“This case represents another successful collaborative effort by Homeland Security Investigations (HSI) and our law enforcement partners to swiftly identify, investigate and bring to justice individuals that seek to exploit vulnerable populations,” said Chris Davis, acting special agent in charge for HSI San Diego. “The defendant was in a position of public trust as a teacher at the time of arrest and law enforcement will not stand for this kind of abuse and misconduct; we are committed to protecting our children and our communities.”
“The San Diego Police Department is a proud member of the San Diego Human Trafficking Task Force,” said Chief Scott Wahl. “A teacher is meant to protect and nurture students, guiding them with care and respect, but instead, this individual sought to sexually exploit a school-age girl. Thankfully, due to the actions of law enforcement agencies, Stevenson was arrested before a child was victimized. The San Diego Police Department remains committed to protect our youth from the unthinkable.”
This case is being prosecuted by Assistant U.S. Attorneys Derek Ko and Andrew Sherwood.
DEFENDANTS Case Number 23CR2368-AJB
Sean Stevenson Age: 59 San Diego, CA
SUMMARY OF CHARGES
Attempted Enticement of a Minor– Title 18, U.S.C., Section 2422(b)
Maximum penalty: Life in prison, 10-year mandatory minimum
INVESTIGATING AGENCIES
Homeland Security Investigations
San Diego Human Trafficking Task Force
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Former Perry County Commonwealth’s Attorney Sentenced for Federal Honest Services Wire FraudRead the Press Release
LONDON, Ky.— The former Commonwealth’s Attorney, for the 33rd Judicial Circuit of Kentucky, Scott Blair, 52, of Hazard, Ky., was sentenced to 54 months in prison on Thursday, by U.S. District Judge Robert Wier, for committing honest services wire fraud.
According to his guilty plea agreement, between April 2020 and March 2024, Blair knowingly and intentionally devised a scheme to fraudulently deprive the citizens of Perry County of their right to his honest services, as the elected Commonwealth’s Attorney, through bribery. On multiple occasions, Blair agreed to take official actions, in his position as the Commonwealth’s Attorney – including making recommendations on probation, drug court, and probation violations or sanctions for defendants he was prosecuting – in exchange for methamphetamine and sexual favors.
Under federal law, Blair must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI Louisville Field Division; Russell Coleman, Kentucky Attorney General; and Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the FBI, the Kentucky Attorney General’s Office, and the KSP. Assistant U.S. Attorney Justin Blankenship is prosecuting the matter on behalf of the United States.
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Former Mexican Police Officer and CJNG Cartel Member Sentenced in El Paso to 25 Years in Federal PrisonRead the Press Release
EL PASO, Texas – A Mexican national was sentenced in federal court to 300 months in prison for one count of conspiracy to possess with intent to distribute methamphetamine, 180 months for one count of straw purchasing firearms and trafficking in firearms, and 60 months for one count of conspiracy to smuggle bulk cash. All sentences will run concurrently.
According to court documents, Rene Hernandez-Cordero, 52, of Ciudad Juarez was involved in an organization that smuggled firearms into Mexico and methamphetamine into the United States.
In August 2023, Hernandez-Cordero and codefendant Jesus Gerardo Ramos, 53, of El Paso, met at a gas station in El Paso with the purpose of obtaining 20 AK-47 type firearms and two Barrett .50 caliber rifles which would have been smuggled to Mexico. Evidence produced at trial showed that this particular group smuggled hundreds of firearms from the United States into Mexico from August 2022 to August 2023.
Ramos pleaded guilty in April to one count of trafficking in firearms. He’s scheduled to be sentenced Sept. 26.
Codefendant, Brian Alexis Munoz Castro, 21, of El Paso, also pleaded guilty in April to one count of trafficking in firearms plus one count of conspiracy to possess with intent to distribute methamphetamine. His sentence hearing is set for Oct. 23.
A third codefendant, Maria Del Rosario Navarro Sanchez aka “Chayo,” aka “Fernanda,” 38, of Mexico, remains a fugitive. She’s indicted for two counts of conspiracy to possess with intent to distribute methamphetamine, one count of straw purchasing firearms, and one count of trafficking in firearms.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
The Organized Crime Drug Enforcement Task Forces El Paso/Las Cruces Strike Force Enforcement Group 3 investigated the case.
Assistant U.S. Attorney Kyle Myers and Special Assistant U. S. Attorney Shannon Holderfield from Customs and Border Protection Office of Chief Counsel prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
The OCDETF El Paso / Las Cruces Strike Force is comprised of agents and officers from Customs and Border Protection Office of Field Operations (CBP), the Department of Homeland Security, Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Internal Revenue Service, Criminal Investigations (IRS-CI), the United States Marshals Service (USMS), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the El Paso County Sheriff’s Office (EPSO), and the El Paso Police Department (EPPD) and the prosecution is being led by the Office of the United States Attorney for the Western District of Texas in conjunction with an attorney from Customs and Border Protection Office of Chief Counsel.
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Former Cincinnati woman convicted of wire fraud related to pandemic relief fundsRead the Press Release
CINCINNATI – A federal jury has found a former Cincinnati woman guilty on all counts as charged of crimes related to pandemic relief fraud.
Lashawnda Alexander, 40, currently of Katy, Texas, was convicted of three counts of wire fraud.
The verdict was announced following a trial that took place Aug. 26 to Aug. 30 before U.S. District Judge Matthew W. McFarland.
According to court documents and trial testimony, in June 2020, Alexander submitted several fraudulent COVID-19 relief loan applications.
Specifically, on June 23, 2020, Alexander applied for an Economic Injury Disaster Loan (EIDL) for business “Lashawnda Alexander.” Alexander stated in the application that the business employed 10 employees and had $125,000 in gross revenue in the year prior to January 31, 2020. Minutes later using the same device another application was submitted in the name of a family member claiming that the business employed 10 employees and had $120,000 in gross revenue.
The next day, on June 24, 2020, Alexander applied for an EIDL for business “TressD LLC,” a hair and nail salon that she said employed 15 employees and made gross revenue of $175,000 during the prior year.
In total, Alexander attempted to obtain at least $137,500 and ultimately received $91,000 in EIDL funds. Alexander’s applications contradicted her 2019 tax return.
In the following months, Alexander bought a Mercedes Benz SUV and moved to Texas all while continuing to collect pandemic unemployment assistance from the Ohio Department of Job & Family Services.
Alexander was indicted by a federal grand jury in July 2022.
Wire fraud is a federal crime punishable by up to 20 years in prison. Congress sets the minimum and maximum statutory sentences. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors at a future hearing.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Yvonne Dicristoforo, Special Agent in Charge, United States Secret Service, announced the verdict. Assistant United States Attorneys Ebunoluwa A. Taiwo and Anthony Springer are representing the United States in this case. The case was investigated by members of the Financial Crimes Working Group Pandemic Fraud Committee.
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Former CEO of Mariner’s Bank and Accomplice Admit Roles in Obtaining Nominee Loans from Mariner’s BankRead the Press Release
NEWARK, N.J. – The former chief executive officer of Mariner’s Bank and an accomplice both admitted their roles in improperly obtaining a nominee loan from the bank, Attorney for the United States Vikas Khanna announced.
Fred Daibes, 67, of Edgewater, New Jersey, the former CEO and chairman of the board of directors at Mariner’s Bank, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to Count 7 of an indictment charging him with making false entries in connection with a Mariner’s Bank loan memorandum dated June 11, 2008, relating to a $1.8 million loan which falsely stated that a nominee was the borrower. In fact, the line of credit was for the benefit of Daibes. The memorandum falsely stated that the source of repayment would be the personal cash flow of the nominee when, in fact, Daibes would and did fund the payments on the line of credit.
Michael McManus, 67, of Madison, New Jersey, pleaded guilty to an information charging him with misprision of a felony, that is, the misapplication of the proceeds of the $1.8 million loan issued by Mariner’s Bank.
The false entries count to which Daibes pleaded guilty carries a statutory maximum term of imprisonment of 30 years and a maximum fine of $1,000,000. The misprision count to which McManus pleaded guilty carries a statutory maximum term of imprisonment of 3 years and a maximum fine of $250,000. Sentencing for both defendants is scheduled for Jan. 23, 2025.
Attorney for the United States Vikas Khanna credited investigators from the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney; special agents of the FDIC Office of Inspector General, under the direction of Special Agent in Charge Jeffrey D. Pittano, Mid-Atlantic Region; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Elaine K. Lou, Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office’s Criminal Division in Newark, under the supervision of the Special Prosecutions Division.
mcmanus.information.pdf daibes.indictment.pdfFive Russian GRU Officers and One Civilian Charged for Conspiring to Hack Ukrainian GovernmentRead the Press Release
Note: View the indictment here.
In an indictment unsealed today, a grand jury in Maryland charged six computer hackers, all of whom were residents and nationals of the Russian Federation (Russia), with conspiracy to commit computer intrusion and wire fraud conspiracy. Five of the defendants were officers in Unit 29155 of the Russian Main Intelligence Directorate (GRU), a military intelligence agency of the General Staff of the Armed Forces. The sixth individual was a civilian already under indictment for conspiracy to commit computer intrusion and is now also charged with wire fraud conspiracy.
Note: Concurrent with the return of the indictment, the U.S. Department of State’s Rewards for Justice program is offering a reward of up to $10 million for information on any of the defendants’ locations or their malicious cyberactivity. Anyone possessing such information should contact Rewards for Justice here.
The indictment alleges that these GRU hackers and their co-conspirator engaged in a conspiracy to hack into, exfiltrate data from, leak information obtained from and destroy computer systems associated with the Ukrainian Government in advance of the Russian invasion of Ukraine. The defendants did so in order to sow concern among Ukrainian citizens regarding the safety of their government systems and personal data. The defendants’ targets included Ukrainian Government systems and data with no military or defense-related roles. Later targets included computer systems in countries around the world that were providing support to Ukraine, including the United States and 25 other North Atlantic Treaty Organization (NATO) countries.
“The GRU’s WhisperGate campaign, including targeting Ukrainian critical infrastructure and government systems of no military value, is emblematic of Russia’s abhorrent disregard for innocent civilians as it wages its unjust invasion,” said Assistant Attorney General Matthew G. Olsen of the National Security Division. “Today’s indictment underscores that the Justice Department will use every available tool to disrupt this kind of malicious cyber activity and hold perpetrators accountable for indiscriminate and destructive targeting of the United States and our allies.”
“The FBI and its international partners are relentless in our commitment to thwarting GRU attacks across the globe and bringing to justice those responsible for these criminal acts,” said FBI Deputy Director Paul Abbate. “Our work protecting against cyber threats in a rapidly evolving landscape continues, including deployment of all tools in our arsenal to defend our infrastructure and impose costs on those who target it.”
“Since July 2021, the U.S. Department of State’s Rewards for Justice (RFJ) program, administered by the Diplomatic Security Service (DSS), has offered a reward of up to $10 million for information leading to the identification or location of any person who, while acting at the direction or under the control of a foreign government, participates in certain malicious cyber activities against U.S. critical infrastructure in violation of the Computer Fraud and Abuse Act,” said DSS Deputy Assistant Secretary for Threat Investigations and Analysis Paul Houston. “Under this reward offer, the RFJ program is seeking information leading to the location of these individuals, GRU’s malicious cyber activity or associated individuals and entities.”
“Today’s superseding indictment underscores our commitment to using all the tools at our disposal to pursue those who would do us and our allies around the world harm,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Cyber intrusion schemes such as the one alleged threaten our national security, and we will use all the technologies and investigative measures at our disposal to disrupt and track down these cybercriminals.”
“Through strokes on a keyboard, the accused criminals used computers to cross into countries, hunting for weaknesses and seeking to harm. The FBI and our law enforcement partners, both national and international, will collectively defend against Russia’s aggressive and illegal actions,” said Special Agent in Charge William J. DelBagno of the FBI Baltimore Field Office. “We are united in identifying, prosecuting and protecting against future crimes and vow to relentlessly hunt down and counter these threats.”
The defendants charged in the indictment are: Yuriy Denisov [Юрий Денисов], a colonel in the Russian military and a commanding officer of Cyber Operations for Unit 29155; four lieutenants in the Russian military assigned to Unit 29155 who worked on cyber operations: Vladislav Borovkov [Владислав Боровков], Denis Denisenko [Денис Денисенко], Dmitriy Goloshubov [Дима Голошубов] and Nikolay Korchagin [Николай Корчагин]; and a civilian co-conspirator, Amin Sitgal [Амин Стигал].
According to court documents, on Jan. 13, 2022, the defendants conspired to use a U.S.-based company’s services to distribute malware known in the cybersecurity community as “WhisperGate,” which was designed to look like ransomware, to dozens of Ukrainian government entities’ computer systems. However, as the indictment alleges, WhisperGate was actually a cyberweapon designed to completely destroy the target computer and related data in advance of the Russian invasion of Ukraine. Ukrainian government networks subjected to this attack included the Ukrainian Ministry of Internal Affairs, State Treasury, Judiciary Administration, State Portal for Digital Services, Ministry of Education and Science, Ministry of Agriculture, State Service for Food Safety and Consumer Protection, Ministry of Energy, Accounting Chamber for Ukraine, State Emergency Service, State Forestry Agency and Motor Insurance Bureau.
In conjunction with these attacks, the defendants compromised several of the targeted Ukrainian computer systems, exfiltrated sensitive data, including patient health records and defaced the websites to read: “Ukrainians! All information about you has become public, be afraid and expect the worst. This is for your past, present and future.” That same day, the defendants offered the hacked data for sale on the internet.
The U.S. government previously joined with allies and partners in May 2022 to attribute this cyber-attack to the Russian military and to condemn the attack and similar destructive cyber activities against Ukraine.
In October 2022, the defendants also hacked the transportation infrastructure of a Central European country that was supporting Ukraine. Beginning in August 2021, the defendants also probed a variety of protected computer systems including those associated with 26 NATO member countries, searching for potential vulnerabilities. The indictment further alleges that from Aug. 5, 2021, to Feb. 3, 2022, the defendants leveraged the same computer infrastructure they used in the Ukraine-related attacks to probe computers belonging to a federal government agency in Maryland in the same manner as they had initially probed the Ukrainian Government networks.
This indictment is part of an international effort, Operation Toy Soldier, to combat the malicious cyber activity by Unit 29155 of the GRU. Accompanying today’s announcement, the FBI and 12 other partners, representing governments of nine countries, released a Joint Cybersecurity Advisory to enhance network defense efforts against Unit 29155’s malicious cyber activities.
The FBI Baltimore Field Office is investigating the case with assistance from FBI Milwaukee and Boston Field Offices.
Assistant U.S. Attorneys Aaron S.J. Zelinsky and Robert I. Goldaris for the District of Maryland are prosecuting the case with valuable assistance from the National Security Division’s National Security Cyber Section.