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4 October 2024
Prison Sentence Handed Down to Man Who Shot Teen in a Domestic DisputeRead the Press Release
WASHINGTON – Deangelo Wooten, 27, was sentenced today to eight years in prison, for shooting a minor in January 2024, with whom he was in a romantic relationship, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
Wooten pleaded guilty on July 19, 2024, to one count of aggravated assault while armed and one count of possession of a firearm during a crime of violence. Today, Superior Court Judge Marisa Demeo sentenced Wooten to eight years in prison for the aggravated assault while armed charge, to be followed by five years of supervised release. Judge Demeo also sentenced Wooten to six years in prison, followed by three years of supervised release for possession of a firearm during a crime of violence, to run concurrently.
According to the governments evidence, in January 2024, the victim, who was 16-years-old at the time, was in a dating relationship with Wooten, who was 26-years-old at the time. On January 20, 2024, the defendant sent several text messages to the victim, stating “Imma shoot you dead in your face” and “On dior when I see you imma kill you.” Initially, the victim thought the defendant was making these statements to get a reaction from her. The defendant then texted her and asked if they could meet for her to give him his shoes. The victim agreed and went with two others to meet Wooten at 13th Street and Congress Street SE, to give the defendant his shoes.
At around 1:00 p.m., the victim and her friend arrived and waited in a car at the location. Shortly thereafter the defendant drove up in a blue car. Wooten jumped out of the blue car and approached the victim, who was sitting in the back seat of her friend’s car. Wooten took the shoes from the victim with one hand, produced a gun in the other hand pointing it at the victim’s head, and fired while standing within arm’s length of the victim. The victim, anticipating the shot, raised her arm to protect her head, and the bullet entered and exited her arm and grazed her back. The defendant walked away, got back in his vehicle and drove off. The victim began to bleed and the other two people in the vehicle drove her to the hospital, where she received treatment.
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 Assistant U.S. Attorney Sarah Roessler, who prosecuted the case.
Pine Ridge Man Charged with Assaulting an InfantRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Pine Ridge, South Dakota, man for Assault Resulting in Serious Bodily Injury against a minor victim.
Sinte White Butterfly, age 25, was indicted in September of 2024. He appeared before U.S. Magistrate Judge Daneta Wollmann on September 30, 2024, and pleaded not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 10 years up to life in custody and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from White Butterfly assaulting a two-month-old infant and causing serious bodily injury to the infant in August of 2024.
The charge is merely an accusation and White Butterfly is presumed innocent until and unless proven guilty.
This matter is being 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.
The investigation is being conducted by the Oglala Sioux Tribe Department of Public Safety Criminal Investigations Division. Assistant U.S. Attorney Anna Lindrooth is prosecuting the case.
White Butterfly was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Pair who targeted seriously ill veterans for fraud indicted for conspiracy, wire fraud, and aggravated identity theftRead the Press Release
Seattle – A former Washington State Department of Corrections inmate and his accomplice were indicted by the grand jury for their scheme to target seriously ill veterans for fraud, announced U.S. Attorney Tessa M. Gorman. 46-year-old Darryl Lamont Young is in the King County Jail on unrelated charges. Co-defendant, 27-year-old Aqeelah Ngiesha Williams, was arrested this morning and pleaded “not guilty” today in federal court.
“The conduct in this case is truly shocking – calling medical facilities and seriously ill veterans under the pretense of being a VA employee trying to provide the ill veteran with financial benefits. In reality, these two were seeking personal and financial information to defraud the veteran,” said U.S. Attorney Gorman. “While they did not get a huge amount of money with this scheme, the harm they caused to those already suffering a health crisis, is deserving of federal prosecution.”
According to the indictment, Young has served in the military and so understood some of the services provided to veterans. Between December 2021, and April 2023, while incarcerated, Young would use the jail phone system to place calls to veteran’s facilities. He would ask to be transferred to a particular medical facility so that the medical facility would not know that the call was from an inmate. Once connected to the medical facility, Young allegedly posed as a VA employee who needed information about the various patients currently in the Intensive Care Unit, including their phone numbers and names for their emergency contact person.
Once Young had information about a seriously ill veteran, he would call Williams who allegedly placed a three-way call to the veteran or the relative listed as the veteran’s representative. Young would pretend to be a VA employee calling with information about benefits to be deposited to the veteran’s bank account. Once Young and Williams had that account information from the veteran, they used it to steal funds from the victims’ accounts and transfer them to accounts they controlled.
Young and Williams targeted more than 30 VA and non-VA medical facilities and targeted more than 60 victims. They attempted 130 fraudulent transactions on victim accounts and obtained about $8,000 from the scheme.
The pair are charged with conspiracy to commit wire fraud, six counts of wire fraud for phone calls made via wire to various VA medical centers across the country, and six counts of aggravated identity theft for their possession or use of personal information from the victims for fraud.
Conspiracy to commit wire fraud and wire fraud are each punishable by up to 20 years in prison. Aggravated identity theft is punishable by two years in prison to run consecutive to any other sentence imposed in the case.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Veterans Affairs Office of Inspector General. (VA-OIG) and the United States Secret Service (USSS).
The case is being prosecuted by Assistant United States Attorneys Mike Dion and Yunah Chung.
Ocala Man Indicted for Armed RobberyRead the Press Release
Ocala, FL – United States Attorney Roger B. Handberg announces the return of a two-count indictment charging Johnisaac Felix (22, Ocala) with interference with commerce by robbery and brandishing a firearm during and in relation to a crime of violence. If convicted of the robbery offense, Felix faces a maximum sentence of 20 years in federal prison. The firearm offense carries a minimum mandatory sentence of 7 years, up to life, in federal prison which must be served consecutively to any prison term imposed for the robbery.
According to the indictment, on June 16, 2024, Felix robbed an employee of gas station in Ocala using actual and threatened force, violence, and fear of injury to the employee. During that robbery, Felix also brandished a firearm.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Ocala Police Department. It will be prosecuted by Assistant United States Attorney Belkis H. Callaos.
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.
North Carolina Physician Assistant Sentenced to Six Years in Prison for Role in $10 Million Telemedicine Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – A physician assistant was sentenced to prison today for his role in a $10 million Medicare fraud scheme involving genetic testing, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Colby Edward Joyner, 37, of Monroe, N.C., was sentenced to 72 months in prison and ordered to pay over $3.6 million in restitution. Last June, a federal jury convicted Joyner of health care fraud and making false statements relating to health care matters.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Kelly Blackmon, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG), join U.S. Attorney King in making today’s announcement.
According to today’s sentencing hearing and evidence presented at Joyner’s trial, in 2018 and 2019, Joyner was a physician assistant in the Charlotte area who worked as an independent contractor for a physician staffing and telemedicine company. During the relevant time frame, Joyner signed fraudulent prescriptions for medically unnecessary genetic testing, specifically cancer genomic and pharmacogenetic testing, for over 600 Medicare beneficiaries residing in North Carolina. Joyner had never met, seen, or treated the beneficiaries, and only had brief telephone conversations with them or no interactions at all.
According to court records, Joyner received from the telemedicine company and its clients pre-populated prescription forms and related records for patients who were pre-selected for genetic testing, which he then electronically signed and returned, in exchange for $12 – and later $15 – for each purported consultation that he performed.
As trial evidence showed, to conceal that Joyner was not the beneficiaries’ treating physician and that he did not conduct medical evaluations or examinations of the beneficiaries, Joyner falsified medical records in connection with the unnecessary prescriptions and falsely certified that the genetic tests were medically necessary. Joyner’s scheme resulted in the submission of more than $10 million in fraudulent reimbursement claims to Medicare, and more than $3.6 million in
payments.
In announcing Joyner’s sentence, U.S. District Judge Robert J. Conrad, Jr. stated that Joyner “abused his position of trust” as a Medicare provider and referred to Joyner’s “cheap and easy” opportunity to make money and “willingness to sign and attest to things, knowing them not to be true.” Judge Conrad further noted the potential impact of Joyner’s conduct on Medicare beneficiaries’ future ability to obtain certain genetic tests.
Joyner will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility.
The FBI in Charlotte and HHS-OIG investigated the case.
Assistant U.S. Attorneys Katherine Armstrong and Matthew Warren, and Special Assistant U.S. Attorney Eric Frick of the U.S. Attorney’s Office in Charlotte prosecuted the case.
North Andover Man Charged with Possessing over 30 Firearms and Explosives as a Convicted FelonRead the Press Release
BOSTON – A North Andover, Mass. man has been charged for allegedly possessing over 30 firearms and explosives as a convicted felon.
Daniel Medina, 64, was charged by criminal complaint with unlawful possession of a machine gun, unlawful possession of explosives, and as a felon in possession of firearms and ammunition. Medina is currently in state custody on related charges and will appear in federal court in Boston at a later date.
According to the charging documents, on July 1, 2024, law enforcement was dispatched to the area of Medina’s North Andover residence after receiving a report of an explosion. Upon arrival, damage to two vehicles was observed as well as a piece of mail addressed to Medina beneath the damaged rear passenger door of one vehicle. It is alleged that the damages to the vehicles and materials left behind were consistent with common items used in manufacturing homemade explosive devices, specifically ball bearings or shrapnel. It is further alleged that witnesses observed Medina running from the damaged vehicles toward his residence following the explosion.
According to the charging documents, during a search of Medina’s residence the following day, law enforcement located and seized the following items:
- 32 firearms, including 12 rifles, 15 pistols, three shotguns and two antique firearms;
- 9,000 rounds of various calibers of modern ammunition manufactured outside of Massachusetts;
- 75 magazines for various caliber firearms;
- Various firearm parts;
- A Glock switch device;
- Books pertaining to the building of firearms and manufacturing of explosives and drugs;
- Shrapnel accessories such as BB’s and ball bearings;
- Multiple firework containers; and
- Various containers of powders produced and shipped in interstate commerce.
It is alleged that the containers of powder were found to contain potassium chlorate and aluminum powder – the same flash powder found in the suspected explosive material used for the prior day’s explosion.
Medina is prohibited from possessing firearms, ammunition and explosive material due to a 2002 state conviction of assault and battery in Lawrence District Court, for which he was sentenced to two and a half years in jail.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of up to $250,000. The charge of illegal possession of a machine gun provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of illegal possession of an explosive material provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $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.
Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the North Andover Police Department, Massachusetts State Police and the Essex County District Attorney’s Office. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Nine Charged in Brownfield Drug BustRead the Press Release
Nine drug traffickers allegedly operating out of Brownfield, Texas and surrounding areas have been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
The defendants were arrested Thursday in a takedown that involved officers and agents from the Brownfield Police Department, Drug Enforcement Administration’s Dallas Field Office – Lubbock Resident Agency, the Lubbock County Sheriff’s Office, the Lubbock Police Department, the Texas Department of Public Safety, and Homeland Security Investigations. They made their initial appearances Friday morning before U.S. Magistrate Judge Amanda ‘Amy’ R. Burch.
“The success of this investigation highlights DEA’s outstanding partnerships with federal, state, and local agencies in the Caprock area,” said Special Agent in Charge, Eduardo A. Chavez. “DEA Lubbock and its counterparts will continue to bring violent drug traffickers to justice in small rural communities and large metropolitan areas alike.”
“The Brownfield Police Department takes the health and safety of our community seriously. We will continue to do what is necessary to investigate, arrest, and prosecute those who distribute illegal narcotics on our streets and in our neighborhoods,” said Brownfield Police Chief Chris Kotzur.
Those charged in six separate indictments include:
- Kirkland Ryan Longoria, charged with conspiracy to distribute cocaine and distribution of cocaine
- Sandra Kay Cavazos, charged with conspiracy to distribute cocaine and distribution of cocaine
- Arthur Lee Willingham, charged with conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and felon in possession of a firearm
- Steven Blake Johnston, charged with conspiracy to distribute methamphetamine, distribution of methamphetamine, and possession with intent to distribute methamphetamine
- Steven Rene Rodriguez, charged with conspiracy to distribute methamphetamine and distribution of methamphetamine
- Lorraine Riojas Davila, charged with conspiracy to distribute methamphetamine and distribution of methamphetamine
- Dewayne Deshae Willis, charged with conspiracy to distribute methamphetamine and possession with intent to distribute cocaine
- Larry Joe Franco, Jr., charged with conspiracy to distribute methamphetamine and distribution of methamphetamine
- Demetrick Ward, charged with distribution of cocaine
An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, some face potential life sentences in federal prison.
Brownfield Police Department, Drug Enforcement Administration’s Dallas Field Office – Lubbock Resident Agency, the Lubbock County Sheriff’s Office, the Lubbock Police Department, the Texas Department of Public Safety, and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Stephen Rancourt and Sean Long are prosecuting the cases.
New York Man Pleads Guilty to Role in International Money Laundering ConspiracyRead the Press Release
BOSTON – A New York man pleaded guilty yesterday to his involvement in a sophisticated international money laundering and drug trafficking organization.
Yanbing Chen, 30, of Brooklyn, N.Y., pleaded guilty to conspiracy to commit money laundering and conspiracy to distribute five kilograms or more of cocaine. U.S. District Judge Angel Kelley scheduled sentencing for Jan. 21, 2025.
In May 2023, a federal grand jury in Boston returned a superseding indictment charging 12 individuals from Massachusetts, Rhode Island, New York and California for their alleged involvement in a sophisticated international money laundering and drug trafficking organization. Jin Hua Zhang, based in Staten Island, was identified as the leader of the organization along with a number of his criminal associates. The investigation revealed that, for a fee, Zhang laundered bulk cash for drug dealers and laundered profits from other illegal businesses. In less than one year, Zhang and his organization laundered at least $25 million worth of drug proceeds and funds from other illegal businesses through undercover agents.
In July 2022, on Zhang’s behalf, Chen delivered $50,000 in drug funds to undercover agents to be laundered. Those funds were converted to Tether, a type of cryptocurrency, and transferred to Zhang, the organization’s leader, minus a fee. Funds were eventually traced from the Zhang organization to Hong Kong and elsewhere in China, India, Cambodia and Brazil, among other locations. Cash and cryptocurrency in accounts tied to Zhang were seized at the conclusion of the investigation.
In addition, in two separate meetings in August and September 2022, Zhang sent Chen to meet with cooperating witnesses near South Station in Boston. Chen was recorded by the undercover agents as he delivered a total of five kilograms of cocaine at Zhang’s direction.
Zhang pleaded guilty and is scheduled to be sentenced on Jan. 15, 2024.
The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000, or twice the amount involved, whichever is greater. The charge of conspiracy to distribute five kilograms of cocaine calls for a sentence of up to life in prison, a minimum of five years of supervised release, and a $10 million fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was also provided by the Quincy Police Department. Assistant U.S. Attorneys Christopher Pohl, Brian A. Fogerty and Meghan C. Cleary of the Criminal Division are prosecuting the case.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty
New Orleans Man Sentenced for Violations of the Federal Controlled Substances and Gun Control ActsRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that CYRUS ROLLINS (“ROLLINS”), age 41, of New Orleans, was sentenced om October 2, 2024 by U.S. District Judge Wendy B. Vitter after previously pleading guilty to possession with the intent to distribute controlled substances, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C), and possession of firearms in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i). ROLLINS was sentenced to 97 months of imprisonment, three (3) years of supervised release, and ordered to pay a $200 mandatory special assessment fee.
According to court documents, in August 2023, ROLLINS was arrested by New Orleans Police Department officers for distributing narcotics and carrying firearms in and around the Low Barrier Shelter, a homeless shelter in New Orleans. ROLLINS was found in possession of four firearms, as well as methamphetamine, crack cocaine, and fentanyl.
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 Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. The case is being prosecuted by Assistant United States Attorney Greg Kennedy of the Violent Crimes Unit.
New Orleans Man Guilty of Being Felon in Possession of FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – JULIUS AUGILLARD (“AUGILLARD”), age 38, of New Orleans, pled guilty on September 26, 2024, before United States District Judge Carl Barbier to two counts of being a felon in possession of a firearm, in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(8).
According to court documents, on February 20, 2023, AUGILLARD possessed a firearm on the 500 block of Bourbon Street during Mardi Gras festivities, after leading Louisiana State Police Troopers on a short foot pursuit. The troopers found a Smith and Wesson Model SD40VE, .40 caliber pistol on his person. Later, on December 31, 2023, AUGILLARD possessed an International Model PT609 PRO, nine-millimeter semi-automatic pistol near 200 Tremé Street while trespassing at an apartment complex. At the time of the apprehension and arrest by Housing Authority of New Orleans police officers, AUGILLARD had been previously convicted of a crime punishable by imprisonment for a term exceeding one year.
AUGILLARD is scheduled for sentencing on January 16, 2025. For each count, AUGILLARD faces up to 15 years imprisonment, up to a $250,000 fine, up to three years of supervised release, and a mandatory special assessment fee of $100.
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.
National Center for Disaster Fraud Reminds the Public to be Aware of Fraud in the Wake of Hurricane HeleneRead the Press Release
On September 26, 2024, 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. In the wake of Helene, 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 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. United States Attorney for the Middle District of Louisiana, Ronald C. Gathe, Jr., serves as the Executive Director of the NCDF. 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.
The public should exercise diligence before giving contributions to anyone soliciting donations or individuals offering to assist those affected by 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 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.
Minneapolis Felon Sentenced to 12 Years in Prison for Fentanyl TraffickingRead the Press Release
MINNEAPOLIS – A Minneapolis felon has been sentenced to 144 months in prison followed by four years of supervised release for possession with intent to distribute fentanyl pills, announced United States Attorney Andrew M. Luger.
According to court documents, on November 28, 2022, Kristopher Raphael Owens, 31, was driving a gold Chevy Tahoe in Minneapolis and was pulled over by law enforcement. As officers approached the vehicle, Owens fled on foot. Officers pursued and apprehended Owens in a nearby yard, where he was arrested. Officers discovered $1,286 on his person and also found two Ziploc baggies containing 1,874 blue pills along the path on which Owens had fled. The pills were tested later and determined to contain fentanyl. Owens admitted that they were his and that he intended to distribute them.
On March 13, 2024, Owens pleaded guilty to one count of possession with intent to distribute fentanyl. He was sentenced yesterday in U.S. District Court by Judge Joan N. Ericksen.
This case is the result of an investigation conducted by the Minneapolis Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney David P. Steinkamp prosecuted the case.
Middleburg Woman Sentenced to More Than 21 Years in Federal Prison for Producing Child Sexual Abuse MaterialRead the Press Release
Jacksonville, Florida – U.S. District Judge Wendy W. Berger has sentenced Meggin Anne Evans (35, Middleburg) to 21 years and 10 months years in federal prison for production of child sexual abuse material. Evans has been in custody since her arrest on November 7, 2022. She entered a guilty plea on March 1, 2024.
According to court documents, the Putnam County Sheriff’s Office (PCSO) initiated an investigation after receiving information about five files of child sexual abuse material (CSAM) that had been sent over a social media application. PCSO’s investigation revealed that the files were sent from within the Putnam County Jail.
PCSO connected the social media account to Brandon Paul Smolinski, Evans’s husband, who was working for a transportation company that does work inside the jail. The company provided Smolinski’s work schedule and confirmed that he was working in the jail on the dates and times the files had been shared from within the jail.
PCSO contacted the Clay County Sheriff’s Office (CCSO) to request assistance, as Smolinski’s residence was located in Middleburg. CCSO investigators discovered that the internet service at Smolinski’s residence was also used to upload files of CSAM using the same social media application.
Detectives from PCSO and CCSO approached Smolinski in the parking lot at the Putnam County Jail. Smolinski admitted to distributing files of CSAM. He also told detectives that he had watched CSAM with Evans, and that he had sent Evans CSAM from the jail.
During a forensic review of Smolinski’s cellphone, law enforcement discovered multiple files of CSAM, including a video sent to Evans on June 27, 2022. In addition, they located several chat messages between Smolinski and Evans, during which they talked about exploiting children and their sexual attraction to children. On October 28, 2021, Smolinski and Evans discussed performing specific sex acts on children and made future plans to groom children for sex. Evans then sent Smolinski a photograph she had taken of a child to whom Evans had access, depicting child sexual abuse.
Brandon Paul Smolinksi was sentenced in June 2023 to 17 years and 6 months in federal prison for distribution of child sexual abuse.
“The sentencing of Meggin Evans for production of child sexual abuse material, and her husband’s sentencing earlier this year for distribution, is a testament to the commitment of the detectives and special agents who work relentlessly to combat the sexual abuse of children,” said Tim Hemker, Assistant Special Agent in Charge for Homeland Security Investigations in Jacksonville. “Working alongside our partners at the Northeast Florida INTERCEPT Task Force, we remain committed in our resolve to identify and rescue child victims and bringing child sexual predators to justice.”
This case was investigated by the Putnam County Sheriff’s Office, the Clay County Sheriff’s Office, and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Ashley Washington.
This case was investigated by the Northeast Florida INTERCEPT Task Force, to include Homeland Security Investigations (HSI) Jacksonville, the Jacksonville Sheriff’s Office, the St. Johns County Sheriff’s Office, the Clay County Sheriff’s Office, and the Columbia County Sheriff’s Office.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Michigan Attorney Indicted on Tax ChargesRead the Press Release
A federal grand jury in Detroit charged a Michigan attorney yesterday with filing false tax returns and willfully failing to file tax returns.
According to the indictment, Shawn Smith, who calls himself “Shawn the Law,” is a lawyer residing in Birmingham. For 2017 through 2020, Smith allegedly filed false individual income tax returns that did not report hundreds of thousands of dollars of gross receipts that he earned from his law business. In addition, Smith allegedly did not file an individual income tax return for 2021 and 2022.
If convicted, Smith faces a maximum penalty of three years in prison for each false return count and a maximum penalty of one year in prison for each count of failing to file a tax return. 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, U.S. Attorney Dawn N. Ison for the Eastern District of Michigan and IRS Special Agent in Charge Charles Miller made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Jeffrey A. McLellan and Kenneth C. Vert of the Tax Division are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Mexican National Pleads Guilty to Charge Stemming from Smuggling and Labor Trafficking SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that PORFIRIA MARIBEL RAMOS SANCHEZ, 47, a citizen of Mexico last residing in Vernon, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a charge stemming from her involvement in a scheme to smuggle aliens into the U.S., harbor them at Hartford area residences, force them to work, and threaten to harm them in various ways if they failed to pay exorbitant fees, interest, and other living expenses.
According to court documents and statements made in court, beginning in September 2022, the FBI and Hartford Police interviewed several Mexican nationals who disclosed that they were smuggled from Mexico into the U.S. and transported to Hartford. The investigation revealed that victims typically arranged with Ramos, her co-conspirators in Connecticut, and associates in Mexico to cross the border into the U.S. in exchange for a fee of between $15,000 and $20,000 that each would need to pay once they were in the U.S. In most cases, the victims were required to turn over a property deed as collateral before leaving Mexico. They were then smuggled across the border and transported to Hartford area residences, often at a substantial risk of bodily injury or death.
After the victims arrived in Connecticut, they were told that they would have to pay $30,000, with interest, and that they would have to pay Ramos and her co-coconspirators for rent, food, gas and utilities. The co-conspirators created false documents for the victims, including Permanent Residence cards and Social Security cards, and helped the victims find employment in the Hartford area. In addition to their own jobs, some victims were required to perform housework and yardwork without compensation and without having their debt reduced.
Victims were rarely provided with an accounting of their debt. If victims failed to make regular payments, or in amounts that the co-conspirators expected, they were sometimes threatened, including with threats to harm family members in Mexico, to take property in Mexico that had been secured as collateral, to reveal victims’ immigration status to U.S. authorities, and to raise their interest payments.
To date, investigators have identified 18 victims of this scheme.
Ramos pleaded guilty to conspiracy to encourage and induce, bring in, transport, and harbor aliens, an offense that carries a maximum term of imprisonment of 10 years. Judge Dooley scheduled sentencing for January 6, 2025.
As part of her plea agreement, Ramos has agreed to a restitution order of $494,608. In partial satisfaction or her restitution obligation, Ramos and her husband have agreed to sell a property they own at 74 Burnside Avenue in East Hartford, which was used to facilitate this criminal offense.
Ramos has been detained since her arrest on October 5, 2023.
This investigation is being conducted by the Federal Bureau of Investigation, Hartford Police Department, U.S. Department of Labor – Office of Inspector General, U.S. Customs and Border Protection, U.S. Citizenship and Immigration Services, and U.S. Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorneys Angel Krull and Shan Patel.
Men Sentenced to Prison for Multiple RobberiesRead the Press Release
BIRMINGHAM, Ala. – A federal judge has sentenced two Birmingham men for committing armed robberies, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Carlton L. Peoples.
Chief U.S. District Court Judge R. David Proctor sentenced Dedrick Taylor, 33, of Birmingham, to 155 months in prison. In July, Taylor pleaded guilty to two counts of Hobbs Act Robbery, possession of a firearm during a crime of violence, and felon in possession of a firearm. According to the plea agreement, on April 14, 2022, Taylor committed two armed robberies at businesses in Birmingham—a Citgo gas station and a Dollar General store.
Previously, Chief Judge Proctor sentenced co-defendant Dominic Bimbow, 31, of Birmingham, to 120 months in prison for his role as Taylor’s getaway driver for both robberies. That sentence followed Bimbow’s guilty pleas to two counts of Hobbs Act Robbery, possession of a firearm during a crime of violence, and felon in possession of a firearm.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Member of Violent Gang Pleads Guilty to Racketeering and Drug Trafficking OffensesRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday to his role in Cameron Street, a violent Boston gang.
Charod Taylor, a/k/a “Pachino,” 35, of Boston, pleaded guilty to conspiracy to participate in a racketeering enterprise (commonly referred to as RICO conspiracy) and conspiracy to distribute cocaine. U.S. Senior District Court Judge William G. Young scheduled sentencing for Jan. 15, 2025.
Taylor was identified as a member of Cameron Street, a violent gang based largely in the Dorchester section of Boston that uses violence and threats of violence to preserve, protect and expand its territory, promote a climate of fear and enhance its reputation. Cameron Street gang ran an open-air drug market in the parking lot of a business on in Dorchester in which Taylor and several other Cameron Street members participated in controlled purchases of cocaine and cocaine base (crack cocaine) to cooperating witnesses. From February 2021 to March 2022, Taylor worked with other Cameron Street members and associates to distribute crack and powder cocaine to cooperating witnesses seven times.
According to the charging documents, Cameron Street members possess, carry and use firearms to murder and assault gang rivals as well as protect narcotics and drug proceeds. Cameron Street members post videos or use social media applications to promote Cameron Street, celebrate murders and other violent crimes committed by the gang, and denigrate rivals, in particular NOB (for Norton, Onley, and Barry Streets), known more generally as Wendover. Cameron Street members also possess, carry, and use firearms to murder and assault gang rivals as well as protect narcotics and drug proceeds. Additionally, Cameron Street members distribute controlled substances and firearms, commit armed robberies, and engage in human trafficking in part to generate income for the Cameron Street enterprise.
The charge of RICO conspiracy and conspiracy to interfere with commerce by force or violence each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of conspiracy to distribute cocaine provide for a sentence of up to 20 years in prison, at least three years of supervised release, and a fine of $1 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; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Feld Division; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Commissioner Cox made the announcement today. Valuable assistance was provided by the Massachusetts State Police; the United States Postal Inspection Service; Suffolk County Sheriff’s Office; Suffolk, Plymouth, Norfolk and Bristol County District Attorney’s Offices; and the Canton, Quincy, Randolph, Somerville, Brockton, Malden, Stoughton, Rehoboth and Pawtucket (R.I.) Police Departments. Assistant U.S. Attorneys Christopher J. Pohl and Charles Dell’Anno of the Criminal Division are prosecuting the case.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. 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 charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
McLaughlin Man Sentenced for Voluntary ManslaughterRead the Press Release
ABERDEEN - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a McLaughlin, South Dakota, man convicted of Voluntary Manslaughter. The sentencing took place on September 30, 2024.
Johnathan Guggolz, 48, was sentenced to five 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.
Guggolz was indicted by a federal grand jury in October of 2023. He pleaded guilty on July 8, 2024.
On the afternoon of August 29, 2023, in McLaughlin, South Dakota, within the Standing Rock Sioux Indian Reservation, a 62-year-old man pulled into the school driveway to pick his wife up from work. Guggolz pulled up next to the man and confronted him about his driving, mocking and belittling him. The man eventually exited his car, secured a pair of duct-taped homemade nunchucks to protect himself, and squared up with Guggolz, a former amateur boxer. After a few moments of posturing, the man thrust the nunchucks towards Guggolz’ hip. Guggolz then punched the man in the face, knocking him unconscious. The man fell backwards and struck his head on the concrete. Guggolz glanced down at the man, now lying helpless on the driveway, then returned to his pickup and drove away. The man subsequently died of a traumatic brain injury incurred in the assault.
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 FBI, the Bureau of Indian Affairs – Office of Justice Services, and the Mobridge Police Department. Assistant U.S. Attorney Carl Thunem prosecuted the case.
Guggolz was immediately remanded to the custody of the U.S. Marshals Service.
Mason City, Iowa Man Sentenced for Drug and Gun ChargesRead the Press Release
A Mason City man who sold pounds of methamphetamine and illegally possessed firearms in furtherance of his drug distribution, was sentenced today to more than 15 years in federal prison.
Andrew Lofton, age 48, of Mason City, received the prison term after a May 17, 2024, guilty plea to one count of conspiracy to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime.
Evidence at the plea and sentencing hearings revealed that between January 2023, and continuing through April 2023, Lofton distributed approximately six pounds of methamphetamine. On several occasions during this time, Lofton sold methamphetamine to an individual cooperating with the government. On April 20, 2023, law enforcement executed a search warrant at Lofton’s residence in Mason City and found drug distribution-related items, and multiple firearms.
Lofton was sentenced in Sioux City by United States District Court Judge Leonard T. Strand to 190 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Lofton is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Cerro Gordo County Sheriff’s Department and the Iowa Division of Narcotics Enforcement and was prosecuted by Assistant United States Attorney Ron Timmons.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-3013.
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Maryland Man Facing Federal Indictment for Filing More Than $1 Million Dollars in Fraudulent Unemployment Insurance ClaimsRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging a Maryland man on federal charges related to a scheme to fraudulently obtain more than $1 million dollars in unemployment benefits. On May 22, 2024, a grand jury returned an indictment of Mervyn Fombe Abiko, a/k/a “Magic,” a 35-year-old Maryland man with conspiracy, wire fraud, and aggravated identity theft. The indictment was unsealed today upon the arrest of the defendant.
The defendant had an initial appearance on October 2, 2024 in U.S. District Court in Baltimore before U.S. Magistrate Judge Erin Aslan.
The indictment was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Damon E. Wood, Postal Inspector in Charge, U.S. Postal Inspection Service-Washington Division Michael S. McCarthy, Special Agent in Charge, Homeland Security Investigations, - Baltimore, Acting Special Agent in Charge Karl Mastantuno, Office of Investigations, Office of Inspector General, U.S. Department of the Treasury, Troy W. Springer, Special Agent in Charge, U.S. Department of Labor - Office of Inspector General, National Capital Region, John T. Perez, Special Agent in Charge of Headquarters Operations, Federal Reserve Board Office of Inspector General.
As detailed in the indictment, employment insurance (“UI”) was a joint state and federal program that provided monetary benefits to eligible beneficiaries. UI payments were intended to provide temporary financial assistance to lawful workers who were unemployed through no fault of their own. Beginning in or around March 2020, in response to the COVID-19 pandemic, several federal programs expanded UI eligibility and increased UI benefits, including the Pandemic Unemployment Assistance Program (PUA), Federal Pandemic Unemployment Compensation (FPUC), and the Lost Wages Assistance Program (LWAP).
In Maryland, those seeking UI benefits submitted online applications. Applicants had to answer specific questions to establish eligibility to receive UI benefits, including their name, Social Security Number (SSN), and mailing address, among other things. Applicants also had to self-certify that they met a COVID-19-related reason for being unemployed, partially employed, or unable to work. MD-DOL relied upon the information in the application to determine UI benefits eligibility. Once an application was approved, the MD-DOL typically distributed state and federal UI benefits electronically to a BOA debit card, which claimants could use to withdraw funds and/or make purchases.
According to the indictment, from March 2020 through January 2021, Abiko and others, including Martin Tabe and Gladstone Njokem, conspired to impersonate victim individuals in order to submit fraudulent UI claims. To accomplish this, Abiko and others obtained the personally identifiable information (PII) of victims and used that information to file UI applications, which resulted in debit cards being issued in the names of victims that were loaded with benefits. Abiko and others used those debit cards in point-of-sale transactions and at ATMs. Abiko and others collectively obtained more than $1 million through this scheme.
If convicted, the defendant faces a maximum sentence of 20 years in federal prison for conspiracy to commit wire fraud and for each of the three counts of wire fraud. The defendant faces a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for each of the three counts of aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Barron commended the USPIS, the DOL-OIG and HSI for their work in the investigation. Mr. Barron also thanked Assistant U.S. Attorney Sean R. Delaney, who is 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.
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Man Sentenced to 87 Months in Federal Prison for Conspiracy to Distribute and Possession with Intent to Distribute Six Kilograms of FentanylRead the Press Release
NEW ORLEANS, LOUISIANA – ORLIAN CABRERA-JOA (“CABRERA-JOA”), 32, was sentenced on October 2, 2024 to 87 months of imprisonment, 3 years of supervised release, and a $200 mandatory special assessment fee by U.S. District Judge Jane Triche Milazzo, after previously pleading guilty to conspiracy to distribute, and possess with intent to distribute, 400 grams or more of fentanyl, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A) and possession with intent to distribute 400 grams or more of fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), announced U.S. Attorney Duane A. Evans.
According to court documents, CABRERA-JOA was pulled over during a traffic stop in St. John the Baptist Parish. As a result of the traffic stop, Louisiana State Police Troopers recovered approximately six kilograms of fentanyl hidden within a suitcase inside of the truck he was driving.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case was investigated by the Drug Enforcement Administration, the Louisiana State Police, and St. John the Baptist Parish Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Lynn E. Schiffman of the Narcotics Unit.
Longtime Department of Veterans Affairs Supervising Engineer Convicted at Trial of Defrauding the Agency of Nearly $1 MillionRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Ahmed Hassan, 70, of Collegeville, Pennsylvania, was convicted today by a federal jury on 22 counts of wire fraud arising from Hassan’s misuse of his position as a federal employee of the Department of Veterans Affairs (“the VA”) to defraud the agency of nearly $1 million over a seven-year period.
As proven at trial, Hassan was a trusted supervisory engineer at the Veterans Affairs Medical Center (“VAMC”) in Philadelphia. In that position, Hassan was responsible for all mechanical and large HVAC systems at VAMC and was further charged with overseeing and implementing contracts in his area of responsibility.
From approximately 2013 through October 2017, Hassan schemed to defraud the VA by drafting and submitting for payment, false invoices of a company called HT Mechanical. Unbeknownst to VAMC management, and in violation of Hassan’s duties to the VA, HT Mechanical was nothing but a shell that Hassan had secretly set up with his paramour, Lynn Hanrahan[1] — a social worker with no knowledge of, or expertise in, HVAC or mechanical systems — in order to carry out the scheme.
For years, the defendant made up fake work, drafted false invoices on HT Mechanical letterhead, submitted them for payment to the VA under the VA purchase card program and lied to the VA, claiming that the work had been done, when the so-called jobs did not exist. and no work was done. After the VA made payment to HT Mechanical on the defendant’s say so, Hanrahan returned money to the defendant, either by check or by giving the defendant envelopes of cash.
Hassan is scheduled to be sentenced on January 15, 2025. He faces a maximum possible sentence of up to 20 years in prison for each count on which he was convicted.
“For the better part of a decade, for his own benefit, Ahmed Hassan siphoned almost a million dollars from Philadelphia’s VA Medical Center,” said U.S. Attorney Romero. “In misusing his position to do so, he betrayed his colleagues, U.S. taxpayers, and, most egregiously, the veterans the VA serves. My office and our partners will bring to justice anyone padding their pockets like this at the federal government’s expense.”
The case was investigated by Department of Veterans Affairs Office of Inspector General and the FBI and is being prosecuted by Special Assistant United States Attorney Megan Curran and Assistant United States Attorney Mary Crawley.
[1] Hanrahan was charged in a related scheme, pleaded guilty, and is awaiting sentencing.
Long Beach Man Pleads Guilty to Traveling with 14-Year-Old Girl Across State Lines While Intending to Engage in Sexual ActivityRead the Press Release
LOS ANGELES – A Long Beach man pleaded guilty today to federal criminal charges for traveling with a 14-year-old runaway from Arizona – whom he met in a Reddit internet forum – across state lines to his apartment, where he engaged in criminal sexual activity with her.
Trevon Nathaniel Langstaff, 33, pleaded guilty to one count of traveling with intent to engage in illicit sexual conduct.
“Every day, sexual predators use the internet’s relative anonymity to prey on vulnerable youth,” said United States Attorney Martin Estrada. “Would-be predators should be aware that my office will use all of its tools to bring them to justice, and, as today’s sentence shows, the consequences will be severe.”
According to his plea agreement, in late March 2024, Langstaff drove from his Long Beach home to Peoria, Arizona, to pick up the victim, a 14-year-old girl. Langstaff knew the victim was 14 and instructed her to pretend to be 18 years old.
Intending to have sexual intercourse with the victim, Langstaff transported her from Arizona to his home in Long Beach, where he engaged in sexual intercourse with her.
On Langstaff’s cellphone, which was seized on March 26, law enforcement found an image that appeared to portray two children engaged in sexually explicit activity.
United States District Judge Fernando L. Aenlle-Rocha scheduled a March 7, 2025, sentencing hearing, at which time Langstaff will face a statutory maximum sentence of 30 years in federal prison. Langstaff has been in federal custody since March 27.
The FBI and the Long Beach Police Department investigated this matter.
Assistant United States Attorney Kathrynne N. Seiden of the Terrorism and Export Crimes Section is prosecuting this case.
Leader of Yoga to the People Pleads Guilty to Tax EvasionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that GREGORY GUMUCIO pled guilty today to a conspiracy to commit tax evasion from 2012 through 2020. GUMUCIO was the longtime leader of a prominent nationwide yoga business, Yoga to the People (“YTTP”), from which he received more than $3.5 million in income between 2012 and 2020, yet he did not file individual (or business) tax returns or pay any income taxes for at least eight consecutive years. GUMUCIO pled guilty before U.S. District Judge John P. Cronan, to whom his case is assigned.
U.S. Attorney Damian Williams said: “Greg Gumucio built a thriving yoga business yet chose to evade his tax obligations for nearly a decade. This Office is committed to holding individuals accountable who fail to pay their fair share.”
According to the allegations contained in the Superseding Information, court filings, and statements made during court proceedings:
In or around 2006, GUMUCIO founded YTTP in New York, New York. YTTP was originally donation-based: YTTP requested, but did not require, payment from its yoga students. YTTP started with one yoga studio on the Lower East Side of Manhattan, and it became extremely popular. Over the ensuing years, YTTP opened at least approximately 20 yoga studios or affiliated entities throughout New York City and in various other places, including California, Colorado, Arizona, Florida, and Washington State. YTTP also had a teacher training program, which earned substantial income from aspiring yoga teachers. YTTP operated from at least approximately 2006 until 2020. From 2010 to 2020, YTTP and its affiliates generated gross receipts of more than $20 million. Despite those substantial revenues, YTTP never filed a corporate tax return with the Internal Revenue Service (“IRS”).
GUMUCIO was YTTP’s founder, principal owner, and functional chief executive officer, as he directed and made decisions for the YTTP enterprise. From approximately 2012 through 2020, GUMUCIO received more than $3.5 million in income and owed taxes to the IRS exceeding $1 million, but never filed a personal tax return with the IRS or paid any income taxes. During the charged period, GUMUCIO repeatedly represented his annual income to be six figures to third parties not associated with the Government (e.g., a bank, a car financing company, and a real estate entity). In one such instance, GUMUCIO submitted a fabricated tax return to a third party, which a co-defendant prepared for GUMUCIO at GUMUCIO’s request. During the charged period, GUMUCIO enjoyed an extravagant lifestyle, which included frequent foreign travel; expensive hotels, meals, and clothing; NFL season tickets; and country club payments.
GUMUCIO and his co-conspirators used various methods to evade taxes, including, among others:
- Accepting yoga students’ payments in cash (e.g., which was collected in tissue boxes) and paying yoga teachers in cash and “off the books”;
- Generally forbidding YTTP teachers from counting incoming cash that yoga students paid and requiring yoga studio managers to transport cash proceeds to GUMUCIO’s apartment on St. Marks Place in Manhattan, where those proceeds were “stacked” and counted during so-called “stacking parties”;
- Failing to maintain a corporate headquarters or keep corporate books and records;
- Using nominees to disguise GUMUCIO and his co-conspirators’ connection to various entities which, in fact, were part of the YTTP enterprise and from which GUMUCIO and his co-conspirators received income;
- Using YTTP business accounts to pay GUMUCIO’s (and his co-conspirators’) personal expenses; and
- Maximizing unreported income, as GUMUCIO manipulated subordinates into providing free labor (e.g., teaching unpaid classes, stacking cash, cleaning yoga studios, depositing cash into bank accounts, etc.).
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GUMUCIO, 63, of Colorado, pled guilty to one count of conspiracy to defraud the IRS, which carries a maximum penalty of five years in prison. Under the terms of his plea agreement, GUMUCIO has agreed to pay restitution to the IRS of at least $2,560,300.93.
The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as GUMUCIO’s sentence will be determined by the judge.
GUMUCIO’s two co-defendants, Michael Anderson and Haven Soliman, are currently scheduled to proceed to trial on January 13, 2025, before Judge Cronan.
Mr. Williams praised the outstanding efforts of the IRS Criminal Investigation’s New York and Dallas Field Offices; the U.S. Department of Labor, Office of Inspector General’s New York Regional Office; and Special Agents of the U.S. Attorney’s Office for the Southern District of New York.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Michael D. Neff and Rushmi Bhaskaran are in charge of the prosecution.
Lakeland Drug Trafficker Sentenced to 20 YearsRead the Press Release
Tampa, FL – U.S. District Judge Thomas P. Barber has sentenced Donnell Leeman Moore, Jr. (37, Lakeland) to 20 years in federal prison for conspiracy to distribute methamphetamine and cocaine and distributing methamphetamine and cocaine. The court also ordered Moore to forfeit a firearm, which was used in the conspiracy. Moore entered a guilty plea on July 17, 2024.
According to court documents, between June 2021 and September 2023, Moore conspired with several co-conspirators to distribute narcotics from Moore’s industrial garage in Lakeland. Moore distributed cocaine, methamphetamine, fentanyl, and other narcotics. As part of the investigation, agents identified the co-conspirators and seized hundreds of grams of fentanyl, cocaine, and methamphetamine. Agents also recovered a firearm and packaging materials in Moore’s garage.
This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the Lakeland Police Department. It was prosecuted by Assistant United States Attorney Samantha E. Beckman.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Justice Department to Award More Than $84M in Grants to American Indian and Alaska Native TribesRead the Press Release
The Justice Department has awarded 152 grants to 90 American Indian and Alaska Native Tribes through its Coordinated Tribal Assistance Solicitation (CTAS), totaling more than $84 million.
Attorney General Merrick B. Garland announced these awards during a Justice Department and Department of the Interior convening with Tribal leaders, advocates, members of the media, and federal officials to discuss how media coverage can be channeled to help address the crisis of missing or murdered Indigenous peoples (MMIP) and human trafficking (HT).
The grants awarded under CTAS are designed to help enhance Tribal justice systems and strengthen law enforcement responses, improve the handling of child abuse cases, combat domestic and sexual violence, support Tribal youth programs, and fund an array of services for American Indian and Alaska Native crime victims. The CTAS awards are administered through the Office of Justice Programs (OJP) and the Office of Community Oriented Policing Services (COPS Office).
“We have heard from Tribal leaders about the complex public safety challenges their communities are facing and about the innovative and culturally appropriate solutions they propose to meet those challenges,” said Acting Assistant Attorney General Brent J. Cohen of OJP. “These investments in Tribal community safety infrastructure, Tribal youth programs, law enforcement activities in Indian country, and services for American Indian and Alaska Native survivors represent a strong and steady commitment on the part of the Office of Justice Programs to the safety of Tribal communities.”
Of the more than $84 million in grants awarded under CTAS, a streamlined application that helps Tribes apply for Tribal-specific grant programs, OJP funded more than $53 million in awards, and the COPS Office funded more than $31 million.
OJP funding supports system-wide strategic planning, the strengthening of Tribal justice system infrastructure, the investigation and prosecution of child abuse cases, juvenile healing to wellness courts, and tribal programs for youth.
The COPS Office awarded funds to assist 49 Tribes in hiring personnel, purchasing equipment, and making training grants to expand the implementation of community policing. This CTAS funding can be used to hire or re-hire full-time career law enforcement officers, village public safety officers, and school resource officers and to procure essential equipment, technology, and training to assist in initiating or enhancing Tribal policing efforts.
“The COPS Office is honored to continue assisting with our Tribal partners by providing funding for vital resources that help law enforcement agencies improve services to both their officers and the communities they serve,” said Director Hugh T. Clements Jr. of the COPS Office. “This support is integral to enhancing public safety, protecting the community and continuing to build trust and sustain relationships.”
In addition to the CTAS awards, OJP’s Office for Victims of Crime awarded nearly 200 grants totaling more than $54 million through the Tribal Victim Services Set-Aside to provide services for crime victims in Tribal communities.
Additionally, OJP’s Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking awarded 20 Tribes a total of $7 million to assist in their development of registration and notification.
Justice Department and Federal Trade Commission Meet with G7 Enforcement Partners in Rome to Discuss the Challenges of Ensuring Competition in AIRead the Press Release
The Justice Department’s Antitrust Division and the Federal Trade Commission participated in the G7 Competition Authorities and Policymakers Summit yesterday and today to discuss how enforcers and policymakers can ensure healthy competition in AI-related technologies, products and applications.
The Summit was convened by the G7 Industry, Technology and Digital Ministerial Declaration and hosted in Rome by the Italian Competition Authority (Autorità Garante della Concorrenza e del Mercato). The Antitrust Division was led by Principal Deputy Assistant Attorney General Doha Mekki.
“Sharing the United States’ experiences and perspectives and reflecting on best practices alongside international enforcers helps us better apply the U.S. antitrust laws to unlock economic opportunity for the American people,” said Principal Deputy Assistant Attorney General Doha Mekki. “We thank Italy for organizing an exceptional G7 summit and for driving a timely conversation on promoting competition in AI.”
At the conclusion of the Summit, G7 competition authorities and policymakers issued a communiqué, which highlights potential competition concerns in AI-related markets and identifies guiding principles to apply to ensure healthy competition in AI. The communiqué also underscores the important role that competition authorities and policymakers have in addressing competitive threats, emphasizing that the potential risk of concentrated market power in AI-related markets and possible collusion or improper information sharing using AI technologies necessitate careful vigilance and vigorous and timely competition enforcement. The G7 competition authorities and policymakers are committed to working to safeguard open and fair competition in digital markets and AI, and to ensure that the benefits of AI are fully realized and widely available in our societies.
Jamestown man going to prison for his role in drug conspiracyRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Tyler Tedesco, 28, of Jamestown, NY, who was convicted of conspiring to possess with intent to distribute, and distributing, 50 grams or more of methamphetamine, was sentenced to serve 78 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joshua A. Violanti, who handled the case, stated that Tedesco was a drug trafficking associate of co-defendant Rocco Beardsley, who led a drug trafficking organization in the Jamestown area. Tedesco sold large amounts of methamphetamine, heroin, and fentanyl for profit, collected drug money, stored drugs and profits, and coordinated with co-conspirators to sell methamphetamine and heroin. During the conspiracy, Tedesco and Beardsley used Facebook to communicate about their narcotics activities including debts, cash and drug transactions, supplies, and paraphernalia.
Rocco Beardsley was previously convicted and is awaiting sentencing.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank Tarentino, and the Jamestown Police Department, under the direction of Chief Timothy Jackson.
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Jacksonville Man Sentenced to Federal Prison for Unlawfully Possessing A MachinegunRead the Press Release
Jacksonville, Florida – United States District Judge Wendy M. Berger has sentenced Mar’Kesie Williams (28, Jacksonville) to 18 months in federal prison, followed by 36 months of supervised release, for possessing a machinegun. Williams entered a guilty plea on June 28, 2024.
According to court documents, on March 6, 2023, a property manager at an apartment complex in Jacksonville reported that while cleaning a vacant apartment they discovered Williams inside, armed with a firearm. Officers from the Jacksonville Sheriff’s responded to the apartment complex, arrested Williams, and located the firearm on top of a mattress. Williams subsequently admitted to possessing the firearm, which was a loaded Glock pistol equipped with a Glock switch. A Glock switch is a device that converts a semi-automatic Glock pistol into a fully automatic machinegun. Federal law prohibits the possession of machineguns and Glock switches.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney John Cannizzaro.
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.
Jacksonville Felon Sentenced to More Than Seven Years for Possessing A FirearmRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Matthew Junior Rice (43, Jacksonville) to 7 years and 3 months in federal prison for possessing a firearm as a convicted felon. Rice entered a guilty plea on April 11, 2024.
According to court documents, on November 8, 2023, officers from the Jacksonville Sheriff’s Office were on patrol when they observed Rice exiting his residence wearing a black bag across his chest. The officers were aware that Rice had an active warrant for his arrest and began to pursue him. Rice observed law enforcement, got on his bike, and went inside a convenience store. When Rice entered the store, he threw the bag he was wearing onto a shelf inside the store. The officers entered the store, arrested Rice, and retrieved the bag. Inside the bag was a loaded 9mm pistol, 32 small bags of Flakka, marijuana, and additional drug paraphernalia. Rice was previously convicted of multiple felonies, including narcotics sales and illegal firearm possession. Therefore, he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney John Cannizzaro.
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.
Jacksonville Felon Sentenced to 18 Months for Illegally Possessing A FirearmRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Dondre Shauntrell Rosier (44, Jacksonville) to 18 months in federal prison, followed by 36 months of supervised release, for possessing a firearm as a convicted felon. Rosier entered a guilty plea on February 27, 2024.
According to court documents, on January May 31, 2022, a confidential informant, along with undercover ATF agents, conducted a controlled purchase of a firearm from Rosier at his residence. Rosier sold a 9mm handgun to the undercover agents for $660. The firearm was loaded with 26 rounds of 9mm ammunition and had an extended magazine. Rosier is a convicted felon and is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney John Cannizzaro.
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.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Oct. 1 was:
Kevin Andrew Bacon, 50, of Manhattan, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Bacon faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Bacon was detained pending further proceedings The Montana Division of Criminal Investigation, U.S. Postal Inspection Service, Gallatin County Sheriff’s Office and Homeland Security Investigations conducted the investigation. PACER case reference. 24-33.
Heather Brook Jenkins, 45, of Bozeman, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Jenkins faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Jenkins was detained pending further proceedings. The Missouri River Drug Task Force conducted the investigation. PACER case reference. 24-34.
Appearing on Sept. 30 was:
Taylor Gale Penny, 35, of Missoula, on charges of possession with intent to distribute controlled substances and conspiracy to possess with intent to distribute controlled substances. If convicted of the most serious crime, Penny faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Penny was detained pending further proceedings. The FBI’s Montana Regional Violent Crime Task Force conducted the investigation. PACER case reference. 24-51.
Anthony Robert Catalusci, 64, of Three Forks, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Catalusci faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Catalusci was detained pending further proceedings. The Missouri River Drug Task Force conducted the investigation. PACER case reference. 24-34.
Travis Kurt Myers, 56, of Columbia Falls, on charges of pointing laser at aircraft. If convicted of the most serious crime, Myers faces a maximum of five years in prison, a $250,000 fine and three years of supervised release. Myers was detained pending further proceedings. The Flathead County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. PACER case reference. 24-54.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Honduran National Sentenced for Transporting Illegal Aliens from Texas to GeorgiaRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced the October 1, 2024 sentencing of WILFREDO GARCIA-HERNANDEZ (“GARCIA”), age 31, a Honduran national, who previously pled guilty to transporting aliens, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(ii).
According to court documents, GARCIA was encountered by a United States Border Patrol agent near Slidell, Louisiana. A traffic stop was conducted and GARCIA was found to be driving two illegal aliens from Texas to Georgia for employment.
United States District Judge Brandon S. Long sentenced GARCIA to time served, followed by 3 years of supervised release and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Border Patrol, in investigating this matter. Assistant United States Attorney Jon M. Maestri of the General Crimes Unit is in charge of the prosecution.
Guilty Verdict Returned in First Jury Trial Involving a Felony Machine Gun Charge Since New Firearms Law Went into EffectRead the Press Release
WASHINGTON – Keimontay Holston, 21, of Washington, D.C., was found guilty in Superior Court of possession of a machine gun, possession of a large capacity ammunition feeding device, possession of an unregistered firearm, and unlawful possession of ammunition, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
The verdict was returned on October 2, 2024, following a jury trial. Superior Court Judge Robert Salerno scheduled sentencing for December 11, 2024.
According to the government’s evidence, at approximately 6:00 a.m. on June 6, 2024, members of MPD’s Robbery Suppression Unit executed a search warrant at the defendant’s apartment, located in the 2300 block of Hartford Street, SE. Upon entering the apartment, law enforcement officers encountered Holston in the hallway, as he was leaving the dining room of the residence. Once stopped, officers searched the apartment and recovered a black 9mm Glock 17. The Glock had a “giggle” switch attached to it, and it had a magazine containing 17 rounds of ammunition. Officers also found an additional magazine with 31 rounds of ammunition in the defendant’s apartment. The recovered firearm was fully functional, and the “giggle” switch attachment allowed a shooter to fire multiple rounds of ammunition with a single pull of the trigger, converting the Glock 17 into a machine gun.
Holston was arrested during the execution of the search warrant and has been detained since.
Holston is the first individual convicted at trial of the felony offense of possession of a machine gun, which was increased from a misdemeanor to a felony under the Secure DC Omnibus Amendment Act of 2024.
“As a result of the recently enacted Secure DC Omnibus Amendment Act, it is now a felony to possess one of these conversion devices that transform handguns into the types of machine guns that mobsters used in the 1920s and 30s,” said U.S. Attorney Matthew Graves. “This is the first guilty verdict, at trial, under this new statute, and we expect many more such verdicts. Our Office will continue to make aggressive use of this new statute to try to remove these devices from the streets in the same way that laws passed in the 1930s helped to remove machine guns from our streets.”
This case was investigated by the Metropolitan Police Department and was prosecuted by Assistant United States Attorney Geoffrey Comber of the U.S. Attorney’s Office for the District of Columbia.
Guatemalan Man Sentenced to More Than One Year in Prison for Unlawful ReentryRead the Press Release
BOSTON – A Guatemalan man was sentenced yesterday in federal court in Boston to unlawful reentry.
Wilson Hernandez-Bautista, 34, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 21 months in prison. In June 2024, Hernandez-Bautista pleaded guilty to one count of unlawful reentry of a deported alien. Hernandez-Bautista was indicted by a federal grand jury December 2023.
Hernandez-Bautista was deported from the United States on Oct. 9, 2013. Sometime after his 2013 removal, Hernandez-Bautista unlawfully reentered the United States. In On Nov. 23, 2024, Hernandez-Bautista was convicted of rape of child with force in Essex County Superior Court. While serving a five-to-seven year sentence, immigration authorities became aware of Hernandez-Bautista’s unlawful presence in the United States.
Acting United States Attorney Joshua S. Levy and Todd Lyons, Field Office Director for U.S. Customs and Border Protection, Boston Field Office made the announcement today. Valuable assistance was provided by Massachusetts Department of Corrections. Assistant U.S. Attorney Brian J. Sullivan of the Major Crimes Unit prosecuted the case.
Guatemalan Man Sentenced for Methamphetamine ConspiracyRead the Press Release
United States Attorney Susan Lehr announced that Juan Chuc-Lacan, age 25, of Guatemala, was sentenced October 4, 2024, in federal court in Omaha, Nebraska for his involvement in a methamphetamine conspiracy. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Chuc-Lacan to 108 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release. In addition, Chuc-Lacan agreed to forfeit $14,726 as proceeds of the drug conspiracy.
On March 30, 2023, the Omaha Police Department utilized a confidential witness (CW) to purchase 91 grams of meth from Jeffrey Beran. On May 31, 2023, another controlled buy was done utilizing a CW. The CW met with Beran, who told the CW that he had to go meet someone to get the meth. Beran was under surveillance and was observed meeting with someone driving a silver Malibu at the Oakview Mall parking lot. Beran returned to the CW and sold him 98 grams of meth.
On June 2, 2023, Beran was arrested on outstanding warrants. While in custody, Beran received a text from his source asking how long it would take to meet him. Investigators were able to determine that the source was at a nearby Hy-Vee. After going to the Hy-Vee parking lot, investigators observed the same silver Malibu that Beran was seen meeting with during the prior controlled buy. Investigators made contact and observed 390 grams of pure meth sitting on the center console. The occupant, Juan Chuc-Lacan was arrested. A search of the vehicle resulted in $4106 being recovered. A door key for Victorian Inn was also found. Chuc-Lacan admitted to staying there and that additional meth would be located. Chuc-Lacan signed a consent to search form and officers recovered two additional pounds of meth and $10,620.
Chuc-Lacan’s sentence was increased due to an April 27, 2023, traffic stop that occurred in Utah. During the traffic stop, the Utah State Patrol arrested Chuc-Lacan for driving on a suspended license. During an inventory search of his vehicle, 13 pounds of meth were located. Chuc-Lacan agreed to have the amount of meth seized in Utah be combined with the meth seized in Omaha for sentencing purposes on his federal case.
This case was investigated by the Omaha Police Department and Utah State Patrol.
Greece man going to prison for illegally selling hundreds of thousands of dollars worth of stolen goodsRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Tony Orlando Camacho a/k/a Anthony Camacho, 48, of Greece, NY, who was convicted of transportation of goods in stolen commerce, was sentenced to serve 15 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorneys Nicholas M. Testani and Meghan K. McGuire, who handled the case, stated that between January 2021, and July 25, 2022, Camacho purchased stolen goods and merchandise from persons that he knew were engaged in unlawful shoplifting (commonly referred to as “boosters”) from Rochester area retail stores. Once the goods were stolen, boosters would sell the stolen, new in box goods to Camacho for a fraction of the true retail value. After purchasing the stolen goods, Camacho would then list the stolen goods for sale on eBay using the account, Ton.Camac. The goods were advertised as “New” or “New-In-Box” and priced below retail value, although the price was well in excess of the money paid to the boosters. Camacho sold and shipped, or caused to be shipped, between $249,246.33 and $469,246.42 worth of stolen goods.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, and the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter.
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Four Men Charged with Violating Export and Firearms LawsRead the Press Release
Louisville, KY – Haitham Al-Dulaimi, 30, Haider Lazem, 41, Hasan Wasak, 27, and Abdullah Alsajee, 30, all of Louisville, Kentucky, were arrested today pursuant to a now-unsealed indictment. They were charged with conspiracy to: violate the Export Control Reform Act, smuggle goods from the United States, engage in the business of dealing firearms without a license, make false statements in the purchase of firearms, and defraud the United States government. The indictment also charges Alsajee, Lazem, and Wasak with making false statements in the purchase of firearms.
According to the indictment, from February 2023 through September 2024, Al-Dulaimi, Lazem, Wasak, and Alsajee conspired to export firearms, including Glocks, Rugers, Sig Sauers, and Smith & Wessons, from the United States to Iraq, without obtaining the required export licenses. In furtherance of the conspiracy, Wasak, Alsajee, and Lazem, procured firearms from federal firearm licensees and at gun shows in the Louisville area. Wasak, Alsajee, and Lazem then delivered the firearms to Al-Dulaimi, who arranged them for the export to Iraq. Thirty-eight firearms were detained by law enforcement from a shipment sent by Al-Dulaimi intended for Iraq.
If convicted, Al-Dulaimi, Lazem, Alsajee, and Wasak face a maximum penalty of 20 years in prison for violations of export control laws, and five years in prison for the conspiracy charge. Lazem, Alsajee, and Wasak also face a maximum penalty of 10 years in prison for false statements during the purchase of a firearm. Al-Dulaimi faces a maximum penalty of 10 years in prison for smuggling and five years in prison for dealing in firearms without a license. The indictment also notifies defendants that the United States intends to forfeit firearms alleged to be traceable to proceeds of the offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Michael A. Bennett for the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Louisville Field Division, and Special Agent in Charge Rana Saoud of the Homeland Security Investigations (HSI) Nashville Field Office, Executive Assistant Director Robert Wells of the FBI’s National Security Branch, and Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office announced the case.
The ATF, HSI, and FBI are investigating the case.
Assistant U.S. Attorney Alicia P. Gomez for the Western District of Kentucky and Trial Attorney Leslie C. Esbrook of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Four Men Charged with Violating Export and Firearms LawsRead the Press Release
Haitham Al-Dulaimi, 30, Haider Lazem, 41, Hasan Wasak, 27, and Abdullah Alsajee, 30, all of Louisville, Kentucky, were arrested today pursuant to a now-unsealed indictment. They were charged with conspiracy to: violate the Export Control Reform Act, smuggle goods from the United States, engage in the business of dealing firearms without a license, make false statements in the purchase of firearms, and defraud the United States government. The indictment also charges Alsajee, Lazem, and Wasak with making false statements in the purchase of firearms.
According to the indictment, from February 2023 through September 2024, Al-Dulaimi, Lazem, Wasak, and Alsajee conspired to export firearms, including Glocks, Rugers, Sig Sauers, and Smith & Wessons, from the United States to Iraq, without obtaining the required export licenses. In furtherance of the conspiracy, Wasak, Alsajee, and Lazem, procured firearms from federal firearm licensees and at gun shows in the Louisville area. Wasak, Alsajee, and Lazem then delivered the firearms to Al-Dulaimi, who arranged them for the export to Iraq. Thirty-eight firearms were detained by law enforcement from a shipment sent by Al-Dulaimi intended for Iraq.
If convicted, Al-Dulaimi, Lazem, Alsajee, and Wasak face a maximum penalty of 20 years in prison for violations of export control laws, and five years in prison for the conspiracy charge. Lazem, Alsajee, and Wasak also face a maximum penalty of 10 years in prison for false statements during the purchase of a firearm. Al-Dulaimi faces a maximum penalty of 10 years in prison for smuggling and five years in prison for dealing in firearms without a license. The indictment also notifies defendants that the United States intends to forfeit firearms alleged to be traceable to proceeds of the offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Michael A. Bennett for the Western District of Kentucky, Executive Assistant Director Robert Wells of the FBI’s National Security Branch, Special Agent in Charge R. Shawn Morrow of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Louisville Field Division, and Special Agent in Charge Rana Saoud of the Homeland Security Investigations (HSI) Nashville Field Office announced the case.
The ATF, HSI, and FBI are investigating the case.
Assistant U.S. Attorney Alicia P. Gomez for the Western District of Kentucky and Trial Attorney Leslie C. Esbrook of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Founder of Cryptocurrency Ponzi Scheme IcomTech Sentenced to 121 Months in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that on October 4, 2024, U.S. District Judge Jennifer L. Rochon imposed a sentence of 121 months in prison on DAVID CARMONA, the founder of the cryptocurrency Ponzi scheme IcomTech.
U.S. Attorney Damian Williams said: “David Carmona masterminded the IcomTech cryptocurrency Ponzi scheme, which preyed upon working-class people by promising them complete financial freedom in exchange for parting with their hard-earned money. Carmona claimed that his victims’ money would be invested in cryptocurrency trading and mining, and that profits from those activities would result in victims doubling their money within six months. In reality, IcomTech was doing no such thing. It was all a lie. And when the scheme came crashing down, Carmona’s victims were left with nothing. Carmona’s days of scamming honest people are at an end, and he now faces substantial time in prison.”
According to the allegations in the Indictment, public court filings, and statements made in public court proceedings:
CARMONA started IcomTech in approximately 2018 with other co-conspirators. IcomTech was a purported cryptocurrency mining and trading company that promised to earn its victim-investors (“Victims”) profits in exchange for their purchase of purported cryptocurrency-related investment products. CARMONA and the other promoters of IcomTech falsely promised their respective Victims, among other things, that profits from the companies’ cryptocurrency trading and mining would result in guaranteed daily returns on Victims’ investments and doubling their money within six months. In reality, IcomTech did not engage in cryptocurrency trading or mining for its Investors, and CARMONA and Icomtech’s other promoters used Victim funds to pay other Victims, to further promote the schemes, and to enrich themselves.
Icomtech promoters, including CARMONA, traveled throughout the United States and internationally where they hosted lavish expos and small community presentations aimed at luring Victims to invest in the schemes, including in the Southern District of New York. During larger-scale events, IcomTech promoters presented on purported investment products and the compensation plan, encouraged Victims to invest as a means of achieving financial freedom, and boasted about the amount of money they were earning. IcomTech promoters often showed up at larger-scale events in expensive cars and wearing luxury clothing as a way of exhibiting their purportedly legitimate success from IcomTech. The atmosphere of these events was festive and designed to generate excitement about the schemes.
Victims invested in IcomTech by purchasing investment products from promoters using cash, checks, wire transfers, and actual cryptocurrency. Following a Victim’s investment, a Victim would be provided with access to an online portal where the Victim could monitor the purported returns. While Victims saw “profits” accumulate on IcomTech’s legitimate-looking online portal, most Victims were unable to withdraw any of these so-called profits and ultimately lost their entire investments. By contrast, IcomTech’s promoters, including CARMONA, siphoned off, in some cases, hundreds of thousands of dollars in Victim funds, which they withdrew as cash, spent on IcomTech promotional expenses, and used for personal expenditures such as luxury goods and real estate.
At least as early as August 2018, Victims who attempted to withdraw money from their online portal accounts had difficulty doing so, and when they complained to promoters, they were met with excuses, delays, and hidden fees, if they were able to make any withdrawals at all. Despite these complaints, IcomTech promoters, including CARMONA, continued to promote IcomTech and accept Victims’ investments. As complaints mounted, IcomTech began offering a proprietary crypto-token for sale as a means of injecting liquidity into IcomTech. Promoters of the schemes claimed that these tokens, known as “Icoms,” would eventually be worth a significant amount of money when they were accepted by companies for payment for goods and services. This was false. In reality, “Icoms” were essentially worthless and resulted in further financial loss to Victims. By in or about the end of 2019, IcomTech stopped making payments to Victims and IcomTech collapsed.
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In addition to the prison term, CARMONA, 41, of Queens, New York, was sentenced to 3 years of supervised release.
Mr. Williams praised the outstanding investigative work of Special Agents from Homeland Security Investigations’ El Dorado Task Force. Mr. Williams also thanked the Securities and Exchange Commission and the Commodity Futures Trading Commission for their assistance.
This case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Benjamin A. Gianforti, Michael D. Maimin, T. Josiah Pertz, and Cecilia Vogel are in charge of the prosecution.
Former Salem County Man Admits Role in Stolen Check SchemeRead the Press Release
CAMDEN, N.J. – A former Salem County, New Jersey, man admitted his role in a scheme involving checks stolen from the mail and other sources, U.S. Attorney Philip R. Sellinger announced today.
Dezhon McCrae, 25, formerly of Penns Grove, pleaded guilty before U.S. District Judge Karen M. Williams in Camden federal court to a six-count information charging him with two counts of conspiracy to commit bank fraud, possession of a stolen postal key, possession of stolen mail, aggravated identity theft, and conspiracy to commit Hobbs Act robbery.
According to documents filed in this case and statements made in court:
Count One
From May 2018 through February 2020, McCrae was part of a “card cracking” conspiracy in which the conspirators obtained stolen checks from the mail and other sources. They then used the stolen checks to create counterfeit checks with the same routing and account numbers for deposit into area banks. Next, the conspirators posted advertisements on social media, seeking individuals who had bank accounts and were willing to give the conspirators access to their accounts. The conspirators then deposited the counterfeit checks into the compromised banks accounts. The conspirators transferred as much money as possible out of the accounts before the banks discovered that the deposits were fraudulent. The conspirators were able to defraud the victim banks of over $274,000. McCrae’s role in this scheme resulted in over $10,000 loss to the victim banks. Three other codefendants have already been sentenced in connection with this scheme and three additional codefendants have pleaded guilty and are awaiting sentencing.
Count Two
After being charged via federal complaint for the conduct alleged in Count One of the information, McCrae engaged in a second scheme to commit bank fraud. From May 11, 2022, to July 27, 2022, McCrae participated in a nearly identical scheme to defraud another bank. This time, the victim bank suffered over $14,000 of loss due to McCrae’s offense.
Counts Three and Four
On Aug. 18, 2023, while the complaint for the allegations in Count One were still pending, McCrae was residing in Paulk County, Georgia. Local police were dispatched to McCrae’s residence in response to eye-witness reports of a shooting. The investigation of the shooting led to the discovery of a stolen postal mailbox key and stolen mail in McCrae’s residence.
Count Five
During the investigation of the Aug. 18, 2023 shooting at McCrae’s residence, local police obtained a warrant to search McCrae’s cellphone. The cellphone was found to contain evidence that McCrae had manufactured a fraudulent New Jersey driver’s license in the name of a real person, but using the photograph of a conspirator. The cellphone evidence also showed that McCrae mailed the false ID to his conspirators in Camden in late June 2023. On July 3, 2023, the false ID was used in an attempt to cash a stolen check at a bank in New Jersey. The bank’s employees were suspicious of the fraudulent ID and the conspirator fled the bank before the stolen check was cashed.
Count Six
The search of McCrae’s cellphone also uncovered evidence of his role in a conspiracy to commit two robberies of letter carriers in Cumberland County, New Jersey. The target of the robberies was the letter carriers’ postal mailbox keys. The first robbery occurred in Fairfield Township on June 13, 2023, when a masked assailant assaulted the letter carrier and successfully stole the postal mailbox key. The second robbery occurred on July 3, 2023, in Vineland. On this occasion, a masked assailant attacked the letter carrier from behind, striking him and spraying him with a cannister of bear repellant. The second robbery was unsuccessful in stealing the letter carrier’s postal mailbox key.
Conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a fine of up to $1 million. Unlawful possession of a postal key carries a maximum penalty of 10 years in prison and up to a $250,000 fine. Possession of stolen mail carries a maximum penalty of five years in prison and up to a $250,000 fine. Aggravated identity theft carries a mandatory consecutive term of two years in prison and up to a $250,000 fine. Conspiracy to commit Hobbs Act robbery carries a maximum penalty of 20 years in prison and up to a $250,000 fine. Sentencing is scheduled for Feb. 6, 2025.
U.S. Attorney Sellinger credited special agents of the U.S. Postal Inspector’s Service, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; andspecial agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas, with the investigation. U.S. Attorney Sellinger also thanked the Paulk County (Georgia) Sheriff’s Department, the New Jersey State Police, the Cumberland County Prosecutor’s Office, the Glassboro Police Department, and the Cherry Hill Police Department.
The government is represented by Assistant U.S. Attorney Andrew B. Johns of the Criminal Division in Camden.
mccrae.information.pdfFormer NISD Employee Sentenced to 16 Years in Federal Prison for Distributing Child PornographyRead the Press Release
DEL RIO, Texas – A San Antonio man was sentenced in federal court in Del Rio today to 192 months in prison for distribution of child pornography.
According to court documents, Thomas Mckinley Koog Jr., 63, uploaded a one-minute video on a social media website of two minors engaged in sexual acts. The upload led to a report by the National Center for Missing and Exploited Children Cyber Tipline to Homeland Security Investigations agents on Aug. 6, 2020. The report also indicated that Koog had additionally distributed three videos of child pornography to six different recipients on multiple days in 2019.
During the investigation, HSI agents determined that Koog was employed as a guidance counselor at a Northside Independent School District (NISD) elementary school. Koog revealed he had been a guidance counselor with the district for more than 12 years and had also spent more than 20 years as an NISD teacher.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
HSI investigated the case.
Assistant U.S. Attorneys Rex Beasley and Holly Pavlinski prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Former Los Angeles Deputy Mayor Sentenced to 12 Years in Prison for Racketeering Conspiracy that Corrupted City Real Estate ProjectsRead the Press Release
LOS ANGELES – A former deputy mayor and long-time Los Angeles city official was sentenced today to 144 months in federal prison for soliciting and accepting more than $750,000 in bribe money for himself and facilitating over $1 million in bribes from property developers to then-Los Angeles City Councilmember José Huizar as part of a long-running pay-to-play racketeering conspiracy at the highest levels of government in Los Angeles.
Raymond She Wah Chan, 68, of Monterey Park, was sentenced by United States District Judge John F. Walter, who also ordered him to pay $752,457 in restitution to the City of Los Angeles.
At the conclusion of a 12-day trial, a jury on March 27 found Chan guilty of all 12 felony counts for which he was charged: one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, seven counts of honest services wire fraud, three counts of federal program bribery, and one count of making false statements to a federal government agency.
“Chan abused his public office and sought to deepen the corruption of city politics for the benefit of his own business interests,” said United States Attorney Martin Estrada. “Today’s sentence sends a message to the public and City Hall alike that our government should not be for sale and those that undermine our democracy through pay-to-play schemes will be prosecuted to the fullest extent of the law.”
“Today’s sentence serves as a reminder that there are consequences for robbing communities of the honest government services they deserve” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “The harm of public corruption manifests itself not only in financial loss, but also the loss of faith in government and public officials. The FBI will remain laser focused on those who seek to use their personal wealth and influence to facilitate relationships between those willing to pay or accept bribes.”
Chan served for years as the General Manager of the Los Angeles Department of Building and Safety (LADBS) and, later, as the Deputy Mayor of Economic Development from 2016 to 2017. Chan abused both of these high offices and the influence they carried to enrich himself, Huizar, and other public officials within the city.
Huizar, 56, of Boyle Heights, represented Council District 14 (CD-14) on the Los Angeles City Council from 2005 until his resignation in October 2020. CD-14 encompassed downtown Los Angeles and some of its surrounding areas. When downtown Los Angeles was experiencing a huge real estate development boom, Huizar chaired the Planning and Land Use Management (PLUM) Committee, which oversaw all major commercial and residential development projects in the city.
Along with Huizar, Chan helped conceive, lead, and operate the “CD-14 Enterprise,” a criminal racketeering enterprise that exploited the city approval process for large real estate development projects to exact bribes from developers. Chan played a critical role in guiding and ensuring the CD-14 Enterprise’s success, managing the conspiracy through both the powerful public offices he occupied and the private relationships he held with wealthy foreign developers seeking to build in the city. Capitalizing on this unique position, Chan steered nearly $2 million in financial benefits to himself, Huizar, and other public officials as part of the pay-to-play bribery scheme.
In furtherance of the conspiracy, while he was General Manager of LADBS and then Deputy Mayor, Chan established and directed a secret business partnership with real estate development consultant George Chiang, securing a lucrative real estate consulting agreement with Chinese real estate developer Shenzhen Hazens. As part of that agreement, Chan solicited and accepted hundreds of thousands of dollars in bribes to advise and pressure other city officials, including Huizar, in favor of Hazens’ Luxe Hotel redevelopment project in downtown Los Angeles. When he left city employment, Chan used the consulting business that he had secretly built to direct bribes to other public officials for the benefit of his private consulting clients.
To help prolong the pay-to-play bribery scheme, Chan also facilitated a $100,000 campaign contribution commitment from Hazens for Huizar’s wife’s candidacy to succeed Huizar as CD-14 Councilmember in exchange for Huizar’s votes to approve the Luxe Hotel project. Chan also helped facilitate numerous other bribes from Hazens to Huizar, including tens of thousands of dollars in sham real estate consulting fees, concert tickets, China travel expenses, and contributions to Huizar’s 2015 campaign debt and alma mater high school.
Chan also facilitated payment of nearly $1 million in bribes to Huizar from billionaire developer Wei Huang, 58, of Shenzhen, China, including $600,000 to settle a sexual harassment lawsuit, nearly $200,000 in casino chips, and luxury-laden gambling trips to Las Vegas. Chan similarly facilitated bribes from Huang to George Esparza, Huizar’s special assistant and key associate in the pay-to-play bribery scheme, through casino chips and lavish Las Vegas trips. When Huang provided these bribes, his company, Shen Zhen New World I LLC, was planning to redevelop the downtown L.A. Grand Hotel into the tallest tower west of the Mississippi, which would require city approvals and Huizar’s official assistance.
Chan played a crucial role in facilitating Huang’s payment of $600,000 for Huizar to settle a sexual harassment lawsuit filed by a former CD-14 staffer, which threatened Huizar’s 2015 re-election campaign and the continued operation of the CD-14 Enterprise. Chan conceived of and helped carry out an elaborate plan involving a foreign shell company, intermediaries, and fraudulent corporate documents to arrange a sham private loan that shielded the fact of Huang’s involvement in the payment. Chan later lied to FBI agents that he was not involved in the settlement, that Huang had no projects in Huizar’s district needing Huizar’s support, and that Huang had never asked Huizar for help with anything – all of which Chan knew to be false.
Huizar was sentenced on January 26 to 13 years in federal prison and also was ordered to pay $443,905 in restitution to the City of Los Angeles and $38,792 in restitution to the IRS. He pleaded guilty in January 2023 to one count of racketeering conspiracy and one count of tax evasion. Huizar has been ordered to begin serving his prison sentence no later than October 7.
Hazens’ U.S. subsidiary, Jia Yuan USA Co. Inc., which was seeking to redevelop the Luxe Hotel, has paid $1.05 million to resolve the government’s investigation into its conduct related to this case, which included bribery and illegal campaign contributions.
Huang, who is charged with several felonies for his bribes to Huizar with Chan’s assistance, fled the United States shortly after the execution of numerous federal search warrants in this case and is considered a fugitive from justice. Huang’s downtown Los Angeles-based company Shen Zhen New World I LLC was convicted in 2022 of eight felonies for – through Huang’s actions as its owner – paying more than $1 million in bribes to Huizar for his critical support for the L.A. Grand Hotel redevelopment project. The company was sentenced to five years of probation, fined $4 million, and ordered to pay the costs of prosecution.
Relatedly, real estate developer Dae Yong Lee, a.k.a. “David Lee,” 60, of Bel Air, and one of his companies, 940 Hill LLC, were convicted in 2022 of providing $500,000 in cash to Huizar and Esparza in exchange for their help in resolving a labor organization’s appeal of a downtown Los Angeles development project. Lee is serving a six-year federal prison sentence and was fined $750,000. 940 Hill LLC was sentenced to five years’ probation, fined over $1 million, and ordered to pay the costs of prosecution.
Prosecutors also have secured guilty pleas from Chiang; Esparza; lobbyist Morrie Goldman; and political fundraiser Justin Jangwoo Kim. Each of these defendants cooperated with the government and testified during at least one trial in this case and will be sentenced at upcoming hearings in November.
The FBI and IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Mack E. Jenkins, Chief of the Criminal Division, and Assistant United States Attorneys Cassie D. Palmer, Susan S. Har, and Brian R. Faerstein of the Public Corruption and Civil Rights Section prosecuted this case.
Any member of the public who has information related to this or any other public corruption matter in the City of Los Angeles is encouraged to send information to the FBI’s email tip line at https://tips.fbi.gov or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
Former Las Vegas City Councilwoman Convicted in Charity Fraud SchemeRead the Press Release
A federal jury in the District of Nevada convicted a former Las Vegas city councilwoman and gubernatorial candidate yesterday on one count of conspiracy to commit wire fraud and six counts of wire fraud for executing a scheme to defraud charitable donors by falsely claiming she was raising money to memorialize police officers who lost their lives in the line of duty.
According to court documents and evidence presented at trial, Michele Fiore, 54, of Pahrump, Nevada, while serving as a Las Vegas city councilwoman, solicited donors for money to build statues honoring two Las Vegas police officers who had been killed in the line of duty. The evidence at trial demonstrated that Fiore promised donors that “100% of the contributions” would be used towards the construction of memorials for the fallen officers. However, Fiore did not use any of the more than $70,000 in charitable donations she raised for the memorials. Instead, Fiore spent the money donated by the victims on a variety of personal and political expenses, including political fundraising bills, personal rent payments, and payments to family members.
Fiore is scheduled to be sentenced on Jan. 6, 2025, and faces a maximum penalty of twenty years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and Special Agent in Charge Spencer L. Evans of the FBI Las Vegas Field Office made the announcement.
The FBI Las Vegas Field Office investigated the case.
Trial Attorneys Dahoud Askar and Alexander Gottfried and paralegal specialist Heather DePremio of the Criminal Division’s Public Integrity Section are prosecuting the case. The U.S. Attorney’s Office for the District of Nevada provided substantial assistance.
Former CEO of Tribal Subsidiary Charged with Embezzling over $500,000 from Yurok TribeRead the Press Release
SAN FRANCISCO – A federal grand jury has indicted Jessica Engle on charges that she embezzled from an Indian tribal organization and stole funds from a program receiving federal funds.
Engle, 42, of Gold Hill, Ore., was arrested on Oct. 2, 2024, and made an initial appearance in federal district court in Medford, Ore., that same day. Engle is scheduled to appear before a magistrate judge in San Francisco on Oct. 16, 2024, to face the charges.
According to an indictment filed Sept. 25, 2024, and unsealed Oct. 3, 2024, Engle served as the Chief Executive Officer of the Yurok Telecommunications Corporation, a wholly owned subsidiary of the Yurok Tribe. Between July 2021 and May 2022, Engle allegedly embezzled approximately $579,574 from the Yurok Tribe. In the year preceding Engle’s alleged theft, the Yurok Tribe received over $10,000 in funding from the federal government.
The indictment charges Engle with one count of embezzlement from an Indian tribal organization, in violation of 18 U.S.C. § 1163, and one count of theft from programs receiving federal funds, in violation of 18 U.S.C. § 666.
An indictment merely alleges that crimes have been committed and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Engle faces a maximum statutory penalty of five years in prison for a violation of 18 U.S.C. § 1163 and 10 years in prison for a violation of 18 U.S.C. § 666, and a fine of $250,000 or twice the value of the property involved in the transactions per count. However, any sentence following conviction would be imposed by the Court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The announcement was made by United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert Tripp.
Assistant U.S. Attorney Josiah Bournes is prosecuting this case with the assistance of Soana Katoa. This prosecution is the result of an investigation by the FBI. The U.S. Attorney’s Office and the FBI appreciate the assistance of the Yurok Tribal Police.
Jessica Engle Indictment
Federal Court Issues Preliminary Injunction Against Town of Thornapple, Wisconsin, Requiring Use of Accessible Voting System during November ElectionRead the Press Release
The Justice Department announced today that a federal court in the Western District of Wisconsin has entered a preliminary injunction requiring the Town of Thornapple, Wisconsin, to comply with federal law by offering an accessible voting system at each of its polling places during the Nov. 5 federal general election.
“This preliminary injunction affirms the right of voters with disabilities to participate on the same terms as every other voter,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Help America Vote Act protects that right in every town in Wisconsin, and every jurisdiction across the country, by requiring that every voter has the opportunity to use an accessible voting system.”
The United States filed a complaint on Sept. 20 alleging that the Town of Thornapple, among other defendants, had violated Section 301 of the Help America Vote Act (HAVA) by failing to provide voting systems that allowed voters with disabilities to participate in the same private and independent manner as other voters during Wisconsin’s April and August federal primary elections. The preliminary injunction requires Thornapple to comply with Section 301 of HAVA by making available an accessible system during the Nov. 5 federal general election. The injunction also requires Thornapple to prominently post signage alerting voters that an accessible system is available for use, to train election officials on the use of that system, to certify to the court by Oct. 31 that its accessible system is ready for use in the November general election and to allow Justice Department personnel to monitor compliance with the terms of the injunction.
Congress passed HAVA in 2002 in part to make in-person voting more accessible for voters with disabilities. Among other things, Section 301 of HAVA requires that each polling place used for federal elections provide at least one voting system that provides voters with disabilities the same opportunity for access and participation as other voters are provided, including the same opportunity to cast ballots privately and independently.
More information about voting and elections, including guidance documents and other resources, is available at www.justice.gov/voting. Learn more about HAVA and other federal voting laws at www.justice.gov/crt/voting-section. Complaints about possible violations of federal voting rights laws can be submitted at civilrights.justice.gov or by telephone at 1-800-253-3931.
Evansville Woman Sentenced to Two Years in Federal Prison for Embezzling over $550,000 from her Employer over Fifteen YearsRead the Press Release
EVANSVILLE—Rebecca Willis, 67, of Evansville, has been sentenced to two years in federal prison, followed by three years of supervised release, after pleading guilty to eight counts of wire fraud.
According to court documents, Willis was employed as a bookkeeper with an architecture firm at its Evansville location for more than twenty years. She had various financial responsibilities, including handling accounts payable, accounts receivable, and payroll.
Between 2006 and 2021, Willis entered false payroll data to unjustly enrich herself. She inflated her regular hours, overtime hours, bonuses, and mileage reimbursement to cause her employer to pay her more than she was actually owed. Willis’ bi-weekly pay was generally 40% fraudulent and 60% legitimate. Additionally, Willis used the company’s business account and company credit cards to make unauthorized purchases of items that she retained for her personal use and benefit, including gift cards and gasoline. In total, Willis stole approximately $570,209.47 from her employer over fifteen years.
“This defendant lied, stole, and cooked the books to line her pocket with no remorse, betraying her employer of two decades and repaying their trust by fraudulently increasing her income by nearly forty percent over fifteen years,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Fraud and embezzlement can have devastating effects on companies. The federal prison sentence imposed here demonstrates that those who commit financial crimes will pay a serious price. I commend the FBI, Evansville Police Department, and our federal prosecutor for their efforts to investigate these crimes and hold the defendant accountable.”
The FBI and Evansville Police Department investigated this case. The sentence was imposed by U.S. District Judge Richard L. Young. Willis was also ordered to pay $570,209.47 in restitution to her former employer.
U.S. Attorney Myers thanked Assistant U.S. Attorney Matthew B. Miller, who prosecuted this case.
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Eden Prairie Woman Sentenced to Prison for Embezzling More Than $1 Million from EmployerRead the Press Release
MINNEAPOLIS – An Eden Prairie woman has been sentenced to 24 months in prison, two years of supervised release, and was ordered to pay $1,137,404 in restitution for embezzling more than $1 million from her employer, announced U.S. Attorney Andrew M. Luger.
According to court documents, Monica Svobodny, 52, worked as the Supply Chain and Engineering Manager at a furniture manufacturing company located in Edina, Minnesota. Svobodny used her managerial position to embezzle funds and convert them to her own use and benefit. Svobodny regularly used company credit cards for unauthorized personal expenses such as designer clothing, spa services, and luxury hotel stays. To cover her fraud, she left unapproved credit card expenses as “pending” for accounting purposes. On more than 300 occasions, she used company cards to transfer funds to herself via PayPal to cover personal expenses. Svobodny also edited PayPal transaction receipts and fraudulently listed some of the expenses as payments to a defunct company.
In total, Svobodny knowingly and willfully embezzled more than $1,137,000 over a period of seven years.
On April 10, 2024, Svobodny pleaded guilty in U.S. District Court to one count of wire fraud. She was sentenced yesterday in U.S. District Court by Judge Ann D. Montgomery.
This case is the result of an investigation conducted by the Edina Police Department with assistance from the FBI.
Assistant U.S. Attorney Rebecca E. Kline prosecuted the case.
Durango Teacher Charged with Coercion and Enticement of A Minor, Possession of Child PornographyRead the Press Release
DURANGO – The United States Attorney’s Office for the District of Colorado announces that Benjamin Vincent Smith, 28, of Durango, Colorado, was charged by complaint with one count of attempted coercion and enticement of a minor, and one count of possession of child pornography.
According to the complaint, Smith was a former music teacher at Escalante Middle School in Durango. In July 2024, Smith allegedly posed as a 16-year-old female on the social media service SnapChat under username “MTNCHICK69.” Via SnapChat, Smith contacted Minor #1 under the ruse that Smith was a 16-year-old female, and enticed Minor #1 to meet him in a parking lot for a sexual encounter. After meeting Smith, Minor #1 reported the incident to law enforcement, who were able to identify Smith as the suspect. During the investigation, law enforcement seized Smith’s phone and searched it pursuant to a warrant. Smith allegedly possessed numerous photographs of minor children engaged in sexually explicit conduct, apparently belonging to over two dozen school-age minors living in the Durango area.
The charges contained in the complaint are allegations and the defendant is presumed innocent of the charges unless and until proven guilty.
The United States Attorney’s Office encourages anyone with information related to this investigation or who had any contact with “MTNCHCK69” to contact the Homeland Security Investigation tip line at: 1-877-4-HSI-TIP.
The case is being investigated by HSI with assistance from the Federal Bureau of Investigation and the Durango Police Department. The case is being prosecuted by Assistant United States Attorney Jeffrey K. Graves.
Case Number: 24-mj-00185-JMC
Department of Justice Announces more than $600,000 in Federal Funding for the Kalispel Tribe of Indians to Respond to and Prevent Sexual AssaultRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced a Department of Justice grant award for the Kalispel Indian Community of the Kalispel Reservation (Kalispel Tribe of Indians). The grant allocates $610,000 to respond to and prevent sexual assault.
In announcing this award, U.S. Attorney Waldref stated, “This latest grant award demonstrates the federal government’s continued commitment to combatting sexual violence, including within Tribal communities in Eastern Washington, which disproportionately impacts women and vulnerable populations. Victims of sexual assault deserve to live in a world where they feel safe – free from abuse and the fear of abuse.”
With this funding, the Kalispel Tribe of Indians will hire one full-time sexual assault advocate to provide crisis intervention, emergency services, advocacy, and referrals. The Kalispel Tribe also will use the grant award to manage an emergency hotline as well develop materials to provide resources and support to survivors of sexual assault.
“The Kalispel Tribe is deeply committed to ensuring the safety and well-being of our people and our community,” says Kalispel Vice Chair and Executive Director of Kalispel Casino & Government Affairs, Curt Holmes. “We have invested in a robust Victim Assistance Services program for the past 21 years. This grant funding will allow us to add much needed additional staff as we serve approximately 760 victims each year. Not only do we serve tribal members and non-tribal members, we are also a frequent referral source for law enforcement agencies, other victim service providers, and social service agencies in both Spokane and Pend Oreille Counties. As the need in our community continues to grow, the Kalispel Tribe is committed to providing victims with valuable resources in an effort to break the cycle of violence.”
Kalispel Tribe Victim Assistance Services (“KTVAS”) provides services throughout Pend Oreille County, including the Ione and Metaline Falls areas, and Spokane Counties, including the West Plains Region of Cheney, Airway Heights, and the US Airforce Base at Fairchild. KTVAS also serves Kalispel Tribal Members and Members from all other Tribes, as they are the only Tribal Victim Service program on the east side of the State that provides culturally specific services to all Native Americans.
Funding for the $610,000 grant was awarded by the Office on Violence Against Women, Fiscal Year 2024 Tribal Sexual Assault Services Program. The program supports projects to create, maintain and expand sustainable sexual assault services provided by tribes, tribal organizations, and nonprofit tribal organizations within Indian country and Alaska Native villages.