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Wednesday 28 August 2024
Three Men Indicted in Marion County for Attempted Enticement of A MinorRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the return of three indictments separately charging Devin Joseph Rivera (24, Ocala), Rickey Lee Miller, Jr. (45, Ocala), and Obdy Mencia Guerrero (40, Honduras) with attempted enticement of a minor to engage in sexual activity. Mencia Guerrero has been charged with illegal reentry into the United States by a previously deported alien. If convicted of the enticement offense, Rivera, Miller, and Mencia Guerrero each face a minimum mandatory sentence of 10 years, up to life, in federal prison. Mencia Guerrero also faces up to an additional 2 years’ imprisonment for the illegal re-entry offense. All three individuals are currently detained pending the resolution of their criminal cases.
Devin Joseph Rivera
According to court records, on July 26, 2024, a special agent with Homeland Security Investigations posed undercover (UC) as a 13-year-old girl on an online social media platform. Rivera contacted the undercover agent’s account. The conversation between Rivera and the UC spanned three different online messaging platforms. Rivera engaged in a sexually explicit conversation with the UC, whom Rivera believed was a 13-year-old girl. Rivera and the UC agreed to meet at a predetermined location in Marion County to have sex. When Rivera arrived at that location, he was arrested by law enforcement. A search of Rivera’s person revealed an opened condom and a cellphone. The cellphone was confirmed to be the same one used to communicate with the undercover detective.
Rickey Lee Miller, Jr.
According to court records, on July 27, 2024, a detective from the Marion County Sheriff’s Office (MCSO) posed as a 15-year-old girl on an online messaging platform. Miller contacted the undercover detective’s account and asked if she wanted to “hang out.” Miller then engaged in a sexually explicit conversation with the detective. During the conversation, Miller asked the detective if she would be interested in having “some fun” with himself and a friend. Miller asked the detective to lie to his friend, stating, “and one more thing will you tell my friend your 18 I really don’t want her to know your real age.” Ultimately, Miller and his friend arrived at a predetermined location to meet with the minor. Miller was arrested by law enforcement. The cellphone in Miller’s vehicle was confirmed to be the same one used to communicate with the undercover detective.
Obdy Mencia Guerrero
According to court documents, on July 27, 2024, Mencia Guerrero contacted an undercover MCSO deputy who was posing as a 14-year-old girl. After acknowledging the undercover deputy’s age, Mencia Guerrero told her they could have sex. Mencia Guerrero and the deputy arranged to meet at a location in Marion County. Upon his arrival at the location, Mencia Guerrero was arrested. Mencia Guerrero is a citizen of Honduras. He was previously deported from the United States on four occasions—January 16, 2003, April 11, 2011, August 8, 2011, and June 2, 2014. He never had obtained permission to lawfully re-enter the United States.
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.
These cases were investigated by the Marion County Sheriff’s Office, the Ocala Police Department, the Florida Department of Law Enforcement, the Chiefland Police Department, and Homeland Security Investigations. They are being prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Three Individuals Sentenced to Federal Prison for Trafficking Methamphetamine Through the Orlando AirportRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced three individuals for their roles in a multi-kilogram methamphetamine trafficking conspiracy. Each of the individuals charged in the case previously pleaded guilty to conspiracy to possess with intent to distribute methamphetamine. They were sentenced as follows:
Name
Sentencing Date
Sentence Imposed
Jevonn Clayton (48)
8/28/24
13 years, 2 months
Richardson Sid (41)
7/16/24
6 years, 6 months
Venus Lott (46)
7/22/24
5 years
According to court documents, on August 11, 2022, Clayton agreed to transport suitcases containing methamphetamine from Los Angeles to Orlando on behalf of a drug trafficker. Shortly thereafter, Clayton and the drug trafficker recruited Lott and Sid to travel to California to assist in transporting the suitcases.
On August 16, 2022, Clayton, Lott, and Sid departed Los Angeles for Orlando, with five suitcases packed with large amounts of methamphetamine. Agents with the Drug Enforcement Administration and the Metropolitan Bureau of Investigation were investigating inbound flights at the Orlando airport. The agents located and searched the suitcases belonging to Clayton, Lott, and Sid and recovered several vacuum-sealed bags that contained more than 35 kilograms of methamphetamine.
This case was investigated by the Drug Enforcement Administration, with valuable assistance from the Metropolitan Bureau of Investigation. It was prosecuted by Assistant United States Attorney Noah P. Dorman.
Three Honolulu Men Charged with Armed Robbery of the 944 Game RoomRead the Press Release
HONOLULU – Rogelio Tadeo-Burrows, age 24, B.J. Bakol, age 19, and Joseph Konno III, age 19, all of Honolulu, Oahu, made their initial appearance yesterday in United States District Court before United States Magistrate Judge Kenneth J. Mansfield, following their arrests pursuant to a criminal complaint for robbing the “944” game room in Honolulu on August 22, 2024.
United States Attorney Clare E. Connors, Chief Joe Logan of the Honolulu Police Department (HPD), and Special Agent in Charge Lucia Cabral-Dearmas of Homeland Security Investigations (HSI) made the announcement.
According to a criminal complaint, on August 22, 2024, Tadeo-Burrows, Bakol, and Konno entered the game room on Kawaiahao Street and robbed the employees and patrons at gunpoint. HPD Officers responded to a 911 call and upon arriving at the scene, arrested Konno as he exited the game room wearing a mask. HPD Officers arrested Tadeo-Burrows and Bakol after locating them in a bathroom inside the game room, along with two loaded firearms, a large amount of U.S. currency, and two masks.
If indicted and convicted of the charges in the criminal complaint, the defendants would face up to twenty years in prison for the robbery charge and a consecutive mandatory minimum sentence of seven years in prison for the firearm charge. The charges and information contained in the criminal complaint are merely accusations, and the defendants are presumed innocent unless and until indicted and proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by HPD and HSI and being prosecuted by Assistant U.S. Attorneys Sara Ayabe and Barbara Eucker.
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 gun violence and other violent crime, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Texas Men Indicted for Stealing from ATMs at Springfield, Ozark BanksRead the Press Release
SPRINGFIELD, Mo. – A third Texas man was indicted by a federal grand jury today for his role in bank burglary and bank theft conspiracies following thefts from two automated teller machines (ATMs) at Ozark, Mo., and Springfield, Mo., banks.
Nigel Dwane Luchin, 27, and Leo Smith, 21, both of Houston, Texas, and Christopher E. Merchant, 24, of Beaumont, Texas, were charged in a six-count indictment returned today by a federal grand jury in Springfield, Mo. Luchin was originally charged in a Dec. 19, 2023, indictment and Smith was charged in a Jan. 23, 2024, superseding indictment. Merchant was added as a defendant in today’s second superseding indictment.
The federal indictment alleges that Luchin, Smith, and Merchant participated in a conspiracy to commit bank burglary and a conspiracy to commit bank theft from Oct. 3 to Nov. 8, 2023.
According to the indictment, Smith stole a heavy-duty Dodge Ram truck from a parking lot in Springfield on Oct. 20, 2023. Smith drove the truck to Wood & Huston Bank in Springfield, the indictment says, where the truck was used on the same day to break open and steal money from the ATM.
In addition to the two conspiracies, Smith is charged with one count of bank burglary and one count of bank theft in relation to Wood & Huston Bank.
On Oct. 29 or 30, 2023, Smith allegedly assisted in the theft of a heavy-duty Ford F-250 truck from a parking lot in Nixa, Mo. On Oct. 29, 2023, the indictment says, Luchin and/or Merchant purchased a tow chain. The truck and chain allegedly were used by Luchin, Smith and Merchant to break open and steal money from the ATM at Southern Bank in Ozark, Mo., on Oct. 30, 2023.
In addition to the two conspiracies, Luchin, Smith, and Merchant are charged together in one count of bank burglary and one count of bank theft in relation to Southern Bank.
According to an affidavit filed in support of a criminal complaint that was filed on Nov. 6, 2023, conspirators used a chain and two large hooks to dismantle the door to the ATM at Southern Bank by attaching the chains to the ATM and pulling the chain and hooks with the stolen Ford F-250. They stole $30,700 from the ATM and left the bank, abandoning the pickup truck a short distance away.
Investigators reviewed surveillance videos from businesses in the area where the Ford F-250 was stolen. The videos allegedly showed conspirators arriving at the area in two vehicles – a Chrysler Voyager minivan and a Toyota Highlander – and leaving the area with the stolen pickup. Both the Voyager and the Highlander were identified on a license plate reader and traced to two car rental agencies in Houston. Later the same day, a license plate reader in Houston captured both of those vehicles traveling in the same direction.
Ozark police officers searched the stolen pickup truck, the affidavit says, and found Luchin’s Texas identification card on the driver’s seat.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the FBI, the Ozark, Mo., Police Department, and the Springfield, Mo., Police Department.
Texas Man Sentenced to 72 Months for Conspiring with Michael Mann to Defraud LendersRead the Press Release
ALBANY, NEW YORK – Derek R. Schwartz, age 55, of Coppell, Texas, was sentenced today to 72 months in prison for conspiring with former ValueWise CEO Michael T. Mann to defraud companies that loaned millions of dollars to ValueWise subsidiaries.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Schwartz pled guilty in September 2023 to one count of conspiring to commit wire fraud and four counts of wire fraud. He admitted to helping Mann fraudulently obtain millions of dollars in loans from financing companies.
Mann obtained millions of dollars in loans from two financing companies, located in New York and Colorado, by falsifying his companies’ receivables. Mann falsely told the financing companies that Minnesota-based UnitedHealth Group Incorporated (“UHG”) and its subsidiary OptumInsight Inc. (“Optum”), owed millions of dollars to his Clifton Park-based companies. Mann routinely created fake invoices reflecting the fictitious debt and assigned them to the financing companies as collateral for loans.
Schwartz was a high-level executive at Optum, and then began working for ValueWise in October 2013. Until about August 2016, he operated TrueHR, LLC, a ValueWise subsidiary based in Dallas, Texas.
Schwartz admitted that in October 2013, he and Mann asked Luke Steiner, a UHG/Optum employee whom Schwartz used to supervise, to represent to the financing companies that the fake invoices created by Mann were valid and payable by Optum. With Schwartz’s encouragement, Steiner regularly made these false verifications for six years, ending in August 2019.
Schwartz also admitted he took these other actions in furtherance of the fraudulent scheme:
- In 2014 and 2015, he asked two other UHG/Optum employees to verify false invoices that Mann submitted to one of the financing companies, identified in court papers as “Financing Company-1.” He instructed these employees to respond to Financing Company-1’s inquiries in the same manner as Steiner.
- From 2014 through 2018, Schwartz lied directly to one of Mann’s lenders, “Financing Company-2.” Mann falsely represented to Financing Company-2 that one of his companies, Weitz & Associates, needed loans in order to pay its vendors. As part of its due diligence process, Financing Company-2 verified, with Weitz’ purported vendors, that they were receiving payments from Weitz. One such purported vendor was TrueHR, a ValueWise company operated by Schwartz. In fact, TrueHR was not a Weitz vendor, and Schwartz regularly lied to Financing Company-2 about TrueHR receiving payments from Weitz – and continued to do so even after TrueHR ceased to exist as a company.
Senior United States District Judge Lawrence E. Kahn also ordered Schwartz to serve 3 years of post-imprisonment supervised release and to pay a total of $12,968,505.20 in restitution to Financing Company-1 and Financing Company-2; Judge Kahn ordered Schwartz to pay $2,000 in restitution per month, including while incarcerated. In addition, Schwartz has already made a $1 million restitution payment to the Court for distribution to his victims.
Mann, formerly of Saratoga County, New York, pled guilty to various crimes in connection with his fraudulent scheme, and was sentenced in August 2021 to 144 months in prison. Steiner pled guilty in February 2020 to conspiring with Mann and was sentenced to probation.
The FBI investigated this case, and Assistant U.S. Attorneys Michael Barnett and Cyrus P.W. Rieck prosecuted this case.
Springfield Business Owner Indicted for Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., business owner was indicted by a federal grand jury today for illegally possessing eight firearms and for lying about his criminal record when he purchased two of those firearms.
Marco Lorimer Denis, 49, was charged in a three-count indictment returned by a federal grand jury in Springfield. Today’s indictment replaces a federal criminal complaint that was filed against Denis on July 26, 2024, and includes two additional charges related to firearms purchases.
Denis is the owner of Springfield Property LLC, a company providing retail and commercial rental space, including at Plaza Towers in Springfield.
Today’s indictment alleges that Denis was in possession of a Standard Manufacturing shotgun, a Maverick by Mossberg shotgun, a Ruger pistol, a Smith & Wesson pistol, a Canik pistol, a Sig Sauer pistol, a Bersa pistol, and a Charter Arms revolver between Dec. 17, 2020, and July 16, 2024. Under federal law, it is illegal for anyone who has been convicted of a misdemeanor crime of domestic violence to be in possession of a firearm. Denis has a prior misdemeanor conviction for domestic assault committed against a person with whom he shared a child in common.
Denis is also charged with two counts of making a false statement to a licensed firearms dealer in connection with the acquisition of the Canik pistol on Dec. 10, 2020, and the Sig Sauer pistol on Jan. 14, 2021. In each instance, the indictment says, Denis reported that he had never been convicted of a misdemeanor crime of domestic violence, which he knew to be false.
This case is being prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Springfield, Mo., Police Department.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Spokane Resident Sentenced for Fraudulently Obtaining More than $360,000 in COVID- 19 Relief FundingRead the Press Release
Spokane, Washington - Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that Marisa Beck, age 41, of Spokane, was sentenced for fraudulently obtaining more than $360,000 in COVID-19 relief funding intended for endangered small businesses and employees at risk of losing their jobs. Chief United States District Judge Stanley A. Bastian imposed a sentence of 12 months imprisonment to be followed by 3 years of supervised release, as well as restitution of $402,020.32, representing the total loss to the public as a result of the fraud.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided forgivable loans to eligible small businesses to retain jobs and maintain payroll during the pandemic. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low-interest bridge funding for small businesses placed at risk during the pandemic.
According to court documents and information presented at trial and the sentencing hearing, Ms. Beck admitted to fraudulently obtaining $368,829 in PPP and EIDL funding for three purported businesses: Cyra Solar LLC, Beck N’ Call Landscape, LLC, and Value in People Consulting, LLC. Ms. Beck admitted that these entities were not eligible for CARES Act funding because Beck N’ Call Landscape and Cyra Solar were not active businesses as of February 2020, and because she submitted false and fraudulent payroll, revenue, and other information associated with the three purported businesses in order to fraudulently obtain CARES Act funding.
“Many small businesses struggled during the COVID-19 shutdowns and were eligible for pandemic relief funds to keep their doors open and to ensure that their employees could keep their jobs. Fraudulent schemes diverted critical money set aside to help those businesses and instead were used to enrich individuals such as Ms. Beck,” stated U.S. Attorney Waldref. “I’m grateful for the investigators and prosecutors of our COVID Fraud Strike Force. Their teamwork and focus on uncovering fraud strengthens our community and protects small and local businesses.”
“Today’s sentencing underscores the VA Office of Inspector General’s commitment to rooting out fraudsters and safeguarding taxpayer funds,” said Special Agent in Charge Dimitriana Nikolov with the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “The VA OIG will continue to work with our law enforcement partners as part of the COVID-19 Strike Force to investigate fraud against relief programs intended to support bona fide recipients.”
“Profiteering off federal government relief programs intended to support American small businesses is inexcusable,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “This sentencing is further evidence that greed has no place in SBA programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
The case was investigated by the Eastern Washington COVID Fraud Strike Force, and in particular by the U.S. Department of Veterans Affairs Office of Inspector General, Spokane Resident Office, with investigative assistance and support from the Federal Bureau of Investigation, Spokane Resident Agency, the Small Business Administration Office of Inspector General, Western Regional Office, and the Internal Revenue Service, Criminal Investigative Division, Seattle Field Office. Assistant United States Attorney Dan Fruchter prosecuted this case on behalf of the United States.
South Bend Man Sentenced to 70 Months in PrisonRead the Press Release
SOUTH BEND – Dorian Baker, 57 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Cristal C. Brisco after pleading guilty to being a convicted felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Baker was sentenced to 70 months in prison followed by 2 years of supervised release.
According to documents in the case, in February 2024, investigators recovered six firearms, large capacity magazines, over 40 grams of marijuana, and a digital scale from Baker’s bedroom. Baker has prior felony convictions, including a federal conviction for using a firearm during a drug trafficking offense. Any one of these felonies make it unlawful for him to possess the firearms in this case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the South Bend Police Department. The case was prosecuted by Assistant United States Attorney Hannah T. Jones.
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.
Sisters Plead Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Dawn Marie Bennett, 42, of Las Vegas, Nevada, and April Lynn McNeill, 44, of Parkersburg, West Virginia, each pleaded guilty today to aiding and abetting the use of a communication facility to facilitate drug trafficking.
According to court documents and statements made in court, on or about January 24, 2023, Bennett arranged with McNeill, her sister, to send her a package through the United States Mail containing approximately 334 pills containing either oxycodone or hydrocodone. Law enforcement officers intercepted the package before it arrived at McNeill’s residence. Officers delivered the package to McNeill’s residence and detained her when she accepted delivery of the package.
Bennett and McNeill admitted to the arrangement and also admitted to arranging the shipment of approximately 487 pills containing either oxycodone or hydrocodone from Bennett to McNeill on or about January 19, 2024. Law enforcement intercepted that package, and it never arrived at McNeill’s residence. Bennett and McNeill admitted that McNeill intended to sell pills from both shipments to people in the Parkersburg area.
McNeill and Bennett are scheduled to be sentenced on December 12, 12, 2024, and each faces a maximum penalty of four years in prison, up to one year of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Postal Inspection Service, the Drug Enforcement Administration (DEA) and the Parkersburg Violent Crime and Narcotics Task Force.
United States District Judge Irene C. Berger presided over the hearings. Assistant United States Attorney Jeremy B. Wolfe is prosecuting 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 Nos. 2:24-cr-130 (McNeill) and 2:24-cr-131 (Bennett).
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Seven-Time Convicted Felon Found Guilty Following Federal Jury TrialRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Anthony Tyrone Mackey (41, Jacksonville) guilty of being a felon in possession of a firearm. Mackey faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been scheduled.
According to the indictment and evidence presented at trial, on March 29, 2023, officers with the Jacksonville Sheriff’s Office stopped Mackey for a traffic infraction near the 5800 block of University Boulevard in Jacksonville. At the time, Mackey was the sole occupant of the vehicle. During a subsequent search of the vehicle, officers located a 12-gauge shotgun on the back passenger-side floorboard and a .25 caliber pistol in a backpack on the back passenger seat. DNA analysis later showed that Mackey’s DNA was found on the shotgun and the shotgun’s magazine. Mackey was barred from possessing firearms because he had been previously convicted of seven felonies, including possession of a short-barreled shotgun, possession of a firearm by a convicted felon, aggravated assault, and aggravated fleeing or attempted to elude a law enforcement officer.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorneys John Cannizzaro and Brenna Falzetta.
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.
Secret North Carolina Fentanyl Lab Gets Armed Trafficker 27 YearsRead the Press Release
WILMINGTON, N.C. – Quavion Maurice Pickett, a/k/a “Q,” a 30-year-old resident of Rock Hill, South Carolina has been sentenced to 324 months in federal prison followed by five years of supervised release, and a forfeiture of over $72,000, for trafficking fentanyl pills in the Fayetteville area which he manufactured in a makeshift lab in a laundry room. Pickett pled guilty on April 24, 2024.
“Counterfeit pills made with deadly fentanyl in filthy makeshift labs are turning up everywhere. This trafficker was caught with three kilos of fentanyl, a high-capacity pill press, cash, and tens of thousands of counterfeit oxycodone pills,” said U.S. Attorney Michael Easley. “These pills are made with zero quality-control, with narcotics being mixed in plastic bins and store-bought blenders by reckless, money-hungry narcotics dealers who care only about money and care nothing for human life. Never, ever, take a pill bought on the street or online that isn’t prescribed by a real doctor. You are gambling with your life.”
“The Fayetteville Police Department continues to work collaboratively with our local, state, and federal law enforcement partners, we continue to aggressively combat narcotic trafficking affecting our community,” said Kemberle Braden, Fayetteville Chief of Police.
According to the court documents and other information presented in court, in April 2022, officers with the Fayetteville Police Department became aware of the drug distribution activities of Pickett through information provided by a confidential informant. Ultimately, law enforcement conducted surveillance on Pickett’s residence in Fayetteville and observed what appeared to be drug transactions conducted by Pickett on multiple occasions. Law enforcement searched a residence where Pickett was living. While executing the search warrant, law enforcement discovered a counterfeit pill making operation in the laundry room of the residence complete with a pill press, large plastic tote containers covered in light blue powder residue, multiple digital scales, multiple knotted plastic baggies containing pressed tablets, plastic baggies, a blender covered in powder residue, various full and empty bags containing different colored cutting agents, a money counter covered in powder residue, various metal hand tools, a funnel, pill press die molds, loose blue tablets, and a baggie containing yellow, white, and blue tablets.
In Pickett’s bedroom law enforcement located and seized baggies containing 157 pressed pills, over $70,000 in cash in a shoe box, a loaded .45 caliber handgun, and a jar and baggie containing an unspecified amount of marijuana. Additionally, officers recovered an additional $1,760 in cash on Pickett. The amount of fentanyl seized from the residence totaled 3.1 kilos of fentanyl. The fentanyl pills seized had pressed markings of “A215,” designed to appear to be oxycodone hydrochloride 30 milligram pills.
Following his arrest by state officials, investigators received reliable information that he had purchased the pill press used in this operation about eight months prior to his arrest and was responsible for purchasing multiple kilograms of fentanyl used for making these pills.
Pickett was subsequently indicted by the Eastern District of North Carolina after which federal arrest warrants were issued for Pickett’s arrest. Law enforcement arrested Pickett on October 26, 2022, in South Carolina where he was residing at the time. During the arrest law enforcement located and seized a duffle bag with 11 baggies containing a total of 19,016 pressed fentanyl pills inside, as well as two baggies of fentanyl powder weighing approximately 294.85 grams, a sifter, a grinding bowl, three plastic containers with powder residue, and drug packaging materials. A digital scale, marijuana, two cellphones, and $5,525 in cash were also seized.
Between September 30, 2021, until October 26, 2022, Pickett was found to be responsible for possession with intent to distribute 8,706.98 grams of fentanyl and 10.50 grams of marijuana. Pickett also maintained a premises for the purpose of manufacturing and distributing a controlled substance, as well as possessing a firearm in furtherance of his drug trafficking activities. Furthermore, based upon Pickett’s imprinting the pills with specific numbers associated with prescription pills for distribution, as well as text messages seized from Pickett’s cellphone the Court found that Pickett knowingly misrepresented a substance containing fentanyl as something other than fentanyl.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by Chief District Judge Richard E. Myers II. The Fayetteville Police Department and the Federal Bureau of Investigation investigated the case and Assistant U.S. Attorney Jennifer C. Nucci prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for case number 5:22-CR-00259-M-RJ.
Seattle area resident indicted for laundering millions of dollars – alleged proceeds of wire fraud schemeRead the Press Release
Seattle – A 46-year-old resident of Newcastle, Washington was indicted today by a federal grand jury for conspiracy to commit money laundering, and nine counts of money laundering either by concealment or by spending, announced U.S. Attorney Tessa M. Gorman. Geoffrey K. Auyeung was arrested on a criminal complaint August 12, 2024, and is scheduled to be arraigned on the indictment on September 5, 2024.
According to records filed in the case, investigators with Homeland Security Investigations (HSI) have traced $64 million in funds coming into some 74 different bank accounts controlled by Auyeung. Many of the accounts are in the names of business entities that offered purported investments related to oil and gas. These entities include: Sea Forest International LLC.; Apex Oil and Gas Trading LLC.; Navigator Energy Logistics LLC.; Terminal Energy International Escrow Service LLC.; Energo Horizons Logistics (EA) LLC.; Legacy Energy Logistics Transport Group LLC.; and Green Tree Gateway LLC.
From at least August 2022 through August 2024, the co-schemers convinced victims to send money to what was represented as escrow accounts to purchase oil tank storage in either Rotterdam, Netherlands, or Houston. The schemers indicated that the investors could make significant profits by renting the oil tank storage they obtained to others. However, once the funds came into accounts controlled by Auyeung, the money was quickly moved into other accounts, moved offshore, or was used for the purchase of cryptocurrencies, including Bitcoin, Tether, USD Coin, and Ethereum, via cryptocurrency exchanges such as Gemini, BitStamp, and Coinbase. Much of the cryptocurrency was further transferred to accounts at the cryptocurrency exchange Binance. Victims were not sent any further information on their investment and Auyeung and others simply stopped responding.
The indictment calls for the forfeiture of some $2.3 million seized from Auyeung’s bank accounts. Millions more of the wire fraud proceeds that were converted to cryptocurrencies are frozen and pending seizure. HSI has confirmed 22 victims with a combined loss of $7.7 million. However, law enforcement believes many more victims may come forward.
Conspiracy to commit money laundering, and individual counts of money laundering concealment are punishable by up to 20 years in prison. Money laundering – spending, is punishable by up to 10 years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by HSI.
The case is being prosecuted by Assistant United States Attorneys Jehiel Baer and Yunah Chung.
auyeung_indictment.pdfSan Francisco Tow Company Operator Charged in Second Insurance Fraud CaseRead the Press Release
SAN FRANCISCO – Jose Vicente Badillo, Kirill Afanasyev, Jason Naraja, and Jaime Respicio have been charged in an indictment with various crimes related to two schemes to defraud auto insurance companies, announced United States Attorney Ismail J. Ramsey; FBI Special Agent in Charge Robert K. Tripp; and IRS Criminal Investigation (IRS-CI) Acting Special Agent in Charge Michael Mosley of the Oakland Field Office. The case has been assigned to the Hon. James Donato, United States District Judge.
According to an indictment returned by a federal grand jury on August 20, 2024, Afanasyev, 36, Badillo, 28, both of San Francisco, and Respicio, 38, of Pleasant Hill, California, conspired to defraud an auto insurance company by submitting a fraudulent insurance claim on a wrecked car that Afanasyev purchased in May 2019. The Indictment alleges that, when Afanasyev bought the car, it was undrivable, with significant front-end damage. Nevertheless, the Indictment says, Respicio obtained an insurance policy on, and later took title to, the car before Afanasyev, posing as Respicio, falsely reported to the insurance company in August 2019 that Respicio had been in a single-car accident in it in San Francisco. The Indictment further alleges that Afanasyev made materially false statements and misrepresentations to the insurance company, after which the insurance company processed and approved the claim and sent Respicio an insurance reimbursement check for $47,856.34. The Indictment alleges that Badillo participated in this scheme to defraud by agreeing to falsely document that his towing company had towed the wrecked car from the purported accident location.
The Indictment alleges that Afanasyev, Badillo, and Naraja, 37, of Hayward, California, engaged in a second conspiracy and scheme to defraud another insurance company by submitting a fraudulent insurance claim regarding an accident involving multiple vehicles that had been staged by Badillo in San Mateo County. Specifically, the Indictment alleges that Badillo and Afanasyev planned the staged accident in which Badillo loaded a vehicle carrier with four vehicles (several of which were inoperable or had pre-existing damage) and purposefully drove them off the road on Guadalupe Canyon Parkway in San Mateo County in August 2019. The Indictment alleges that, after Badillo reported this “accident” to his insurance company, Badillo, Afanasyev, Naraja, and another individual all made false or misleading statements to an insurance company representative. The Indictment alleges that the insurance company ultimately denied Badillo’s claim as fraudulent but nevertheless paid one of Badillo’s towing companies $5,210 for its recovery, towing, and storage of vehicles involved in the staged accident.
The Indictment also alleges that, at the time of the offenses in 2019, Badillo owned and/or controlled at least two companies engaged in the business of towing vehicles: Jose’s Towing, LLC, and Auto Towing, LLC, both of which operated out of San Francisco.
In the first conspiracy and scheme to defraud, Afanasyev, Badillo, and Respicio are charged with one count each of (i) conspiracy to commit mail fraud and wire fraud, in violation of 18 U.S.C. § 1349; (ii) mail fraud, in violation of 18 U.S.C. §§ 1341 and 2; and (iii) wire fraud, in violation of 18 U.S.C. §§ 1343 and 2. Afanasyev and Respicio are also charged with one count of money laundering, in violation of 18 U.S.C. §§ 1957 and 2.
In the second conspiracy and scheme to defraud, Afanasyev, Badillo, and Naraja are charged with (i) one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; and (ii) four counts of wire fraud, in violation of 18 U.S.C. §§ 1343 and 2.
Naraja and Respicio were arrested in Hayward and Pleasant Hill, respectively, on August 27, 2024, and released on $50,000 bonds at their initial appearances on August 28, 2024. Naraja is next scheduled to appear in court on August 29, 2024, at 10:30 a.m., before the Hon. Lisa J. Cisneros for arraignment and identification of counsel. Respicio is next scheduled to appear in court on September 5, 2024, at 10:30 a.m., before the Hon. Alex G. Tse for arraignment and identification of counsel. Badillo was previously arrested and made his initial appearance in another insurance fraud case on August 8, 2024. He is scheduled to appear before the Hon. Lisa J. Cisneros for arraignment and identification of counsel in both cases on August 30, 2024, at 10:30 a.m. Afanasyev’s initial appearance and arraignment has been scheduled for September 9, 2024, at 10:30 a.m. before the Hon. Alex G. Tse.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Afanasyev, Badillo, and Respicio each face a maximum sentence of 20 years in prison, and a fine of $250,000 or twice the gross gain or loss, whichever is greater, plus restitution, if appropriate, on each of Counts 1 through 3, which charge mail fraud, wire fraud, and conspiracy to commit the same, in violation of 18 U.S.C. §§ 1341, 1343, 1349, and 2. Afanasyev and Respicio face a maximum sentence of 10 years in prison, and a fine of $250,000 or twice the amount of criminally derived property involved in the transaction, whichever is greater, plus restitution, if appropriate, on Count 4, which charges money laundering, in violation of 18 U.S.C. §§ 1957 and 2. Similarly, Afanasyev, Badillo, and Naraja each face a maximum sentence of 20 years in prison, and a fine of $250,000 or twice the gross gain or loss, whichever is greater, plus restitution, if appropriate, on each of Counts 5 through 9, which charge wire fraud and conspiracy to commit the same, in violation of 18 U.S.C. §§ 1343, 1349, and 2. The court also may order an additional term of supervised release to begin after any prison term as part of the sentence for any or all of the defendants. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant U.S. Attorneys Kyle F. Waldinger and Galen A. Phillips are prosecuting the case with the assistance of Amala James and Carolyn Jusay Caparas. The prosecution is the result of a lengthy investigation by the FBI and IRS-CI. The U.S. Attorney’s Office, the FBI, and IRS-CI appreciate the assistance and support of the San Francisco Police Department in this insurance fraud investigation.
San Antonio Woman Arrested for Fraudulently Selling $18 Million Worth of Counterfeit Retail Store CouponsRead the Press Release
NEWARK, N.J. – A San Antonio, Texas, woman was arrested and charged with fraudulently selling over $18 million worth of counterfeit coupons used at various retail stores across the United States for the purchase of household items, U.S. Attorney Philip R. Sellinger announced today.
Janet Bernal, aka “Rocky,” aka “Rocky G,” aka “Rocky Gee,” aka “RockyG-Kruella,” of San Antonio, Texas, is charged by complaint with three counts of wire fraud. She appeared on Aug. 27, 2024, in the Western District of Texas, before U.S. Magistrate Judge Richard Farrer in San Antonio federal court, and was released on $15,000 secured bond.
According to documents filed in this case and statements made in court:
From June 2020 through June 2024, Bernal orchestrated a scheme to produce and sell fraudulent, counterfeit coupons for use by purchasers at retail stores throughout the United States, including large pharmacies and grocery stores. Bernal offered counterfeit coupons through a monthly fee-based subscription group that was available on a commonly used Internet cloud-based messaging application.
Purchasers subscribed to the group, paid a monthly fee, and then had unlimited access to numerous types of counterfeit coupons that Bernal posted for download on the application. Members paid the monthly fee to mobile cash accounts associated directly with Bernal. Members downloaded tens of thousands of counterfeit coupons and redeemed them at retail stores throughout New Jersey and elsewhere. The loss to 156 retail stores and to the manufacturers whose products were covered by the counterfeit coupons was approximately $18 million.
The charge of wire fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to the arrest.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Richland Man Indicted for Stealing More than $339,000 in COVID-19 Unemployment Insurance Fraud SchemeRead the Press Release
Richland, Washington - On August 21, 2024, a federal grand jury for the Eastern District of Washington returned an Indictment charging Gilbert Orosco, of Richland, Washington, with ten counts of conspiracy, fraud, and aggravated identify theft. Orozco made his first appearance in Federal Court on August 27, 2024.
The Indictment alleges that, beginning in July 2020, Orosco took part in a scheme in which he defrauded the United States government and the governments of California, Nevada, and Arizona to obtain money from the states’ COVID relief programs in the form of unemployment insurance proceeds funded, in part, by the United States government. Specifically, Orosco conspired with co-conspirators who acquired personal information from others and used it to fraudulently make mass online applications for money earmarked by the states to provide unemployment insurance relief for those who lost their jobs due to the COVID pandemic. The indictment alleges Orosco’s co-conspirators created and submitted false and fraudulent applications for unemployment insurance on behalf of individuals who were not seeking or eligible for the benefits, and did not know that their identities were being used to obtain benefits. Acting on the fraudulent applications, the states then mailed debit cards to Orosco’s home in Richland, Washington. According to the indictment, Orosco used the debit cards to withdraw cash from ATMs. After withdrawing the cash, Orosco would convert the money into cryptocurrency or money orders. Orosco would then allegedly use those assets himself or transfer them to co-conspirators.
The indictment alleges, between July 2020 and December 2021, unemployment insurance claims on behalf of approximately 70 different individuals were filed with state work force agencies, including in California, Nevada, and Arizona, that listed Orosco’s residence in Richland, Washington. Debit cards were then mailed to Orosco’s residence in the names of these individuals.
According to the indictment, during this period, Orosco used the debit cards in other people’s names to make 347 ATM withdrawals totaling approximately $282,814. Orosco also made another approximately 30 transactions using the debit cards at Winco, Albertson’s, and USPS locations in the Eastern District of Washington totaling approximately $57,095.
“Many people who lost their jobs during the pandemic were dependent on COVID-19 relief programs for financial support during an unprecedented time of uncertainty,” said U.S. Attorney Waldref. “We created the COVID-19 Fraud Strike force to protect everyone who relied on those critical funds and to combat pandemic-related fraud.”
This case was investigated by the Department of Labor, Office of Inspector General, and the Department of Homeland Security, Office of Inspector General COVID Fraud Unit. It is being prosecuted by Assistant United States Attorney Jeremy J. Kelley.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Repeat Sex Offender Sentenced to 15 years in Prison for Child Pornography Offenses, Failure to RegisterRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Christopher Daniels, 34, of Philadelphia, Pennsylvania, was sentenced by United States District Court Judge Juan R. Sánchez to 15 years’ imprisonment, to be followed by 15 years of supervised release for repeated child pornography and related offenses.
Daniels was charged with those violations in an August 2023 superseding indictment, and in March of this year, a federal jury convicted the defendant of all six counts against him, including receiving child pornography as a second time offender, possession of child pornography as a second time offender, access with intent to view child pornography as a second time offender, and failure to register as a sex offender, as required by the Sex Offender Registration and Notification Act (SORNA).
Daniels previously was convicted of possession of child pornography in federal court in 2015 and served 70 months in prison and 10 years of supervised release. His term of supervised release commenced on January 15, 2021. Under SORNA, he was required to keep his sex offender registration information, including his registered residential address, current. In July 2022, Daniels failed to verify his sex offender registration with Pennsylvania State Police as required and went into non-compliant status. Daniels was also found to be non-compliant with the terms of his federal supervised release and a bench warrant was issued for his arrest.
On November 3, 2022, the U.S. Marshals Service arrested Daniels and the FBI conducted a court-authorized search of his residence, seizing several electronic devices belonging to the defendant. Subsequent forensic examination of those devices found thousands of videos and images depicting child pornography and browser searches for such material.
“When he got out of prison, Christopher Daniels was given a non-negotiable to-do list,” said U.S. Attorney Romero. “Right at the top: stay away from material depicting the horrific sexual abuse of children, and keep his sex offender registry details current. He failed at both, proving himself a continued risk to the community. My office and our partners at the FBI will never stop working to protecting vulnerable children from sexual exploitation.”
“Having already served one sentence for exploiting innocent victims, the defendant then continued his heinous criminal behavior,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “This sentencing is a testament to the diligent and unceasing work of the FBI and our law enforcement partners to combat violent crimes against children.”
The case was investigated by the FBI and the U.S. Marshals Service and is being prosecuted by Assistant United States Attorney Michelle Rotella.
Puerto Rican Man Who Manufactured Machine Guns, Trafficked Methamphetamine and Cocaine Sentenced to 23 Years in Federal PrisonRead the Press Release
Spartanburg, S.C. — Esteban Colon Pacheco, 27, of Ponce, Puerto Rico, was sentenced to more than 23 years in federal prison after he pled guilty to possessing a machine gun in furtherance of drug trafficking, distributing methamphetamine, and conspiring to distribute methamphetamine and cocaine.
Evidence presented to the Court showed that in 2022 and 2023, Pacheco was a cocaine and methamphetamine dealer in the Upstate of South Carolina. While dealing drugs, Pacheco also conscripted women to purchase guns for him so that he could modify them into fully automatic weapons. Law enforcement learned that Pacheco sold some of the machine guns that he illicitly manufactured, and he kept at least one of the machine guns with him during his drug deals. On one occasion, Pacheco shot the machine gun within a neighborhood to demonstrate its capabilities.
Noraimi Burgos Torres and Elizabeth Delzo Jaramillo pled guilty to charges related to purchasing firearms for Pacheco. Delzo, who also pled guilty to drug trafficking related charges, was sentenced to 102 months in federal prison. Torres, who pled guilty to a firearms charge on August 21, 2024, is awaiting sentencing.
United States District Judge Donald C. Coggins sentenced Esteban Pacheco to 276 months imprisonment, to be followed by a 5-year term of court-ordered supervision.
“People who sell illegal guns and drugs are a threat to the safety of our communities and must be stopped,” said United States Attorney Adair Boroughs. “I’m proud and grateful for the collaboration of so many law enforcement partners to achieve this significant measure of justice.”
“Putting criminal organizations like this out of business greatly reduces the flow of drugs, violence and crime into our communities, which makes everyone safer,” said Cardell T. Morant, Special Agent in Charge of HSI Charlotte that covers North and South Carolina. “HSI is a proud partner in the fight to identify, arrest and prosecute those responsible for flooding our streets with illicit drugs.”
ATF Special Agent in Charge Bennie Mims said, “Possessing or selling firearms that have been modified to function as fully automatic weapons is a serious threat and an issue law enforcement around the country is currently dealing with. We’re proud to be a part of this collaborative effort to identify and apprehend those that threaten our community.”
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, and Firearms (ATF), U.S. Postal Inspection Service, Spartanburg County Sheriff’s Office, Greenville County Sheriff’s Office, Greenville Police Department, Greenville County Multi-Jurisdictional Drug Enforcement Unit, and Anderson County Sheriff’s Office. Assistant U.S. Attorney Jamie Schoen is prosecuting the case.
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Pueblo Man Sentenced for Evading Income TaxRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Solomon Paul Garcia, age 46, of Pueblo, Colorado was sentenced to one year and one day in federal prison followed by three years of supervised release for tax evasion.
According to the plea agreement, Mr. Garcia worked for various employers as a journeyman electrical lineman. Beginning in 2016, and continuing until January of 2020, the defendant willfully avoided paying a substantial amount of income tax by submitting to his employers inaccurate Form W-4s claiming up to 99 allowances or false claims of tax exemptions. During this time, the defendant was only allowed to claim two allowances.
Mr. Garcia’s filings caused his employers to withhold little, if any, withholding taxes from his earned income. Although the defendant had an opportunity to pay all taxes due and owing for each calendar year by the respective filing deadlines, he did not file a tax return for any of the years in question. This resulted in the evasion of $267,028.50 in federal taxes. Consistent with his plea agreement, the Court ordered Mr. Garcia to pay restitution – inclusive of interest and penalties as calculated by the IRS. That amount is in excess of $548,000.
“People who evade their taxes are stealing from all the other taxpayers who pay what they owe. Our office will continue to aggressively prosecute tax evaders,” said Acting United States Attorney for the District of Colorado Matt Kirsch.
“Falsifying Form W-4s and claiming up to 99 allowances to avoid paying taxes is not only a crime against the federal government, it also unfairly shifts the tax burden to honest taxpayers,” said IRS Criminal Investigation Acting Special Agent in Charge Tom Demeo. “Garcia brazenly attempted to avoid his tax liability and other tax cheats must understand these crimes carry with them severe consequences.”
United States District Court Judge Nina Y. Wang sentenced Mr. Garcia on August 28, 2024. IRS Criminal Investigation conducted the investigation. Assistant United States Attorney Bradley W. Giles handled the prosecution.
Previously Convicted Felon Sentenced to over Three Years in Federal Prison for Possessing “Glock Switch”Read the Press Release
INDIANAPOLIS—Jaquan Robinson, 21 of Indianapolis, has been sentenced to 37 months in federal prison, followed by three years of supervised release, after pleading guilty to possession of a machine gun.
According to court documents, on December 28, 2023, Marion County Probation officers conducted a compliance visit at Robinson’s apartment in Indianapolis. During the compliance visit, a backpack containing the frame of a Glock handgun and mail addressed to the defendant was found in a closet in the living room. During a court-authorized search of the apartment, officers located a safe in Robinson’s bedroom containing his identification documents and a Glock switch. Robinson admitted to knowingly possessing the machinegun conversion device and knowing that it was exclusively designed to convert an ordinary semiautomatic firearm into a fully-automatic machinegun. A review of Robinson’s Facebook messages revealed that Robinson was seeking to purchase additional handgun parts in order to have a fully-functional machinegun.
Machinegun conversion devices, sometimes called “Glock switches” or “auto-sears,” are devices that convert ordinary semiautomatic firearms into fully automatic machineguns. Machinegun conversion devices are themselves considered machineguns under federal law, even when not installed, and are illegal for individuals to possess or sell.
Robinson has a history of firearms convictions. In September 2021, Robinson was convicted of a felony in Marion County for illegally bringing a firearm into a school. In June 2022, while Robinson was still on probation for his first firearms offense, he was convicted of another firearms offense in Marion County after he was found in possession of two more firearms and fled from police on foot after the vehicle he was in was pulled over. Robinson was still on probation for this second Marion County offense when he was arrested with the machinegun conversion device. At the time of his most recent Indiana arrest there were also firearms charges against Robinson pending in Michigan. As a convicted felon, Robinson is prohibited under federal law from ever lawfully possessing a firearm again.
“Illegally armed criminals are a grave danger to our families and neighbors—especially when they have machineguns capable of spreading carnage in mere seconds,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Having or using a ‘Glock switch’ is a serious crime. The federal prison sentence imposed here should send the message that these weapons will not be accepted in our community. Our federal prosecutors, in partnership with the ATF and the City of Indianapolis, are committed to bringing these important federal prosecutions and making Marion County a safer place.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case. The sentence was imposed by U.S. District Judge James P. Hanlon.
U.S. Attorney Myers thanked Special Assistant U.S. Attorney Nate Walter, who prosecuted this case. SAUSA Walter is prosecuting violent crime cases as a part of the partnership with the City of Indianapolis to identify, investigate, and federally prosecute violent crimes taking place in Marion County.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Post Falls Man Sentenced to 20 Years in Federal Prison for Sexual Exploitation of ChildrenRead the Press Release
COEUR D’ALENE – Kevin Richmond, 63, of Post Falls, was sentenced to 20 years in federal prison for the crime of sexual exploitation of children, U.S. Attorney Josh Hurwit announced today. U.S. District Judge Amanda K. Brailsford sentenced Richmond to 20 years in federal prison with a lifetime of supervision to follow. Richmond was also ordered to pay $38,000 in restitution to his victims.
According to court records, in December 2022, law enforcement received several tips that Richmond was uploading child pornography to a data storage service. Based on the tips, a federal magistrate judge issued a search warrant for Richmond’s online account. Law enforcement executed the search warrant and examined the contents of his online data storage account.
In Richmond’s online accounts, law enforcement confirmed that he was in possession of child pornography. Law enforcement additionally discovered that Richmond was not only possessing child pornography, but he was also producing child pornography with a victim child.
Based on this discovery, a federal magistrate judge issued an additional search warrant authorizing law enforcement to seize digital devices from Richmond’s residence in Post Falls. Law enforcement executed this search warrant at Richmond’s residence where they found a cell phone belonging to him. Law enforcement forensically analyzed the phone and found child pornography on the device. Law enforcement also discovered that Richmond had online communications where he claimed he had access to a minor child for sexual purposes.
Law enforcement interviewed Richmond on the same day law enforcement executed the search warrant on his home. After law enforcement advised Richmond of his Miranda rights, he consented to an interview. During the interview, he admitted that he received child pornography from an internet application. Richmond also admitted to producing child pornography with an actual child using his cell phone. He admitted that he had the child engaged in a sexual act as part of a sexual fantasy. He admitted to adding the child’s name to the child pornography that he produced.
“We hope for healing for the victims of this horrific case,” said U.S. Attorney Hurwit. “Idahoans should know our office and our law enforcement partners have no higher calling than protecting children, and anyone out there engaging in the abuse of children should know that we will spare no effort to find them and hold them accountable just like this defendant.”
“The sentencing of Mr. Richmond to federal prison for sexual exploitation of children represents a significant step in our ongoing efforts to protect the community, particularly our children, from those who pose a severe threat,” said Post Falls Police Chief Greg McLean. “This case underscores the importance of vigilance and collaboration among law enforcement agencies to ensure that individuals who engage in such heinous crimes are held accountable”.
“It took the dedicated teamwork of ICAC and the U.S. Attorney’s Office and all our partner agencies working together to put this predator behind bars where he can no longer hurt our kids,” said Attorney General Raúl Labrador. “I’m grateful for the hard work of everyone involved – the prosecutors, the investigators, and the judge who clearly saw the danger presented to our community.”
“The U.S. Secret Service will continue to use all the tools, resources and expertise at our disposal to ensure that individuals, such as Mr. Richmond, are held accountable for crimes against children,” said Special Agent in Charge Glen T. Peterson. “The U.S. Secret Service stands firmly with our law enforcement partners like the U.S. Attorney’s Office, the Post Falls Police Department and the ICAC Task Force as we investigate these crimes and bring these offenders to justice.”
U.S. Attorney Hurwit commended the work of the Post Falls Police Department, the Idaho Internet Crimes Against Children (ICAC) Task Force, and the U.S. Secret Service, which led to the charges.
Assistant U.S. Attorneys Adam Johnson, Kassandra McGrady, and David Robins 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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal 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.
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Pensacola Man Sentenced to Prison for Threatening A Federal Judge and Family MembersRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung today sentenced Stephen Jay Thorn (66, Pensacola) to five years in federal prison for transmitting a threat to harm a federal judge and members of the judge’s immediate family. Thorn entered a guilty plea on May 16, 2024.
According to court documents, on October 24, 2022, Thorn, unhappy with a judicial opinion that he had read about online, made five interstate telephone calls to the judge’s chambers and left vulgar, obscenity-laden voicemail messages threatening to harm the judge as well as members of the judge’s immediate family.
“Threatening harm against public officials, or their families, is an intolerable offense,” said U.S. Attorney Roger B. Handberg. “My office takes such threats seriously and is committed to investigating and federally prosecuting anyone who threatens this sort of violence.”
This case was investigated by the United States Marshals Service and was prosecuted by Special Assistant United States Attorney Joe Wheeler III.
Owner of Pittsburgh Resale Businesses Convicted at Trial of Running Lucrative Interstate Fencing Operation Involving the Sale of Hundreds of Thousands of Stolen Retail ItemsRead the Press Release
PITTSBURGH, Pa. - After deliberating for approximately five hours, a federal jury found Pittsburgh resident Durrell Waters guilty of five counts of money laundering and conspiracy in connection with the sale and interstate transportation of stolen goods, United States Attorney Eric G. Olshan announced today.
Waters, 41, was tried before Chief United States District Judge Mark R. Hornak in Pittsburgh. He was found guilty of one count of conspiracy and four counts of money laundering.According to evidence presented during the two-and-a-half-week trial, Waters was one of the primary owners of a series of second-hand or resale businesses called Trader Electronics, Last Call Entertainment, and The Outlet. Waters conspired with others to use these businesses as a front for a criminal fencing operation that sold over the internet a wide variety of health and beauty aids and over-the-counter medications.
From 2013 through 2016, retailers in the greater Pittsburgh area experienced a drastic uptick in the volume of thefts occurring at their stores. The investigation into those thefts led to the discovery that Waters’s stores and similar stores in the area engaged in high-volume purchases of brand-new retail health and beauty aids and other products, such as new-release DVDs, from walkin sellers who had shoplifted the items. The evidence established that, throughout this time, Waters and his co-conspirators knew that the vast majority of the products they were buying were stolen. The health and beauty aids included items like teeth whiteners, vitamins, hair and skin care products, makeup, and other similar items. Store records reflected that Waters and his businesses purchased hundreds of thousands of brand-new items from a group of repeat shoplifters. Waters and his businesses then resold that stolen property online via several Amazon and eBay storefronts, with the proceeds from the stores’s main Amazon account totaling over $4.3 million during the conspiracy.
Walk-in sellers to the Trader Electronics stores, several of whom testified during the trial, were often people experiencing drug addiction who would routinely steal large amounts of the products to fund their addiction by selling them at Waters’s and his co-conspirators’ stores. In addition to knowing that the items were stolen when purchasing them, Waters on several occasions bailed some of those same so-called “boosters” out of jail following their arrests for stealing goods and allowed the individuals to repay him the bail money in the form of other stolen goods.
“Durrell Waters and his conspirators brazenly used their second-hand stores as a front for fencing massive amounts of shoplifted retail products—some with the store identification and security stickers still intact—that they then turned around and sold for millions of dollars to online customers across the United States,” said U.S. Attorney Olshan. “To pull off their scheme, they relied on desperate people deep in the throes of addiction to maintain the flow of stolen goods, using them to steal from and ultimately undercut legitimate retailers. The ‘boosters’ in this case were reportedly lined up down the street outside Waters’s stores in the morning—waiting to get their first cash of the day so they could pay their dealers. This successful prosecution is the result of a regional effort involving the cooperation of many local law enforcement agencies, as well as the IRS, FBI, and U.S. Postal Inspection Service. We are committed to holding accountable those who would exploit the opioid epidemic as a way to line their pockets.”“Today’s verdict reflects that those who commit financial crimes such as money laundering, and who steal and profit from money to which they were not entitled, will be held accountable,” said IRS-CI Philadelphia Field Office Acting Special Agent in Charge Denise Leuenberger. “It should also serve as notice to others not to take part in similar unlawful conduct.”
“Legitimate businesses and the greater community suffer when fraud and money laundering take place,” said FBI Pittsburgh Special Agent in Charge Kevin Rojek. “The ripple effect of consequences from these criminal acts undermines the foundations of fairness and trust in the economy. The FBI and our partners continue to work diligently to investigate and bring to justice those who feel they can get ahead through criminal means.”
Waters’s date of sentencing will be determined by the Court. The law provides for a maximum sentence of ten years in prison and a fine of $250,000 on each money laundering count. The conspiracy offense carries a maximum sentence of five years in prison and a fine of $250,000 or twice the gross pecuniary gain associated with the offense, whichever is greater. Under the federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Waters’s co-defendant and co-owner of the various resale shops, Anthony Costanzo, 35, of Carnegie, Pennsylvania, pleaded guilty on July 24, 2024, to four counts of engaging in monetary transactions involving property from an unlawful act. His sentencing is scheduled for December 17, 2024.
Waters is the eighth and final resale store owner to be found guilty of similar schemes that occurred during the same time and were part of the same investigation. Thach Duc Le, Milton Barr, Shane McFall, Michael McDavid, Qamar Zaman, and Aliya Zaman all pleaded guilty to similar charges related to stores affiliated either with Waters and Costanzo or another entity known as Ninja Entertainment.
Assistant United States Attorneys James R. Wilson and Benjamin C. Dobkin are prosecuting the case on behalf of the government.
The Internal Revenue Service - Criminal Investigation, Federal Bureau of Investigation, and United States Postal Inspection Service conducted the investigation that led to the prosecution of Waters. Police departments from the City of Pittsburgh, Ross Township, and Shaler Township also assisted in the investigation.
Ontario truck driver arrested on drug charges at the borderRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Bashir Kasozi, 41, of Ontario, Canada, was arrested and charged by criminal complaint with importation of morphine and possession with intent to distribute a morphine, which carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney P. Richard Antoine, who is handling the case, stated that according to the complaint, on the evening of August 23, 2024, Customs and Border Protection officers at the Lewiston Bridge Port of Entry encountered a commercial truck with Ontario plates being driven by Kasozi. During the outbound inspection, Kasozi told a CBP Officer that he was in the United States for three days, coming from Massachusetts with a load of paper. Asked if he had anything to declare, to include prescription or nonprescription narcotics, currency over $10,000, weapons of any kind, or if anyone else was in the vehicle with him, Kasozi stated no. Kasozi was then referred for secondary inspection. A scan of the truck detected an anomaly in the nose of the trailer by the front wall. A subsequent search of that area revealed a skid of 62 brown taped packages. One of the boxes was searched and found to contain a smaller gold box with a glass vial inside. The glass vials were found to contain morphine.
Kasozi made an initial appearance before U.S. Magistrate Judge Michael J. Romer and was held pending a detention hearing on September 4, 2024.
The criminal complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Ohio Man Arrested with Methamphetamine and an Illegal Firearm Is Sentenced to 20 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Michael Lamar Gaines, 40, of Akron, Ohio, was sentenced today to 20 years in prison followed by five years of supervised release for trafficking methamphetamine and illegal possession of a firearm, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Sheriff Darren Campbell of the Iredell County Sheriff’s Office, join U.S. Attorney King in making today’s announcement.
According to court records, on February 6, 2023, a deputy with the Iredell County Sheriff’s Office attempted to conduct a traffic stop of Gaines’s vehicle on I-77 for a traffic violation. Gaines did not comply and instead fled at a high rate of speed. Court records show that the deputy reported that Gaines had left the roadway multiple times and nearly struck other vehicles in his attempt to evade law enforcement. Ultimately, Gaines crashed his vehicle after exiting I-77 and running a stop sign. Gaines then attempted to flee on foot before he was apprehended. After Gaines was taken into custody, law enforcement searched his vehicle and found a handgun with an extended magazine and two bags that contained nearly half a kilogram of methamphetamine. Law enforcement also seized $8,940 in cash that Gaines had on his person. Court records show that Gaines has multiple prior criminal convictions including drug trafficking and theft and he is prohibited from possessing firearms.
On February 2, 2024, Gaines pleaded guilty to possession of a firearm by a convicted felon, and possession with intent to distribute methamphetamine. He is in the custody of the U.S. Marshals Service and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
The ATF and the Iredell County Sheriff’s Office handled the investigation. The U.S. Attorney’s Office in Charlotte 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.
New York Bank Manager Sentenced to 114 Months for Scheme to Hire A Hitman to Murder Her Own Brother-In-LawRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that RESHMA MASSARONE, a former New York bank manager, was sentenced yesterday to 114 months in prison for plotting to hire a hitman to murder her own brother-in-law. MASSARONE previously pled guilty to murder-for-hire before U.S. District Judge Cathy Seibel, who imposed the sentence.
U.S. Attorney Damian Williams said: “The defendant devised a chilling plan to have a member of her own family murdered for the low price of ten thousand dollars. Her plan was unthinkably heartless. For this depraved crime, Reshma Massarone will spend 114 months in federal prison.”
According to the Complaint and the Indictment filed against the defendant, other documents filed in federal court, and statements made in public court proceedings:
Between July 20, 2023, and August 16, 2023, the defendant plotted with an individual (“Individual-1”) to hire a hitman to murder her own brother-in-law (the “Victim”), in exchange for $10,000. But Individual-1 was a member of a foreign police force, and he became an undercover law enforcement agent to develop evidence against MASSARONE that she was plotting to hire a hitman to have the Victim murdered.
MASSARONE exchanged with Individual-1 dozens of messages on social media and participated in numerous phone calls with Individual-1, imploring Individual-1 to murder the Victim or hire someone who would. For example, in Facebook Messenger communications, when Individual-1 told MASSARONE that the plan to murder her brother-in-law was set for the next day, MASSARONE responded that if Individual-1 “take[s] care of business,” then Individual-1 would get paid. MASSARONE also told Individual-1 that she had other “jobs” for him, and swore on her kids’ lives that Individual-1 would get paid if he “[got] rid” of the Victim for her. After that, MASSARONE told the Individual-1, “No more text.”
As part of MASSARONE’s plan, she wired $2,500 to Individual-1 to give to the hitman as a down payment for the Victim’s murder. Video surveillance at a Western Union captured MASSARONE counting 25 $100 bills, for a total amount of $2,500.
After MASSARONE wired the money to Individual-1, MASSARONE continued to plan the Victim’s murder. When Individual-1 told MASSARONE that the hitman’s plan was to shoot the Victim and that there was “no turning back,” MASSARONE replied, “Right. No turning back.”
The Victim was never murdered. As time passed and the Victim remained alive, MASSARONE grew impatient with Individual-1. MASSARONE urged Individual-1 to murder the Victim, suggesting that “rat poison can do a great job.” MASSARONE told Individual-1, “You is all talk and no action,” and “Come on do the thing and I will take care of you.” MASSARONE threatened to find someone else to murder the Victim, stating, “Either way, if I find somebody to do the job you’re going to get blame, so cut the bullshit and let’s get it done.”
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In addition to the prison sentence, MASSARONE, 40, of Pine Bush, New York, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding work of the Drug Enforcement Administration, New York City Police Department, New York State Police, Homeland Security Investigations, and Internal Revenue Service.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Jared Hoffman is in charge of the prosecution.
Montgomery Man Sentenced to 30 Years in Federal Prison for Conspiracy to Distribute Methamphetamine Being Shipped Through the MailRead the Press Release
MONTGOMERY, ALABAMA – On August 27, 2024, a federal judge ordered that 33-year-old Charles Green Hall, from Montgomery, Alabama, receive a sentence of 360 months in prison for conspiracy to possess methamphetamine with intent to distribute the illegal drug, announced Acting United States Attorney Kevin P. Davidson. Following his prison sentence, Hall will be on supervised release for five years. There is no parole in the federal system.
According to Hall’s plea agreement and other court records, in March of 2021, federal agents began an investigation related to suspected drug and gang activity in Montgomery. The investigation revealed evidence indicating illegal narcotics were being mailed to Alabama from California. Agents worked with postal inspectors to identify and track two packages intended for Hall that were suspected to contain illegal drugs. When inspectors seized the packages, they found approximately two kilograms of suspected methamphetamine inside each one. Laboratory analysis of the contents confirmed that the packages together contained just over four kilograms of methamphetamine with a 98 percent purity level.
During his plea hearing in May of this year, Hall admitted that he conspired with others to distribute and possess the methamphetamine. A federal grand jury also indicted former postal employee Amber Lashawne Sellers, 30, a resident of Montgomery, for her alleged role in the conspiracy. Sellers’ trial is scheduled for September 23, 2024. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Montgomery Police Department investigated this case. Assistant United States Attorneys Mark E. Andreu and Brandon W. Bates prosecuted the case.
Minnesota Man Pleads Guilty to Distributing Fentanyl that Resulted in the Death of a Tuscaloosa ManRead the Press Release
TUSCALOOSA, Ala. – A St. Francis, Minnesota, man pleaded guilty Tuesday to distributing fentanyl that resulted in a death, announced U.S. Attorney Prim F. Escalona and U.S. Postal Inspection Service Inspector-in-Charge Scott D. Fix, Houston Division.
Christopher Louis Bass, 46, pleaded guilty before U.S. District Judge L. Scott Coogler to distributing fentanyl, admitting that a person’s death resulted from the distribution.
According to the plea agreement, Bass used the United States Postal Service to distribute narcotics, namely counterfeit Oxycontin, throughout the United States. Bass received orders over the internet for counterfeit pills and then concealed shipments of pills within U.S. Postal Service Priority Mail packages. In August 2022, Dr. Louis Burgio of Tuscaloosa, Alabama, received counterfeit narcotics shipped by Bass. Unknown to Dr. Burgio, the counterfeit pills also contained fentanyl. Dr. Burgio passed away on August 21, 2022, as a result of the toxic effects of fentanyl. Priority Mail packaging found in Dr. Burgio’s home matched the Priority Mail packages shipped by Bass. A search of Bass’s residence in St. Francis, Minnesota, resulted in the seizure of counterfeit pills, fentanyl, and packaging material. A search of Bass’s phone revealed spreadsheets of customers, addresses, U.S. Postal Service tracking numbers, weights and quantities of orders, and pricing for pills.
Bass is scheduled to be sentenced before U.S. District Judge L. Scott Coogler at the Federal Courthouse in Tuscaloosa, Alabama, on December 17, 2024.
The U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Alan Kirk is prosecuting the case.
Mifflin County Man Pleads Guilty to Filing False Tax ReturnRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Vincent Minervini, age 49, of Reedsville, Pennsylvania, pleaded guilty on August 27, 2024, to filing a false tax return in 2018.
According to United States Attorney Gerard M. Karam, from 2014 through 2018, Minervini, operated various companies that he either owned on his own or controlled through a partnership. These businesses included VM Holdings, LLC; Supreme Star Property Management, LLC; Boomer Builders LLC; Debt Free Partnerships, LP; Boomer Ranches DS, LLC; and VMJH Holdings, LLC.
Minervini filed personal and business tax returns in each of these years. Minervini made it appear that his businesses were incurring expenses, which were deducted from his businesses’ taxable income, by moving money from one of his companies to another and labeling such payments “Management Services,” “Management Fees,” “Operating Expenses,” “Operating Budget,” and “Transfers.” For example, in 2016, VMJH Holdings and Boomer Ranches made $134,500 worth of transfers to Boomer Builders that were labeled “Operating Budget” and “Operating Expenses,” but Boomer Builders did not declare any of these transfers as gross receipts on its own tax return. Minervini’s actions therefore reduced the amount of income that was subject to taxation by the IRS.
In addition, Minervini made payments from his companies to himself without reporting such transfers as income in his personal tax returns. For instance, in 2017, VM Holdings transferred approximately $809,648.22 to Minervini’s personal bank account, and Minervini deducted this amount as an expense on VM Holdings’ tax return, but he did not declare it as income on any other return, personal or business.
As a result of these actions, Minervini underreported approximately $2,102,512 in income.
Minervini submitted his tax returns to the IRS under penalty of perjury. As part of his guilty plea, Minervini admitted that the tax returns for 2014 to 2018 contained knowingly false information.
Minervini also admitted and accepted responsibility for $266,618 in unpaid taxes, which was the full amount of unpaid taxes for 2014 to 2018. He also agreed to pay restitution to the IRS in that amount prior to the date of sentencing. The IRS will also assess penalties and interest on Minervini’s back taxes following the completion of the criminal case.
The case was investigated by the IRS Criminal Investigations Division. Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.
The maximum penalty under federal law for filing a false tax return is three years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Mastermind of $5 Million Unemployment Fraud Scheme and Accomplices Sentenced to PrisonRead the Press Release
NEWS RELEASE SUMMARY – August 28, 2024
SAN DIEGO – David Constantin, mastermind of a scheme to steal more than $5 million in California unemployment benefits intended to help workers affected by the pandemic, was sentenced in federal court today to five years in prison and was ordered to pay $ $5,178,276 in restitution to the state.
The co-mastermind of the scheme, Constantin Bobi Sandu, charged separately, was sentenced in 2023 to 40 months in prison.
According to Constantin’s plea agreement, between July 2020 and August 2022, Constantin and Sandu conspired with 213 co-conspirators to fraudulently obtain at least $5,178,276 in California unemployment insurance benefits.
Thirteen other defendants were charged on the same indictment as Constantin with wire fraud and money laundering related to the unemployment fraud scheme. Four of the defendants were sentenced on July 31, 2024, and ordered to pay restitution to the state of California. They are:
- Eduard Buse, 34 months and $244,050;
- Constantin Iosif Constantin, 32 months and $281,000;
- Leonard Miclescu, 15 months and $34,650; and
- Filip Nicolae, 13 months and $26,250.
Additional defendants include:
- Florentina Sima, wife of Buse, who was sentenced on May 29, 2024 to 15 months in custody and $28,350 in restitution; and
- Florin Nicolae, who pleaded guilty and is scheduled to be sentenced on August 30, 2024, at 9 a.m.
According to admissions in their plea agreements, these defendants submitted fraudulent applications to the California Economic Development Department, falsely claiming to be United States citizens who had been employed full time prior to the pandemic, and who had earned substantial income. To substantiate these claims, the defendants submitted false documents, including fake Forms W-2 purporting to be from their prior employers, phony health insurance cards, and fake utility bills to support their claimed residence in California.
These defendants caused the California Employment Development Department to pay out hundreds of thousands of dollars in fraudulent benefits to individuals who were not entitled to those benefits. Many of them laundered their fraudulent proceeds by transferring funds to Romania.
In some cases, while claiming that they needed the funds to take care of their families, the defendants used the proceeds of the fraud to purchase luxury items. Buse, for example, purchased a 2020 BMW for more than $100,000 and shipped it to Romania.
Other defendants are being sought by the United States so that they can be held accountable.
This case is being prosecuted by Assistant U.S. Attorneys Jessica Adeline Schulberg and Valerie H. Chu.
DEFENDANTS Case Number 23CR2090-RBM
David Constantin, Aka Vlad Alexandru Age: 28 Transient, Romanian
Eduard Buse Age: 31 Transient, Romanian
Leonard Miclescu Age: 49 Transient, Romanian
Constantin Iosif Constantin Age: 31 Transient, Romanian
Florentina Sima Age: 30 Transient, Romanian
Filip Nicolae Age: 31 Transient, Romanian
Florin Nicolae Age: 34 Transient, Romania
*Additional defendants are not in custody and their names are redacted
SUMMARY OF CHARGES
Title 18, U.S.C. § 1349 and 1343 - Conspiracy to Commit Wire Fraud
Maximum penalty: Thirty years in prison, a fine of $1 million or both;
Title 18 U.S.C. § 1943 – Wire Fraud
Maximum penalty: Thirty years in prison, a fine of $1 million or both;
Title 18 U.S.C. § 1956(a)(2)(A) — Laundering Monetary Instruments
Maximum penalty: Twenty years in prison and $500,000 fine or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater;
Title 18 U.S.C. § 1956(a)(2)(B)(i) – Laundering Monetary Instruments
Maximum penalty: Twenty years in prison and $500,000 fine or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater;
Title 18 U.S.C. §§ 981(a)(1)(C) and 982(a)(1), and Title 28, U.S.C. § 2461(c) - Criminal Forfeitures
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego Police Department Economic Crimes Unit
IRS Criminal Investigation
California Employment Development Department Investigative Division
Department of Labor Office of Investigator General
U.S. Department of Homeland Security
Massachusetts Man Sentenced to 3 Years for Supplying Drug Trafficking Biddeford Couple with FentanylRead the Press Release
PORTLAND, Maine: A Massachusetts man was sentenced today in U.S. District Court in Portland for possessing fentanyl with intent to distribute.
U.S. District Judge John A. Woodcock, Jr. sentenced Darwin Mateo, 25, to 36 months imprisonment to be followed by three years of supervised release. Mateo pleaded guilty on March 1, 2024.
According to court records, in August 2023, law enforcement encountered Mateo while executing a search warrant at the Biddeford residence of Michael and Jessica Bolster. Investigators discovered two large bundles of a mixture or substance containing fentanyl inside the residence. One bundle was located inside a backpack in a locked bedroom. The other bundle was discovered hidden at the bottom of the stairwell, a few inches from where investigators located Mateo. Each bundle contained numerous individual baggies, totaling approximately 541 grams. Mateo admitted to investigators that the backpack was his, and that he had traveled from Massachusetts to Maine to distribute the fentanyl.
Michael Bolster, 48, pleaded guilty on January 18, 2024, for his role in the trafficking conspiracy and faces 5-40 years in prison. Jessica Bolster, 43, pleaded guilty on February 21, 2024, and faces up to 20 years. They will each be sentenced after the completion of presentence investigative reports by the U.S. Probation Office. A federal district court judge will determine any sentences after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Drug Enforcement Administration investigated the case.
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Maryland Man Sentenced for Fraudulently Obtaining More Than $3.5 Million in Covid-19 Cares Act LoansRead the Press Release
Greenbelt, Maryland – On Tuesday, August 27, 2024, the Honorable Deborah L. Boardman sentenced Rudolph Brooks, age 48, of Cheltenham, Maryland, to 18 months in federal prison followed by 2 years of supervised release for fraudulently obtaining over $3.5 million in COVID-19 Coronavirus Aid, Relief, and Economic Security (“CARES”) Act Payroll Protection Program (PPP) loans. The Court also ordered Brooks to forfeit all property and assets derived from or obtained as a result of his criminal activity, including a 2018 Tesla Model 3, property located in Upper Marlboro, Maryland, and at least $2,231,141.49 from 17 bank accounts controlled by Brooks.
The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge, Jeffrey D. Pittano, of the Federal Deposit Insurance Corporation Office of Inspector General, Mid-Atlantic Region; Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Amaleka McCall-Brathwaite, Eastern Region Investigations Division of the U.S. Small Business Administration Office of Inspector General (SBA OIG).
The CARES Act was enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic consequences of COVID-19. The CARES Act authorized forgivable loans to small businesses for employee retention and certain business expenses through the Paycheck Protection Program (“PPP”).
According to court documents, between April 2020 and September 2021, Brooks, who at times served as pastor at Kingdom Tabernacle of Restoration Ministries, participated in a scheme to fraudulently obtain PPP loans, used the loan proceeds for his personal enrichment, and concealed his misappropriation of the funds by laundering the loan proceeds. As stated in the plea agreement, Brooks used several entities to apply for PPP loans, including Cars Direct by Gavawn HWD Bob’s Motors (Cars Direct), Kingdom Tabernacle of Restoration Ministries, and Madaro, LLC. In each case, Brooks grossly inflated the number of employees and average monthly payroll, and submitted fraudulent IRS Forms 940, Employer’s Annual Federal Unemployment Tax Return, and other fraudulent IRS forms to support the loan applications.
For example, on May 12, 2020, Brooks received $1,556,589 in fraudulently-obtained PPP loan proceeds, deposited directly into a Cars Direct bank account on which Brooks was the sole signator. He also received $1.8 million in fraudulently obtained PPP loan proceeds, deposited directly into a Kingdom Tabernacle bank account on which Brooks was the sole signator. Similarly, on May 13, 2020, Brooks received $204,266 in such proceeds, deposited directly into a Madaro bank account in which Brooks was the sole signator.
Brooks admitted that he used the loan proceeds for his personal benefit and on payments and purchases not permissible under PPP, such as for a residence; for a luxury vehicle; and, for restaurant, retail store and grocery purchases. Brooks also made cash withdrawals and transfers to other accounts under his control. For example, Brooks opened a bank account in the name of Payroll by BJM, into which he transferred $500,000 of the Cars Direct PPP loan proceeds. Brooks also registered Payroll by BJM with the Maryland State Department of Assessments and Taxation, listing himself as “member” and sole signator. Although the name Payroll by BJM created the appearance that the account was associated with a payroll company, there were no payroll or payroll-related expenses paid from this account.
In addition, Brooks initiated numerous transfers of PPP loan funds, totaling approximately $196,000, from the Cars Direct account to his personal bank accounts. Of this amount, Brooks wired $60,407 to Tesla Motors Inc. on July 30, 2020, to purchase a 2018 Tesla Model 3 in the name of Brooks’ son, which was ultimately registered in Maryland in Brooks’ own name.
On February 5, 2021, Brooks transferred $750,000 in proceeds from the Kingdom Tabernacle PPP loan to a bank account in the name of Madaro, for which Brooks was the sole signator. On May 17, 2021, Brooks initiated a wire transfer of $507,010 to a title company to purchase property in Upper Marlboro, Maryland, in the name of “Rudolph Brooks.”
The District of Maryland Strike Force is one of three strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. 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.
U.S. Attorney Barron commended the FDIC OIG, the IRS-CI, the FBI, and the SBA OIG for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Sean R. Delaney, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
Man Charged with Robbing Suburban Chicago BankRead the Press Release
CHICAGO — A man has been charged in federal court with robbing a bank in Evanston, Ill. and attempting to rob a bank in Chicago on back-to-back days this month.
JEFFREY SULASKI robbed an Associated Bank branch in Evanston on Aug. 3, 2024, according to an indictment returned Tuesday in U.S. District Court in Chicago. A day earlier, Sulaski attempted to rob a Huntington Bank branch in Chicago, the indictment states. Sulaski committed the alleged offenses while on court-supervised release following his imprisonment for a prior bank robbery conviction.
The indictment charges Sulaski, 64, of Chicago, with one count of bank robbery and one count of attempted bank robbery. Arraignment is scheduled for Thursday at 2:30 p.m. before U.S. District Judge Matthew F. Kennelly.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. The Chicago Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorney Minje Shin.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count in the indictment is punishable by up to 20 years in federal prison.
Sulaski indictmentMadison Man Pleads Guilty to Conspiracy to Defraud the United StatesRead the Press Release
Jackson, Miss. – A Madison man pled guilty to conspiracy to defraud the United States.
According to court documents and statements made in court, Reginald Fullwood, Jr., 59, of Madison, participated in a scheme to pay kickbacks to a marketer in exchange for completed doctors’ orders so that he could cause his durable medical equipment company, Jackson Medical Supply, to bill Medicare and Medicare Advantage plans for orthotic braces that were medically unnecessary and/or ineligible for reimbursement. When Medicare initiated an investigation of Jackson Medical Supply, Fullwood opened another entity in the name of a nominee owner and again paid kickbacks to a marketer in exchange for doctors’ orders so that the new entity could continue to bill Medicare and Medicare Advantage plans for orthotic braces. Overall, Fullwood caused these entities to bill Medicare and Medicare Advantage approximately $12,441,625.30 and the entities were reimbursed approximately $6,448,092.61 for durable medical equipment that was medically unnecessary and/or ineligible for reimbursement.
Fullwood is scheduled to be sentenced on December 4, 2024, and faces a maximum penalty of five years in prison and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi, Special Agent in Charge Robert A. Eikhoff of the Federal Bureau of Investigation, and Special Agent in Charge Tamala Miles of the Department of Health and Human Services Office of Inspector General made the announcement.
The U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation are investigating the case.
The case is being prosecuted by Trial Attorney Sara Porter of the Gulf Coast Strike Force and Assistant United States Attorney Kimberly Purdie.
Latham Man Arrested for Receipt of Child PornographyRead the Press Release
ALBANY, NEW YORK – Eduardo Abreu, age 48, of Latham, New York, was arrested yesterday on a criminal complaint charging him with receipt of child pornography.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
The criminal complaint alleges that on or about August 21, 2024, Abreu received approximately 225 images of child pornography over the internet. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Abreu appeared yesterday in Albany before United States Magistrate Judge Christian F. Hummel, and ordered detained pending a detention hearing scheduled for Thursday, August 29.
Abreu faces at least 15 years and up to 40 years in prison, a maximum fine of $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Abreu may also be ordered to pay restitution to the victims of his offense and forfeit any devices used in the offense. Abreu would also have to register as a sex offender upon his release from prison.
The FBI’s Child Exploitation and Human Trafficking Task Force is investigating the case. Assistant U.S. Attorney Allen J. Vickey is prosecuting the case.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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.
Laplace Resident Sentenced for Role in Preparing and Submitting Fraudulent Cares Act Financial Assistance ApplicationsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MUNIRA SCHOFIELD (“SCHOFIELD”), age 28, a resident of LaPlace, La., was sentenced by United States District Judge Eldon E. Fallon to four years of probation, with twelve months to be served on home confinement, after previously pleading guilty to conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 371 and 1343. The charges stem from SCHOFIELD’s role in a conspiracy to prepare and file fraudulent applications for loans related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Judge Fallon also ordered SCHOFIELD to pay over $219,000 in restitution and a $100 mandatory special assessment fee. SCHOFIELD’s co-conspirators, her mother, Lynn Schofield (“Lynn”), and brother, Bashir Schofield (“Bashir”), were convicted separately for their respective roles in the offense.
According to court documents, SCHOFIELD, Lynn and Bashir submitted fraudulent applications to obtain money from Paycheck Protection Program (PPP) loans and Economic Injury Disaster (EIDL) loans. Each defendant submitted at least one loan. All applications falsely represented that the applicant had a sole proprietorship and generated substantial income from the business, by overinflating gross receipts. The entities either did not exist or earned far less money than reported. They also misrepresented that the loan proceeds would be used for business related purposes, when, in fact, the defendants intended to use the money for personal reasons. SCHOFIELD submitted a fraudulent application for an EIDL loan for a business she claimed to own, “Just Jocin.” In conjunction with her mother, Lynn, SCHOFIELD also gave false material information to the Small Business Administration. This false information included the gross inflation of monthly gross receipts to support still other loans, including for an entity named “Afromerica Touch 360, LLC,” and used some of the resulting funds for herself.
For more information on the Department of Justice’s response to the pandemic, please visit https://www.justice.gov/coronavirus. 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.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Integrity Unit, was in charge of the prosecution.
Kanawha County Woman Pleads Guilty to COVID-19 Relief Fraud SchemeRead the Press Release
CHARLESTON, W.Va. – Jessica Nutter, 39, of St. Albans, pleaded guilty today to receipt of stolen money. Nutter admitted to a scheme to defraud the Paycheck Protection Program (PPP) of $20,830 in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
According to court documents and statements made in court, from March 27, 2021 through on or about April 20, 2021, Nutter fraudulently obtained two PPP loans, each for $10,415, from an approved PPP lender in Texas and the SBA. Nutter falsely represented on one loan application that she had a business, Nut House Wood, and that it had received $50,000 in gross income during 2019. Nutter applied for the other fraudulent loan on behalf of her husband. Nutter falsely represented that her husband received $50,000 in gross income during 2019 as an independent contractor for an online food ordering and delivery service.
Businesses applying for PPP loans had to certify that the business was in operation on February 15, 2020, and were required to provide documentation showing their prior gross income from either 2019 or 2020. Nutter admitted that Nut House Wood was not a registered business entity in the State of West Virginia and had never engaged in legitimate business activity when she applied for that loan. Nutter further admitted that her husband was not engaged as an independent contractor for the online delivery service at that time.
The Texas lender approved both of Nutter’s loan applications. On April 9, 2021, $10,415 was transferred to Nutter’s personal bank account from a Texas bank. Nutter admitted that she transferred $1,5573.12 of those stolen funds to a North Carolina business on April 12, 2021, to cover expenses for a family vacation later that year. On April 20, 2021, $10,415 in proceeds from the second loan was transferred from a Texas bank to the personal bank account of Nutter’s husband. Nutter admitted that she and her husband used those stolen funds for general family expenses.
Nutter is scheduled to be sentenced on November 21, 2024, and faces a maximum penalty of 10 years in prison, up to three years of supervised release, and a $250,00 fine. Nutter also owes at least $25,830 in restitution.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI) and the Kanawha County Sheriff’s Office.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney J. Parker Bazzle II is prosecuting the case.
The CARES Act, enacted in March 2020, offered emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic. This assistance included forgivable loans to small businesses for job retention and certain other expenses through the PPP.
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.
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.
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. 2:24-cr-81.
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Justice Department, Department of Labor, Federal Trade Commission and National Labor Relations Board Sign Memorandum of Understanding to Support Merger ReviewRead the Press Release
The Justice Department, Department of Labor (DOL), Federal Trade Commission (FTC) and National Labor Relations Board (NLRB) have signed an interagency memorandum of understanding (MOU) to further communication and coordination between the agencies to protect American workers and promote fair competition in labor markets.
Acting Secretary of Labor Julie Su, Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division, FTC Chair Lina Khan and NLRB General Counsel Jennifer Abruzzo all signed the MOU as part of the agencies’ coordinated efforts to ensure that mergers between employers do not threaten harm to competition for workers.
“Workers are the backbone of our economy, and it’s critical that the impact on workers and the labor market are given due consideration when analyzing mergers and acquisitions,” said Acting Secretary Su. “The Department of Labor is committed to providing information and data to strengthen the Department of Justice and Federal Trade Commission’s understanding of labor markets and we look forward to deepening our work to protect workers by promoting fair competition in the labor markets.”
“Competition in labor markets means higher wages, better working conditions and more opportunities for workers and their families,” said Assistant Attorney General Kanter. “Our partnership with the FTC, NLRB and DOL will help us identify and take action against mergers that threaten to harm competition for workers. The Antitrust Division did just that when we successfully challenged a merger between book publishers that would have decreased compensation for authors. Promoting workers’ right to earn a fair wage is central to the mission of each of our agencies, and we look forward to deepening our collaboration together.”
“Congress passed the antitrust laws to ensure that all Americans benefit from free and fair competition. When businesses vigorously compete for workers, workers enjoy better wages and working conditions as well as greater opportunity and freedom,” said FTC Chair Khan. “By deepening partnerships with the National Labor Relations Board, Department of Labor and Justice Department’s Antitrust Division, the FTC will keep building on our whole-of-government efforts to ensure that all Americans can get a fair shot in our economy, free from unlawful coercion.”
“Taking a whole-of-government approach to enforcing workers’ rights is critically important, and we’re thrilled to be partnering with the antitrust agencies to enhance their ability to obtain important information on the potential effects of mergers on workers,” said NLRB General Counsel Abruzzo.
This MOU supplements existing bilateral agreements between the Antitrust Division and DOL and the Antitrust Division and NLRB. Key provisions of the MOU support the Antitrust Division and FTC’s (together, the Antitrust Agencies) work to review mergers that may threaten harm to competition. Those resources include the DOL and NLRB’s (together, the Labor Agencies) organizational contacts and experts, data on labor markets and jobs and enforcement information.
In addition, the MOU supports further training, meetings and coordination among all four signatories. Through this MOU, the Antitrust Agencies and Labor Agencies commit to working together to ensure the Antitrust Agencies have access to all relevant and appropriate information when they evaluate the potential impacts on labor markets from mergers and acquisitions between businesses.
Ionia County Man Charged with Sexual Exploitation of a MinorRead the Press Release
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced that Ethan Eversman, 24, of Ionia, was indicted on criminal charges related to alleged sexual exploitation of a minor and distribution and possession of child pornography.
“Children should not have to endure the trauma of being a victim of child exploitation,” said U.S. Attorney Mark Totten. “My office is committed to working with our federal, state, and local law enforcement partners to protect our most defenseless citizens from egregious sex crimes.”
The indictment alleges that from 2021 until June 2024, Eversman convinced a minor victim in New York to create explicit pictures and videos of herself and send them to him online. Eversman is also charged with sending child pornographic videos to others and possessing child pornography on his cell phone. If convicted, Eversman faces up to 30 years in prison. Eversman previously worked as a corrections officer for the Eaton County Sheriff’s Office.
“Those individuals who commit crimes against our children or possess child pornography will be investigated and arrested by members of the FBI and/or our law enforcement partners,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI Michigan. “This joint investigation between the Michigan State Police, members from FBI in the Lansing area, and the combined efforts from federal, state and local law enforcement partners embedded within the Internet Crimes Against Children (ICAC) task force, contributed to the indictment of an alleged sexual predator.”
“The Michigan State Police and the detectives of the Internet Crimes Against Children Task Force are committed to investigating and arresting those who exploit children,” stated Col. James F. Grady II. “We appreciate the support and assistance of our federal partners in the FBI and U.S. Attorney’s Office in this important work.”
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, visit www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
This case was investigated by the FBI and Michigan State Police.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until proven guilty.
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Indictment Charges Santa Clarita Man, 6 Others with Facilitating Crime Tourism Group That Took in More Than $5 Million in Illicit ProceedsRead the Press Release
INDICTMENTLOS ANGELES – Law enforcement today arrested six defendants that a federal grand jury charged in a 46-count indictment alleging a Santa Clarita Valley man facilitated a crime tourism group of South Americans and other individuals who engaged in burglaries, thefts, and other crimes throughout the United States, then laundered millions of dollars in illicit proceeds.
The indictment, returned on August 1 and unsealed today, charges seven defendants with multiple felony offenses, including wire fraud, money laundering, conspiracy, and structuring transactions to avoid federal financial reporting requirements.
Crime tourism theft groups are comprised of individuals, often originating from outside of the United States, including from South America and elsewhere, who engage in burglaries, thefts, and other crimes throughout the U.S. As part of the modus operandi of crime tourism theft groups, individuals would enter the United States and engage in theft crime sprees. The fruits of the thefts were often shared with facilitators and co-conspirators who assisted the crime tourists in the commission of their crimes, as well as others, both inside and outside the United States.
“Crime tourism is a major problem impacting not just Southern California, but our entire nation,” said United States Attorney Martin Estrada. “These defendants facilitated and directed crime tourists who committed hundreds of robberies across the country – in essence, they acted as quarterbacks for a team of thieves. We will continue to work with our local partners to hold accountable those who would come to our country and take advantage of our liberties to steal from the American people.”
“Today, we dismantled a non-traditional facilitator of organized crime, and now we have a blueprint for future investigations,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “We hope these arrests will discourage future businesses from conducting similar operations, thus reducing the number of thefts and burglaries in our communities.”
“This investigation required years of hard work and dedication on behalf of the Los Angeles Police Department and our partners,” said LAPD Chief, Dominic Choi. “I’m pleased that our collective efforts have resulted in the apprehension of these career criminals who have made it their business to victimize our residents and facilitate the movement of foreign criminals. I’m convinced that having them off the streets makes our communities safer.”
According to the indictment, Juan Carlos Thola-Duran, 57, a.k.a. “Parcero,” of Canyon Country, and his live-in girlfriend, Ana Maria Arriagada, 41, a.k.a. “Parcera,” controlled and operated defendant Driver Power Rentals (DPR), a Van Nuys-based car rental or dealership business. Arriagada was DPR’s registered owner.
From at least January 2018 to July 2024, Thola-Duran directed associates, often members of crime tourism theft groups traveling from South America, to travel to various parts of the United States to commit thefts, including shoplifting goods from stores, burglarizing residences and commercial businesses, and stealing victims’ credit cards and debit cards.
Thola-Duran, Arriagada, and DPR provided DPR vehicles for the thief co-conspirators to drive throughout the United States to commit thefts and burglaries and – to make the car rentals appear legitimate and maintain anonymity – require their co-conspirators to provide false identification when renting a vehicle for DPR’s records.
Thola-Duran and Arriagada directed the thief co-conspirators who stole credit or debit cards to immediately go to stores such as Target, Best Buy, The Home Depot, and others to max out the stolen cards by purchasing electronics, gift cards, designer purses and other high-end luxury goods before the stolen cards could be frozen or cancelled.
Then, Thola-Duran arranged to the thieves to deliver stolen or fraudulently obtained goods to associates at DPR or to mail them to other co-conspirators, including defendant Miguel Angel Barajas, 57, of Northridge, or to other conspirators at a FedEx store in Sherman Oaks. At Thola-Duran’s direction, defendants Barajas, John Carlo Thola, 33, of Canoga Park, and others picked up the parcels then delivered them to Thola-Duran and other conspirators. Thola-Duran then acted as a “fence” to buy the goods – at a fraction of their retail value – and pay the thieves a percentage of the items’ value. He then sold the stolen goods to other buyers for approximately $5.5 million over the course of the conspiracy, including approximately $5.1 million sent to various bank accounts controlled by the co-conspirators.
The defendants allegedly used their ill-gotten gains to purchase and maintain assets, including real estate and horses, and structured cash withdrawals to avoid triggering the requirement that banks report transactions exceeding $10,000 to the U.S. Treasury Department.
The indictment further alleges that Thola-Duran, Arriagada, and others from May 2020 to June 2021 conspired to fraudulently obtain $274,998 in COVID-19 business relief loans.
“Since 2019, we have arrested over 130 suspects responsible for perpetrating these crimes, with the vast majority using cars supplied by Driver Power Rentals,” said Ventura County Sheriff James Fryhoff. “Our efforts aren’t stopping there. We formally partnered with the FBI, creating the Ventura County Major Theft Task Force. This task force has been instrumental in pursuing federal charges against Thola-Duran and other members of his criminal organization.”
“Driver Power Rentals provided cars that were allegedly used to take high-end merchandise and jewelry from Ventura County homeowners,” said Ventura County District Attorney Erik Nasarenko. “Taking down a key operator who fueled crime tourism is essential to neighborhood safety, and I am grateful to U.S. Attorney Estrada and his team for aggressively prosecuting this network.”
“These criminals were running a burglary operation with a sophistication that rivals Amazon and instead of dispatching delivery drivers, they were dispatching trained thieves throughout Southern California to steal from what should be where we are safest – our homes,” said Orange County District Attorney Todd Spitzer. “Crime doesn’t pay in Orange County and individuals who engage in crime tourism are on notice that my office will work with our local and federal partners to continue demanding accountability and bringing those who victimize our community to justice.”
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, the defendants would face a statutory maximum sentence of 20 years in federal prison for each wire fraud- and money laundering-related count, up to 10 years in federal prison for each structuring count, and up to five years in federal prison for the conspiracy to transport stolen property interstate count.
The FBI, the Los Angeles Police Department, the Ventura County Sheriff’s Office, the Ventura County District Attorney’s Office, and the Orange County District Attorney’s Office are investigating this matter. The United States Postal Inspection Service, the Meriwether County (Georgia) Sheriff’s Office and the Scottsdale (Arizona) Police Department provided assistance.
Assistant United States Attorneys Jennifer Chou and Lindsay M. Bailey of the Violent and Organized Crime Section and Assistant United States Attorney Ryan J. Waters of the Asset Forfeiture and Recovery Section are prosecuting this case.
Indiana, Pa., Man Pleads Guilty and is Sentenced to Five Years in Prison for Drug TraffickingRead the Press Release
JOHNSTOWN, Pa. – A resident of Indiana, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.
Lamar Johnson, 42, pleaded guilty before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, the Court was advised that, from in and around August 2018 to March 2023, in the Western District of Pennsylvania, Johnson conspired with others to distribute and possess with intent to distribute 500 grams or more of cocaine, a quantity of heroin, and a quantity of crack cocaine. Johnson was intercepted on a federal wiretap obtaining quantities of the drugs that he distributed to others.
Following the guilty plea, Judge Gibson sentenced Johnson to 60 months in prison, to be followed by four years of supervised release.
Assistant United States Attorney Arnold P. Bernard Jr. is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation’s Laurel Highlands Resident Agency and Homeland Security Investigations conducted the investigation that led to the prosecution of Johnson. Additional agencies participating in this investigation include the Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, and other local law enforcement agencies.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Honduran National Indicted for Child Sexual ExploitationRead the Press Release
SPRINGFIELD, Mo. – A Honduran national was indicted by a federal grand jury today for the sexual exploitation of a child.
Celso Noe Chacon-Arriaga, 22, who was residing in Springfield at the time of the offense, was charged in a two-count indictment returned by a federal grand jury in Springfield. Today’s indictment replaces a federal criminal complaint that was filed against Chacon-Arriaga on Aug. 8, 2024.
Today’s indictment alleges that Chacon-Arriaga used a minor victim to produce child pornography from Nov. 21 to Dec. 30, 2020. Chacon-Arriaga is also charged with receiving and distributing child pornography.
According to an affidavit filed in support of the original criminal complaint, Chacon-Arriaga engaged in sexually explicit conversations over Facebook Messenger with an 11-year-old victim. The child victim sent several sexually explicit images and videos to Chacon-Arriaga.
This case is being prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by Homeland Security Investigations, the Springfield, Mo., Police Department, and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Hillsboro Man Sentenced to Federal Prison for Role in Fatal Fentanyl Overdose of Young WomanRead the Press Release
PORTLAND, Ore.—A Washington County, Oregon man was sentenced to federal prison today for distributing counterfeit pills containing fentanyl that resulted in the overdose death of a local woman.
Robert Lamart James McCollum, 35, was sentenced to 125 months in federal prison and five years’ supervised release.
“This defendant cut short an innocent life and brought unthinkable tragedy to a local family. And yet, despite everything they have been through, Madolyn’s loved ones have used their experience to raise awareness about the dangers of fentanyl and fake pills. Their efforts inspire all of us and will surely prevent other families from experiencing the same tragedy,” said Natalie Wight, United States Attorney for the District of Oregon.
“The investigation conducted by the Westside Interagency Narcotics team into Madolyn’s tragic death highlights the importance of conducting thorough inquiries into overdose deaths to ensure that those who engage in the business of selling fentanyl face justice. Holding dealers accountable is not just about enforcing the law; it's about protecting our communities and preventing further tragedies. By shining a light on these crimes, we honor the lives lost and send a clear message that the destruction caused by illicit drugs will not be tolerated,” said Chris Gibson, Executive Director for the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA) program.
“The Washington County Sheriff’s Office Westside Interagency Narcotics team works diligently to mitigate the fentanyl epidemic and the effects on the residents of Washington County. The WIN team takes seriously the responsibility of holding fentanyl dealers accountable and seek to prevent the needless and premature deaths caused by their actions. Madolyn’s story, and the countless others, are the driving force behind the WIN team’s dedication to stop fentanyl trafficking and bring justice for the families of their loved ones,” said Commander Timothy Tannenbaum of the Washington County Sheriff’s Office.
According to court documents, on August 2, 2021, McCollum sold several counterfeit Oxycodone pills containing fentanyl to Madolyn, a twenty-year-old woman from Beaverton, Oregon. Later that evening, Madolyn took one of the counterfeit pills and fatally overdosed from acute fentanyl poisoning. Soon after, investigators, posing as the young woman, contacted McCollum and arranged an order for more Oxycodone pills. McCollum was arrested when he arrived to complete the sale. During a search of his vehicle, investigators found additional counterfeit pills and a firearm.
On September 21, 2021, a federal grand jury in Portland returned a three-count indictment charging McCollum with possessing fentanyl with intent to distribute, possessing a firearm as a felon, and possessing a firearm in furtherance of a drug trafficking crime.
On May 21, 2024, McCollum pleaded guilty to distributing fentanyl and possessing a firearm in relation to a drug trafficking crime.
This case was investigated by the Westside Interagency Narcotics Team (WIN). It was prosecuted by Assistant U.S. Attorney Scott M. Kerin.
WIN is a Washington County, Oregon-based multi-jurisdictional narcotics task force supported by the Oregon-Idaho HIDTA program that includes members from the Washington County Sheriff’s Office, Beaverton and Hillsboro Police Departments, Oregon National Guard Counter Drug Program, FBI, U.S. Drug Enforcement Administration (DEA), and Homeland Security Investigations (HSI).
The Oregon-Idaho HIDTA program is an Office of National Drug Control Policy (ONDCP) sponsored counterdrug grant program that coordinates with and provides funding resources to multi-agency drug enforcement initiatives.
Note: The U.S. Attorney’s Office for the District of Oregon does not typically refer to victims by name in public documents and press releases. In this case, the victim’s family requested their daughter be referred to by name and so we have honored their wishes.
Harvey Man Pleads Guilty to Multimillion-Dollar Scheme to Defraud COVID-19 Pandemic Relief ProgramRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that Richard Hebert, Jr., age 57, of Harvey, Louisiana, pled guilty before U.S. District Judge Brian A. Jackson to making a false statement to a bank in connection with his filing of numerous false and fraudulent applications for Paycheck Protection Program (PPP) loans in 2020.
According to admissions made as part of his guilty plea, Hebert owned and operated several businesses including Brookland Realty, LLC, Interstate Construction and Demolition Group, Inc., K-Bear Investments, LLC. Hebert Real Estate Holdings, LLC, Interstate Construction Group, Inc., Albritton Home Construction Group, Inc., and R&M Builders and Real Estate, LLC.
Between April of 2020 and July of 2020, Hebert submitted 12 fraudulent PPP loan applications on behalf of seven different companies to five different banks attempting to get more than $3.4 million in PPP loan funds. On these applications, he falsely inflated each business’s average monthly payroll and its number of employees in order to get the banks to pay out larger PPP loans. In support of these fraudulent applications, Hebert provided false tax forms and other documentation. As a result of his fraudulent submissions to the banks, more than $2.2 million in pandemic funds were paid out.
This matter is being investigated by the United States Secret Service, and the United States Social Security Administration Office of Inspector General. This case is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill, who also serves as the Deputy Chief of the Economic Crime Unit and Assistant United States Attorney M. Patricia Jones, who also serves as the Appellate Chief.
Anyone with information about allegations of pandemic fraud can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Griffith Man Sentenced to 210 Months in PrisonRead the Press Release
HAMMOND – Edin Galvez, 25 years old, of Griffith, Indiana, was sentenced by United States District Court Judge Gretchen S. Lund after pleading guilty to Soliciting and Enticing the Sex Trafficking of a Minor and Soliciting and Enticing the Production of Child Pornography announced United States Attorney Clifford D. Johnson.
Galvez was sentenced to 210 months on his Sex Trafficking conviction and 210 Months on his Production of Child Pornography conviction. The Court ordered these sentences to be served concurrently.
According to documents in the case, between November 2021 and May 2022, Galvez utilized a social media application to solicit a minor to engage in a sexual act for money; $2,000.00. Galvez also sought to entice and to persuade the minor to send him sexually explicit images and videos through the social media application.
“This successful prosecution shows what can be accomplished when law enforcement partners with the public to combat human trafficking and child exploitation,” said United States Attorney Clifford D. Johnson. “This crime would not have been uncovered without members of the public taking a stand and alerting law enforcement to harm they are seeing in their community. We thank those community members for their courageous actions and encourage anyone who witnesses or experiences such crimes to contact law enforcement authorities directly or through the National Human Trafficking Hotline.”
“The defendant’s choice to leverage his position of trust as a coach, not to safeguard the minors for whom he was responsible, but to exploit them is nothing short of reprehensible,” said HSI Chicago Special Agent in Charge Sean Fitzgerald. “HSI and our law enforcement partners remain steadfast in our commitment to protecting our youth and aggressively pursuing offenders who perpetrate such heinous crimes against them.”
This case was investigated by Homeland Security Investigations with assistance from the Hammond Police Department and the Indiana State Police. The case was prosecuted by Assistant United States Attorney Thomas M. McGrath.
Former U.S. Postal Employee Sentenced for Conspiracy Involving Bribery and Mail TheftRead the Press Release
BIRMINGHAM, Ala. – A federal judge sentenced a former U.S. Postal employee for her role in a conspiracy involving bribery and mail theft, announced U.S. Attorney Prim F. Escalona and U.S. Postal Inspection Service Inspector-in-Charge Scott D. Fix, Houston Division.
U.S. District Judge Anna Manasco sentenced Shantee Renee Townes, 41, of Fairfield, to 24 months in prison. In April, Townes pleaded guilty to a conspiracy involving bribery and mail theft and also to accepting a bribe.
“The defendant used her position of trust for personal gain,” U.S. Attorney Escalona said. “My office is committed to working with our federal, state, and local partners to investigate and prosecute individuals who betray the public’s trust.”
“Shantee Townes betrayed the trust the American public placed in her as a USPS employee when she decided to assist others in the theft of US Mail,” said Scott Fix, Inspector in Charge for the Houston Division of the US Postal Inspection Service. “This sentence demonstrates the consequences for individuals, especially those in positions of trust, who engage in this type of criminal activity.”
According to the plea agreement, between April 2021 and August 2022, Townes was employed by the United States Postal Service as a sales and services/distribution clerk and was assigned to the East Lake Roebuck Post Office. She used her position to steal checks from the mail stream and sold photographs of them to Derrell Matthews. Matthews paid Townes over $6,000 for the photographs of the stolen checks. The total value of the checks photographed and sent to Matthews exceeded $1,500,000.
Derrell Allen Matthews, 27, of Birmingham has been sentenced 63 months in prison for his role in this case and in an unrelated case. A press release related to Matthews was issued on July 1, 2024.
USPIS investigated the case, along with the Shelby County Sheriff’s Office. Assistant U.S. Attorney Daniel McBrayer prosecuted the case.
Former Nicholas County Deputy Sheriff Sentenced to 20 Years in Prison for Child Pornography CrimeRead the Press Release
CHARLESTON, W.Va. – Jarrod Steven Bennett, 38, of Mt. Nebo, a former Nicholas County deputy sheriff, was sentenced today to 20 years in prison, to be followed by 30 years of supervised release, for the production of child pornography. Bennett must also register as a sex offender.
According to court documents and statements made in court, on or about March 2, 2023, while employed as a deputy with the Nicholas County Sheriff’s Department, Bennett recorded two videos using his cell phone of a minor female sleeping on a couch. Bennett admitted that he knew the girl to be under the age of 12 when he recorded the videos. In both videos, the girl is face down on the couch with a blanket covering her torso and her bare legs exposed. In the first video, Bennett filmed the girl as he walked toward her and zoomed the camera to focus on her buttocks. Bennett admitted that he continued to walk toward her as he recorded the second video and filmed his exposed penis and him masturbating near the sleeping girl.
Bennett distributed an image he produced of the minor female, and other child pornography, to multiple users on the Snapchat social media instant messaging app. When Snapchat shut down his account for such conduct, Bennett created a new Snapchat account to continue to distribute child pornography.
Law enforcement investigated the cybertip from the National Center for Missing and Exploited Children (NCMEC) regarding the Snapchat activity, and traced it to Bennett. Investigators found child pornography on Bennett’s cell phone and evidence that a large amount of data had been deleted from the phone, including when Snapchat informed him it had reported his account. Investigators also found that the laptop issued to Bennett by the Nicholas County Sheriff’s Department had been used to access Snapchat, and that large amounts of data had been deleted from the laptop remotely.
“Jarrod Steven Bennett violated his position of trust as a law enforcement officer and victimized a child he was meant to protect and care for. He also perpetuated that trauma for her and the other children in the images he distributed, because those images cannot be contained or removed from the hands of pedophiles throughout the world,” said United States Attorney Will Thompson.
Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the West Virginia State Police-Internet Crimes Against Children Task Force (ICAC), and the Beckley Police Department.
“The Wheels of Justice have prevailed. Evil can try to hide in the shadows, however it will be brought to light,” said Nicholas County Sheriff William F. Nunley. “I would like to thank the investigators and the U.S. Attorney's Office for a complete investigation and swift prosecution. We Nicholas County Citizens are sickened by Bennett’s actions. Those sworn to uphold the laws of this Country and State will never stand idle to it. This is why we have the best justice system in the world.”
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Jennifer Rada Herrald 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 the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-144.
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Former Massachusetts Police Officer Arrested in Connection with Murder of Young WomanRead the Press Release
BOSTON – A former Stoughton, Mass. police officer has been charged in federal court in Boston with allegedly murdering a young woman to prevent her from disclosing information about his longstanding sexual exploitation of her while he was on duty, beginning when she was a minor.
Matthew Farwell, 38, of North Easton, Mass., has been indicted on one count of killing a witness or victim. Farwell was arrested this morning and will make an initial appearance in federal court in Boston at 2:30 p.m. today.
According to the indictment, on or about Feb. 1, 2021, Farwell allegedly killed Sandra Birchmore by strangulation. It is alleged that Farwell staged her body and apartment to make it appear as if Birchmore had committed suicide. The indictment alleges that Farwell killed Birchmore with the intent to prevent law enforcement from learning about Farwell’s commission or possible commission of federal offenses.
According to court documents, Farwell was a sworn officer of the Stoughton Police Department beginning on or about March 27, 2012, until on or about April 1, 2022. In his capacity as a police officer, Farwell served as an instructor for the Stoughton Police Department’s Explorer’s Program, which is a vocational education program designed for youth to learn about careers in law enforcement. Sandra Birchmore joined the Stoughton Explorers Program in 2010, when she was 12 years old. Farwell allegedly used his authority and access to groom, sexually exploit and ultimately sexually abuse Birchmore when she was 15 years old and continued to have sex with her when she became an adult.
On several occasions, Farwell allegedly engaged in sex acts with Birchmore while on duty as a Stoughton police officer. To conceal this activity, it is alleged that Farwell falsely represented that he had worked certain hours, when in fact he was not working but engaging in sex acts with the then-minor victim. Farwell’s sexual contact with Birchmore continued until her death on Feb. 1, 2021.
In December 2020, Birchmore learned that she was pregnant. According to court documents, she was excited about the pregnancy: scheduling doctors’ appointments, purchasing items for childcare and telling loved ones how happy she was to become a mother. Soon after she learned she was pregnant, Birchmore told Farwell that he was the father of the child and that she expected him to be involved, at least in part, in the child’s life. Birchmore disclosed to loved ones that Farwell allegedly became violent with her when they discussed the pregnancy and his role in the child’s life. At one point while she was pregnant, Farwell allegedly held Birchmore in a headlock and told her that he wished she were dead.
On or about Jan. 20, 2021, Birchmore’s friend called the Stoughton Police Department and referenced Farwell and Birchmore’s sexual relationship. Upon learning this, Farwell allegedly then sent Birchmore angry text messages and, a few days later – approximately one week prior to Birchmore’s death – Farwell visited Birchmore at her apartment in Canton and asked her if she could give him a spare apartment key and keep it a secret. It is further alleged that one week prior to her death, Farwell visited Birchmore’s apartment and began looking through her closets and bathroom, conduct which made her uncomfortable. The court documents allege that, on Feb. 1, 2021, facing perceived imminent disclosure of his criminal conduct, Farwell murdered Birchmore to silence her.
According to court documents, while Birchmore’s death was initially ruled a suicide, the federal investigation probed old evidence and revealed critical new evidence leading to the charge against Farwell.
The charge of killing a witness or victim carries a mandatory sentence of death or life in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Massachusetts Attorney General’s Office, Massachusetts State Police, Stoughton Police Department and Norfolk District Attorney’s Office provided assistance in the investigation. Assistant U.S. Attorneys Elizabeth Riley, Torey B. Cummings and Brian A. Fogerty of the office’s Human Trafficking & Civil Rights Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.Former MPD Officer Sentenced to 20 Months in Prison for Scheme that Sold Personal Data of Traffic Crash VictimsRead the Press Release
WASHINGTON – Vincent Forrest, 36, a former patrol officer with the Metropolitan Police Department (MPD), was sentenced today in U.S. District Court to 20 months in prison for his role in a bribery scheme in which he unlawfully provided non-public police information in exchange for cash payments. The sentence was announced by U.S. Attorney Matthew M. Graves and FBI Assistant Director in Charge David Sundberg of the Washington Field Office.
On January 11, 2024, Forrest, of Washington, D.C., was found guilty of conspiracy, bribery, and making false statements following a jury trial. In addition to the prison term, Forrest was ordered to serve three years of supervised release and forfeit $15,000.01.
According to the government’s trial evidence, beginning in April 2019, Forrest -- in violation of his official duties -- used his official access to MPD’s law enforcement sensitive database to review and record victim contact information from traffic accident reports that contained the names and contact information of individuals involved in traffic accidents.
Forrest sent the victim contact information to Raquel DePaula, 43, of Beltsville, Maryland, using an encrypted communications application. DePaula, who owned RD Legal Solutions, LLC, acted as a “runner,” providing victim contact information to local attorneys in exchange for referral fees. The attorneys then reached out to the accident victims within days of their traffic accidents in violation of D.C. law.
DePaula testified at trial that she paid Forrest between approximately $1,200 and $1,800 in bribe payments per week in exchange for the victim contact information. The evidence at trial showed that over the course of the scheme, she paid Forrest over $15,000 and received contact information for 2,667 traffic crash victims.
On October 6, 2021, in U.S. District Court for the District of Columbia, DePaula pleaded guilty to one count of bribery of a public official. On April 1, 2024, she was sentenced to five years of probation. DePaula and Forrest are the sixth and seventh defendants to be convicted in connection with the illegal sale of traffic crash reports by MPD officers. Previously, MPD Officers Walter Lee and Kendra Coles, MPD employee Aaron Willis, business owner Marvin Parker and law firm employee Michelle Cage pleaded guilty to related charges.
This case was investigated by the FBI’s Washington Field Office and MPD’s Internal Affairs Division. It is being prosecuted by Assistant U.S. Attorneys Joshua S. Rothstein and Madhu Chugh of the Fraud, Public Corruption and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia with valuable assistance provided by Paralegal Specialist Lisa Abbe.
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Former Employee of National Industrial Company Arrested for Attempted Data ExtortionRead the Press Release
NEWARK, N.J. – A Missouri man was arrested for an attempted data extortion campaign targeting his former employer, a U.S.-based industrial company with its headquarters located in Somerset County, New Jersey, U.S. Attorney Philip R. Sellinger announced today.
Daniel Rhyne, 57, of Kansas City, Missouri, is charged by complaint with one count of extortion in relation to a threat to cause damage to a protected computer, one count of intentional damage to a protected computer, and one count of wire fraud. He was arrested in Missouri on Aug. 27, 2024, had an initial appearance in Kansas City federal court and was released.
According to documents filed in this case and statements made in court:
Rhyne was employed by a U.S.-based industrial company in New Jersey as a core infrastructure engineer. On Nov. 25, 2023, certain employees of the company received an extortionate e-mail. The email warned the employees that all of the company’s IT administrators had been locked out or deleted from the company’s computer network; backups of the company’s servers had been deleted; and additional servers belonging to the company would be shut down each day for a period of 10 days if a ransom of 20 Bitcoin, equivalent at the time to $750,000, was not paid.
The investigation revealed that Rhyne gained unauthorized access to the company’s computer systems by remotely accessing the a company administrator account. Rhyne then, without authorization, scheduled several computer tasks to be carried out on the network, including changing the company administrator passwords and shutting down its servers. Rhyne controlled the email address used to send the November 25 extortion email to the company’s employees.
The charge of extortion in relation to a threat to cause damage to a protected computer carries a maximum penalty of five years in prison and a $250,000 fine. The charge of intentional damage to a protected computer carries a maximum penalty of 10 years in prison and a $250,000 fine. The wire fraud offense carries a maximum penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the arrest. He also thanked the FBI Kansas City, under the direction of Special Agent in Charge Stephen A. Cyrus.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Cybercrime Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
rhyne.complaint.pdfFormer Church Office Manager Sentenced for Bank Fraud and Ordered to Repay more than $910kRead the Press Release
TULSA, Okla. – Today, U.S. District Judge Gregory K. Frizzell sentenced Katrenia Hartman, 55, of Sand Springs for Bank Fraud and Willfully Making and Subscribing a False Federal Income Tax Return. Judge Frizzell ordered Hartman to be imprisoned for 30 months, followed by five years of supervised release. Additionally, Hartman is ordered to pay the IRS more than $177k in restitution and more than $735k to the church she defrauded.
According to court documents, Hartman was a church office manager for over 16 years. She was entrusted with various duties, including payroll, church bills, and bank deposits. In 2016, Hartman began abusing the trust bestowed upon her. As an authorized signatory, Hartman would sign checks she made out to herself and forge the additional signature needed. Hartman then tried to conceal her tracks by entering false descriptions into the church’s bookkeeping system.
While Hartman was receiving the fraudulent funds, she failed to report the increase in her income to the IRS. She also claimed more than $78k in fake medical and dental expenses in order to reduce her tax liability.
Hartman was permitted to remain on bond and voluntarily surrender to the U.S. Bureau of Prisons. The U.S. Secret Service, IRS - Criminal Investigations, and Tulsa Police Department investigated the case, and Assistant U.S. Attorney David D. Whipple prosecuted it.