Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
7 October 2024
Owner of Massachusetts Cellular Phone Tower Installation and Repair Business Pleads Guilty to Employment Tax CrimesRead the Press Release
A Massachusetts man pleaded guilty on Friday to willful failure to collect, account for and pay over any payroll taxes owed by businesses he owned and controlled.
According to court documents, Kenneth Marston, of Kingston, was the owner and operator of Bowmar Steel Industries Inc., a steel fabrication company, and Teleconstructors Inc., which provided installation services on cellular phone towers. Marston was responsible for withholding Social Security, Medicare and income taxes from his employees’ paychecks and paying those funds over to the IRS.
However, from approximately March 2015 through December 2018, Marston caused Bowmar Steel and Teleconstructors to not withhold taxes or pay them to the IRS on approximately $3.8 million in wages.
In total, Kenneth Marston caused a tax loss to the IRS of between $550,000 and $1.5 million.
Marston is scheduled to be sentenced on Jan. 3. He faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Mark McDonald of the Tax Division and Assistant U.S. Attorney James R. Drabick for the District of Massachusetts are prosecuting the case.
Omaha Man Sentenced for Methamphetamine ConspiracyRead the Press Release
United States Attorney Susan Lehr announced that Randall Lee Duncan, age 64, of Omaha, Nebraska, was sentenced October 3, 2024, in federal court in Omaha for his participation in a methamphetamine drug conspiracy. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Duncan to 96 months’ imprisonment. There is no parole in the federal system. After Duncan’s release from prison, he will begin a 3-year term of supervised release. Duncan also agreed to the forfeiture of his 2014 Ford F-250 King Ranch Super Duty Crew Cab pickup which was used to facilitate the drug conspiracy.
As part of a long-term investigation into a known source-of-supply (SOS) operating out of Mexico, the DEA began investigating various related meth distributors operating in the Omaha metro area. One of the local distributors was identified as Randall Duncan.
Beginning on August 17, 2022, Duncan arranged with the SOS to purchase meth for distribution, and DEA surveilled Duncan’s meeting with another known distributor working for the SOS. Following the meeting, Duncan messaged the SOS with complaints about the quality of the meth he had received. Duncan sent a text message photograph of a bag of meth. Law enforcement obtained the photograph.
In April 2023, law enforcement utilized a confidential source to purchase one pound of meth from Duncan. Law enforcement ultimately searched Duncan’s residence and located an additional seven pounds of meth.
This operation was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and
transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by the Drug Enforcement Administration, the Omaha Police Department, and Bellevue Police Department.
New Canaan Man Sentenced to Prison for Tax EvasionRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that VISHAL DHAR, 56, of New Canaan, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 12 months and one day of imprisonment, followed by two years of supervised release, for tax evasion.
According to court documents and statements made in court, Dhar formed and operated various entities, including Grey Brown, Inc. (a holding company for several restaurants operating under the name “Oaxaca Taqueria”), West Partners, Inc., and NY Cloud Kitchens, LLC. From approximately October 2013 through August 2023, Dhar willfully failed to disclose to the Internal Revenue Service significant income from his business and gifts from family members. Instead of paying his outstanding tax liabilities, Dhar paid off personal and business debts, invested in a new business venture, and paid various personal expenses. In evading his payment of taxes owed, Dhar used financial accounts in the names of entities and other individuals rather than in his own name, paid personal expenses with corporate funds, and omitted significant assets on IRS forms.
In addition, in the bankruptcy case In re Grey Brown Inc., filed in the Southern District of New York, Dhar failed to disclose the receipt of an Employee Retention Credit check in amount of $254,203.01 made payable to Oaxaca Atlantic Avenue, LLC. The Employee Retention Credit is a refundable tax credit for certain eligible businesses and tax-exempt organizations that had employees and were affected during the COVID-19 pandemic.
For the 2011 through 2020 tax years, Dhar owed $272,390.07 in back taxes, penalties, and interest. Dhar has paid full restitution to the IRS.
Dhar pleaded guilty on May 23, 2024.
Dhar, who is released on bond, is required to report to prison on February 12, 2025.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney David T. Huang.
Mother and Son Sentenced for Drug Trafficking ConspiracyRead the Press Release
BOSTON – A mother and son were sentenced in federal court in Boston for participating in a North Shore-based drug trafficking organization (DTO) that allegedly distributed tens of thousands of counterfeit prescription pills containing fentanyl and methamphetamine.
Javier Bello, a/k/a “Javi,” 29, of Beverly, Mass. was sentenced by U.S. District Court Chief Judge Dennis F. Saylor IV to 180 months in prison followed by five years of supervised release. In May 2024 Bello pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute more than 400 grams of fentanyl and one count of possession with intent to distribute more than 40 grams of a mixture or substance containing a detectable amount of fentanyl.
Bello’s mother, Chevon Dorce, 45, of Lynn, Mass. was sentenced by U.S. District Court Chief Judge Dennis F. Saylor IV to 23 months in prison followed by three years of supervised release. In July 2024, Dorce pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute controlled substances.
According to court documents, the DTO distributed counterfeit oxycodone pills containing fentanyl and counterfeit Adderall pills containing methamphetamine, among other things, to various individuals in the Lynn area. Bello directed a number of individuals to acquire, distribute and store controlled substances on his behalf.
Based on intercepted communications and simultaneous surveillance, it was determined that Bello distributed approximately 1,000 fentanyl pills to Ortiz, which were seized. Subsequent forensic analysis determined that 1,008 counterfeit oxycodone pills contained fentanyl and that the seized pills weighed approximately 135.5 grams.
Bello used his mother’s residence as a stash location. On Oct. 25, 2022, during a search of Dorce’s residence,2.5 kilograms of fentanyl, 22 grams of cocaine, a firearm concealed in a piece of furniture and an inoperable pill press, were recovered.
Bello also used Isaac Clayton’s residence as a second stash location. On Oct. 25, 2022, during a search of Clayton’s residence, various quantities of marijuana, cocaine base and fentanyl, as well as three loaded firearms, additional rounds of ammunition, $2,640 in drug proceeds and materials used to package and distribute controlled substances were recovered. Kion Shepherd also stored controlled substances on Bello’s behalf. On Oct. 25, 2022, during a search of Kion Shepherd’s mother’s home, a backpack containing several hundred grams of fentanyl and cocaine as well as a handgun with an obliterated serial number were recovered. Additionally, Erick Solis Lopez stored and distributed drugs on Bello’s behalf. On Oct. 28, 2022, during a search of Solis’s home more than 2,300 fentanyl pills and more than 100 grams of powder fentanyl from a Subaru Outback registered to Solis and parked at Solis’s residence.
Bello and a co-conspirator, Melvin Nieves, were arrested at Logan Airport as they boarded a flight to California with the intent of purchasing marijuana. At the time of their arrests, Bello and Nieves were in possession of a combined total of $70,000 in United States currency.
Ortiz pleaded guilty in June 2024 and was sentenced to 28 months in prison and three years of supervised release in September 2024; Clayton pleaded guilty in February 2024 and was sentenced to two months in prison to be followed by three years of supervised release, with the first six months to be served in home confinement August 2024;Shepherd pleaded guilty in April 2024 and was sentenced to 70 months in prison in July 2024; Solis pleaded guilty in October 2023 and was sentenced to 62 months in prison in January 2024;Nieves pleaded guilty in October 2023 and was sentenced to 27 months in prison in January 2024.
Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Geoffrey Noble, Colonel of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the Beverly, Everett, Peabody, Revere, Salem, Saugus and Swampscott Police Departments. Assistant U.S. Attorney Evan D. Panich of the Narcotics & Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Michigan Men Sentenced for Methamphetamine TraffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two Michigan men were sentenced today for their roles in a drug trafficking organization operating in Monongalia County.
Giovanni George, age 34, of Taylor, Michigan, was sentenced today to 141 months in federal prison. Addonis Moore, age 29, of Detroit, Michigan, was sentenced to 121 months. Both previously pled guilty to a charge of possession with intent to distribute methamphetamine.
According to court documents and statements made in court, George and Moore were two of several defendants in a drug trafficking conspiracy that stretched from Michigan to Monongalia County. During a traffic stop, officers found nearly one pound of methamphetamine in George’s car. Moore was a passenger. George has a criminal history that includes domestic battery, possession of controlled substances, unlawful assault, witness intimidation, violation of a protective order, robbery, and wanton endangerment. Moore was previously convicted of drug charges in Michigan.
George will serve three years of supervised release once his prison sentence is complete. Moore will serve five of supervised release.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government.
The Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Mexican National Sentenced to 30 Months in Prison for Illegal ReentryRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced German Altamirano-Hernandez (42, Mexico) to two years and six months in federal prison for illegal reentry into the United States by a previously deported alien. Altamirano-Hernandez entered a guilty plea in June 2024.
According to court documents, Altamirano-Hernandez is a native and citizen of Mexico. He had been granted voluntary removal from the United States 10 times between 1999 and 2002 after it was determined he was illegally in the United States. In 2005, he was encountered by law enforcement in New Mexico and was prosecuted for illegal entry into the United States, then was deported to Mexico later that year. In 2013, he was encountered by law enforcement in Florida and was convicted of illegal reentry into the United States by a previously deported alien. He was deported to Mexico in 2015 after his release from federal prison. In 2019, Altamirano-Hernandez was encountered by law enforcement in Arizona, after having crossed the border illegally, and was prosecuted a third time for illegal reentry into the United States. He was again deported to Mexico in 2020 after his release from federal prison.
In March 2024, Altamirano-Hernandez was encountered by deputies with the Flagler County Sheriff’s Office when they conducted a traffic stop on the car he was driving. During the stop, Altamirano-Hernandez provided deputies with a false name and a fraudulent identification card. During a search of his car, deputies found multiple forms of fraudulent identification. After confirming Altamirano-Hernandez’s identity, he was arrested. Altamirano-Hernandez admitted to law enforcement that he had again unlawfully reentered the United States.
This case was investigated by U.S. Customs and Border Protection and the Flagler County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Elisibeth Adams.
Mexican National Ordered to Serve A Consecutive Prison Sentence for Reentering the United States IllegallyRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazzara has sentenced Ramon Ochoa (43, Mexico) to 18 months in federal prison, consecutive to another sentence Ochoa is serving in the Florida Department of Corrections, for illegal reentry into the United States after deportation. Ramon Ochoa entered a guilty plea on July 8, 2024.
According to court documents, Ochoa is a Mexican citizen who entered the United States illegally in 2008 and again in 2014. He was removed from the United States on both occasions, most recently in May 2014. In 2017, Ochoa again entered the United States without permission from appropriate government officials, and he remained here until he was arrested in Polk County in May 2019. United States Customs and Border Protection (CBP) officials were alerted to the fact that Ochoa was in custody in the Polk County Jail under the name Samuel Santana-Ortuno and was charged with trafficking in methamphetamine. Ochoa admitted to a Border Patrol agent that his true name is Ramon Ochoa and he did not have any documents allowing him to enter the United States.
Ochoa was later sentenced in state court to seven years’ imprisonment for his state drug-trafficking offense. Judge Lazzara ordered that his 18-month federal sentence be served consecutive to his state prison sentence.
This case was investigated by United States Customs and Border Protection. It was prosecuted by Assistant United States Attorney Michael Sinacore.
Mexican National Charged with Illegal ReentryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Elvis Alfonso Lopez-Perez, age 31, of Mexico, was indicted on October 2, 2024, by a federal grand jury for illegal reentry into the United States by a previously deported alien.
According to United States Attorney Gerard M. Karam, the indictment alleges that Lopez-Perez was previously removed from the United States on February 1, 2013. It is alleged that he was subsequently found in the United States on May 28, 2024, in Cumberland County, without having first obtained legal permission to reenter the country.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Michael Scalera is prosecuting the case.
The maximum penalty under federal law for this offense is two 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.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #
Mexican Man Pleads Guilty to Federal Immigration CrimeRead the Press Release
CHARLESTON, W.Va. – David Cuevas, 45, a Mexican national, pleaded guilty today to fraud and misuse of a lawful Permanent Resident Card.
According to court documents and statements made in court, on May 30, 2019, Cuevas fraudulently possessed and used information from a Permanent Resident Card issued in the name of another individual to apply for an individual explosives license from the West Virginia Office of the State Fire Marshal. Cuevas admitted that he knew the information on his explosives application was false and that he submitted the other individual’s Permanent Resident Card with the application. Cuevas further admitted that he sought the explosives license to assist him in his employment laying a pipeline in Greenbrier, Nicholas and Fayette counties for a construction company.
Cuevas 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 $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Department of State-Diplomatic Security Service, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) of the U.S. Department of Homeland Security, the West Virginia Office of the State Fire Marshal, and the West Virginia Fusion Center.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Erik S. Goes is prosecuting the case, and former Assistant United States Attorney Stefan Hasselblad previously handled the prosecution.
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. 2:19-cr-177.
###
Man Who Bound and Raped Au Pair, Victimized Other Women and Girls, Sentenced to Life in PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Arisknight Winfree, 32, of East Lansing, was sentenced to life in federal prison for sexually exploiting four women, including two minors, in 2022. Winfree was convicted on multiple charges that included Kidnapping (Count 1), Coercion and Enticement (Count 2), Attempted Coercion and Enticement (Count 3), and Production of Child Pornography (Counts 4 and 5).
“Arisknight Winfree is a sexual predator whose horrendous acts caused immeasurable harm to the women and girls upon whom he preyed,” said U.S. Attorney Mark Totten. “This life sentence is necessary to protect the community and bring a measure of justice to the survivors.”
Winfree targeted his victims in multiple ways, including through use of the messaging service on various social media apps and through an online service that connects individuals, often young women, with host families in need of childcare and light housework. The Court convicted Winfree of five crimes involving four victims.
First, Winfree was convicted of Kidnapping (Count 1) and Coercion and Enticement (Count 2) for the crimes he committed against S.D. The victim was a young woman living in Italy who Winfree contacted on September 5, 2022 through AuPair.com, a website service that connects young women with potential host families. Winfree falsely represented that his family was in search of an au pair to care for his niece. On October 12, 2022, S.D. flew from Italy to Detroit, Michigan, and then took a bus to Winfree’s residence in East Lansing, Michigan. The day after she arrived, Winfree handcuffed his victim’s hands behind her back, placed a gag ball in her mouth, and raped her. Winfree considered killing his victim and hiding her body to avoid prosecution.
Second, Winfree was convicted of Attempted Coercion and Enticement (Count 3) for the crimes he committed against A.S. Winfree connected with A.S. through AuPair.com in July 2022, falsely representing he needed someone to watch his 7-year-old niece every other week. Winfree paid for A.S. to fly to Michigan on September 14, 2022. When A.S. got to Winfree’s residence, she noticed all the windows were covered with paper and cardboard. She also noticed there were cameras around the house. A.S. saw no signs of children. She saw several knives and guns around the house. On September 16, 2022, A.S.’s family called the East Lansing Police Department and requested a welfare check for A.S. With the assistance of the police, the victim left the residence with her belongings and returned to Kansas.
Third, Winfree was convicted of Production of Child Pornography (Count 4) for the crimes he committed against Minor Victim 1 (MV1). Winfree connected with MV1 on Instagram in November 2022, when the victim was 17 years old. From November 29-30, MV1 created nude images at Winfree’s request and sent them to him through the social media app’s messaging feature. On November 30, 2022, Winfree picked MV1 up from her high school, drove her to his home, and engaged in sexual acts with her.
Fourth, Winfree was convicted of another count of Production of Child Pornography (Count 5) for the crimes he committed against Minor Victim 2 (MV2). Winfree connected with MV2 in September or October of 2022 on SnapChat, when the victim was 16 years old. He instructed MV2 to engage in sexual acts and send images and videos to him through SnapChat and later through WhatsApp.
Further details are provided in the attached Complaint and the United States’ Statement of Facts Establishing Defendant’s Guilt.
“The sentencing of Arisknight Winfree marks a significant step towards healing for all those who suffered from his callous and heinous criminal acts,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “Individuals who engage in sexual exploitation involving minors will be investigated and arrested by the FBI and our law enforcement partners in Michigan. The collective investigative efforts by members from FBI Michigan, the East Lansing Police Department, and the prosecutorial efforts of the United States Attorney's Office of Western Michigan prevented another crime from being committed by Mr. Winfree.”
“The East Lansing Police Department would like to thank the FBI and the U.S. Attorney’s Office for the Western District of Michigan for their commitment to this case,” said ELPD Police Chief Chad Pride. “Arisknight Winfree’s conviction on multiple charges shows our collaborative partnerships were essential in bringing justice to the survivors of these awful acts and holding Arisknight accountable for his actions.”
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, please visit the following website: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
Assistant United States Attorney Davin Reust prosecuted this case. The East Lansing Police Department, Michigan State University Police and Public Safety, and the FBI investigated it.
The U.S. Attorney’s Office for the Western District of Michigan issued the previous press releases in this case and a related case:
- February 15, 2023 – East Lansing Man Indicted for Kidnapping and Raping Italian Teen, Attempting to Rape Another Teen, and Sexually Exploiting Two Minors.
- April 10, 2024 – Man Who Bound and Raped Au Pair Pleads No Contest.
###
- February 15, 2023 – East Lansing Man Indicted for Kidnapping and Raping Italian Teen, Attempting to Rape Another Teen, and Sexually Exploiting Two Minors.
MS-13 Gang Member Sentenced to over Five Years in Prison for Illegally Possessing Ammunition in A “Ghost Gun”Read the Press Release
SAN FRANCISCO – Christian Quintanilla, a/k/a “Casper,” was sentenced to 63 months in prison for illegally possessing 11 rounds of unfired ammunition near 16th Street and Mission Street in the Mission District of San Francisco, announced First Assistant United States Attorney Patrick D. Robbins and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King. The sentence was handed down by the Hon. Richard Seeborg, Chief United States District Judge.
Quintanilla, 24, of San Pablo, pleaded guilty to the unlawful ammunition possession charge on Mar. 19, 2024. Quintanilla had previously admitted in a plea agreement to being a member of the MS-13 20th Street clique. According to court documents, Quintanilla had been sentenced to 36 months’ imprisonment for his participation in two MS-13 gang-related assaults in San Francisco and was therefore prohibited from carrying either a firearm or ammunition. Nevertheless, as described in court documents, Quintanilla was a passenger in a car with other MS-13 associates that led California Highway Patrol officers on a high-speed chase on June 17, 2023, after which officers located a handgun with a loaded magazine and a round in the chamber in the car. Quintanilla’s involvement in this incident violated the terms of his federal supervised release, which led to the issuance of an arrest warrant. On Sept. 7, 2023, San Francisco Police Department officers encountered Quintanilla near 16th Street and Mission Street in San Francisco. When officers arrested Quintanilla, they found a 9mm Polymer 80 pistol (a “ghost gun”) with an extended magazine containing 11 unfired cartridges of 9mm ammunition.On Oct. 25, 2023, a federal grand jury indicted Quintanilla, charging him with one count of being a felon in possession of ammunition, in violation of 18 U.S.C. § 922(g)(1).
In addition to the 63-month prison term, Chief Judge Seeborg ordered Quintanilla to serve three years of supervised release to begin after his prison term is completed. Chief Judge Seeborg also found that Quintanilla’s possession of the weapon and ammunition violated the terms of his release relating to his August 2021 conviction and revoked his release, imposing a sentence of 24 months’ imprisonment to run concurrently with the 63-month term.
Assistant U.S. Attorneys Aseem Padukone and Andrew Scoble prosecuted the case, with the assistance of Kevin Costello and Yenni Weinberg. The prosecution is the result of an investigation by HSI.
Leader of Catalytic Converter Theft Ring Pleads GuiltyRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ALEXANDER KOLITSAS, 30, of Wolcott, pleaded guilty today before U.S. District Judge Sarala V. Nagala in Hartford to offenses related to his leadership of a catalytic converter theft and trafficking ring.
According to court documents and statements made in court, law enforcement has been investigating the theft of catalytic converters from motor vehicles across Connecticut. A catalytic converter contains precious metals, can easily be removed from its vehicle, and is difficult to trace, making it a desirable target for thieves. The average scrap price for catalytic converters currently varies between $300 and $1,500, depending on the model and type of precious metal component.
Kolitsas owned and operated Downpipe Depot & Recycling LLC (“Downpipe Depot”), which had a warehouse on Park Avenue in East Hartford. From approximately January 2021 to June 2022, Kolitsas used Downpipe Depot to purchase stolen catalytic converters from a network of thieves. Kolitsas instructed his suppliers on the types of converters that would obtain the most profit upon resale, and he would often meet with them and transact business at his home late at night or behind a family member’s restaurant after hours. Analysis of records seized from Downpipe Depot revealed that many of Kolitsas’s suppliers were selling thousands to tens of thousands of dollars’ worth of stolen converters to Kolitsas each week.
Kolitsas regularly transported and sold the catalytic converters to recycling businesses in New York and New Jersey. Some of these trips yielded payments in excess of $200,000.
The investigation also revealed that Kolitsas used proceeds from the theft and sale of catalytic converters to purchase a Ford Transit Van and other items.
Kolitsas pleaded guilty to one count of conspiracy to commit interstate transportation of stolen property, an offense that carries a maximum term of imprisonment of five years, and one count of promotional money laundering, an offense that carries a maximum term of imprisonment of 20 years.
As part of his plea agreement, Kolitsas has agreed to forfeit the Ford Transit Van, a 2016 Polaris Slingshot, $91,581 held in a Downpipe Depot bank account, and $75,127 in cash, all of which was seized by law enforcement during the investigation.
Judge Nagala scheduled sentencing for January 22. Kolitsas is released on a $150,000 bond pending sentencing.
This investigation is being led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Internal Revenue Service – Criminal Investigation Division (IRS-CI), and the East Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Lauren C. Clark and A. Reed Durham.
Former Treasurer of Kern County Political Organization Pleads Guilty to Bank FraudRead the Press Release
FRESNO, Calif. — Bryan M. Williams, 41, of Atascadero, pleaded guilty today to bank fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between 2013 and 2019, Williams served as the treasurer of a Kern County political organization. During that time period, he stole between $230,000 and $435,000 from the organization, and used those funds for his personal use.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey A. Spivak is prosecuting the case.
Williams is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Jan. 27, 2025. Williams faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former President of Ypsilanti Steelworkers Union Pleads Guilty to Stealing $58,000 in Union FundsRead the Press Release
DETROIT - The former President of Steelworkers, Local 2513, in Ypsilanti has pleaded guilty to embezzling over $58,000 in union funds, announced United States Attorney Dawn N. Ison.
Joining Ison in the announcement is Thomas Murray, District Director of the Detroit-Milwaukee District Office of the Department of Labor-Office of Labor-Management Standards.
Dilanjan Miller, 37, pleaded guilty to the one count of bank fraud charged in an information filed by the U.S. Attorney’s Office. United States District Judge Laurie Michelson accepted his guilty plea and set the matter for sentencing on February 6, 2025.
According to the facts alleged in the information and further developed at the plea hearing, USW Local 2513 represented machine operators, inspectors, stock chasers, and rackers at Marsh Plating in Ypsilanti. Miller was elected President of Local 2513 in April 2018. Miller also assumed all financial duties of Local 2513 as acting Financial Secretary and Treasurer. While President, Acting Financial Secretary, and Acting Treasurer of the union, Miller embezzled approximately $47,347 of union funds in the custody and control of the Bank of Ann Arbor by issuing approximately 38 unauthorized checks to himself and forging the signature of the second signatory on 20 of those checks; issuing approximately 4 unauthorized checks made payable to a family member; and making approximately 2 unauthorized cash withdrawals from the union’s bank account.
Miller also used the union’s Bank of Ann Arbor debit card as his own personal debit card. He made at least 184 unauthorized personal purchases, totaling approximately $11,259. His purchases with the union’s debit card included flights, hotel rooms, rental cars, and retail purchases. For example, Miller used the debit card to pay for five flights to Florida, Las Vegas, and Atlanta and for rental cars in Florida and Atlanta. Miller also used the debit card at a jewelry store and several footwear shops.
Miller is facing a maximum of 30 years in prison on the bank fraud charge.
U.S. Attorney Ison commended the work of the Department of Labor in conducting this criminal investigation of a corrupt union officer and said, “Union officials are expected to serve with integrity. This prosecution demonstrates that we will not tolerate union officers who abuse their authority and line their own pockets at the expense of the union’s membership. We will continue to work with our law enforcement partners to root out corruption and fraud involving unions.”
“Dilanjan Miller violated the trust placed in him to be a good steward of union funds by embezzling over $58,000 from Steelworkers Local 2513 that should have been used for its members’ benefit,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “OLMS is committed to holding accountable anyone who unlawfully exploits their position in a union for personal gain at the expense of their fellow union members.”
The case is being prosecuted by Assistant U.S. Attorney Sarah Resnick Cohen. The investigation of this case was conducted by the Department of Labor Office of Labor-Management Standards.
Former Nurse Pleads Guilty in Connection with Diverting Fentanyl from ICU PatientRead the Press Release
CONCORD – A Northfield woman pleaded guilty today in federal court for diverting fentanyl from an ICU patient at Concord Hospital, U.S. Attorney Jane E. Young announces.
Lisa Richardson, 48, pleaded guilty to one count of Tampering with Consumer Products. U.S. District Court Judge Landya McCafferty scheduled sentencing for January 16, 2025.
On December 30, 2022, while working as a nurse at Concord Hospital, Richardson removed a quantity of fentanyl from an intravenous line bag inserted in an Intensive Care Unit patient. She then replaced the fentanyl with saline. The defendant was not assigned to the patient’s care as part of her duties as a nurse.
The charging statute provides a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Food & Drug Administration Office of Criminal Investigations and the Drug Enforcement Administration jointly led this investigation. Assistant U.S. Attorney Geoffrey Ward is prosecuting the cases.
Law enforcement in the District of New Hampshire has utilized resources to enforce federal laws in connection with the diversion of dangerous narcotics by medical professionals. In July 2024, the U.S. Attorney’s Office settled a $300,000 civil action with Catholic Medical Center to resolve allegations they violated the Controlled Substances Act (“CSA”), by failing to keep accurate records of controlled substances, which enabled a nurse anesthetist to steal hundreds of doses of fentanyl over the course of a year. In June 2023, the U.S. Attorney’s Office settled a $2 million civil action with Cheshire Medical Center for their failure to fulfill obligations under the CSA, which enabled a nurse to steal twenty-three intravenous bags of fentanyl solution from an automatic medication dispensing machine. Also in June 2023, the U.S. Attorney’s Office settled a $300,000 civil action with PillPack by Amazon, a pharmacy, to resolve allegations that they violated the CSA, which risked the division of drugs that are often abused in our communities.
###
Foreign National Pleads Guilty to Unlawful ReentryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that David Origel-Villalobos, age 42, entered a guilty plea to an Information of one count of Unlawful Reentry of a Removed Alien.
The Information alleged that Origel-Villalobos, an alien, was found in the United States without the express consent of the Secretary of the Department of Homeland Security after having been previously deported and removed on three prior occasions.
The charges arose from an investigation by the Le Flore County Sheriff’s Office and the U.S. Department of Homeland Security’s Immigration and Customs Enforcement Division.
The Honorable Gerald L. Jackson, U.S. District Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Origel-Villalobos was remanded into the custody of the United States Marshal Service pending sentencing.
Assistant U.S. Attorneys Patrick M. Flanigan and Jacob R. Parker represented the United States.
Five Arrested, Accused of Targeting Elderly Victims in Tech Support ScamRead the Press Release
ST. LOUIS – Five people have been arrested on an indictment that accuses them of stealing at least $8 million from elderly victims in at least ten states via a tech support scam involving gold bars.
Dariona Lambert, 22, Zhamoniq Stevens, 23, Chintankumar Parekh, 51, Mehul Darji, 41, and Sital Singh, 42, were each charged in a October 4 superseding indictment with one count of conspiracy to commit wire fraud. Lambert, Stevens and Parekh were originally indicted on that charge in June.
Singh surrendered Monday in Newark, in U.S. District Court for the District of New Jersey. Parekh and Darji were both arrested last week in the Eastern District of Michigan. Lambert and Stevens were arrested on the initial indictment and have pleaded not guilty.
The indictment accuses the conspirators of contacting elderly victims via telephone calls and electronic messages, falsely claiming that the victims’ savings and retirement accounts had been compromised. They told their victims to transfer funds to the conspirators to keep their accounts secure, the indictment says. Sometimes, the transfers came via gold bars that had been bought by victims and then picked up by couriers working for the fraudsters, the indictment says. Couriers worked with a “handler,” who arranged transportation for the couriers and shipped the gold bars to others, the indictment says.
An 82-year-old St. Louis woman was one of the victims, having been told by scammers pretending to be from a computer software support team that her financial accounts had been compromised, the indictment says. They said she needed to pay money to prevent her funds from being stolen, the indictment says. The scammers had the victim open new bank accounts, transfer her money into those accounts and wire money overseas, in addition to buying about $250,000 worth of gold bars, the indictment says. On May 1, 2024, Lambert flew from Gainesville, Florida to St. Louis, the indictment says. Parekh rented a car and drove Lambert to a parking lot near the victim’s home, it says. Lambert then took an Uber to the victim’s home to retrieve the gold bars, but was intercepted by law enforcement agents, the indictment says. Lambert sent a warning message via WhatsApp to her conspirators, saying “police,” it says.
Lambert and Stevens were couriers, and were paid in cash, the indictment says. Parekh, Darji and Singh were handlers and travelled to victims’ residences in order to pick up gold bars, it says. Parekh worked as a handler in gold bar pickups from victims in Yuma and Scottsdale in Arizona; Placentia and La Jolla in California; Largo, Florida; Chapel Hill, N.C.; and Pittsburgh, Penn., the indictment says. Singh worked a handler in gold bar pickups from victims in Collierville, Tenn.; Universal City, Texas; and Greendale, Wisc., it says. Darji worked as a handler in gold bar pickups from the Scottsdale victims and received three separate FedEx packages containing gold bars obtained from the Largo victim, it says. Lambert worked as a courier in Scottsdale; Placentia; La Jolla; Largo; Universal City; Hanover, Mass.; and Erie, Penn., it says. Stevens worked as a courier in gold bar pickups from victims in Yuma; La Jolla; Collier; Largo; Greendale; Oxnard, Calif.; Long Island, N.Y.; and Cincinnati, Ohio, the indictment says.
“This case is another example of the FBI being able to stop the scam before a victim gets robbed out of his or her life savings,” said Special Agent in Charge Ashley T. Johnson of the FBI St. Louis Division. “We’ve been successful in protecting victims when family members, friends or businesses become suspicious and immediately notify the FBI in time for us to intervene.”
A motion seeking to have Parekh and Darji held in jail until trial says both are in the United States unlawfully, Parekh having overstayed his work visa and Darji having been removed from the country in 2014. When Parekh was alerted by Lambert that she had been apprehended by the police, he fled Missouri for Pittsburgh, Penn., it says.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The wire fraud conspiracy charge carries a penalty of up to 30 years in prison, a $1 million fine or both prison and a fine.
This case was investigated by the FBI and Homeland Security Investigations in Tampa, Florida. Assistant U.S. Attorney Gwen Carroll is prosecuting the case.
If someone you know is a victim of a cyber scam, report it to the FBI. You can file the complaint online with the FBI’s Internet Crime Complaint Center at www.ic3.gov or use 1-800-CALL-FBI.
Fitchburg Man Sentenced to 45 Months for Illegally Possessing FirearmRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Damariyah Muhammad, 23, Fitchburg, Wisconsin, was sentenced on October 4, 2024 by U.S. District Judge William M. Conley to 45 months in federal prison for possessing a firearm and ammunition as a convicted felon. The prison term will be followed by 3 years of supervised release. Muhammad pleaded guilty to this charge on July 10, 2024.
On January 8, 2024, law enforcement sought to arrest Muhammad for charges related to a domestic disorderly conduct and hit and run. When detectives encountered Muhammad, he fled. He slipped in the snow and dropped a firearm, which law enforcement immediately recovered and identified as a loaded Glock 9mm handgun with a 31-round extended magazine. The Wisconsin State Crime Lab confirmed Muhammad’s DNA was present on the gun. Muhammad is prohibited from legally possessing firearms and ammunition because of prior felony convictions.
At sentencing, Judge Conley considered Muhammad’s continued escalating criminal behavior, which has involved possession of high-capacity firearms and violent activity. The Judge noted that Muhammad has had chances to reflect and resources available, but he did not accept them and squandered those opportunities. The Judge urged Muhammad to use his time in custody to confront his past, to decide that this is his low point, and to stop his decent into the criminal lifestyle.
The charge against Muhammad was the result of an investigation conducted by the ATF Madison Crime Gun Task Force consisting of federal agents from ATF and Task Force Officers (TFOs) from local agencies including the Dane County and Clark County Sheriff’s Offices and the Fitchburg, Madison, Sun Prairie, and La Crosse Police Departments. Assistant U.S. Attorney Colleen Lennon prosecuted this case.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Felon Sentenced to Seven Years in Prison for Unlawful Possession of FirearmsRead the Press Release
LAS VEGAS – A Las Vegas man with an extensive criminal history was sentenced today by United States District Judge Jennifer A. Dorsey to 84 months in prison to be followed by three years of supervised release for unlawful possession of two firearms after he exchanged gunfire on Fremont Street.
According to court documents, on September 1, 2022, DaJuan Lamar Gamble, also known as “Popeye,” 41, fired at least three shots from a Smith & Wesson M&P Shield 9mm semi-automatic pistol from a walkway of a motel on East Fremont Street at an SUV that had stopped in the street in front of the motel. An occupant in the SUV fired at least two .40 caliber rounds at Gamble. Security camera recordings at the motel captured the gunfire. Las Vegas Metropolitan Police Department recovered the 9mm pistol and a Norinco MAK-90 7.62 x 39mm semi-automatic rifle in a black bag hidden in the boiler room of the motel. A records check showed that the 9mm semi-automatic pistol previously had been stolen in Dallas, Texas.
In October 2023, Gamble pleaded guilty to felon in possession of firearms. He has prior felony convictions in Clark County including attempt discharge firearm at or into occupied structure, vehicle, aircraft or watercraft; accessory to murder; possession of stolen property; and possession of controlled substance with intent to sell. Gamble is prohibited by law to possess a firearm as a result of those prior felony convictions.
“Ensuring the safety of the public is at the forefront of ATF’s mission,” said Special Agent in Charge Jennifer Cicolani, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). “We will continue to work with the U.S. Attorney’s Office and the Las Vegas Metropolitan Police Department to ensure that this type of violent conduct is not tolerated within the Las Vegas community and that the prosecution of those prohibited from having a firearm remains a priority.”
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Cicolani for ATF made the announcement.
This case was investigated by the ATF and Las Vegas Metropolitan Police Department. Assistant United States Attorneys Dan Cowhig and David Kiebler prosecuted the case.
Anyone with information about the unlawful purchase of firearms can call ATF at 1-888-ATF-TIPS (1-888-283-8477), email [email protected] or submit information anonymously at www.reportit.com/.
###
Felon Convicted at Trial for Possessing Firearm in Connection with Drug Trafficking FentanylRead the Press Release
Greenbelt, Maryland – After a 5-day trial, a federal jury returned a verdict against Timothy Darren Proctor, age 40, finding Proctor guilty of felon in possession of a firearm, possession with intent to distribute fentanyl, and possession of a firearm in furtherance of his drug trafficking crime.
The guilty verdict was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and, Chief Malik Aziz of the Prince George’s County Police Department.According to the evidence presented at trial, on July 10, 2021, at approximately 1:31 p.m., officers responded to a location in Temple Hills, Maryland due to a suspicious occupied vehicle that was parked in the area. Upon arrival, officers observed Proctor unresponsive in the driver seat, behind the steering wheel, with the windows up, and the doors locked. Officers banged on the windows to wake up Proctor and he eventually woke up and exited the vehicle. Law enforcement thereafter saw and retrieved a clear bag hanging from Proctor’s front pocket, which contained approximately 10 grams of fentanyl. Additionally, Proctor possessed a firearm, which was located inside the center console of the vehicle. The firearm was loaded with thirteen 40mm caliber cartridges in the magazine and one in the chamber.
Once at the jail, officers located an additional clear zipped bag containing 29 small clear bags, which also contained fentanyl. Proctor possessed the firearm in connection with his fentanyl drug trafficking. At the time Proctor possessed the firearm, he was prohibited from doing so due to prior felony convictions. Proctor faces a maximum sentence of 10 years in federal prison for felon in possession of a firearm; a maximum sentence of 20 years in federal prison for possession with intent to distribute fentanyl; and a mandatory minimum sentence of 5 years and a maximum sentence of life in federal prison for possession of a firearm in furtherance of a drug trafficking crime. U.S. District Judge Paula Xinis has not yet scheduled sentencing.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Erek L. Barron commended the ATF and PGPD for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Joel Crespo, and David I. Salem, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
# # #
Drug Trafficker Sentenced to 46 Months in Prison for Fentanyl Distribution and Money LaunderingRead the Press Release
OAKLAND – Christian Grajeda-Varela, a Honduran national who pleaded guilty to fentanyl trafficking and money laundering, was sentenced to 46 months in federal prison. The sentence was handed down by the Hon. Haywood S. Gilliam, Jr., United States District Judge.
Grajeda-Varela, 25, was charged by indictment on Aug. 2, 2023, and superseding information on July 15, 2024. He pleaded guilty on July 17, 2024 to distribution of 40 grams or more of fentanyl and to conspiracy to launder monetary instruments.
In his plea agreement, Grajeda-Varela admitted that he sold roughly 1.5 pounds of fentanyl in July 2023 to a drug dealer in the Tenderloin neighborhood of San Francisco. Upon a search of his Oakland residence, federal agents found 109 grams of fentanyl, over six pounds of mannitol (a common mixing agent used to cut or dilute fentanyl), cocaine base, cocaine, and heroin. Agents also found a kilogram press, cutting boards, and tools to cut drugs, supplies that Grajeda-Varela admitted using to dilute and assist with the distribution of drugs.
As described in court documents, multiple WhatsApp messages were found on Grajeda-Varela’s phone containing international wire transfer receipts sent from America Latina, a money service business in Oakland. Grajeda-Varela admitted that, between March and August 2022, he agreed with someone he suspected was involved in the drug trade to commit money laundering by bringing large amounts of cash to America Latina. Specifically, Grajeda-Varela brought over $235,000 in cash to America Latina for the business to wire to recipients in Mexico and Honduras in the form of roughly 125 international wires. According to the plea agreement, each of these international wires was structured and transmitted in an amount below $3,000 to avoid mandatory customer information reporting requirements under federal law.
Grajeda-Varela admitted that he exchanged WhatsApp messages with a woman named “Griselda” who generally accepted the bulk cash he brought in and conducted the international wires for him at America Latina, and that receipts for wires America Latina sent between March and August 2022 were found on his phone as well as on the phone of Griselda Cancelada Liceaga, who owned America Latina.
Grajeda-Varela further admitted that he knew that the owners of America Latina were structuring the bulk cash into wires of less than $3,000 each that were sent under the names of uninvolved persons to make it appear that each wire was an unrelated family/friend remittance.
In a separately charged case, Griselda Cancelada Liceaga, 45, of Oakland, was sentenced to 16 months in federal prison. Liceaga’s sentence was handed down by the Hon. Jeffrey S. White, Senior United States District Judge.
Liceaga was charged by criminal complaint on Aug. 30, 2022, and pleaded guilty to money laundering conspiracy on May 28, 2024. According to her plea agreement, while at her money service business America Latina, Liceaga sent multiple international wire receipts via WhatsApp between March and August 2022 to an individual arrested and prosecuted for drug trafficking. She further admitted to using the names of unrelated persons as the wire senders and did so with the intent to evade the $3,000 transaction reporting requirement under federal law.
According to her plea agreement, Liceaga was familiar with the reporting requirement because she had received anti-money laundering training from the national wire service companies whose wire services she used. Liceaga further admitted that prior to opening America Latina, she had worked at another Oakland money service business, Rincon Musical, where she and her co-workers agreed to structure large cash amounts into wire transactions that were each less than $3,000 that they sent out under the names of unrelated persons.
“We are committed to working with our law enforcement partners to use all tools at our disposal to combat the drug trade in the Northern District of California and beyond,” said United States Attorney Ismail J. Ramsey. “Along with drug traffickers, individuals who engage in and enable the laundering of drug proceeds will be held accountable.”
“Dismantling the profitability of deadly drug trafficking in our communities makes our streets safer and is a core capability of IRS-CI Special Agents. These sentencings highlight the effectiveness of Organized Crime Drug Enforcement Task Force investigations and the relentlessness in which we pursue those perpetuating the lethal drug epidemic,” said IRS Criminal Investigation (IRS-CI) Oakland Field Office Acting Special Agent in Charge Michael Mosley. “Our Special Agents follow the money. When the money leads us to transnational criminal organizations, we build cases that take those criminals off the streets and puts them behind bars.”
“This decisive action, taken in collaboration with our law enforcement partners, disrupts the flow of dangerous drugs and eliminates the financial networks that make this crime possible,” said Federal Bureau of Investigation (FBI) Special Agent in Charge Robert Tripp. “Those who choose to profit from poisoning our communities and endanger public safety will be held accountable. We remain resolute in our mission to dismantle these threats and ensure that justice is served.”
“The cartels would be out of business without drug distributors and money launderers. Christian Grajeda-Varela and Griselda Cancelada Liceaga blatantly violated the law to line their pockets with ill-gotten gains,” said Drug Enforcement Administration (DEA) Special Agent in Charge Bob P. Beris. “We will be relentless in our pursuit of those who put poison in our community and skirt the law by structuring payments of drug proceeds.”
The announcements were made by United States Attorney Ismail J. Ramsey, IRS-CI Oakland Field Office Acting Special Agent in Charge Michael Mosley, FBI Special Agent in Charge Robert Tripp, and DEA Special Agent in Charge Bob P. Beris.
These prosecutions are part of Organized Crime Drug Enforcement Task Force (OCDETF) investigations. 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 United States Attorneys Charles Bisesto and Daniel Pastor prosecuted these cases with assistance from Amanda Martinez and Andy Ding. The prosecution of Grajeda-Varela is the result of an investigation by the FBI and IRS-CI with assistance from the DEA and the Concord Police Department. The prosecution of Cancelada Liceaga is the result of an investigation by IRS-CI and DEA with assistance from the Oakland Police Department.
Drug Distribution and Firearm Possession on Menominee Indian Reservation Leads to Eight-year Prison Sentence for Former Keshena ManRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on October 4, 2024, Anthony Brown, Jr. (age: 50), a former resident of Keshena on the Menominee Indian Reservation, received an eight-year federal prison sentence following convictions for possession with intent to distribute cocaine and possession of a firearm in furtherance of drug trafficking. Brown will also face five years of supervised release once he completes his sentence. The sentence, imposed by Senior United States District Judge William C. Griesbach, was the result of a guilty plea entered by the defendant on June 14, 2024.
According to court records, during the early morning hours of January 1, 2024, investigators with the Menominee Tribal Police Department observed the defendant in his vehicle as he engaged in a hand-to-hand drug transaction in the parking lot of a business on the Menominee Indian Reservation. After a brief interaction, the defendant was arrested and searched. Law enforcement recovered over 15 grams of cocaine and approximately $4400 in U.S. currency from his person and recovered a loaded .380 caliber semiautomatic handgun from the vehicle. The firearm had the defendant’s DNA on it.
Also, according to court records, law enforcement had an additional contact with Brown on January 15, 2024. Brown was arrested after being found passed out at the wheel of a car stopped in Keshena. Brown had cocaine on his person. Officers applied for and obtained a search warrant for the defendant’s residence, which led to the discovery of 380 grams of cocaine, paraphernalia associated with drug use and packaging, ammunition, a ledger containing names, amounts, and prices, and a Glock 21 .45 caliber handgun.
Investigators seized numerous items which the defendant agreed were proceeds or facilities of illegal drug activity, including $7000 in cash, a 2016 Chevrolet Corvette, a 1999 Porsche Boxster, a 2019 Ford F250 pickup, a 2014 Jeep Wrangler, and a 2017 Kawasaki sport bike style motorcycle. Investigators also seized 216 pairs of luxury shoes. These items were ordered forfeited as part of his sentence.
During the sentencing hearing, Judge Griesbach noted the seriousness of the crime and the need to deter those who might consider similar actions to protect the community from the destructive effects of controlled substance abuse. Judge Griesbach also observed the need to incapacitate the defendant for a lengthy period, particularly considering Brown’s previous convictions for drug dealing.
The Menomonee Tribal Police Department and the Federal Bureau of Investigations investigated the case as part of the Safe Trails Task Force (STTF) and the Native American Drug and Gang Initiative (NADGI). NADGI and STTF partner federal, tribal, state, and local law enforcement to combat drug trafficking and violent crime on the Menominee Indian Reservation. STTF members are deputized federal officers who identify and target for prosecution individuals who are involved in distribution of dangerous drugs on the Menominee Indian Reservation. Coordination of state resources through NADGI permits efficient communication and evidence processing, which are essential to swift and fair prosecution of offenders. Assistant United States Attorney Andrew J. Maier prosecuted the case.
# # #
Court Sentences Dominican Drug Smuggler Caught with Approximately 443 Kilograms of CocaineRead the Press Release
On October 3, 2024, United States District Court Judge, Terry F. Moorer, sentenced Jesus Acosta-Acosta, a Dominican national, to 87 months imprisonment for smuggling 443 kilograms of cocaine in the Caribbean Sea. Acosta-Acosta had previously plead guilty to the drug smuggling offense, which is charged under Title 46, United States Code, Section 70506 (b).
Documents filed with the Court established that on September 13, 2023, during a routine patrol in the Caribbean, a Maritime Patrol Aircraft (MPA) located a suspicious Go-Fast Vessel (GFV) on a northerly path with two persons on board.
United States Coast Guard Cutter Valiant (USCGC VALIANT) launched it’s Over the Horizon (OTH) boat with a boarding team (BT). The OTH and BT arrived on scene and gained positive control of the vessel approximately 161 nautical miles South of Isla Beta, Dominican Republic. The BT recovered 13 bales of cocaine from the vessel weighing approximately 443 kilograms. The government of the Dominican Republic denied any claim to nationality of the GFV, and the vessel was thus subsequently treated as one without nationality, giving the United States jurisdiction to investigate and prosecute the case under Title 46. The vessel was deemed a danger to navigation due to no suitable tow points and its distance from land. Consequently, the vessel was sunk upon completion of law enforcement activities.Title 46 United States Code, § 70501 states: Congress finds and declares that (1) trafficking in controlled substances aboard vessels is a serious international problem, is universally condemned, and presents a specific threat to the security and societal well-being of the United States and (2) operating or embarking in a submersible vessel or semi-submersible vessel without nationality and on an international voyage is a serious international problem, facilitates transnational crime, including drug trafficking, and terrorism, and presents a specific threat to the safety of maritime navigation and the security of the United States. Title 46 further provides that such offenses may be prosecuted in any United States federal district court.
The case was investigated by the United States Coast Guard, and the Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney George F. May.
Connecticut Real Estate Agent Sentenced to Prison for Defrauding Clients in Long Running Short Sale Fraud SchemeRead the Press Release
BOSTON – A real estate agent was sentenced today in federal court in Boston in connection with a multi-year scheme to defraud his clients by engaging in fraudulent short sales of government and bank-owned properties to straw buyers acting at the direction of the defendant and a co-conspirator.
Sheldon Haag, 34, of Glastonbury, Conn. was sentenced by U.S. District Court Judge Leo T. Sorokin to one year and one day in prison and two years of supervised release. Haag was also ordered to forfeit $277,331 and to pay restitution in an amount to be determined at a later date. In June2023, Haag pleaded guilty to one count of conspiracy to commit wire fraud.
Haag and another real estate agent, James Macchio, used straw buyers to acquire properties owned by the clients of a brokerage where they worked, which included banks, federal agencies, bankruptcy trustees and other mortgage holders. The straw buyers included a shell company set up by a co-conspirator as a purported construction company. Haag and his co-conspirators hid their involvement as the de facto buyers of short sale properties from their clients, the owners of the properties, and used their inside knowledge as the owner’s broker to minimize sale prices in order to maximize their gain from later “flipping” the properties.
While perpetrating the “flipping scheme,” Haag and his co-conspirators further defrauded clients by submitting fraudulent renovation bids from contractors to their own clients, including from the fake construction company they controlled through a co-conspirator. Once their clients accepted a fraudulent bid, Haag and his co-conspirators would hire different contractors at much lower cost and pocket the difference between the fraudulent bid and the actual cost of property repairs.
Macchio pleaded guilty in May 2024 and is scheduled to be sentenced on Nov. 19, 2024.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office made the announcement today. The United States Department of Housing and Urban Development provided valuable assistance. Assistant U.S. Attorney Kriss Basil of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Chicopee Man Convicted of Cocaine TraffickingRead the Press Release
BOSTON – A member of a large-scale criminal enterprise has been convicted after a four-day trial for distributing large amounts of cocaine throughout Eastern and Western Massachusetts.
Vicente Gonzalez, 51, of Chicopee, was convicted on Oct. 3, 2024 of one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine and one count of possession with intent to distribute 500 grams or more of cocaine. U.S. District Court Judge Denise J. Casper scheduled sentencing for Jan. 8, 2025. Gonzalez was indicted along with 12 co-defendants in December 2019.
As part of the cocaine-trafficking conspiracy, Vicente Gonzalez received multiple kilograms of cocaine through the U.S. mail from Puerto Rico. He received those cocaine packages at his home and from another address in West Springfield. Gonzalez agreed to distribute this cocaine to his co-conspirators based in both the Chicopee/Springfield area and New Bedford. On July 29, 2019, during a search of Gonzalez’s residence, two kilograms of cocaine worth approximately $60,000 were seized from the basement, directly underneath a laundry chute leading from Gonzalez’s laundry room.
The charge of conspiracy to possess with intent to distribute 500 grams or more of cocaine, as well as the charge of possession with intent to distribute 500 grams or more of cocaine, each provide for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. 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; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division; and New Bedford Police Chief Paul Oliveira made the announcement. Valuable assistance was provided by the Massachusetts State Police and the Chicopee and Holyoke Police Departments. Assistant U.S. Attorneys Stephen Hassink and Nathaniel Yeager of the Narcotics and Money Laundering Unit are prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Car battery cocaine conspiracy lands convictionRead the Press Release
CORPUS CHRISTI, Texas – A 20-year-old Pharr resident has pleaded guilty to conspiring to possess with intent to distribute cocaine, announced Alamdar S. Hamdani.
Jesus Neftali Padilla directed drivers to travel north through Border Patrol (BP) checkpoints further into the United States. He admitted to directing the drug smuggling events and supplying cocaine. He also placed modified cocaine-filled batteries in hidden compartments to attempt to avoid detection.
One incident occurred Jan. 27, 2023, at the Sarita BP checkpoint when authorities encountered a vehicle with approximately four kilograms of cocaine hidden in its battery compartment.
Approximately two months later, a truck approached the same checkpoint, at which time law enforcement again found four kilograms of cocaine hidden in the same manner inside a truck.
The cocaine bundles were to be delivered to various locations including San Antonio and Houston.
Padilla admitted to coordinating both events.
U.S. District Judge Nelva Gonzales Ramos will impose sentencing Jan. 8, 2025. At the time, Padilla faces the rest of his life in prison and a possible $10 million maximum fine.
Padilla was permitted to remain on bond pending that hearing.
The Drug Enforcement Administration and BP conducted the investigation. Assistant U.S. Attorneys Patrick Overman and Izaak Bruce are prosecuting the case.
California Woman Sentenced to 8 Years for Attempting to Possess Methamphetamine for DistributionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Heather Carter, 50, Santa Monica, California, was sentenced August 22, 2024, by Chief U.S. District Judge James D. Peterson to 8 years in federal prison for attempting to possess methamphetamine intended for distribution. Carter pleaded guilty to this charge on March 14, 2024.
In January 2022, law enforcement officers received information that Carter regularly traveled to California to purchase methamphetamine and mailed the drugs back to Wisconsin for distribution.
On September 19, 2022, law enforcement learned that Carter was driving from California to Wisconsin. During the trip, Carter stopped at a post office in Washington, Utah, before continuing towards Wisconsin. An inspector with the United States Postal Inspection Service located the package that Carter had mailed from Utah, which was addressed to her residence in Coon Valley, Wisconsin. Investigators obtained a search warrant for the package and found that it contained cocaine, fentanyl, and 422 grams of methamphetamine.
On September 23, 2022, investigators removed the controlled substances and delivered the package to Carter at her Coon Valley address. Investigators arrested Carter after she took custody of the package.
In December 2022, while on federal pretrial release, Carter fled to California and a federal warrant was issued for her arrest. In August 2023, an officer from the University of California Los Angeles (UCLA) Police Department stopped Carter for a traffic violation and arrested her on the federal warrant. While searching Carter’s SUV, the UCLA police officer found fake identification documents, multiple license plates from various states, and approximately 800 grams of methamphetamine.
In sentencing Carter, Judge Peterson explained that she was a mid-level dealer who sold a dangerous mix of drugs. Judge Peterson noted that Carter immediately returned to criminality when she absconded.
The charge against Carter was the result of an investigation conducted by the Crawford County Sheriff’s Office, West Central Metropolitan Enforcement Group, Vernon County Sheriff’s Office, Coon Valley Police Department, Wisconsin Department of Justice Division of Criminal Investigation, United States Postal Inspection Service, UCLA Police Department, United States Marshals Service, and the Drug Enforcement Administration. Assistant U.S. Attorney Chadwick M. Elgersma prosecuted this case.
Atlanta Businessman Convicted of Defrauding Former NBA Players Dwight Howard and Chandler ParsonsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the conviction of CALVIN DARDEN, JR. for his role in defrauding former National Basketball Association (“NBA”) players Dwight Howard and Chandler Parsons out of $8 million. The defendant was found guilty following an 11-day jury trial before U.S. District Judge Vernon S. Broderick.
U.S. Attorney Damian Williams said: “Calvin Darden, Jr. exploited the trust of former NBA players Dwight Howard and Chandler Parsons, using elaborate lies and deception to line his own pockets with millions. This conviction serves as a stark reminder that financial deceit will not be tolerated. This Office remains committed to pursuing those who exploit others, and we will work tirelessly to ensure that justice is served.”
According to court documents and evidence presented at trial:
In the fraud against Howard, DARDEN, JR. deceived Howard into sending him $7 million, purportedly for the purpose of buying the Atlanta Dream (the “Dream”), a team in the Women’s National Basketball Association. DARDEN, JR. worked with Charles Briscoe, Howard’s agent, to perpetrate the fraud. DARDEN, JR. sent a “Vision Plan” to Howard about the purported purchase of the Dream. The Vision Plan falsely claimed that a number of celebrities and companies—including Tyler Perry, Issa Rae, Naomi Osaka, Aflac, and Starbucks—had agreed to be advisors to the Dream or to sponsor the Dream after Howard purchased it. In truth and in fact, those individuals and companies had never agreed to be advisors or corporate sponsors to the Dream and many had never even heard of DARDEN, JR. or the plan to purchase the Dream.
DARDEN, JR.’s father (“Relative-1”) is a prominent businessman. DARDEN, JR. repeatedly impersonated Relative-1 in an attempt to add credibility to his fraud scheme.
DARDEN, JR. directed Howard to send the $7 million to a shell company he controlled, in order to effectuate the purported purchase of the Dream. DARDEN, JR. then laundered the money through a number of different bank accounts he controlled. DARDEN, JR. did not spend any money on the purchase of the Dream. Instead, he spent the money on a $3.7 million mansion, a Rolls-Royce, a Lamborghini, a Porsche, Basquiat paintings, and other luxury goods for himself.
Howard learned that he did not in fact own the Dream only when ESPN reported that the Dream had in fact been sold to someone else.
In the fraud against Parsons, DARDEN, JR. deceived Parsons into sending him $1 million, purportedly for the purpose of loaning the money to James Wiseman, a prospect in the 2020 NBA draft. DARDEN, JR. and Briscoe falsely claimed to know Wiseman, and forged a document stating that Wiseman had agreed that Briscoe would be his agent in order to convince Parsons to send the money. In truth and in fact, DARDEN, JR. and Briscoe did not know Wiseman and did not send any of the money to Wiseman. Instead, DARDEN, JR. spent his cut of the fraud proceeds on watches, a Mercedes, and other personal expenses.
DARDEN, JR. was previously convicted of fraud in New York state in 2005. He was also convicted of fraud in the Southern District of New York in 2015. In the 2015 case, DARDEN, JR. committed frauds involving a purported purchase of Maxim magazine and a purported NBA exhibition game in Taiwan. In that prior fraud, DARDEN, JR. also impersonated Relative-1 in an attempt to add credibility to his fraud scheme.
* * *
DARDEN, JR., 50, of Atlanta, Georgia, was convicted of one count of conspiracy to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years; one count of wire fraud, which carries a maximum sentence of 20 years; one count of bank fraud, which carries a maximum sentence of 30 years; one count of conspiracy to commit money laundering which carries a maximum sentence of 20 years; and one count of money laundering, which carries a maximum sentence of 20 years.
The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as the sentencing of the defendants will be determined by the judge. DARDEN, JR. is scheduled to be sentenced by Judge Broderick on January 27, 2024, at 11:00 a.m.
Mr. Williams praised the outstanding work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Kevin Mead, Brandon C. Thompson, and William C. Kinder are in charge of the prosecution.
6 October 2024
U.S. Attorney Reminds Rest Homes About ADA Compliance Requirements for Patients with DisabilitiesRead the Press Release
BOSTON – The U.S. Attorney’s Office has issued a reminder to rest homes in Massachusetts about their obligations under the Americans with Disabilities Act (ADA) with respect to discrimination against persons with disabilities including opioid disorder and mobility restrictions.
Rest homes are residential care facilities that provide 24-hour supervision and supportive services, such as meals, activities, housekeeping and administration of medications to residents. These facilities provide an option for older adults and persons with disabilities in Massachusetts to receive supportive care in a community setting. There are approximately 60 facilities licensed as rest homes in Massachusetts.
Under the ADA, rest homes cannot refuse to admit persons with opioid use disorder (OUD) because they take medications to treat their OUD, such as buprenorphine (Suboxone) and methadone. To ensure compliance with the nondiscrimination provisions of the ADA, facilities must evaluate each applicant individually to determine suitability for admission, rather than enacting a blanket policy denying admissions to all persons treated with medications for OUD. Also under the ADA, rest homes must not deny admission to people with disabilities who use mobility aids such as walkers, crutches and canes, or manual or power wheelchairs or scooters, unless a particular type of device cannot be accommodated because of a legitimate safety requirement.
“It is against the law to deny someone admission to a facility based on the fact that they require mobility aids or are receiving treatment for opioid use disorder,” said Acting U.S. Attorney Levy. “These patients have the same rights as anyone else to seek out the appropriate residential setting to meet their needs. Nobody should be refused admission to a rest home simply because they are disabled.”
Since 2018, the Civil Rights Unit for the U.S. Attorney’s Office has entered into 10 settlement agreements with Massachusetts entities that operate skilled nursing facilities for refusing to admit individuals prescribed medications for OUD. The U.S. Attorney’s Office will continue to pursue similar enforcement actions against rest homes and other residential facilities in Massachusetts that fail to follow the law. Courts may impose civil penalties for ADA violations, which could be as high as $92,383 for a first violation, and potentially double that amount for subsequent violations.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
4 October 2024
Western District of Oklahoma's "Operation 922" Domestic Violence Initiative Remains a Powerful and Effective Tool to Combat Domestic Violent CrimeRead the Press Release
352 Charged and Nearly 500 Firearms Recovered
OKLAHOMA CITY – With October serving as Domestic Violence Awareness Month, the United States Attorney’s Office for the Western District of Oklahoma (USAO), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Oklahoma City Police Department want the community to know that “Operation 922” continues to be a powerful tool in the fight against domestic violence-related violent crime.
“Domestic violence remains at unacceptable, epidemic levels in Oklahoma. Through the power of federal prosecution, Operation 922 seeks to save the lives of domestic violence victims and responding law enforcement officers, while holding abusers accountable,” said United States Attorney Robert J. Troester. “Safe neighborhoods start with safe homes.”
“ATF’s top priority has always been to keep firearms out of the hands of people that shouldn’t have them. This is particularly true when it comes to domestic violence offenders within our communities. The mere presence of a firearm in a home where abuse is occurring significantly increases the risk of considerable harm,” said ATF Dallas Division Special Agent in Charge Jeffrey C. Boshek II. “Domestic abuse knows no boundaries, nor does the extent of the methods we will go to in order to stop it. We thank our partners, especially the United States Attorney’s Office in the Western District of Oklahoma, for their continued pursuit of justice through Operation 922. Together we are stronger.”
“With October being Domestic Violence Awareness Month, we recognize domestic abuse continues to affect individuals and families across our community,” said Oklahoma City Police Chief Ron Bacy. “We are committed to working with our federal partners in doing everything we can to protect victims of abuse, while ensuring those who inflict harm face the consequences.”
OPERATION 922 - STRATEGY
In 2018, the USAO launched “Operation 922” as a local strategy to reduce violent crime and target the subject matter of domestic violence. Domestic violence is found in all ethnic groups and all communities, including rich and poor, educated and undereducated, urban and rural, and employed and unemployed.
When domestic violence escalates to a point that it involves firearms, the result can be lethal for victims, responding law enforcement officers, or others (e.g., family members, mass shootings, bystanders, etc.). For these reasons, Operation 922 focuses on repeat domestic abusers and particularly violent offenders who violate federal law—primarily firearms offenses—and uses the power of federal prosecution to quickly remove abusers from the home, protect the victims over whom the abuser exerts control, and safeguard law enforcement responding to domestic calls. Although the USAO has used more than 20 separate federal statutes to hold abusers accountable, the cases most frequently used are federal firearms laws, mostly found in 18 U.S.C. § 922. This statute is the origin of the name “Operation 922.”
OPERATION 922 - IN ACTION
State, local, and tribal law enforcement and prosecutors know who the repeat domestic abusers and particularly violent offenders are in their respective communities. Through Operation 922, they have access to federal agents and prosecutors who ultimately determine whether the facts warrant federal prosecution.
Unlike in a typical state domestic violence case, when federal prosecutors bring federal firearms charges, the abuse is not critical to the charged offense. Because the focus of the crime centers on the illegal firearm offense, victims are often shielded from testifying and being subject to cross-examination regarding the abuse. However, federal prosecutors are nevertheless able to use instances of abusive behavior, victim protection orders, and prior violent conduct to seek to detain the defendant during the case. Federal prosecutors are also able to present this information at sentencing for consideration by the judge.
Because Operation 922 is victim-focused, federal prosecutors work closely with, and rely upon, the Palomar Family Justice Center and other service providers. These entities ensure that domestic violence survivors receive necessary wrap-around services far beyond the USAO’s capabilities.
OPERATION 922 - BY THE NUMBERS
Since Operation 922 was launched in 2018, 352 defendants have been charged with federal offenses, with those charges originating in 26 of the Western District of Oklahoma’s 40 counties. Of the 352 defendants charged:
- more than 94% have already pled guilty or been convicted at trial,
- more than 88% have already been sentenced with the average sentence of more than 74 months in federal prison, and
- 33% were known gang members from 43 different gangs, even though this initiative does not specifically target gangs.
In addition to removing the abuser from the home on federal charges, law enforcement has removed 495 firearms and more than 12,250 rounds of ammunition from those same homes.
Outside of the courtroom, federal prosecutors have provided training on Operation 922 to more than 2,500 federal, state, local, and tribal law enforcement officers and prosecutors across the country since 2018. Well over half of those trained were in Oklahoma. The USAO has also provided multiple trainings to other U.S. Attorney’s Offices across the country, some of which have implemented their own domestic violence initiative patterned after Operation 922.
For more information about Project Safe Neighborhoods, visit https://justice.gov/psn and https://justice.gov/usao-wdok.
Wakpala Woman Sentenced for Child AbuseRead the Press Release
ABERDEEN - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a Wakpala, South Dakota, woman convicted of Child Abuse. The sentencing took place on September 30, 2024.
Sheyenne Cadotte, 28, was sentenced to three years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. One of her conditions of supervised release prohibits Cadotte from living with children or contacting her own children unless approved in writing by her probation officer.
Cadotte was indicted for Child Abuse by a federal grand jury in June of 2022. She pleaded guilty on May 16, 2024.
In 2021, Cadotte lived with her four-year-old daughter in Kenel, South Dakota, which lies within the Standing Rock Sioux Indian Reservation. Cadotte’s daughter is a profoundly delayed non-verbal child who requires a feeding tube for sustenance. During the summer and fall of 2021, Cadotte starved her daughter, routinely skipping scheduled feedings and swapping whole milk for formula. Due to this neglect, the girl’s weight dropped from 34 pounds in May to 25 pounds in December, when she was removed from Cadotte’s care. The child is currently thriving in an institutional setting.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain serious crimes alleged to have occurred in Indian country be prosecuted in federal court as opposed to State court.
This case was investigated by the Bureau of Indian Affairs- Office of Justice Services and the FBI. Assistant U.S. Attorney Carl Thunem prosecuted the case.
Cadotte was immediately remanded to the custody of the U.S. Marshals Service.
Vicksburg Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Vicksburg man pled guilty to possession of a firearm by a convicted felon.
According to court documents, Marquette Cornell McCroy, 42, was found in possession of a firearm in Vicksburg following a traffic stop. McCroy, who was the driver and sole occupant of the vehicle, had previously been convicted of a felony and was therefore prohibited from possessing firearms.
McCroy threw the firearm on the ground as he attempted to flee the vehicle on foot.
McCroy is scheduled to be sentenced on February 6, 2025, and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee and Special Agent in Charge Robert Eikhoff of the Federal Bureau of Investigation made the announcement.
The Vicksburg Police Department and the Federal Bureau of Investigation are investigating the case.
Assistant U.S. Attorney Bert Carraway is prosecuting 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.
Unprovoked Shooting Lands Man in Prison for 20 YearsRead the Press Release
WASHINGTON – Tyrone Johnson, 43, of Washington, D.C., was sentenced today in D.C. Superior Court to 20 years in prison for shooting a stranger on August 30, 2022, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith of the Metropolitan Police Department.
Johnson was found guilty at trial in June 2024 of aggravated assault while armed, assault with a dangerous weapon, assault with significant bodily injury while armed, three counts of possession of a firearm during each of those crimes of violence, unlawful possession of a firearm, carrying a pistol without a license, possession of an unregistered firearm, and unlawful possession of ammunition. Superior Court Judge Marisa Demeo also ordered Johnson to serve five years of supervised release.
According to the government’s evidence, at around 5:40 a.m. on August 30, 2022, Johnson entered Starburst Plaza, located at the intersection of Benning Road NE and Bladensburg Road NE, and asked the victim if he could buy a cigarette from him. The victim did not have any cigarettes and told Johnson “no.” Johnson then told the victim to, “Give it up,” before taking out a handgun. Johnson then fired multiple times at the victim at close range, hitting him in his midsection. Johnson then ran into a nearby apartment complex. Police later identified Johnson through review of video surveillance, GPS records, and ballistics evidence that linked Johnson to this shooting and one committed one week before this offense.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also commended the work of those who helped on the case from the U.S. Attorney’s Office, including Victim/Witness Program Specialist Jennifer Allen, Supervisory Paralegal Specialist Renee Prather and Paralegal Specialists Crystal Waddy and Antoinette Sakamsa, IT Specialist Charlie Bruce, Supervisory Victim/Witness Service Coordinator Katina Adams and Victim/Witness Coordinators Maenylie Watson and Shanika McCollough, Assistant U.S. Attorney Dan Lenerz from the Appellate Division, as well as Assistant U.S. Attorney Sarah Folse and former Assistant U.S. Attorney Edward “Teddy” Dunn, who both investigated the case.
Finally, they commended the work of Assistant U.S. Attorneys Travis Wolf and Matthew Goldstein, who prosecuted the case.
United States Seeks to Forfeit 200,000 Tether (“USDT”) Cryptocurrency, Valued at $200,000, Fraudulently Transferred from the Virtual Currency Wallet of an Ohio VictimRead the Press Release
CLEVELAND - The United States filed a civil complaint in forfeiture against a total of 200,000 Tether (“USDT”) cryptocurrency, valued at approximately $200,000. In February 2024, bitcoin valued at approximately $340,000 was fraudulently transferred from the virtual currency wallet of an Ashtabula, Ohio, victim to a cryptocurrency address unknown to the victim. The victim did not initiate or authorize the transaction.
Many virtual currencies publicly record all of their transactions on what is known as a “blockchain.” The blockchain is essentially a distributed public ledger, run by the decentralized network of computers, containing an immutable and historical record of every transaction utilizing that blockchain’s technology. The blockchain records every virtual currency address that has ever received virtual currency and maintains records of every transaction and all the known balances for each virtual currency address.
Through several steps of “blockchain analysis,” investigators were able to trace approximately $200,000 of the funds that were fraudulently transferred out of the victim’s virtual currency wallet to two cryptocurrency addresses on the Ethereum blockchain. As part of this analysis, it was determined that the fraudulently transferred bitcoin had been converted by the fraudsters to USDT cryptocurrency. USDT is a “stablecoin,” a type of blockchain-based currency that is tied - or tethered - to a fiat currency and exists on several third-party blockchains, including Ethereum. Tether seeks to peg USDT to the U.S. Dollar at a 1:1 ratio.
In March, 2024, the USDT tokens - valued at approximately $200,000 - at the two cryptocurrency addresses were frozen by Tether Limited Inc. Thereafter, pursuant to a federal seizure warrant issued on July 31, 2024, 200,000 USDT tokens were transferred by Tether Limited to a U.S. law enforcement-controlled virtual currency wallet.
By the Complaint in Forfeiture filed on October 3, 2024, the United States seeks to forfeit the subject 200,000 USDT cryptocurrency. If successful, the United States would then seek to return the forfeited funds to the Ashtabula, Ohio, victim. It is specifically noted that the claims made in the Complaint in Forfeiture are allegations that the United States will need to prove by a preponderance of the evidence should the case proceed to trial.
The Federal Bureau of Investigation (FBI), Cleveland Field Office, is actively investigating cryptocurrency fraud schemes perpetrated on victims throughout the United States, including in the Northern District of Ohio.
This case is being handled by Assistant U.S. Attorneys James L. Morford and Daniel J. Riedl.
View Complaint in Forfeiture
U.S. Attorney's Office and FBI Announce Upgraded Charges Against Zuni Man After Victim Dies Following Initial Assault CaseRead the Press Release
ALBUQUERQUE – A Zuni man was charged by indictment with voluntary manslaughter after a confrontation at a residence in Zuni escalated into violence.
Joey Luarkie, 24, an enrolled member of the Zuni Pueblo, appeared before a federal judge today and will remain in custody pending trial, which has not been scheduled.
According to court records, on Feb. 4, 2024, Luarkie was at the home of Jane Doe in Zuni when her boyfriend, John Doe, arrived. Jane Doe and John Doe went outside and argued for a short time before John Doe entered the residence to get some belongings. Luarkie followed John Doe and Jane Doe into her bedroom, where a physical altercation allegedly ensued, and Luarkie allegedly stabbed John Doe in the throat.
John Doe exited the residence and collapsed in the front yard, where responding officers from the Zuni Police Department found Jane Doe performing CPR on him. John Doe was transported to Zuni Health Center before being life-flighted to the University of New Mexico in Albuquerque where he underwent two emergency surgeries.
Luarkie initially faced charges of assault with a dangerous weapon and assault resulting in serious bodily injury, but after John Doe died from his injuries, prosecutors upgraded the charges to voluntary manslaughter through an indictment.
If convicted, Luarkie faces a maximum of 15 years in prison.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Gallup Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant United States Attorney Nicholas J. Marshall is prosecuting the case.
View the Indictment (Luarkie).pdfAn indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
# # #
U.S. Attorney's Office Announces Guilty Plea in Fatal Shooting Case Involving Farmington ManRead the Press Release
ALBUQUERQUE – A Farmington man pleaded guilty in federal court to second degree murder and assault resulting in serious bodily injury after he fired a shotgun into a group of people, resulting in one death and one serious injury.
According to court documents, on September 5, 2021, Hanson Tsosie, 33, an enrolled member of the Navajo Nation, fired a shotgun into a group of people near Nenahnezad, New Mexico, killing Jane Doe 1 and seriously injuring Jane Doe 2.
Hanson will remain in custody pending sentencing, which has not yet been scheduled. At sentencing, Hanson faces a range of eight to 25 years in prison, followed by five years of supervised release.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with the assistance of the Navajo Police Department and Department of Criminal Investigations. Assistant U.S. Attorney Mark A. Probasco and Matthew J. McGinley are prosecuting the case.
View the Plea Agreement (Tsosie).pdf# # #
U.S. Attorney Simonton Alerts Public to Charity Scams in Wake of Hurricane HeleneRead the Press Release
United States Attorney Leigha Simonton issued a public safety alert today advising the public to be vigilant to hurricane relief fraud in the wake of Hurricane Helene.
“North Texans are some of the most generous people I know,” said U.S. Attorney Leigha Simonton, the Northern District of Texas’ chief federal law enforcement officer. “We’ve all been impacted by the devastating images of Helene’s aftermath and are looking for ways to help. The best way to ensure your donations make a difference is to route them through a legitimate charity. Please, be vigilant for scams. Unfortunately, some fraudsters will stop at nothing to make a quick buck – even if it means exploiting a natural disaster and preventing funds from reaching the actual victims who are in need.”
On Sept. 26, Hurricane Helene made landfall in Florida’s Big Bend Region and quickly caused major devastation there and across states including Georgia, South Carolina, North Carolina, Tennessee, and others.
As we have seen in the wake of previous national disasters, fraudsters will target victims of the storm along with citizens across the country who want to do what they can to assist individuals affected by the storm.
Unfortunately, criminals exploit disasters for their own gain by sending fraudulent communications through email or social media and by creating deceiving websites designed to solicit contributions.The public should exercise diligence before giving contributions to anyone soliciting donations or individuals offering to assist those affected by Hurricane Helene. Solicitations can originate from phone calls, texts, social media, e-mail, door-to-door collections, flyers, mailings, and other similar methods. Before making a donation to benefit victims of Hurricane Helene, individuals should adhere to certain guidelines, including:
- Make contributions directly to known organizations rather than relying on others to make the donation on your behalf.
- Do not be pressured into making contributions as reputable charities do not use such tactics.
- Do not respond to any unsolicited communications (e.g., e-mails and texts), and never click links contained within those messages because they may be targeting your personal information, to include bank and credit card account information, and other identifiers such as dates of birth and social security numbers.
- Rather than clicking on a purported link to a charity, verify its legitimacy by utilizing various Internet-based resources that may assist in confirming whether the organization is a valid charity.
- Beware of organizations with copy-cat names similar to but not exactly the same as those of reputable charities.
- Avoid cash donations if possible. Pay by credit card or write a check directly to the charity. Do not make checks payable to individuals.
- Know that legitimate charities do not normally solicit donations via money transfer services, and their website will normally end in .org rather than .com.
- Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.
The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina to deter, investigate, and prosecute fraud in the wake of disasters. More than 50 federal, state, and local agencies participate in the NCDF, which reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Complaints of fraud may be reported online at www.justice.gov/DisasterComplaintForm. Complaints may also be reported to the NCDF at (866) 720-5721, a hotline that is staffed 24 hours a day, 7 days a week.
U.S. Attorney Leary Warns About Hurricane Helene Charity ScamsRead the Press Release
MACON, Ga. – U.S. Attorney Peter Leary is warning the public to be vigilant to fraud attempts in the wake of Hurricane Helene.
“Communities across the Middle District of Georgia and the Southeast are reeling from the devastation caused by Hurricane Helene. It pains me that there are criminals who would exploit storm victims trying to rebuild their lives and take advantage of people’s goodwill toward their struggling neighbors,” said U.S. Attorney Peter D. Leary for the Middle District of Georgia. “Let this serve as a warning to anyone attempting to scam Hurricane Helene victims and the people helping those in need: Our office will prosecute fraudsters to the fullest extent allowed under law.”
On Sept. 26, Hurricane Helene made landfall in Florida’s Big Bend Region and quickly caused major devastation there and across states including Georgia, South Carolina, North Carolina, Tennessee, and others. As we have seen in the wake of previous national disasters, fraudsters will target victims of the storm along with citizens across the country who want to do what they can to assist individuals affected by the storm. Unfortunately, criminals exploit disasters for their own gain by sending fraudulent communications through email or social media and by creating deceiving websites designed to solicit contributions.
The public should exercise diligence before giving contributions to anyone soliciting donations or individuals offering to assist those affected by Hurricane Helene. Solicitations can originate from phone calls, texts, social media, e-mail, door-to-door collections, flyers, mailings and other similar methods. Before donating to benefit victims of Hurricane Helene, individuals should adhere to certain guidelines, including:
- Make contributions directly to known organizations rather than relying on others to make the donation on your behalf.
- Do not be pressured into making contributions as reputable charities do not use such tactics.
- Do not respond to any unsolicited communications (e.g., e-mails and texts) and never click links contained within those messages because they may be targeting your personal information, to include bank and credit card account information, and other identifiers such as dates of birth and social security numbers.
- Rather than clicking on a purported link to a charity, verify its legitimacy by utilizing various Internet-based resources that may assist in confirming whether the organization is a valid charity.
- Beware of organizations with copy-cat names that are similar to but not exactly the same as those of reputable charities.
- Avoid cash donations if possible. Pay by credit card or write a check directly to the charity. Do not make checks payable to individuals.
- Know that legitimate charities do not normally solicit donations via money transfer services, and their website will normally end in .org rather than .com.
- Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.
The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina to deter, investigate and prosecute fraud in the wake of disasters. More than 50 federal, state and local agencies participate in the NCDF, which reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Complaints of fraud may be reported online at www.justice.gov/DisasterComplaintForm. Complaints may also be reported to the NCDF at (866) 720-5721, a hotline that is staffed 24 hours a day, 7 days a week.
U.S. Attorney Handberg Cautions Against Disaster Fraud Following Hurricane HeleneRead the Press Release
Tampa, FL – In the wake of the extreme devastation caused by Hurricane Helene, U.S. Attorney Roger B. Handberg reminds residents that as with any major disaster, there are unscrupulous thieves who seek to take advantage of the environment to line their own pockets.
“As Florida continues to recover in the aftermath of the devastating Category 4 Hurricane Helene, it’s especially important to be vigilant against fraudsters who seek to profit from natural disasters,” stated U.S. Attorney Handberg. “Our office stands ready to assist in holding accountable individuals who would take advantage of disaster victims. We are committed to aggressively prosecuting those who commit this type of fraud.”
The National Center for Disaster Fraud (NCDF) is the result of a partnership between the U.S. Department of Justice and various law enforcement and regulatory agencies to form a national coordinating agency within the Criminal Division of the Department of Justice to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for the victims of such fraud.
The NCDF was established in 2005 in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. It is the national coordinating agency for all man-made and natural disasters. NCDF’s Gulf Coast headquarters is located in Baton Rouge, Louisiana.
In the wake of Hurricane Helene, there is no indication that criminals will slow down their efforts to commit fraud on individuals already victimized by the storm. The following examples of disaster-related fraud are based on over 220,000 historical complaints submitted to the NCDF:
- Fake charities immediately soliciting donations using the names of well-known charities or appearing reasonable as related to a disaster
- Individuals impersonating government officials and insurance company representatives advising that disaster assistance will be made available should the potential victim provide a sum of money or personal identifiers such as date of birth, social security number, and bank account information (name of financial institution, routing number, and account number)
- Individuals soliciting victims to invest in non-existent businesses and ventures offering recovery efforts such as cleanup, rebuilding, and making structures, such as homes, more resistant to future disasters by elevating structures to minimize future flood risks
- Individuals overcharging for goods and services needed by victims of disaster, also known as price-gouging
In addition, based on the type of disaster, individuals are frequently victimized by theft of property from businesses and residences abandoned because of a disaster (either pre-disaster evacuation or to obtain living accommodations because of damaged apartments and homes).
Recommended measures to avoid becoming a victim of disaster fraud:
- Fake charities soliciting donations either using the names of well-known charities or appearing to be related to the disaster.
- Scammers impersonating government officials, offering disaster relief in exchange for personal information or money.
- Individuals posing as insurance provider representatives to collect payments or personal information.
- Fraudsters promising expedient home repairs requiring upfront or partial payment.
- Price-gouging for goods and services needed by victims of disaster.
Take these measures to protect yourself from disaster fraud:
- Donate only to well-known charities after verifying them through trusted sources.
- Do not respond to unsolicited requests for donations via email, phone, or text, and do not click on links in unsolicited messages.
- Do not assume that online or social media charity solicitations are legitimate.
- Use credit cards or checks for donations. Don’t send cash or use wire transfers or mobile payment apps.
- Remember that government agencies and legitimate organizations will never ask for money or personal information via phone or email.
- Beware of contractors who knock on your door or make unsolicited contact, and/or make promises that sound too good to be true.
- Cautiously rely on recommendations from family and friends.
- Do not be forced into making repair decisions by a high-pressure contractor.
Individuals who have been targeted by fraudsters or been the victim of disaster-related fraud are encouraged to contact the NCDF at (866) 720-5721 or online at www.justice.gov/DisasterComplaintForm.
U.S. Attorney Francis M. Hamilton III Announces over $5.1M in Justice Department Grants to Address ReentryRead the Press Release
KNOXVILLE, Tenn. – U.S. Attorney Francis M. Hamilton III today announced awards of over $5.1 Million in Department of Justice grants to help reentry in the Eastern District of Tennessee. The grants were awarded by the Department’s Office of Justice Programs.
The following organizations received funding:
- The City of Chattanooga - $1,999,187
- Hamilton County - $844,294
- Helen Ross McNabb - $825,000
- The City of Knoxville - $700,000
- The Young Women’s Christian Association – $550,000
- County of Bedford - $150,000
- The City of Johnson City - $13,657
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about these and other OJP awards can be found on the OJP Grant Awards Page.
About the Office of Justice Programs
The Office of Justice Programs provides federal leadership, grants, training, technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime; advance equity and fairness in the administration of justice; assist victims; and uphold the rule of law. More information about OJP and its program offices – the Bureau of Justice Assistance, Bureau of Justice Statistics, National Institute of Justice, Office of Juvenile Justice and Delinquency Prevention, Office for Victims of Crime, and SMART Office – can be found at www.ojp.gov.
###
U. S. Attorney Prim F. Escalona Announces over $30 Million in Justice Department Grants to Address and Support the Needs of Residents of the Northern District of AlabamaRead the Press Release
BIRMINGHAM, Ala. – The Department of Justice’s Office of Justice Programs has recently announced new grant-funded resources and support for a variety of law enforcement, crime prevention, victim assistance, and emergency management programs across the Northern District of Alabama.
United States Attorney Escalona stated, “These awards reflect the many ways that the Department of Justice is engaged to improve the lives of the residents of this District. We are proud to support the work of our state, local, and community partners across our District and our whole state in a wide range of activities including reducing violent crime, assisting crime victims, and supporting reentry and crime prevention efforts.”
Some of the recipients include:
Alabama A&M University will receive $300,000 for campus security upgrades.
The City of Birmingham will receive $4,200,000 for additional cameras and intelligence resources that provide information to its Real Time Crime Center.
The Blount County Sheriff’s Office will receive $400,000 for additional patrol vehicles.
The City of Jacksonville, Alabama will receive $218,728 to update and supplement law enforcement intelligence and communications resources.
Jefferson County, Alabama will receive $833,000 to support the treatment of substance abuse disorders for people involved within the local justice system. Also, Jefferson County will receive $1,000,000 for Veterans’ Treatment Court services that will be provided via the University of Alabama of Birmingham.
The Jefferson County District Attorney’s Office – Birmingham Division – will receive $500,000 to enhance its investigations and prosecutions of domestic violence cases.
The Madison County Sheriff’s Office will receive $1,020,00 for the purchase and outfitting of at least15 new patrol vehicles.
Morgan County, Alabama will receive $595,000 for law enforcement equipment to enhance responses to active shooter incidences.
The National Child Advocacy Center in Huntsville, Alabama will receive $1,100,000 to provide technical assistance and support to child advocacy across the nation.
Sheffield, Alabama will receive $495,000 to purchase and equip police vehicles.
Talladega College will receive $500,000 to increase campus-based resources to respond to domestic violence, dating violence, sexual assault, and stalking.
Along with the resources provided to many communities and agencies within the Northern District of Alabama, the Department of Justice has provided resources to various State of Alabama agencies to administer numerous statewide public safety and victim support initiatives.
The Alabama Department of Commerce will receive $741,975 to collaborate with The Dannon Project for opioid recovery and intervention youth programming.
The Alabama Department of Economic and Community Affairs (ADECA) will receive $11,850,932 for Victims of Crime Assistance. ADECA will also receive $2,555,663 to distribute for crisis intervention programming.
The Alabama Law Enforcement Agency will receive $3,097,598 to enhance criminal background check and justice statistics systems.
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about these and other OJP awards can be found on the Office of Justice Programs Awards.
Texas Couple Sentenced to Federal Prison for COVID-Era PPP Loan FraudRead the Press Release
AUSTIN, Texas – A Georgetown couple was sentenced in federal court to a combined 32 years in federal prison for their roles in a Paycheck Protection Program (PPP) fraud scheme.
According to court documents, Michael Fullerton, 51, and Tiffany Fullerton, 48, along with two other co-conspirators, used one existing and three dormant and expired business names to submit six fraudulent PPP loan applications for a total exceeding $3.5 million. Five of those applications were funded, allowing the defendants to receive approximately $3 million in PPP funds. The funds were used in an attempt to start a business in Oklahoma consisting of a marijuana grow and dispensary, a bar and grill, and an auto/boat repair shop. Additionally, the funds were used to purchase a motor home, luxury watches, a boat, and other personal expenditures.
In March, Michael Fullerton pleaded guilty to 11 counts in a superseding indictment charging him with multiple counts related to bank and wire fraud, along with aggravated identity theft. The following month, on April 29, Tiffany Fullerton was found guilty in a federal jury trial for one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering.
Michael Fullerton was sentenced to 286 months in federal prison for all 11 counts. Tiffany Fullerton was sentenced to 108 months in federal prison. The couple was also ordered to pay $3,027,526.11 in restitution.
“Michael and Tiffany Fullerton were convicted of defrauding our federal government and banks during the height of the COVID-19 pandemic,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “They took advantage of a national emergency to enrich themselves. This U.S. Attorney’s Office will not hesitate to hold fraudsters who abuse public programs accountable.”
“The Fullertons and their co-conspirators created a complex scheme to fraudulently obtain Paycheck Protection Program loans intended to help small businesses affected by the COVID-19 pandemic. They falsified payroll records, banking details, and other financial documents to obtain the funds. The stolen money became their playground, purchasing luxury watches, cars and other goods,” said Lucy Tan, acting Special Agent in Charge of IRS Criminal Investigation’s Houston Field Office. “Financial investigations follow the money, and it always leaves a trail. If you’re committing the crime, it’s only a matter of time before you’re caught and sent to prison.”
“The defendants undermined the integrity of the tax administration system, defrauding taxpayers of millions of dollars,” said Acting Special Agent in Charge Kyle Kuykendall for the Treasury Inspector General for Tax Administration. “Public confidence in our country’s tax administration system is essential, and TIGTA will continue wo work closely with our law enforcement partners and prosecutors to vigorously investigate and pursue anyone who attempts to challenge it.”
IRS-CI and TIGTA investigated the case.
Assistant U.S. Attorneys Keith Henneke and G. Karthik Srinivasan prosecuted the case.
###
Slidell Man Guilty of Possession of Child Sexual Abuse MaterialsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that on October 2, 2024 CHRISTOPHER MICHAEL SOMMERS (“SOMMERS”), age 42, of Slidell, La., pled guilty to Possession of Materials Involving the Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and (b)(2). SOMMERS faces a mandatory minimum sentence of not less than ten (10) years imprisonment and a maximum sentence of not more than twenty (20) years, and/or a fine of up to $250,000.00, or the greater of twice the gross gain to the defendant or twice the gross loss to any person of the offense. SOMMERS also faces a term of supervised release of not less than five (5) years and up to life, after his release from prison. Finally, SOMMERS faces payment of a $100 mandatory special assessment fee. The defendant’s sentence is subject to a sentencing enhancement of a ten-year mandatory minimum because of a previous conviction on December 13, 2011, in the United States District Court, Eastern District of Louisiana, of Receipt of Child Pornography, in violation of Title 18, United States Code, Section 2252(a)(2).
According to court documents, the case against SOMMERS developed from an undercover online investigation by the Apache Junction Police Department in Arizona into those individuals who were sharing Child Sexual Abuse Material (“CSAM”). As a result, on April 3, 2024, Homeland Security Investigations (“HSI”) special agents, along with the St. Tammany Parish Sheriff’s Office and the Louisiana Bureau of Investigation, executed a federal search warrant at SOMMERS’s residence in Slidell. During the execution of the search warrant, SOMMERS was found in possession of a Samsung 256 gigabyte USB thumb drive containing 950 images and videos depicting the sexual victimization of minors.
Sentencing in this matter is scheduled for December 18, 2024 before United States District Judge Jane Triche Milazzo.
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 United States Attorney’s 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.projectsafechildhood.gov.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the U.S. Department of Homeland Security, Homeland Security Investigations; the St Tammany Parish Sheriff’s Office; The Apache Junction Police Department; and the Louisiana Bureau of Investigation, with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Six Men Indicted in Connection with “ATM Jackpotting” ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Joelvis Jose Rivas-Solorzano, Silvio Fabian-Ordonez, Jose Medina, Jose Navarro, Deivy Santiago Pena-Rojas, Jefferson Jose Marquez-Marquez, all citizens of Venezuela, were indicted for conspiracy to commit bank larceny, and bank larceny related to their involvement in a nationwide automatic teller machine (ATM) Jackpotting Scheme. 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.
“ATM jackpotting” is the exploitation of physical and software vulnerabilities in ATMs that result in the machines dispensing cash to unauthorized fraudsters. Typically, during ATM jackpotting events one or two people use a key to access the inside of an ATM to install a foreign device that allows a hacker to assume control of the ATM. After the ATM is compromised, groups of individuals arrive at the ATM to conduct transactions and the ATM dispenses its cash reserves, which are untethered to any bank account.
In December 2023, several financial institutions in the Northern District of New York became victims of an ATM Jackpotting scheme. In total, over $400,000.00 was stolen during four separate ATM jackpotting events in Onondaga, Broome, and Chenango counties.
Joelvis Jose Rivas-Solorzano, Silvio Fabian-Ordonez, Jose Medina, Jose Navarro, and Deivy Santiago Pena-Rojas have all been arrested and are in custody in the Northern District of New York. Jefferson Jose Marquez-Marquez is in custody in South Dakota and is awaiting transport to the Northern District of New York.
The charges to which Joelvis Jose Rivas-Solorzano, Silvio Fabian-Ordonez, Jose Medina, Jose Navarro, Deivy Santiago Pena-Rojas, Jefferson Jose Marquez-Marquez face carry a maximum sentence of 5 or 10 years, a fine of up to $250,000 million, and a supervised release term of up to 3 years. The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the FBI Albany Field Office, with assistance from United States Immigration and Customs Enforcement (ICE), United States Customs and Border Protection (CBP), United States Secret Service, the New York State Police, the Onondaga County Sherriff’s Office, the Chenango County Sherriff’s Office, the Broome County Sherriff’s Office, the Town of Cicero Police Department, the Syracuse Police Department, the Binghamton Police Department, the Norwich Police Department, the Dearborn, Michigan Police Department, and the Belle Fourche, South Dakota Police Department. Special Assistant United States Attorney Paul Tuck is prosecuting the case.
Saratoga County Business Owner Sentenced for Tax EvasionRead the Press Release
ALBANY, NEW YORK – Bruce Bochette, age 67, of Charlton, New York, was sentenced today to 1 year of probation, to pay a $20,000 fine, and to pay $219,706 in restitution, for evading taxes on unreported business income.
United States Attorney Carla B. Freedman and Thomas Fattorusso, Executive Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), New York Field Division, made the announcement.
Bochette operates a commercial painting business. In pleading previously guilty, he admitted that for tax years 2017 through 2021, he evaded income taxes by depositing checks, and portions of checks, into his personal account that were payments from his company’s commercial painting clients. Bochette did not report this income to the IRS, on either his company’s tax returns or his personal tax returns, and did not pay taxes on it.
Bochette admitted to not reporting $825,719.56 in business income, and to evading the assessment and payment of $219,706 in taxes. Bochette has already made a full restitution payment in the amount of $219,706.
IRS-CI investigated this case and Assistant U.S. Attorney Michael Barnett prosecuted this case.
San Diego Restaurant Owner Convicted of Tax and COVID-Relief Fraud SchemesRead the Press Release
NEWS RELEASE SUMMARY – September 18, 2024
SAN DIEGO – A federal jury convicted San Diego restaurant owner Leronce Suel of wire fraud, conspiracy, and tax crimes for providing bogus information in applications for COVID relief programs and failing to report more than $1.7 million in revenue to the IRS.
According to court documents and evidence presented at trial, Suel was the majority owner of Rockstar Dough LLC and Chicken Feed LLC, both of which operated restaurants in the San Diego area, including Streetcar Merchants in the North Park neighborhood.
The jury found that Suel conspired with his business partner to underreport over $1.7 million in gross receipts on Rockstar Dough LLC’s 2020 corporate tax return and COVID relief applications. Suel’s businesses also fraudulently received approximately $1,773,245 million in COVID-related Paycheck Protection Program loans and Restaurant Revitalization Fund grants by falsely certifying his businesses were eligible and that his businesses would use the money appropriately. Instead of using the COVID-19 relief program funds on eligible expenses, Suel and his co-conspirator made substantial cash withdrawals from their business bank accounts and purchased a home in Arkansas. As part of their conspiracy, Suel concealed more than $2.4 million in cash in his bedroom.
Suel failed to report income he received from his business, including millions of dollars in cash and personal expenses paid for by the businesses. In 2023, Suel also filed original and amended tax returns for prior years that included false depreciable assets and business losses.
“Shirking taxes, lying to the IRS, and stealing COVID relief funds - these are not victimless crimes,” said U.S. Attorney Tara McGrath. “This jury saw through greed and deceit to ensure protection of federal programs designed to support our infrastructure and serve those in need.”
“For more than a decade, Mr. Suel evaded his tax responsibilities both as an individual and as a business owner,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Even worse than evading his tax obligations, during the COVID pandemic, Mr. Suel fraudulently obtained grants and loans intended to help businesses struggling in the wake of the pandemic and used those funds for personal gain. Paying your fair share is central to our democracy, and IRS Criminal Investigation will continue to pursue those who evade their financial responsibilities to their fellow Americans.”
After conviction, Suel stipulated to forfeit $1,466,918 from the $2.4 million seized as proceeds traceable to his pandemic relief fraud.
Suel is scheduled to be sentenced on December 13, 2024.
This case is being prosecuted by Assistant U.S. Attorney Christopher Beeler and Trial Attorney Julia Rugg of the U.S. Department of Justice Tax Division.
DEFENDANT Case Number 23-cr-00965
Leronce Suel Age: 46 San Diego, CA
SUMMARY OF CHARGES
Wire Fraud Conspiracy – Title 18, U.S.C., Section 1349
Maximum penalty: Thirty years in prison and $1 million fine
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum Penalty: Thirty years in prison and $1 million fine
Conspiracy to Defraud the U.S. – Title 18, U.S.C., Section 371
Maximum Penalty: Five years in prison and $250,000 fine
Tax Evasion – Title 26, U.S.C., Section 7201
Maximum Penalty: Five years in prison and $100,000 fine
Filing False Tax Returns – Title 26, U.S.C., Section 7206(1)
Maximum Penalty: Three years in prison and $100,000 fine
Failure to File –Title 26, U.S.C., Section 7203
Maximum Penalty: One year in prison and $25,000
INVESTIGATING AGENCY
IRS Criminal Investigations
Richmond man sentenced to prison after brandishing a machinegun in social media livestreamRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced yesterday to four years in prison for possession of a machinegun.
According to court documents, on April 7, 2023, during a livestream on social media, Perry Ike Mason, 29, entered a vehicle and removed from his jacket a .40 caliber handgun equipped with a machinegun conversion device (MCD), a weapon-mounted laser, and an extended magazine.
Detectives with the Richmond Police Department (RPD) viewed the video and learned that there was an outstanding arrest warrant for Mason from Chesterfield County for unlawful possession of a firearm by a felon in August 2022. Mason later posted another video brandishing the same firearm.
Detectives identified Mason’s location at a restaurant in the Chesterfield Towne Center. After arriving at the location, they observed Mason entering a vehicle in the parking lot and followed him to a residence on Kimrod Road in Richmond. Mason exited the vehicle and proceeded to a shed behind the residence, where officers arrested him on the outstanding warrant.
The detectives searched the shed and discovered the firearm, which still was equipped with the extended magazine, laser, and MCD. The firearm was loaded with 31 rounds in the magazine and another in the chamber. The MCD rendered the semi-automatic firearm capable of fully automatic fire.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; James VanVliet, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, Jason S. Miyares, Attorney General of Virginia; and Rick Edwards, Chief of Richmond Police, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne.
Assistant U.S. Attorney Stephen W. Miller and former Special Assistant U.S. Attorney Devon E. Schulz, an Assistant Attorney General with the Virginia Attorney General’s Office, 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-131.
Readout of Deputy Attorney General Lisa Monaco’s Trip to the G7 Interior Minister’s Meeting in ItalyRead the Press Release
Deputy Attorney General (Deputy AG) Lisa Monaco traveled to Mirabella Eclano, Italy, on Oct. 3-4 for the G7 Interior Ministers Meeting, where she highlighted the importance of international partnerships in supporting the rule of law and protecting against persistent global threats.
The Deputy AG described the current threat environment to her G7 colleagues as a time where the threats have never been more diverse — from more aggressive actors — and all fueled by international conflicts and emerging, disruptive technologies — especially cyber and AI. She urged the ministers to stay united against threats posed by autocratic nations like Russia, Iran, and China looking to project power at home and abroad through transnational repression, malicious cyber activity, the abuse of emerging technologies, such as AI and cryptocurrencies, and malign foreign influence — especially in a global election year.
The Deputy AG joined her colleagues in committing to deepening international collaboration against these threats, as well as against terrorism, malign cyber actors, and synthetic drugs such as fentanyl. She shared how the Justice Department is targeting the broader ecosystem that allows cyber criminals and malign nation state actors to flourish — by prioritizing disruptions and placing victims first — and also highlighted how the Department is tackling all aspects of the deadly fentanyl supply chain, in every part of the globe, to protect innocent lives.
Ahead of the one-year anniversary of Hamas’s brutal October 7 terrorist attacks in Israel, the Deputy AG and Ministers unequivocally condemned terrorism and violent extremism in all forms, both online and offline. They pledged to continue the information sharing and law enforcement partnerships that are integral to thwarting acts of terror around the world.
The Deputy AG and ministers also met virtually with Ukrainian Interior Minister, Ihor Klymenko, and reaffirmed their unwavering support for Ukraine and their resolve to hold Russia accountable for the war crimes and atrocities it is perpetrating in its war of aggression. She reiterated the need for sustained coordination in these efforts and underscored the Justice Department’s continued efforts to deprive the Russian war machine of funding and supplies. She joined the other ministers in announcing new efforts to help Ukraine build the rule of law and fight corruption, including through a new G7 Anti-Corruption Task Force.
As part of their efforts to build cooperation and coordination among the G7 to promote the rule of law around the world, the Deputy AG and Ministers discussed common frameworks to harness the promise of AI while also protecting against the perils of its abuse. The Deputy AG cautioned that AI is changing how crimes are committed, from intensifying cyberattacks, to making fraud scams more believable, to creating child exploitative material, to supercharging malign foreign influence in elections.
On the margins of the G7 Ministerial, the Deputy AG held several bilateral meetings, including with United Kingdom Home Secretary Yvette Cooper; Canadian Minister of Public Safety Dominic Leblanc; German Minister of Interior Nancy Faeser; and European Commissioner for Home Affairs Ylva Johansson. The Deputy AG also met with the G7 host, Italian Minister of the Interior Matteo Piantedosi, to thank him for his leadership of the G7 and his hospitality. In all these discussions, the Deputy AG reinforced the steadfast commitment of the Justice Department to partnerships that uphold the rule of law and strengthen democracies around the world.
Italian Minister of the Interior Matteo Piantedosi welcoming Deputy AG Monaco to the G7 Ministerial. Photo credit: Italian Ministry of the Interior. Deputy AG Monaco with UK Home Secretary Yvette Cooper. Photo credit: UK Home Office. Deputy AG Monaco with G7 leaders. Photo credit: Italian Ministry of the Interior. Deputy AG Monaco meeting with Italian Minister of the Interior Matteo Piantedosi. Photo credit: Italian Ministry of the Interior.Rapid City Man Sentenced for Involuntary ManslaughterRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Camela C. Theeler has sentenced a Rapid City, South Dakota, man convicted of Involuntary Manslaughter. The sentencing took place on October 2, 2024.
Lionel Morrison, age 53, was sentenced to three years of probation and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Morrison was indicted for the charge by a federal grand jury in July of 2023. He pleaded guilty on June 7, 2024.
In May of 2023, Morrison, who was intoxicated, was driving a vehicle just north of Pine Ridge when he lost control of the vehicle. After losing control of the vehicle, Morrison overcorrected the path of the vehicle causing it to roll three times causing the front passenger to be ejected from the vehicle. The victim ultimately succumbed to his injuries on the way to the hospital.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in Federal court as opposed to State court.
This case was investigated by the Oglala Sioux Tribe – Department of Public Safety and the FBI. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Protestor Federally Charged with Damaging U.S. Government Property at Union StationRead the Press Release
WASHINGTON – Zaid Mohammed Mahdawi, 26, of Richmond, Virginia, was arrested this morning in connection with a federal criminal complaint charging him with destruction of federal property. The complaint alleges that Mahdawi spray-painted the monument at Columbus Circle in front of Union Station in Washington, D.C., on July 24, 2024.
The charges were announced by U.S. Attorney Matthew M. Graves, Special Agent in Charge Sanjay Virmani of the FBI Washington Field Office Counterterrorism Division, and Chief Jessica M. E. Taylor of the U.S. Park Police (USPP).
Mahdawi will make his initial appearance this afternoon in the U.S. District Court for the Eastern District of Virginia. He is charged with destruction of government property.
“Politically motivated destruction or defacing of federal property is not protected speech, it is a crime,” said U.S. Attorney Graves. “Anyone engaged in such conduct in the District of Columbia should expect to get federally prosecuted. Our community has zero tolerance for those who want to destroy or deface our monuments and other federal property.”
“The FBI does not conduct investigations based solely on First Amendment activities,” said Special Agent in Charge Sanjay Virmani of the FBI Washington Field Office Counterterrorism Division. “The FBI investigates people only when we receive information or allegations that they are, or may be, violating federal law or posing a risk to national security. We are committed to working closely with our local, state, and federal law enforcement partners to bring to justice any individuals who commit federal crimes, including destruction of federal property.”
According to court documents, on July 24, 2024, an organization was granted a permit to demonstrate in the area of Columbus Circle, located at Massachusetts Ave. NE, and E St. NE, directly in front of Union Station. From about 3 p.m. until 5 p.m., demonstrators who had gathered in Columbus Circle pulled down flags affixed to the flagpoles; burned flags and objects; sprayed graffiti on multiple statutes and structures; and interfered with law enforcement’s ability to place individuals under arrest.
Between 3:30 p.m. and 3:45 p.m., an individual later identified as Mahdawi climbed the monument located in the center of Columbus Circle, which was captured on video footage filmed by USPP from an observation post looking down at Columbus Circle. The same event was captured in open-source video and photos later posted to various internet platforms. After climbing to a ledge, Mahdawi began to spray paint the monument.
Footage obtained from a review of open-source videos posted to X (formerly Twitter) showed Mahdawi using red spray paint to write “HAMAS IS COMIN” on the Columbus statue. After completing the phrase, Mahdawi spray-painted an inverted red triangle above the slogan.
On July 30, 2024, the U.S. Park Police issued a bulletin seeking information on five individuals who engaged in criminal activity on July 24, 2024. The same day the bulletin was posted, the U.S. Park Police received a tip that they forwarded to the FBI. Through that tip and other leads, FBI was able to identify Mahdawi. Additionally, law enforcement databases revealed that Mahdawi had previously been arrested in Richmond, Virginia, on two occasions (December 2023 and April 2024).
The flags that were pulled down from the flag poles, and the statues and structures in Columbus Circle, are all property of the federal government. The National Park Service estimated that the cost to clean and repair the site at about $11,282.23.
This case is being investigated by the USPP’s Intelligence and Counterterrorism Unit and the FBI Washington Field Office, with assistance from the FBI Richmond Field Office. It is being prosecuted by Assistant U.S. Attorney Sarah Martin.
A criminal indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.